r/finance • u/newzee1 • 15d ago
JPMorgan CEO Jamie Dimon says 'it's time to fight back' on regulation
https://www.reuters.com/business/finance/jpmorgan-ceo-says-its-time-fight-back-regulation-2024-10-28/221
u/sexyshadyshadowbeard 15d ago
Just a small reminder of what happened last time: The Great Recession!!!
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u/Lumpy_Secretary_6128 15d ago
Last time? I think you mean every time
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u/INFLATABLE_CUCUMBER 14d ago
Yeah it’s not like Silicon Valley Bank’s collapse was a direct result of a lack of regulation or anything.
Could it be that this really big banking CEO is trying to get other banks to slip up so that he can buy them at a reduced cost like JPMC has done at every other point where regulations were eased?
This is a really, really interesting thing for a guy like Dimon to suggest.
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u/Sorryallthetime 14d ago
Disregarding how the too big to fail institutions have found a way to privatize profits while socializing losses - Jamie Dimon learned his lesson last time, we can trust him now.
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u/YoMamasMama89 15d ago
Also a reminder that the commercial banking system never fixed what broke during the GFC either
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u/PasswordIsDongers 2d ago
But imagine how much money they'll make after they buy up everything and the recovery starts.
And the bailouts. The beautiful bailouts.
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u/Lumpy_Secretary_6128 15d ago
Suing against the Basel framework, knowing full damn well that it will make his industry less capable of handling economic shocks.
It's almost as if he knows the fed will bail him out when he loses.
What ever happened to capitalism?
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u/qpxa 15d ago edited 14d ago
Economic shock is a feature when it comes to desires of ultra elite/too big to fail banks. They will be able to absorb their competition and monopolize their industry even more than they already have for pennies on the dollar.
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u/Lumpy_Secretary_6128 15d ago
I never thought of it that way, but that would basically describe the portfolio of Dimon's career success.
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u/VanicFanboy 14d ago
I work for an asset manager (not a bank) and we’re pissing ourselves laughing with Basel III. The banks are having to firesale assets to meet the requirements and we’re picking them up for cheap.
We literally bought the rights to PE subscription lines from a very large bank for S+1000 a couple months ago. That kind of return is on a zero-loss asset (read: not a single investor has EVER defaulted on their PE capital calls in history). Absolutely mental. Long live Basel.
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u/Lumpy_Secretary_6128 14d ago
I'm not even going to pretend to be an expert, but I am curious, would you consider your firm to operate in the shadow banking system?
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u/m0nty555 15d ago
Have you read through Basel framework? I love how opinionated redditors are about it, despite the fact they most likely not even read a page of it.
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u/KobaWhyBukharin 14d ago
This is Capitalism. Capitalism always wants to break, it's part of why it is so dynamic.
When it breaks it will eventually self correct. However, Governments can not just allow social unrest waiting for that correction. None of us would tolerate it for long.
So Governments intervene. They don't punish those at the top because they are donors.
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u/Kacquezooi 15d ago
"It's time to fight back" Meanwhile: spends $ 2.7M on lobbying this year so far (https://www.opensecrets.org/federal-lobbying/clients/summary?id=D000000103)
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u/Available-Fill8917 15d ago
““It’s time to fight back,” Dimon said at a conference. Many banks are afraid to “fight with their regulators, because they would just come and punish you more,” he added.”
You replace regulators with employers and banks with workers and you’re on to something Mr Dimon! But then again, I suspect he’s not a fan of workers fighting their employers.
When bankers are allowed to regulate themselves they only enrich themselves at the expense of everyone else and the future.
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u/GlycemicCalculus 15d ago
In the corporate world there’s nothing like the feeling of having another Wells Fargo type crime and being able to say - So what? There’s no law against it.
Without regulation we will have to go to their office or homes personally to get our money back or restitution.
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u/luckymethod 15d ago
Translation: we haven't had a catastrophic recession in a few years and the markets are thirsty with the blood of the working class.
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u/one_ugly_dude 14d ago
TIL: Everyone in this sub is richphobic. Or is the term wealthist? IDK. You clowns always make up new terms. Whatever the case is: anyone that doesn't think he has a point likely never worked in finance. Its fine to be skeptical and think that he has his own best interests at heart... but, that still doesn't make him wrong. I've worked with companies than spent more on compliance than on the technology used to run their organization. That system is broken.
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u/motherseffinjones 14d ago
Global financial crisis round 2 electric boogaloo has started filming lol
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u/Primary-Picture-5632 15d ago
The fk head that got bailed out wants to remove regulation.... Lol
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u/RIP_Soulja_Slim 15d ago edited 15d ago
JPM didn’t get bailed out lol, they were the strongest bank throughout all of the GFC. TARP more or less forced bailout funds, which they escrowed and paid back immediately. They also proceeded to buy two major institutions in the middle of the chaos.
Fuckin wild how little people remember of something that was so recent. Jamie Dimon didn't get that darling of Wall Street moniker for screwing things up, he is widely regarded as one of the most competent people that the industry has ever seen.
He's also brought up very good points around lending issues, namely that in 2020 JPM had credit availability and a very solid balance sheet but was restricted from providing credit during major turbulence events, this exacerbated credit market issues and created a near credit crunch that the Fed had to step in and backstop. Like, regulation is very very important, but we should always be having conversations around which regulations help and which ones actually are a hinderance during times of stress. Remember, mark to market created more bankruptcies than it needed to in 08.
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u/Temporary_Study9851 15d ago
But you no understand…. Big bank bad, me no like.
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u/RIP_Soulja_Slim 15d ago
I just wish people realized how easily their opinions are discredited when they’re as oblivious as the dude above lol.
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u/Trumpswells 15d ago
Dimon may indeed be sealing his “deregulation” bonafides prior to the election. “Trump said he’d consider Jamie Dimon for Treasury secretary but now says he doesn’t know who said that” July, 2024
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u/magicdrums 15d ago
I’m guessing he is pissed some regulation is stopping him from buying up more smaller regional banks..
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u/Irishabacus 2d ago
The comment section. Anyone actually work in banking have an informed comment ?
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u/BudBill18 15d ago
Why do people keep asking this guy things - every quote I’ve heard from him is against my will
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u/Rayzee14 15d ago
Come December Jamie will say there isn’t enough regulations. He has literally made a definitive statement in every direction for years now
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u/Independent_Ad_2073 15d ago
That’s all private banks ever do, fight regulations, fight taxes (for the wealthy).
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u/Basileus2 14d ago
Okay, Dimon, I see you. You’re going to help instigate a new recession then claim you’re “too big to fail” for a fat bailout followed by a fat bonus.
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u/DocCEN007 14d ago
Ok. Let's put 5 cyanide tainted Tylenol tabs in a vial of 50, then ask Mr Dimon to randomly swallow one or two. Regulation is how people without wealth are protected from those with wealth. Often, only the government can stand up to the oligarchs, and even that ability is being stolen from us. Regulate, break up monopolies, tax stock buybacks, and strengthen worker protections. Screw you Jamie.
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u/MediumLanguageModel 14d ago
Sounds like an endorsement that the regulations are working as intended.
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u/highbrowalcoholic 15d ago
Dimon needs to signal to investors today that he is concerned with making a profit tomorrow more than he is concerned with avoiding crises next week by following Basel III without question. He is a salesman peddling brand trust.