This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Jamie Dimon's Best Friend: Elizabeth Warren

NEW YORK (TheStreet) -- JPMorgan Chase (JPM) chief Jamie Dimon has grabbed headlines this week complaining about excessive regulation, but maybe he just doesn't know what's good for him.

In the wake of the crisis, Dimon has emerged as the most pugnacious banking industry CEO, and not without justification. Unlike Bank of America (BAC) and Citigroup (C) which received exceptionally large bailouts, or Wachovia which essentially imploded ahead of its acquisition by Wells Fargo (WFC), JPMorgan was relatively careful not to load up its balance sheet with too many risky loans.

Jamie Dimon, CEO of JPMorgan

Dimon's latest criticism of excessive regulation came Tuesday in an exchange with Federal Reserve Chairman Ben Bernanke during a banking industry conference in Atlanta.

"I have a great fear someone's going to try to write a book in 20 years, and the book is going to talk about all the things we did in the middle of the crisis to actually slow down recovery," Dimon told Bernanke, according to a rough transcript of the exchange provided by JPMorgan.

But history has shown that while business can generally be counted on to push back against regulations, in many instances regulations end up boosting economic activity.

Dan Carpenter, the Freed Professor of Government at Harvard University, says the pharmaceutical industry has benefitted enormously from tighter regulation.

"The Food Drug and Cosmetic Act in 1938 was greeted by a lot of these same claims--that you were going to retard pharmaceutical innovation, you were going to retard science and economic progress, and yet the major strides in the development of the modern pharmaceutical industry came after the Federal government had gatekeeping power over the pharmaceutical marketplace--not before," Carpenter says.

Another example of regulation boosting economic activity can be found in research by MIT professor Michael Greenstone, which showed the Clean Air Act Amendments of 1970, while leading to the loss of about 100,000 manufacturing jobs, added $45 billion to property values.

An article in this week's issue of The New Yorker magazine makes the case that the Consumer Financial Protection Bureau (CFPB) could perform a similar service for the banking industry by making consumers more comfortable about banks. Harvard Professor Elizabeth Warren, who has been credited with coming up with the idea for the agency and who many Democrats in Congress would like to see appointed as its head when it opens its doors July 21, has met with fierce opposition from many Congressional Republicans, however.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,985.18 +65.59 0.39%
S&P 500 1,986.47 +4.87 0.25%
NASDAQ 4,528.1350 +0.6210 0.01%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs