JPM CEO Dimon Says Regulations Have Gone Too Far Since Lehman

JPMorgan Chase & Co. CEO Jamie Dimon says regulations implemented after the Lehman Brothers collapse "went a little too far," forcing the bank reduce lending, especially in areas like mortgage. Dimon speaks before the US House Financial Services Committee.

[@guineveregruntle6746]

Dimon is spot on. The pendulum swung too far to one side and an assessment or recalibration is long overdue.

[@Aa1133Cc]

Dodd frank requires banks to capitalize 5% of CMBS origination on their balance sheet opposed to transferring all the risk to CMBS investors which were primarily levered prop trading desks pre GFC. It also requires buyers of B-piece mortgages which are secured against equity appreciation not properties to hold the securities for 5 years, thus reducing or pretty much eliminating short term profit seeking demand for CMBS issues. I work in private equity real estate and we’re seeing bankers and CMBS originators go pencils down due to uncertainty of the rising cost of capital. The WACC is too high! Jaime is just saying that banks are made to lend but they can’t do that at the most critical time, due to the rising cost of capital and that de-regulation that leads to reduction of this cost is needed maintain liquidity and therefore financial price stability across all asset classes.

[@frederickmiles8815]

Sooooo everyone is massively overleveraged due to Swaps (GS is levered up 100 to 1) and your solution is to remove capital requirements (buffers), while calling out the massive cash horde in the reverse repo - which is used in support of adoption of SOFR? What a mess, 2023 may be our first true depression since the 30's, no bailouts.

[@camarjohnson2867]

Long live the international bankers

[@defilade1066]

Doubt they will for long...

[@TheLiquidPeace]

Having some problems manipulating the system Jamie? I am sure a Cozen like you will sort it out in short order!

[@KuriousKi77y]

An overhaul would be an understatement!

[@Ekzit21]

They don’t want you to buy it until their pockets are full.

[@miranda9691]

This Man has confessed for 5 felonies and still its the top Man, god you really have to Just be in awe

[@luannmarie4568]

Just look them up on violation tracker. Great history

[@TanSpaceX]

If you are truly benevolent, then help promote & finance tiny houses to break the stranglehold of mortgage lenders (a.k.a. banks) and the frenzy vicious cycle of flipping and lending for profits. 😂

[@toddtobin5465]

I took em

[@fernendo4]

Shorting Sanara Medtech and Decibel Therapeutics. Buying Google, Aecon Group and Uber.

[@wizecorner2190]

❤🔥👌💫

[@ca6360]

INVEST IN DOMESTIC ENERGY! YOU WAIT, THEY ARE, GUARANTEE IT

[@johnprendergast1338]

I watch to see Maxine Waters's questions...They reveal so much ..

[@v.v3829]

Your joking right? Only thing they reveal is the progression of Mad Maxines Alzheimers.

[@MarkDiSciullo]

Yes…they reveal how insane and incompetent she is.

[@v.v3829]

From now on I’m watching for rachida talibs questions… she really showed Jaime dimon this time..

[@MarkDiSciullo]

@@v.v3829 😂

[@XMON888]

Not far enough 😂