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JPMorgan Chase & Co. CEO Jamie Dimon said a rollback of banking regulations during the Trump administration was not to blame for the recent U.S. bank failures, in part two of an interview with CNN.
Dimon said U.S. senators that have pointed to the lighter regulation for smaller banks introduced in 2018 as a factor in the blow-up of Silicon Valley Bank and Signature Bank are mistaken.
“Those senators are wrong,” Dimon said on CNN This Morning. “They still had higher liquidity and capital requirements and they met their exposure. It wasn’t the regulatory changes.”
Asked about lawsuits involving JPMorgan Chase’s
JPM,
role in providing banking service to deceased, convicted pedophile Jeffrey Epstein, Dimon said the bank has the best compliance lawyers in the world to review its transactions in its wealth management unit, but he declined to comment on the lawsuit.
Asked if JPMorgan should have acted more quickly in reaction to allegations around Epstein, Dimon said, “Hindsight is a fabulous gift.”
Reports surfaced on Tuesday that Dimon will be deposed in two civil lawsuits over the bank’s ties to the late financier.
Turning to the banking crisis, JPMorgan’s role in providing $30 billion along with other large banks to stop a run on deposits at First Republic Bank
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was “an attempt to give them time to resolve the situation”, Dimon said, but he did not provide additional details.
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Overall, Dimon said banks should be allowed to go out of business without posting a systemic risk.
“Failure is OK — you just don’t want the domino effect,” he said.
Dimon said inflation will likely be here for longer than people expect, and that it’s also affecting long-term interest rates which are challenging permanent pools of capital such as sovereign wealth funds.
He also said the Federal Deposit Insurance Corp. should raise its $250,000 limit on providing deposit insurance.
In part one of his interview on Thursday night, Dimon said he thinks the U.S. is getting to the end of the current banking crisis, but that potential changes in regulations could have lasting effects.
Shares of JPMorgan Chase are down 4.9% in 2023, compared to a 6.9% increase by the S&P 500
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