After Dodd-Frank: American banks think they are over-regulated

Time to loosen the reins, say America’s banks. Not so fast, say regulators

“LEFT TO OUR own devices,” said Lloyd Blankfein, boss of Goldman Sachs, in February, “we wouldn’t hold as much capital as we are holding.” He is not alone. “It is clear that the banks have too much capital,” wrote Jamie Dimon of JPMorgan Chase, America’s biggest bank by assets, in a letter to shareholders last month.

American banks, both big and small, are chafing. Since 2009 the 33 banks deemed to be “systemically important”, which are subject to stress tests by the Federal Reserve, have added $700bn in common equity. The eight banks considered to be of global systemic importance (G-SIBs, in banking parlance) must meet not only the capital and leverage requirements agreed on by international supervisors after the crisis (see article) but also additional surcharges levied by the Fed. Among other changes, Mr Dimon wants this “gold-plating” to go….

Source: After Dodd-Frank: American banks think they are over-regulated | The Economist

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