Banks without oxygen

JPMorgan Chase CEO James Dimon unhappy with the reform of the U.S. financial sector and the requirements of Basel III ». He even threatened to withdrawal from the Board of Directors of the Federal Reserve Bank of New York.

Dimon dissatisfied with the provisions of the U.S. financial sector reform (Law Dodd - Frank), depriving the bankers the right to vote in the presidential elections of 12 regional banks of the Federal Reserve System (FRS). Federal Reserve Bank of New York (Federal Reserve Bank of New York City) is going to go ahead and change the rules for appointments to other posts.

Tightening the FBI in New York due to a conflict of interest, which escalated into a crisis. Critics have blamed the Fed is too close ties with banks that it regulates. In May 2009, with the Chairman of the Board of Directors of the Federal Reserve Bank of New York was forced to resign, Stephen Friedman, former head of council at Goldman Sachs. It turned out that, while he was in the FBI in New York, Friedman bought shares of Goldman. "We tried to assess the liability of directors reserve banks in the system-wide", - said the representative of the Federal Reserve.

Dimon is concerned that, although the role of bankers in the management of the regional banks will decrease, the liabilities that may lead to legal liability, they will remain. "Jamie spoke about the legal opportunity for bankers to carry out fiduciary duties of directors under the new law, but this is not obvious," - said a source familiar with the situation in the Federal Reserve Bank of New York. The board of the bank consists of three bankers: Dimon, CEO of Banco Popular de Puerto Rico, Richard Carrion and CEO of Adirondack Trust, Charles Waits.

Requirements of Basel III »in terms of capital and liquidity will spill over into more expensive loans for their customers," says Dimon. For capital adequacy JPMorgan he was calm and promised that in this sense, the bank "would be fine." Harder to JPMorgan, having one of the world's largest derivatives units to fulfill the requirement of the law Dodd - Frank highlight it in the "daughter". "It's a real pain, it is an operational nightmare," - says Dimon. Because of this requirement, the business will go from traditional banks to poorly regulated "nonbank monsters" such as hedge funds.