Wall Street Banks Push for Fed Regulatory Reform
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Regulatory Reform Initiative: Wall Street banks are urging the Federal Reserve to implement a new supervisory regime that makes it difficult for future administrations to easily reverse changes, thereby providing banks with a more stable legal foundation and enhancing operational predictability in the long term.
- Legal Ambiguity Issues: Banks are asking the Fed to formally address the legal ambiguity surrounding the new supervisory process that replaces 'matters requiring attention,' aiming to reduce uncertainty in future regulations and ensure compliance in risk management.
- Burden Reduction in Regulations: Fed Vice Chair Michelle Bowman is leading a significant overhaul of bank regulations, asserting that current strict rules hinder banks' lending capabilities, resulting in non-bank financial institutions stepping in to fill financing gaps, which affects overall market liquidity.
- Legal Risks of Observation Mechanism: The 'observations' mentioned in the new regulations carry legal ambiguity, with banks concerned that future Democratic leadership may exploit this to escalate unresolved issues into 'matters requiring attention,' thereby increasing compliance pressure on banks.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 296.730
Low
260.00
Averages
341.38
High
400.00
Current: 296.730
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Concerns Over Stablecoin Use: While acknowledging the potential of stablecoins for cross-border and small-dollar payments, Dimon remains cautious about their use as a broad payment structure, noting that transaction costs for converting to and from stablecoins could hinder widespread adoption.
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