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US banks are “at the beginning of the road” and “animal spirits are alive”, according to JPMorgan Chase senior, as Wall Street bet that the easy management under President Donald Trump will encourage the sale of the largest in the world. the 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 is “hopeful” that Trump's approach to governance will increase. The US economyrelieving another burden placed on the banking industry by the Joe Biden administration.
“If you look at the last administration and the number of new, important laws, it was eight times the number of new laws against the Trump administration,” said Erdoes, who is seen as a contender to win. Jamie Dimon at JPMorgan.
“With that comes many millions of man-hours of paperwork. Work. . . that shuts down the system and prevents the economy from continuing to have a very healthy flywheel. So we are looking forward to that.”
Erdoes' comments come as banking executives in Europe are concerned that the lighter-touch regulatory approach favored by Trump could put European banks at a disadvantage if regulators on the continent seek stricter application of rules such as Basel 3.1.
Speaking at the same panel on Tuesday, Standard Chartered chief executive Bill Winters said it was important for rules to be “consistently set around the world, so that there is no discrimination from market to market”.
While Europe may find it difficult to push back on certain policies, the UK may lean heavily on the US system, according to one senior bank executive.
“The UK government will be at the forefront of deregulation,” the boss said. “They are delaying the implementation of Basel III to see how it is implemented in the US.”
Meanwhile, JPMorgan's Erdoes said that lighter regulation in the US could cause more transactions and companies to go public. “Companies don't want to be transparent or can't be transparent because of the heavy regulatory burden and hopefully you'll see that (change),” he said.
He added that JPMorgan had set up a “war room” to analyze and evaluate Trump's executive orders overnight and praised the US president's decision to ban remote working for federal workers. This month, JPMorgan said it would require all employees to return to the office five days a week from March.
“Time will tell but most of it is exactly what you would do to have a business case,” said Erdoes. “I thank God that the US government has done it, and hopefully it will keep us ahead of the rest of the world's governments so we can continue to compete.”