Enjoy it while it lasts: Bank earnings face trouble
Too good to be true. It will be like always : nothing. By now banks and lawmakers are so tied up that nobody will cut that ties and banks are now safer than ever that they can continue doing what they are doing : a legal theft
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Wall Street's blowout quarter for big bank earnings comes in the shadow of a daunting specter—An onslaught of potential Washington regulation that could put a major dent in profits.
Recent days have seen an increased likelihood that banks will have to carry even more capital on their balance sheets than originally thought, and some executives and analysts are worried.
JPMorgan Chase Chairman and CEO Jamie Dimon and other company officials warned of the looming regulatory crackdown during the company's earnings call Monday:
Marianne Lake, chief financial officer: "… we will take appropriate actions to reduce our leverage assets … for example, re-pricing or restructuring of commitments or unwinding certain derivative positions."
Dimon: "If you have a world where some businesses have to have twice as much capital as other companies, that over time can create huge competitive disadvantages. I don't know of any industry in America who would want to compete globally on that basis. We have an interest in a safe and sound system so we're not against a leverage ratio but we would be – we're not for a largely unbalanced competitive playing field. So put aside, that regulators know that. They're trying to – we thought that the point of Basel and all that is to harmonize these kind of things.
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