Tags: JPMorgan | Dimon | Bank | Ratings

JPMorgan CEO: S&P Downgrade Won't Alter Bank Plans

Wednesday, 10 Aug 2011 03:53 PM

JPMorgan Chase won't tweak its operations or business model by any means just because one ratings agency downgraded the U.S. rating, says the bank's CEO Jamie Dimon.

Even in Europe, where fears that debt crises in Greece will spread to bigger countries like Italy, Spain and beyond and fuel a run on banks in healthy countries like France aren't altering JPMorgan Chase's plans on the continent, Dimon tells CNBC.

Standard and Poor's recently downgraded the U.S. rating to AA-plus from AAA, and market watchers are worried that France's ratings may be cut due to problems in Europe.

"I think people have a right to their opinions and S&P is just an opinion. It's a well-thought though opinion, they have very strict guidelines but most of the people I speak to in the marketplace, the big participants, they don't rely on S&P rating to make their decisions."

"Warren Buffett came out and said he thinks it's a quadruple-A. That's what makes markets."

However, the United States does need to show more fiscal discipline, Dimon adds.

The county also needs more coherent economic policies and stop spending too much time pointing figures only to put out fires at the last second with hastily whipped-together policies.

Growth is the most important thing for the U.S. economy and to restoring jobs.

"I want to see this country grow again, and I think we are going to need a little more coherent, consistent and coordinated policy."

"We always try to come up with quick answers and quick rollouts. We need America to do what America used to do in the old times when things were tough: people go together, they didn't scapegoat, they rolled up their sleeves, they were very open-minded and policy was coherent and consistent."

"A lot of our policy is completely incoherent and completely inconsistent and made in the middle of the night."

Regulation, despite what many say, is needed. Just not excessive regulations.

"We've supported 75 percent of the regulation," Dimon says, such as those that prevented banks from getting too big to fail.

Too many regulations, however, will punish smaller banks, Dimon adds
Banks are lending again, despite current economic headwinds and regulations: JP Morgan Chase has handled $4.5 billion in mortgage loans and $30 billion small-business loans over the last two-and-a-half years.

Turning to Europe, Dimon says he is confident policymakers there will work through the crisis and adds he is comfortable with the bank's exposure to Europe.

"I don’t think there will be a worst-case outcome. I think the European politicians are devoted to making it work. It's complex. It's been very messy," he says.

"My guess is they'll still continue to work this thing through.

Standard & Poor’s, Moody’s Investors Service and Fitch Ratings have said they're sticking with France's AAA ratings for now, Bloomberg reports.

The outlook on France is stable and its AAA ranking is "warranted," Moritz Kraemer, S&P’s managing director of European sovereign ratings, tells Bloomberg.

Francesco Meucci, a spokesman for Moody’s, says the country’s Aaa grade is "stable, and Fitch spokesman Brian Bertsch says France is rated AAA with a stable outlook as per its May 31 statement, the news agency adds.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
JPMorgan Chase won't tweak its operations or business model by any means just because one ratings agency downgraded the U.S. rating, says the bank's CEO Jamie Dimon. Even in Europe, where fears that debt crises in Greece will spread to bigger countries like Italy, Spain...
JPMorgan,Dimon,Bank,Ratings
529
2011-53-10
Wednesday, 10 Aug 2011 03:53 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved