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US banks are “at the beginning of go-mode” and “animal spirits are alive”, according to a top JPMorgan Chase executive, as Wall Street bets that a lighter regulatory regime under President Donald Trump will spur bank-making. deals in the world’s largest financial sector. economy.
Speaking at the World Economic Forum in Davos on Tuesday, Mary Erdoes, head of asset and wealth management at the Wall Street lender, said she was “hopeful” that Trump’s regulatory approach would boost the financial sector. American economyeasing some of the burden placed on the banking sector by the Joe Biden administration.
“If you look at the last administration and the number of significant new regulations, it’s eight times more significant new regulations than the previous Trump administration,” said Erdoes, who is considered a contender for victory. Jamie Dimon at JPMorgan.
“This involves several million hours of paperwork work. Work . . . it clogs up the system and prevents the economy from continuing to have that very healthy flywheel. So we’re really looking forward to that.
Erdoes’ comments come amid concerns among European banking executives that the lighter regulatory approach favored by Trump could put European banks at a disadvantage if the continent’s regulators demand stricter enforcement of rules such as Basel 3.1.
Speaking before the same panel on Tuesday, Standard Chartered chief executive Bill Winters said it was important that rules were “set consistently globally, to avoid this arbitrage of one market to another”.
While Europe may struggle to roll back some regulations, the UK could move heavily towards the US system, according to a senior banking industry official.
“The UK government will be at the forefront of deregulation,” the executive said. “They delayed the implementation of Basel III to see how and if it would be implemented in the United States. »
At the same time, JPMorgan’s Erdoes said loosening regulations in the United States could lead to more deals and companies going public. “Companies are unwilling or unable to go public because of the heavy regulatory burden and I hope you see that (change),” she said.
She added that JPMorgan overnight set up a “war room” to analyze and evaluate Trump’s executive orders and welcomed the US president’s decision to ban remote work for federal employees. This month, JPMorgan said it would require all staff to return to the office five days a week starting in March.
“Time will tell, but a lot of it is exactly what you would do to have a very business-friendly environment,” Erdoes said. “Thank goodness the U.S. government did this, and I hope this will keep us ahead of other governments around the world and allow us to continue to be competitive.”