JPMorgan chief faults new capital rules

In a candid and forthright address to investors, Jamie Dimon, the CEO of JPMorgan Chase, didn’t mince his words. He took aim at the stricter capital rules proposed by U.S. regulators, warning that they could have profound implications, potentially hampering economic growth and investor sentiment.

Speaking at a conference in New York, Mr. Dimon’s assessment of the proposed regulations was unequivocal. “I wouldn’t be a big buyer of a bank,” he remarked, eliciting laughter from the audience. “I’d be no better than equal weight.”

The head of the largest bank in the United States went on to express his skepticism about the regulators’ intentions, questioning the underlying objectives of these rules. He urged for greater transparency from the regulatory bodies, emphasising the importance of understanding the rationale behind such significant regulatory shifts. “All I want is fairness, transparency, openness,” Mr. Dimon declared, voicing a sentiment that resonates with many in the financial sector.

Mr. Dimon also turned his attention to the Chinese market, a subject of growing interest and concern for many global financial leaders. He expressed his belief that the once-lucrative Chinese market may no longer hold the same allure it once did. Drawing from his recent visit to China in May, the first in four years, he conveyed a sense of caution. “In terms of our own business, the risk-reward (from China), which was very good, has now become okay. The risk is bad,” he remarked, underscoring the bank’s cautious approach to managing its exposure in this complex economic landscape.

China’s economic performance in the second quarter provided ample reasons for such caution, with the gross domestic product expanding by a modest 0.8% from the previous quarter, underscoring the fragility of its growth trajectory.

It’s worth noting that Mr. Dimon has been vocal about the uncertainties surrounding the Chinese economy in the past. He has consistently pointed to the potential impact of these uncertainties on investor confidence and has advocated for meaningful engagement between the United States and China on critical security and trade issues.

Jamie Dimon’s candid assessment of both U.S. capital rules and the Chinese market serves as a poignant reminder of the intricate challenges facing the global financial landscape. As one of the foremost leaders in the industry, his words resonate not only with investors but also with policymakers seeking to strike a balance between regulatory prudence and fostering economic growth.