JPMorgan CEO Jamie Dimon Calls Basel III Regulations ‘Blatantly Anti-American’
The U.S. should consider pulling out of the Basel Committee on Banking Supervision, according to JPMorgan (NYSE:JPM) CEO Jamie Dimon. In an interview with the Financial Times, Dimon said he supported of the Basel III capital requirements, but thought imposing an additional charge on the largest global banks was going too far.
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Dimon called the new capital rules “blatantly anti-American”, and said they weren’t in the best interests of the country. The Basel III rules, designed to increase the safety of the financial system, require banks to build up capital and have a certain level of liquidity in their investments in order to make them more risk absorbent. While tier-one capital requirements for all banks is at least 7% of risk-weighted assets, the biggest banks, including JPMorgan, have to reach 9.5%.
Dimon is also critical of the new liquidity standards, saying in his interview that they were unfair, as they viewed covered bonds as highly liquid but discounted government-backed, mortgage-backed securities. He also added that other aspects of the Basel III regulations hit investment banking activity core to U.S. banks the hardest because of the threat that Asian Banks could swoop in and take part of the U.S. market share.