JPMorgan Chase executives expressed concerns on Friday about the potential impact of stricter regulations following a series of bank failures this year.

They warned that such regulations could lead to increased costs for consumers and businesses and might even force banks to exit certain business areas altogether, CNBC has reported.

During a discussion with Wells Fargo analyst Mike Mayo about the proposed changes outlined by Federal Reserve Vice Chair for Supervision Michael Barr, JPMorgan CEO Jamie Dimon suggested that other financial players could benefit from the regulations.

Dimon specifically mentioned hedge funds, private equity firms, and private credit companies like Apollo and Blackstone as potential winners.

However, neither Blackstone nor Apollo immediately responded to requests for comment regarding Dimon’s remarks.

In response to the recent bank failures, regulatory authorities are considering imposing higher capital requirements for banks with assets exceeding $100 billion. These requirements aim to create a buffer against risky activities.

Additionally, international regulators are finalizing a long-awaited set of rules known as Basel III, which emerged in response to the 2008 financial crisis. These regulations will further shape the banking industry landscape.

Written by staff