2023-09-12 04:22:20 ET
JPMorgan Chase ( NYSE: JPM ) CEO Jamie Dimon has once again slammed U.S. regulators' proposal for higher capital requirements for banks, calling it "hugely disappointing" as it could force borrowers to pay more for loans and may curtail lending by banks.
Regulators in July had proposed to strengthen regulations by requiring large U.S. banks to set aside more capital, as part of the "Basel III endgame" reforms .
During a Barclays conference , Dimon said the proposal would push more banking activities into sectors that are less regulated. Also, he warned that higher capital requirements compared to international peers would be a "huge negative" over time, noting that JPMorgan ( JPM ) would be required to hold 30% more capital than a European bank.
"Do (regulators) want banks ever to be investable again?" Dimon asked, adding that he wouldn't be a big buyer of banks.
Dimon had previously warned that the new rules would likely raise the cost of mortgage affordability and impact small businesses .
JPMorgan's ( JPM ) chief is not the only one on Wall Street who's unhappy with the proposed rules.
At the conference, Bank of America ( BAC ) CFO Alastair Borthwick warned that the rules may constrain bank lending as risk-weighted assets could be double counted in some instances.
Goldman Sachs ( GS ) CEO David Solomon told CNBC last week that the new rules would hurt economic growth without materially enhancing soundness.
Two Federal Reserve governors had also raised concerns in July. Christopher Waller warned that the proposal could increase the cost of credit, while Michelle Bowman said it could impose real costs on banks and their customers without adding to financial stability.
More on Basel III Endgame
- U.S. regulators propose increasing capital requirements for large U.S. banks
- Assessing the impact of proposed Basel III endgame rules on banks
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JPMorgan CEO Jamie Dimon slams Basel III endgame proposal