Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Dimon Cites ‘Give and Take’ After Bank Chiefs Meet at Fed

May 2 (Bloomberg) -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said there was “give and take” when bank leaders met with Federal Reserve officials to discuss industry oversight in New York today.

Dimon, who said “everything” was a potential topic as he and other CEOs entered the New York Fed’s offices, declined to elaborate on the talks as he left. Top executives were scheduled to meet with Fed Governor Daniel Tarullo today, four people familiar with the meeting said earlier this week.

Lenders including New York-based JPMorgan, the largest and most profitable U.S. bank, are resisting Fed efforts to impose tougher restrictions on too-big-to-fail firms whose collapse could hurt the broader economy. Banks have pressed the Fed to explain assumptions used on this year’s stress tests and have criticized the central bank’s proposed rules including limits on counterparty risk.

“It’s great that people get together and collaborate, talk about the facts and the analysis, all in the interest of having a great financial system,” Dimon, 56, said as he arrived. “The better we do here, the better it will be for the U.S. economy.”

Morgan Stanley’s James Gorman and State Street Corp.’s Joseph Hooley were among CEOs seen at the building. Dimon helped organize the gathering, two of the people with knowledge of the plans had said.

Potential topics included the Fed’s proposal to impose tougher standards on concentration of risk than Congress mandated. Firms including Goldman Sachs Group Inc. have objected to a 10 percent limit on counterparty risk for the biggest firms, saying it would hamper credit and cut economic growth. The cap is stricter than a 25 percent limit in the Dodd-Frank financial-overhaul law.

Trade Groups’ Concerns

Firms have also said regulators should disclose more about the models and methods used in stress tests of U.S. financial firms. The stress tests showed that 15 of 19 banks would be able to maintain capital levels above a regulatory minimum in an “extremely adverse” economic scenario, even while continuing to pay dividends and repurchasing stock, the Fed said on March 13.

Five banking trade groups led by the Clearing House Association have told the Fed it’s not fair to ask lenders to pass a test and manage their companies accordingly “if the parameters are largely unknown.”

To contact the reporters on this story: Heather Hauswirth in New York at hhauswirth@bloomberg.net; Bradley Keoun in New York at bkeoun@bloomberg.net.

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.