Jamie Dimon Eyes Trump-Era Deregulation as Boost for Banking, Economy

JPMorgan Chase CEO Jamie Dimon speaks at The Institute of International Finance annual membership meeting at the Ronald Reagan Building in Washington on Oct. 24, 2024. Kevin Dietsch/Getty Images

JPMorgan Chase CEO Jamie Dimon said Friday that U.S. bankers are thrilled by the prospect of deregulation under a second Trump administration, which he believes could revitalize America’s banking industry after years of stifling regulations that have curtailed credit activity.

Speaking at the APEC CEO Summit in Lima, Peru, on Nov. 14, Dimon criticized the regulatory environment for hindering lending, highlighting stringent capital requirements introduced after the financial crisis of 2008–09 that have forced banks to reduce their loan-to-deposit ratios.

“A lot of bankers, they’re, like, dancing in the street because they’ve had successive years and years of regulations, a lot of which stymied credit,” the JPMorgan chief said, according to a Bloomberg video of his remarks at the summit. “You could have kept the banks equally safe but had them do more credit.”

He noted that banks now lend only $65 for every $100 in deposits, compared to $100 previously, which he said stifles economic growth.

Dimon suggested that these regulations, while well-intentioned, have become a headwind for the economy.

“And if that’s what you want, if for some reason the regulators think they’re geniuses and that’s the best way to run the banking system, so be it,” Dimon said, adding that he believes it is possible to maintain financial stability without hindering lending.

Deregulation, he said, could benefit industries beyond banking. Dimon pointed to the slow permitting process for rare-earth mining in the United States as another example of regulatory inefficiency hampering economic growth.

“Ten years—they haven’t got their permits yet,” he said of companies seeking to extract critical minerals crucial for technology and defense industries. “It’s a shame. And we’re doing this to ourselves, and it’s a mistake.”

Dimon also praised President-elect Donald Trump’s proposal for a new Department of Government Efficiency (DOGE), which aims to streamline bureaucracy.

“You could talk to any industry and they’ll give you examples of regulation that could be reduced to make it easier for them to do business while keeping the country safe,” he said.

When asked about the market’s strong reaction to Trump’s election victory, Dimon said it reflects optimism for a “pro-growth shock” as businesses prepare to make aggressive capital investments.

“You’ve already seen the markets have responded quite well,” he noted. “And I think America needs a growth strategy, so I literally applaud that,” he said.

Dimon emphasized that the agenda should go beyond slashing red tape to include broader reforms like improving the efficiency of the permitting process. “Collaboration between government and business is the way to have growth,” he said.

While the Trump administration appears poised to pursue a deregulatory agenda, the administration of President Joe Biden has emphasized consumer protections and systemic risk management.

Under the Biden administration, for example, the Consumer Financial Protection Bureau (CFPB) has seen a significant restoration of its authority, reversing the more hands-off approach taken during Trump’s first term. Since 2021, the CFPB has ramped up its oversight, launching investigations and enforcement actions against financial institutions accused of engaging in predatory lending, discriminatory practices, or misleading marketing. It has also cracked down on banks for practices such as “junk fees,” unauthorized account openings, and withholding of credit card rewards.

Also, during Biden’s term, U.S. banking regulators have focused more heavily on addressing systemic risks in the financial system, with a particular emphasis on implementing the final phase of Basel III reforms, often referred to as the “Basel III endgame.”

These reforms, developed in the wake of the 2008 financial crisis, aim to bolster the resilience of the banking sector by increasing capital requirements, enhancing risk-weighting measures, and introducing stricter leverage ratios.

Critics, including Dimon, have said that the stricter rules would not have prevented past bank failures and could have a negative impact on the economy.