WASHINGTON (Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon said on Wednesday he sees "modest signs" of an economic recovery and endorsed a plan to create a U.S. systemic risk regulator.
Dimon, speaking at a U.S. Chamber of Commerce economic conference, also said mark-to-market accounting may have been applied "to a ridiculous point."
The mark-to-market accounting rule, which requires assets to be valued at market prices, is defended by investor advocates and some lawmakers as giving a clear picture of the assets held on banks' books. But the banking industry, which has been forced to write down billions of dollars' worth of hard-to-value assets in illiquid markets, has pleaded for a suspension or modification of the rule.
Dimon endorsed the idea of creating a U.S. systemic risk regulator, a plan proposed by U.S. Rep. Barney Frank, chairman of the House of Representatives Financial Services Committee. Frank plans a broad overhaul of U.S. financial regulation this year.
"There are modest signs of recovery and healing out there," Dimon said, adding that the market just saw the two most active bond months ever.
Speaking to reporters after his speech, Dimon said he opposes the nationalization of U.S. banks. "I don't think any banks should be nationalized. It doesn't work. It's a mistake," he said.
Dimon said nationalization means different things to different people but some banks may need some government help and they should remain as private as possible, he added.
He said if a bank is in really poor shape the Federal Deposit Insurance Corp has the responsibility to deal with them. "That's what the FDIC is for," he said.
The FDIC, which insures up to $250,000 per depositor, takes control of failed banks in a process in which sometimes a buyer is found or the agency takes control of the failed bank's assets.
In a wide-ranging speech, Dimon also criticized the Basel II international banking accord and said bank stress tests now under way by federal regulators could help "create a lot of credibility within the system."
(Reporting by Karey Wutkowski and John Poirier; Editing by John Wallace and Matthew Lewis)
Dimon, speaking at a U.S. Chamber of Commerce economic conference, also said mark-to-market accounting may have been applied "to a ridiculous point."
The mark-to-market accounting rule, which requires assets to be valued at market prices, is defended by investor advocates and some lawmakers as giving a clear picture of the assets held on banks' books. But the banking industry, which has been forced to write down billions of dollars' worth of hard-to-value assets in illiquid markets, has pleaded for a suspension or modification of the rule.
Dimon endorsed the idea of creating a U.S. systemic risk regulator, a plan proposed by U.S. Rep. Barney Frank, chairman of the House of Representatives Financial Services Committee. Frank plans a broad overhaul of U.S. financial regulation this year.
"There are modest signs of recovery and healing out there," Dimon said, adding that the market just saw the two most active bond months ever.
Speaking to reporters after his speech, Dimon said he opposes the nationalization of U.S. banks. "I don't think any banks should be nationalized. It doesn't work. It's a mistake," he said.
Dimon said nationalization means different things to different people but some banks may need some government help and they should remain as private as possible, he added.
He said if a bank is in really poor shape the Federal Deposit Insurance Corp has the responsibility to deal with them. "That's what the FDIC is for," he said.
The FDIC, which insures up to $250,000 per depositor, takes control of failed banks in a process in which sometimes a buyer is found or the agency takes control of the failed bank's assets.
In a wide-ranging speech, Dimon also criticized the Basel II international banking accord and said bank stress tests now under way by federal regulators could help "create a lot of credibility within the system."
(Reporting by Karey Wutkowski and John Poirier; Editing by John Wallace and Matthew Lewis)
12/3 2009 00:01 le 0
4318 Freddie Mac seeks $30.8B in US aid after 4Q loss
Freddie Mac seeks $30.8 billion in government aid after posting $23.9 billion 4th-quarter loss
Alan Zibel, AP Real Estate Writer
Wednesday March 11, 2009, 4:51 pm EDT
Buzz up! Print Related:Fannie Mae, Freddie Mac
WASHINGTON (AP) -- Freddie Mac is asking the government for $30.8 billion in aid after posting a gargantuan loss of more than $50 billion last year as the U.S. housing market worsened.
Related Quotes
Symbol Price Change
FNM 0.39 -0.02
FRE 0.42 0.00
{"s" : "fnm,fre","k" : "c10,l10,p20,t10","o" : "","j" : ""} The mortgage finance company posted a loss of $23.9 billion, or $7.37 per share, in the fourth quarter of 2008. That compares with a loss of $2.5 billion, or $3.97 a share, in the year-ago period.
The recent loss was driven by $13.2 billion in hedged trades, $7.2 billion in credit losses due to declining housing market conditions and $7.5 billion in writedowns of the value of its mortgage-backed securities.
The request for federal aid comes on top of $13.8 billion the company received last year.
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Freddie Mac seeks $30.8 billion in government aid after posting $23.9 billion 4th-quarter loss
Alan Zibel, AP Real Estate Writer
Wednesday March 11, 2009, 4:51 pm EDT
Buzz up! Print Related:Fannie Mae, Freddie Mac
WASHINGTON (AP) -- Freddie Mac is asking the government for $30.8 billion in aid after posting a gargantuan loss of more than $50 billion last year as the U.S. housing market worsened.
Related Quotes
Symbol Price Change
FNM 0.39 -0.02
FRE 0.42 0.00
{"s" : "fnm,fre","k" : "c10,l10,p20,t10","o" : "","j" : ""} The mortgage finance company posted a loss of $23.9 billion, or $7.37 per share, in the fourth quarter of 2008. That compares with a loss of $2.5 billion, or $3.97 a share, in the year-ago period.
The recent loss was driven by $13.2 billion in hedged trades, $7.2 billion in credit losses due to declining housing market conditions and $7.5 billion in writedowns of the value of its mortgage-backed securities.
The request for federal aid comes on top of $13.8 billion the company received last year.
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