Dimon to House Committee: increased capital requirements are “becoming a significant economic risk”

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JPM Stock Fair Value – JPMORGAN($NYSE:JPM): JPMorgan Chase Chairman and CEO Jamie Dimon will express his opposition to increased capital requirements from regulators when he appears at the House Committee on Financial Services hearing on Wednesday. He will point out that the continued upward trajectory of regulatory capital requirements on America’s already fortified largest banks, particularly when not reflective of actual risk, is itself becoming a significant economic risk. This is because unrepresentative capital requirements erode banks’ ability to meet customer needs.

For example, JPMorgan’s amount of required capital will be increased beyond the more than $200B it already sets aside in addition to loan loss reserves. This will make it difficult for the bank to meet the needs of its customers.

Price History

On Tuesday, JPMorgan Chase & Co. stock opened at $117.4 and closed at $115.8, down by 2.0% from prior closing price of 118.2. He urged the committee to reconsider the Dodd-Frank Act’s mandated stress tests and higher capital requirements for banks, which he said are constraining lending and slowing economic growth. Dimon warned that if the current trend continues, it could lead to a recession.

VI Analysis – JPM Stock Fair Value Calculator

JPMorgan Chase & Co. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A fundamental analysis of JPMorgan Chase & Co. reveals a company with a strong financial position and long-term potential. The company’s share price, however, is currently undervalued by approximately 17%.

Summary

He warned that this would lead to less lending and higher borrowing costs for consumers and businesses, ultimately hindering economic growth. He urged lawmakers to consider the economic implications of the proposed regulations before implementing them, warning that they could have “unintended consequences.”.