: JPMorgan Chase CEO Jamie Dimon says looser regs did not cause recent bank failures

JPMorgan Chase & Co. JPM CEO Jamie Dimon said a rollback of banking regulations during the Trump administration was not to blame for the current banking crisis, in part two of an interview with CNN. Dimon said U.S. senators that have pointed to the banking changes as a factor in the blow-up of Silicon Valley Bank and Signature Bank are mistaken. “Those senators are wrong,” Dimon said on CNN This Morning. “They still had higher liquidity and capital requirements and they met their exposure. It wasn’t the regulatory changes.” Dimon said JPMorgan’s role in providing $30 billion among banks to backstop a run on deposits at First Republic Bank FRC was “an attempt to give them time to resolve the situation” but did not provide additional details. Overall, Dimon said banks should be allowed to go out of business without posting a systemic risk. “Failure is OK — you just don’t want the domino effect,” he said. Dimon said inflation will likely be here for longer than people expect, and that it’s also affecting long-term interest rates which are challenging permanent pools of capital such as sovereign wealth funds. In part one of his interview on Thursday night, Dimon said he thinks the U.S. is getting to the end of the current banking crisis, but that potential changes in regulations could have lasting effects. Shares of JPMorgan Chase are down 4.9% in 2023, compared to a 6.9% increase by the S&P 500 SPX.

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