: Jamie Dimon to criticize bank capital requirements and lament impact of inflation on regular Americans in coming Capitol Hill testimony

by | Sep 20, 2022 | Stock Market

JPMorgan Chase & Co. CEO Jamie Dimon will focus the bulk of his prepared remarks in Congress this week on the bank’s positive role in the U.S. economy and the threat of inflation, but will spend some time criticizing capital requirements for banks, according to his written testimony. “We finance Americans’ ambitions with loans for homes, autos, and growing a small business, and provide valuable products and services to more than half of American households,” Dimon said in 14 pages of written testimony submitted Tuesday ahead of his appearance in Congress this week with other bank CEOs.

Dimon said the U.S. economy currently faces positive tailwinds in the form of strong consumer spending and “encouraging” job reports, but headwinds from higher prices and other woes such as the Ukraine war. Also Read: Fed says banks could withstand 10% unemployment, 55% stock price drop in annual stress test “Americans are being crushed by high inflation eroding real incomes, particularly from higher prices on gas and food,” Dimon said in his written testimony. “Many Americans are feeling the pain, and consumer confidence continues to drop.” Regulatory capital requirements for banks are “not reflective of actual risk” and are therefore present a “significant economic risk” because “unrepresentative capital requirements erode banks’ ability to meet customer needs,” Dimon said. Also Read: JPMorgan exec sees roughly 50% chance of ‘mild’ recession and eyes chance to hire laid-off bankers JPMorgan Chase
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