200,000 pagesit’s still a lot to regulate the banking sector. However, by imposing such a heaviness on the banks, the FED only makes things worse. JP Morgan launches the alert!
Jamie Dimon slams the Fed
First Republic Bank was on the brink. It could have followed Silicon Valley, Signature and Silvergate in their fall if JP Morgan had not intervened in time.
” 1/ On Monday, JP Morgan Chase acquired a substantial majority of assets and assumed some liabilities of First Republic Bank from the FDIC. »
In the eyes of the administration of First Republic, this initiative is commendable seen that :
” JPMorgan Chase has been a leader in financial services for more than 200 years, and First Republic customers can be assured that all of their deposits are backed by the financial strength and stability of JPMorgan Chase. »
Aware of his weight in the American financial sector, Jamie Dimon, CEO of JPMorgan, did not hesitate to criticize the FED for its initiatives in favor of bank carnage. Because instead of taking proactive measures, Jerome Powell and his team decided to put in place additional regulations.
With 200,000 pages of bank-specific regulations, their CEOs and boards are quickly becoming ” people to blame “.
Consequence: the banks are forced to recruit more people to manage the “overregulation” (or ” excessive regulation “. This is to the detriment of their development.
” Some of these community banks now have more compliance people than loan officers “, he explained in an interview with Bloomberg on May 11.
The proposed solutions
If the Fed has any will to stop the bleedingshe must adopt a “holistic approach” in his conduct, have we learned about Cointelegraph.
It could start with revision of its position on stress tests. Because the latter would force the banks to appreciate things like a short-sighted person. Under such pressures, they would deprive themselves of a global vision of the recurring events that rage in their world.
Moreover, focusing solely on stress testing would push companies to have a ” false sense of security ».
We might as well recognize that the FED never anticipated banking crises. While it has not hesitated in recent months to raise the federal funds rate. Objective: limit the breakage of inflation. More than 5% is unheard of since 2007.
Doesn’t it know that its initiatives to resell debt securities accumulated since the 2008 crisis are not weakening an American banking system that is less and less healthy and resilient?
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