JPMorgan's Dimon warns bank stocks will suffer under US capital rules - reports
investmentweek.co.ukJP Morgan Chase CEO Jamie Dimon
Dimon argued the 'Basel III Endgame' reforms would reduce the amount banks lend, and drive banking activities into less regulated sectors, the FT has reported.
Under the Fed's proposals, lenders would be required to hold an extra $2 of capital for every $100 of risk-weighted assets.
Bank of England faces calls to delay new global banking capital rules
Speaking at an industry event organised by Barclays, Dimon said: «Do [regulators] want banks ever to be investable again?»
«I would not be a big buyer of banks . . . I would be no better than equal weight, or whatever you call it,» he told the audience of analysts and investors.
JPMorgan Chase's CEO is not the only senior Wall Street figure to voice criticism of the planned rules, which have also sparked an industry lobby group campaign called «Stop Basel Endgame».
Speaking on CNBC last week, Goldman Sachs chief executive David Solomon said «these new capital rules have gone too far», adding they will «hurt economic growth without materially enhancing safety and soundness».
Bank of America chief financial officer Alastair Borthwick has also criticised the Fed's planned rules, arguing they could limit bank lending by making risk-weighted assets double counted in some cases.
«I think there are going to be some important points of advocacy on the part of industry and by businesses in America, who are the ones who ultimately are going to pay for this,» Borthwick told the Barclays conference.
Most other regions have already put in place Basel reforms for their banking sector, marking the US as a laggard.
Regulators propose raising capital requirements for largest US banks by 16%
JPMorgan would have to hold 30% more capital than a European bank
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