Jamie Dimon, chief executive officer of JPMorgan Chase, the largest bank in the United States, said last Monday, October 28, that his colleagues should fight against excessive regulation.

Mr. Dimon believes that the US banking industry is currently burdened with redundant or badly conceived rules. In this case, it means the norms based on which the process of regulating such things as open banking is carried out.

On Monday, during a speech at the conference, Jamie Dimon said that it is time to fight back. According to him, lenders are afraid of the formation of conflict situations in the context of their relationship with regulators. Jamie Dimon noted that in this case, banks assume that actions that may cause the mentioned situations are likely to also entail various kinds of stringent measures from regulators.

The head of the largest US financial institution is convinced that the current system of rules hurts lower-paid individuals. In this case, the rules governing the activities of banks are implied. Also, according to him, the situation is becoming unfair. In this case, the situation is implied, formed by the current practice of regulating the functioning of the banking sector.

As part of the comments about an unfair state of affairs, Jamie Dimon mentioned a plan that was proposed by regulators last year to line up their standards with the Basel Committee on Banking Supervision. The authors of the corresponding plan claim that the new set of solutions will help the banking industry better handle economic shocks. At the same time, Jamie Dimon, commenting on this initiative, said that the devil is in the details. According to him, lenders are waiting for new proposals under Basel III.

Federal Reserve Vice Chair for Supervision Michael Barr last month announced a plan to hike the large banks capital by 9%. It is worth noting that the initial version of this intention provided for the growth of the mentioned indicator by 19%. The change in the scale of the regulator’s plan can be described as a significant victory for large financial institutions, which would have faced a heavier burden when implementing the first configuration of the blueprint. At the same time, this intention, in terms of prospects for implementation, still faces a kind of political uncertainty related to the election of the President of the United States.

Last month, Michael Barr in a speech at the Brookings Institution stated that the 9% proposal means that the largest, most complex companies should be subject to the strictest requirements against the background of costs that could provoke their potential collapse both in the context of the impact on the state of affairs in the financial system as a whole and with in terms of consequences for businesses and households.

Also, this month, Jamie Dimon has already said that regulators in the United States and the United Kingdom have tightened requirements for companies to go public. The increase in expenses related to litigation and regulatory fillings caused the number of initial public offerings (IPOs) of shares to decrease, and public market valuations to rise sharply.

Jamie Dimon stated that it would be incumbent to easier and make it cheaper to go public. According to him, it is necessary to figure out a way to do this.

Also, the head of the largest financial institution in the United States believes that it is necessary to allow a merger of more medium-sized banks. Moreover, he is convinced that the government should not get involved in every single little banking deal.

Besides, Mr. Dimon stated that the biggest problem he has with all these overlapping rules is that there are not stepping back and saying what could be done better to make the system work better.

Moreover, the head of the largest US bank stated his opinion that regulators should not allow financial services companies such as American Express, Capital One, and Discover Financial Services to charge more for debit card transactions. It is worth noting that lenders are currently limited within the scope of the relevant opportunity. At the same time, card issuers have no corresponding restrictions. According to Jamie Dimon, it is unfair to allow financial services companies to charge more for the mentioned transactions.

The head of the largest bank in the United States also negatively characterized the top US consumer finance watchdog’s rules published last week. In this case, the rules are meant to make it easier for consumers to switch between financial services providers.

The Consumer Financial Protection Bureau’s open banking rule governs data sharing between fintech companies and traditional lenders. In this case, it is provided that consumers can easily and free of charge transfer their personal information between providers.

Jamie Dimon has stated that he is not opposed to open banking. At the same time, the head of JPMorgan noted that such practices can compromise consumer data and lead to fraudulent money transfers. Jamie Dimon has stated that he is set to fight it.

As we have reported earlier, JPMorgan Chase Earnings Exceed Estimates.