Jamie Dimon calls for tighter regulations
The CEO of JPMorgan Chase Bank, Jamie Dimon, said in his annual letter to shareholders that the pressures on the financial sector that caused the failure of the two banks in the United States last month still represent a threat, and its repercussions will continue for years, but it is not similar to what happened in 2018. 2008.
Dimon added that the failures in Silicon Valley Bank and Credit Suisse and the pressures on the banking system show that the regulatory requirements are not sufficient, as the risks exist and their management requires constant scrutiny.
The established rules encouraged banks to expand their portfolios of US Treasury bonds as safe, but their value soon fell with the Fed raising interest, which caused investors losses and made them lose confidence.
And the CEO of “JP Morgan” believed that regulations should be tightened and banks should be informed of all potential risks within the stress tests, which did not include the recent “Federal” scenario linked to raising interest, as he expected that high interest rates would continue for longer periods.