Too Many Regulators May Spoil The Soup

While praising President Obama's U.S. financial reform efforts, JPMorgan Chase's (JPM - Analyst Report) CEO Jamie Dimon portends that too many regulators would increase costs and reduce credit opportunities for consumers.

Mr. Dimon is in favor of strengthening existing regulators versus the creation of new ones. The regulatory revamping should result in efficient government oversight.

Even though the U.S. financial industry does require reform, we must also remember that the regulators have played a key role in the tightness of credit within the last year. Too soon we forget that the regulators were questioning financial institutions - such as but not limited to Citigroup (C - Analyst Report), JPMorgan Chase (JPM - Analyst Report), Bank of America (BAC - Analyst Report), Wells Fargo (WFC - Analyst Report) and U.S. Bancorp (USB - Analyst Report) - about why they were writing certain types of loans, while the legislative branch of our government was asking why aren't they writing certain types of loans. Clearly we cannot have it both ways, without causing the system to completely freeze up.