JPMorgan Chase CEO Jamie Dimon says the new Basel III capital rules are much too onerous for United States banks.
"I'm very close to thinking the United States shouldn't be in Basel any more," Dimon told the Financial Times.
"I would not have agreed to rules that are blatantly anti-American," he said.
"Our regulators should go there and say: 'If it's not in the interests of the United States, we're not doing it.'"
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The rules require that banks build up risk-absorbent "core tier one" capital to at least 7 percent of risk-weighted assets, with the largest banks, which include JPMorgan, required to reach 9.5 percent.
"I think any American president, secretary of Treasury, regulator or other leader would want strong, healthy global financial firms and not think that somehow we should give up that position in the world and that would be good for your country," says Dimon.
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"If they think that's good for the country then we have a different view on how the economy operates, how the world operates."
Dimon also dislikes global liquidity rules because regulations that consider covered bonds as highly liquid discount government-backed mortgage-backed securities in the U.S.
According to Dimon, it will take “three to 10 years” before the financial industry is through defending itself against lawsuits brought by investors seeking compensation for losses incurred on structured products underpinned by bad mortgages.
Dimon says he is amenable to a settlement that is expected to see the industry pay $20 billion in penalties, but that banks could not be placed in “double jeopardy” by not receiving an appropriate release from legal liability.
The Herald Sun reports that the Australian Prudential Regulation Authority says it may force banks to comply with the proposed Basel III rules earlier than their international rivals.
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