Let banks fail, says JPMorgan Chase chief Jamie Dimon
Jamie Dimon, the chief executive of JPMorgan Chase, one of the world’s largest integrated financial institutions, says the United States is almost at the point where big banks should be allowed to fail without taxpayers bearing losses.
“Too-big-to-fail has hugely diminished and my guess is that when all is said and done, it will be gone,” he said in an interview with The Australian Financial Review in Sydney.
He said financial regulators in the US, in partnership with the Federal Reserve, were working to put in place resolution structures that would allow banks to go bust without causing systemic risk and without costing taxpayers money.
“We are making a lot of changes to make it easier to dismantle bankrupt parts of the company and not the whole company,” he said on Tuesday.
“So maybe if you make each [bank] sounder, you’ve made the whole system sounder. If a bank ever does fail for some reason, the chance of there being a domino effect is very small.”
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