TD:CC - Jamie Dimon says regulators should look at banning short selling bank stocks

2023-05-11 09:28:53 ET

Regulators should take a look at a ban on short-selling bank stocks, JPMorgan Chase ( NYSE: JPM ) Chairman and CEO Jamie Dimon said on Thursday.

While many contend that short sellers are not the problem, "I think they may partially be wrong, because, as you know, some people are unscrupulous and they use other means to go short," he said in an interview with Bloomberg Television.

"The SEC has the enforcement capability to look at what people are doing by name in options, derivatives, short sales," Dimon said. "If someone is doing anything wrong — people are in collusion or people going short and then making a tweet — they should go after them and vigorously."

Bank stocks were mostly in the red in Thursday premarket trading. The SPDR S&P Bank ETF ( KBE ) -0.4% .

He had a lot to say to banking regulators about policy. He would like more clarity overall, pointing to uncertain policy on mergers, noting the termination of TD Bank Group's ( TD ) acquisition of First Horizon ( FHN ).

Dimon advises that regulators be "thoughtful" and "be very forward-looking", and to "not be surprised constantly."

"I'm not asking for a comprehensive solution" from regulators, just that they "be prepared for problems," Dimon said.

Meanwhile, the bankiing crisis "will sort its way through" and is "hopefully getting near the tail end of that," he said.

Regional banks are "quite strong." While the banks are worried about runs in deposits, their financial results are good and will be good next quarter, Dimon said. They're earning money, have "good clientele", and are "very diversified," he added.

At the beginning of May, Dimon said he thought the deposit withdrawal part of the banking crisis was over, adding that JPMorgan's ( JPM ) acquisition of First Republic Bank would help to stabilize the banking system.

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