Years of coaxing, donating, explaining, and complaining hadn’t helped the big banks reverse a rule that would restrict derivatives trading. This month, the $1.1 trillion spending bill the U.S. Congress had to pass to keep the government open offered another chance. That’s when Jamie Dimon, chief executive officer of JPMorgan Chase, stepped up to the plate.
Despite setbacks that would dim the power of most bankers, including a $13 billion settlement with regulators over mortgage bond sales last year, Dimon hasn’t lost his touch. He visited Senator Orrin Hatch (R-Utah) and House Financial Services Committee Chairman Jeb Hensarling (R-Texas), according to a colleague who asked not to be named because the meetings were private. And he worked the phones, telling politicians the rule—which would have barred trading certain derivatives in parts of the bank that have government backstops such as deposit insurance—makes life expensive and unduly complicated for banks.
