Key facts
- JPMorgan CEO Jamie Dimon criticized proposed U.S. bank capital requirements, calling them "false" and artificially high.
- Dimon argued the rules disproportionately affect large, diverse banks like JPMorgan.
- He suggested the Federal Reserve should adjust the calculation of the GSIB surcharge.
- JPMorgan expects a roughly 4% capital increase under the new proposals, while competitors may see a reduction.
JPMorgan Chase CEO Jamie Dimon has intensified his criticism of proposed U.S. bank capital requirements, arguing that regulators should not set "false" or artificially high numbers. Speaking during a quarterly earnings call, Dimon stated that the proposed changes to how lenders calculate funds for potential losses are "unfair" and disproportionately impact large, diverse banks like JPMorgan, while benefiting Wall Street trading giants.
Dimon specifically called for the Federal Reserve to adjust the calculation of the GSIB surcharge, suggesting it should fully account for economic growth since its imposition in 2015. JPMorgan has previously indicated that under the new draft proposals, it would face approximately a 4% capital increase, while competitors could see an average capital reduction of 4.8%. JPMorgan's Chief Financial Officer Jeremy Barnum echoed these concerns, questioning the policy outcome that could damage banks' ability to serve Main Street.
The Federal Reserve, along with two other federal bank regulators, is leading the effort to finalize these capital proposals, including Basel rules on risk weights and the GSIB surcharge. While the current proposals are considered more industry-friendly than a 2023 draft, Dimon remains a vocal critic. Fed Vice Chair for Supervision Michelle Bowman has expressed hope that the rule-writing effort will conclude by the end of the year.