Two weeks ago, Jamie Dimon, the CEO of JP Morgan, said, “So, we have taken liquidity out of certain products. And it won’t hurt you very much in good times. Watch out when times get bad and people are getting stressed a little bit.”
He was referring to changes in banking regulations after the 2008 financial crisis that, by tightening up lending requirements, reduced the ability of large banks to offer liquidity to the markets. Though the legislators’ intent was reasonable, they removed a historical shock absorber from the financial system and increased the potential for market dislocations.
Dimon’s comments appear well