Now, with the Senate reform bill in play, Dimon has organized an aggressive and very expensive lobbying effort -- JPM spent $6.2 million lobbying Washington officials last year, more than any other bank, the WSJ notes -- to fight new regulations that would curb the bank's profits.
And indeed, JPMorgan has a lot to lose from proposed reforms. As the WSJ points out, JPM expects to take a $1.25 billion annual hit from new credit-card and checking-account reforms that have already passed. But the Senate legislation, which would require financial institutions to pay into a communal "bailout fund," increase capital reserves and potentially wind down certain trading operations, could cost the firm billions more.
But not all of the officials with whom Dimon meets are entirely assuaged by Dimon's argument, which stresses the firm's contributions in terms of jobs and taxes. Here's the WSJ:
A number of political insiders say they've grown weary of Mr. Dimon's protestations, viewing him as just another elite New York banker out to protect his turf. Some note that the bank profited handsomely during the financial crisis, when it scooped up securities firm Bear Stearns Cos. Inc. and Washington Mutual Inc.'s failed banking operations at bargain prices.
Read on.
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