JPMorgan CEO Jamie Dimon Calls Basel Capital Proposal ‘Ridiculous’

The Basel capital rules are designed to strengthen banks’ ability to absorb losses, and the latest proposal from U.S. regulators would further raise capital requirements for large banks. As a global systemically important bank, or G-SIB, JPMorgan Chase could see its lending capacity, shareholder returns and market competitiveness affected, putting CEO Jamie Dimon’s opposition in the financial industry spotlight.

In JPMorgan Chase’s latest annual letter to shareholders, Dimon said parts of the Basel proposal “make no sense” and unfairly penalize large banks. Although the revised version lowered the G-SIB surcharge, he still considers the overall capital requirements excessive and said the bank would lodge objections with regulators. The matter does not involve a specific transaction amount, and the available information does not state the proposal’s date.