Dimon’s Bank Can Ride a Storm of Rules
By Roy Smith, Kenneth Langone Professor of Entrepreneurship and Finance & Professor of Management Practice
Between the Basel Committee and the supporters of the Swiss Finish, Dodd-Frank, and the Vickers Report, there is little chance that the big banks are going to be let off the hook to any meaningful degree.
Jamie Dimon has been getting a lot of attention lately for his impassioned bashing of Basel III as too tight on capital terms and too loose on risk standards for European banks. Had he been more diplomatic, probably no one would have listened.
Dimon believes that the world needs large, complex banks like JP Morgan Chase, which survived the crisis intact, to pull the world economy out of its slump; but even JP Morgan is in danger of being eviscerated by over-eager, ill-informed regulators performing a politically correct purification ritual well after the crisis.
He has a point; in fact, two good ones.
Read full article as published in Financial News.