June 27 (Bloomberg) -- The U.S. needs a single bank regulator as well as oversight of all parts of the financial industry to prevent a repeat of the current financial crisis, JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon wrote in the Wall Street Journal.

The pendulum must not swing too far, however, and financial institutions must be able “to steer capital toward the most promising innovations” by developing products that answer the needs of the market and allow the U.S. to be competitive, Dimon wrote.

Transparency in some markets such as derivatives is an important step in overhauling the system, he wrote. A proposed clearinghouse for over-the-counter derivatives between larger institutions is important, though companies of all sizes need to have access to custom derivative products.

Strengthening consumer protection by holding accountable the regulators will help combat the abusive practices by poorly or unregulated members of the financial industry, he wrote. A new level of federal bureaucracy which could increase costs and reduce available credit for consumers is not needed though, he said.

Company leaders should instill a culture of integrity and values in order to regain the trust of consumers, Dimon wrote. “There must be a relentless focus on risk management that starts at the top of the organization and permeates down to the entire firm,” he wrote. Along those lines, “golden parachutes, special contracts and unreasonable perks must disappear,” the chief executive wrote.

To contact the reporter on this story: Nancy Kercheval in Washington at nkercheval@bloomberg.net.

Last Updated: June 27, 2009 11:30 EDT