Jamie Dimon didn't hold back when it came to the regulatory process that forced his bank to stop stock purchases.
After Betsy Graseck of Morgan Stanley asked about the Federal Reserve's recent stress test, Dimon unleashed a series of criticisms.
The stress test isn't something that we agree with. It doesn't seem consistent. It's not clear. It's too unpredictable. It's basically random.
In order to comply with the results of the Fed test, the biggest U.S. bank is trying to raise more capital. Increasing capital requirements within the test forced a New York-based bank to freeze its dividends. Rivals boosted investor payouts while Citigroup did not.
As markets crashed and unemployment rose, the exam predicted that JP Morgan would lose around $44 billion. He said that his bank would make money during a downturn.
After releasing second-quarter results, it revealed a number of other measures it is taking to husband capital. The stock hasn't been this cheap in a long time, so that move wasn't welcomed by investors.
The bank's shares hit a new 52 week low.
A key element of the stress capital buffer doesn't get released to banks, making it hard at any given moment to understand what's actually
Building capital quickly enough to meet higher requirements is something we feel good about. Changes that come into effect quickly for banks are probably not healthy.
The bank has been forced to take other steps, such as pulling back the capital devoted to volatile trading operations and reducing some forms of deposits.
As storm clouds gather on the world's biggest economy, JP Morgan is forced to withdraw credit from the financial system.
The actions coincide with the Fed's plan to reverse its bond-purchasing plans, which could cause more turmoil in the market and cause borrowing costs to go up.
The bank has to act at the wrong time in order to reduce credit to the market.
Lower-income minorities who have the hardest time getting loans will be impacted by the moves.
It is bad for the United States economy and it is also bad for lower income borrowers. We are making it worse by not fixing the mortgage business.
The capital rules could force other banks to stop making home loans altogether, according to the CEO of JP Morgan. After interest rates went up, Wells Fargo said it would shrink the business.
He said that the mortgages will be immediately sold by JP Morgan.
It is a bad way to run a financial system. It makes you confused about what to do with your capital.
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