“If JPMorgan overseas operates under different rules than our foreign competitors, we can no longer provide the best products and services to our U.S. clients or our foreign clients,” Dimon said during a Monday House hearing, according to Bloomberg. “The rules at the transaction level about margin reporting, all those requirements may enable Deutsche Bank to make the better deal.”
The Commodity Futures Trading Commission plans to issue guidance this week that would expand the reach of swaps rules to U.S. subsidiaries and affiliates overseas. The international implications of the 2010 Dodd-Frank Act have been a hot-button topic of discussion. Critics of the law’s expansive reach maintain that U.S. firms will be forced to cede the market to foreign competitors.
CFTC Chairman Gary Gensler, however, has maintained that the supervision of U.S. subsidiaries overseas is imperative to maintaining the soundness of the U.S. financial system.
“I think if we were to leave the London branches of the U.S. banks or even the guaranteed affiliates out it would be, so to speak, another loophole and a retreat from reform where risk would come crashing back to our taxpayers and our Federal Reserve,” Gensler said on Monday, Bloomberg reports.