Earnings season is officially underway, which means the CEOs of America’s largest banks get to update the public about the health of their firms and their economic outlooks.
Photo Insert: Jamie Dimon, head of JPMorgan Chase, and outgoing Morgan Stanley CEO James Gorman.
So far, they’re largely using the opportunity to kvetch about the rules regulating their industry even without reading them, Nicole Goodkind said in an analysis for CNN.
The banking sector of the S&P 500 shot up by 6.3% over the past seven days. That’s a big shift – the sector is still down 3.4% this year, according to FactSet data.
The CEOs of these banks seemed to take their strong earnings reports in the face of the failure of Silicon Valley Bank, tightening credit, and higher interest rates as a sign that no further regulation of their industry is necessary.
Jamie Dimon, head of JPMorgan Chase, commented on the bank’s Friday earnings call that non-bank financial rivals were “dancing in the streets” as regulators get ready to increase bank capital requirements.
“This is great news for hedge funds, private equity, private credit, Apollo, Blackstone,” Dimon said. In an interview with CNBC on Tuesday, outgoing Morgan Stanley CEO James Gorman told CNBC on Tuesday.
“We think the capital increases are excessive and it puts pressure on returns,” added JPMorgan CFO Jeremy Barnum on the same call.
“That obviously puts pressure on us to increase prices where we can. That is generally a bad thing for the real economy.”