4,000 businesses driven away by the FED! JPMorgan's Dimon: 80% of mortgage business in the US flows to non-bank institutions, regulatory direction unclear.

JP Morgan CEO Jamie Dimon was interviewed this morning on April 14, discussing the current state of the U.S. economy. He pointed out that the Federal Reserve's regulatory mechanisms need reform; otherwise, it will only push more businesses to leave due to regulatory costs. Moreover, tax cuts, promoting energy exports, improving regulatory efficiency, and substantial education along with employment rewards are the core measures to enhance America's competitiveness again.

Retaining capital and talent becomes a priority, and EITC is more effective in stimulating employment.

When discussing tax reform and the congressional extension of the tax cut plan, Dimon pointed out: "Reducing the corporate tax rate from 36% to 21% is just aligning with the global average."

He emphasized that keeping funds and talent in the United States is the key, and suggested:

Expand the Earned Income Tax Credit (EITC) to encourage low-income groups to enter the workforce.

Directly provide government subsidies to grassroots workers to create more families and stabilize social order.

Regulatory systems should adopt a subtractive thinking approach and not over-regulate.

Dimon criticized that every industry is currently regulated by multiple entities at the same time, and there are a bunch of scholars with no practical experience making the rules." He suggested:

Reduce regulatory logic from "more" to "more reasonable"

Reduce cumbersome processes, such as having to take three licenses and waiting six months to get a haircut when moving.

Excessive regulation hurts small businesses and low-income households the most; large companies can withstand it, but small merchants will go bankrupt directly.

Energy policy should promote the United States as a global supplier.

When it comes to energy independence, Dimon believes that "American natural gas is clean, safe, and cheap, and can also be sold to allies, helping the world as well as helping ourselves."

He cited the battery factory built by Panasonic in Kansas, USA (Kansas), which created 4,000 high-paying technical jobs.

It also calls for the United States to strengthen energy research and development ( such as carbon capture, hydrogen energy ), and to convert energy into strategic export products.

( Note: Carbon capture intercepts the carbon dioxide emitted from factories to produce other products, such as building materials, bubbles in soda, etc. )

The Federal Reserve (FED) needs to undergo thorough reform, so as not to let businesses bear excessive compliance costs.

Dimon supports the nomination of the Vice Chair of The Federal Reserve (FED) (, but also stated, "We have been talking about Basel III for 10 years, and the regulations keep increasing and becoming more chaotic." He pointed out:

The number of publicly traded companies in the United States has dropped from 8,000 to 4,000, driven out by compliance costs.

Too many fragmented regulatory agencies have led to inefficiencies in banks, causing the risks of Silicon Valley Bank and First Republic Bank to go unaddressed beforehand, resulting in their closures.

Regulation should differentiate between large and small banks, rather than applying uniformly.

Dimon criticized the current one-size-fits-all banking regulations: "Local small banks cannot be held to the same regulatory standards as JPMorgan Chase, as they do not have as many resources." He urged:

Ease the compliance burden on local banks

Do not require every salesperson to have a regulatory personnel behind them, otherwise small banks simply cannot survive.

The shadow banking system is expanding rapidly, and the regulation has not clarified its direction.

Dimon pointed out that currently about 80% of mortgages in the United States are not handled by traditional banks, but rather flow to non-bank institutions such as Apollo ), BlackRock (, etc.

He criticized the regulatory authorities for not conducting a cost-benefit analysis and not asking themselves what system they really wanted.

Advice for young people, please broaden your horizons.

Finally, Dimon responded: "Read more, learn more, and don't just listen to the voices in your echo chamber; understand both the left and the right." He emphasized:

Take good care of your body, mind, spirit, and interpersonal relationships.

Respect everyone, whether they are corporate executives or taxi drivers.

Young Americans are about to inherit a country worth 200 to 300 trillion dollars. Living to 120 years old is not a dream; AI will cure cancer, and there is actually a lot to achieve in life.

This article states that 4,000 businesses were driven away by the FED! JPMorgan's Dimon: 80% of mortgage business in the U.S. flows to non-bank institutions, with unclear regulatory direction. First appeared in Chain News ABMedia.