JPMorgan Chase & Co. CEO Jamie Dimon said Wall Street bankers expect President-elect Donald Trump to ease strict regulations across industries, regardless of who they vote for. He said they were “dancing in the streets” over his victory.
“A lot of bankers are like dancing in the street, because there's been regulations that have been going on for years,” Dimon reportedly said Thursday during the APEC CEO Summit in Peru. Because many things have hindered trust.” bloomberg video.
The legendary banking boss, who took the helm of JPMorgan Chase & Co. in 2006, criticized years of strict regulation of the banking sector.
“They could have given banks more credit while keeping them equally safe,” Dimon said.
He said the average U.S. bank used to have $100 in deposits for every $100 it loaned, but now it lends out only $65 for every $100 it deposits.
“And if that's what you want, and for some reason the regulators think they're geniuses and that's the best way to run the banking system, then so be it.” Dimon said.
He said it was likely that regulators did not foresee the negative impact on credit.
Dimon said the benefits of loosening standards aren't limited to bankers.
“Talk to any industry and they will give you examples of regulations that can be cut to make it easier to do business while keeping the country safe,” he said.
He called rampant regulation in the United States “disgraceful” and said, “I applaud any government that says, 'We're going to make government more efficient.'” This is a direct nod to the creation of a new Department of Government Efficiency that President Trump announced this week.
The president-elect on Tuesday named SpaceX and Tesla CEO Elon Musk and pharmaceutical entrepreneur Vivek Ramaswamy to lead DOGE. Despite the task force's name being inspired by the “Doge” meme and meme coin, Trump vowed that Musk and Ramaswamy would provide “advice and guidance from outside the government.”
“Together, these two great Americans will lead my administration on a path to dismantling government bureaucracy, cutting overregulation, reducing wasteful spending, and restructuring our federal agencies,” President Trump said. It will open up the world,” he wrote.
Mr. Musk proposed the idea in August, vowing it could cut U.S. government spending by $2 trillion.
Dimon said he was “less optimistic” in the near term, citing that the U.S. is still in an “inflationary environment” and excess borrowed funds are still circulating in the system.
He warned that President Trump would have to deal with “the most complex geopolitical, military and geoeconomic situation the world has faced since World War II.”
