A senior JPMorgan Chase executive says U.S. banks are at the "beginning of entry mode" and "animal spirits are alive" as Wall Street bets a loose regulatory regime under President Donald Trump will spur global growth Deals from the largest banks. economy.
Speaking at the World Economic Forum in Davos on Tuesday, Mary Erdoes, head of asset and wealth management at Wall Street banks, said she was "hopeful" that Trump's regulatory moves would boost the U.S. economy and ease the banking industry's pain. part of the burden. Industry under Joe Biden's administration.
"If you look at the previous administration and the number of new important regulations, that's eight times the number of important new regulations from the last Trump administration," said Erdos, who is seen as succeeding JP Morgan’s Jamie Dimon competitor.
"With that comes millions of man-hours of paperwork. Work . . . that's going to clog the system and prevent the economy from continuing to be a very healthy flywheel. So we're really looking forward to that."
Erdos' comments come as European banking executives worry that the light-touch regulatory approach favored by Trump could put European banks at a competitive disadvantage if the continent's regulators demand stricter enforcement of rules such as Basel 3.1 .
Speaking on the same panel on Tuesday, Standard Chartered CEO Bill Winters said it was important "to have consistent rules globally so that we don't have arbitrage between markets." ".
A senior banking executive said that while Europe may find it difficult to make concessions on some regulations, the UK may become heavily reliant on the US system.
“The UK government will be at the forefront of deregulation,” the executive said. "They delayed the implementation of Basel III to see how or if it would be implemented in the United States."
Meanwhile, JPMorgan's Erdos said loosening regulations in the United States could lead to more deals and company listings. "Companies don't want to go public or can't go public because of heavy regulatory burdens, and hopefully you'll see that (change)," she said.
She added that JPMorgan had set up a "war room" overnight to analyze and evaluate Trump's executive order, and praised the US president's decision to ban federal employees from working remotely. This month, JPMorgan said it would require all employees to return to the office five days a week starting in March.
"Time will tell, but a lot of things are exactly what you need to do in order to have a very business-friendly environment," Erdos said. "Thank God the U.S. government did it and hopefully that puts us ahead of the world. other governments so we can continue to compete."
The banking lobby also welcomed Trump's executive order immediately freezing pending Biden-era regulations and urged the president to take further action.
"The incoming administration should expand its review beyond pending regulations to include binding policy statements, interpretive rules, and agency actions that regulators are unlawfully enforcing," said World Bank Chief Executive Greg Baer. rules without going through the required notice and comment process,” Policy Institute, which represents large and mid-sized U.S. banks.