Jamie Dimon, chief executive of JPMorgan Chase, on Thursday hit out at strict rules on US credit cards, saying they would cost the bank’s lossmaking card unit up to $700m next year. His comments came after JPMorgan underlined its status as one of the winners from the crisis, beating expectations with second-quarter earnings of $2.7bn, up 36 per cent from a year ago, thanks to strong investment banking revenues. Mr Dimon said that while JPMorgan supported most of the reforms introduced by the US government, some of the “fast and furious” regulatory activity had gone “a little bit too far”. He singled out the credit card provisions, which from February will constrain lenders’ ability to raise rates for risky borrowers, and rules that propose to move most derivatives trading on to exchanges as two contentious areas. The tough stance by JPMorgan reflects Wall Street’s new-found confidence in lobbying regulators and the government. After keeping a low profile during the crisis, many of the banks that repaid the bail-out funds are becoming more aggressive in Washington.

This entry was posted by Paul Murphy on Friday, July 17th, 2009 at 5:34 and is filed under Capital markets. Tagged with jamie dimon, JP morgan. Edit this entry.