The Securities Industry and Financial Markets Association (SIFMA) President and CEO, Tim Ryan said on Bloomberg TV that financial regulatory reform has added more complexity to the already difficult financial institution world.
Ryan spoke yesterday in a post-hearing discussion following JPMorgan's CEO Jamie Dimon's testimony in front of the Senate Banking Committee.
He said that Dodd-Frank and rules like Volcker are so complex that "even regulators can't figure [them] out."
"They have added additional complexity," he said. "The rules are not well synchronized, they are not prioritized and quite frankly a lot of them are not being done that well," he said. "Some of that is because they are dealing with complex issues and they are trying to deal with that in a sophisticated manner."
Ryan added that the real issue behind JP Morgan's losses linked to a credit derivatives trade made last month is figuring out what appropriate hedging is for financial institutions.
"No one talked about the reality," he said of the Senate hearing. "The reality of the Dodd Frank statute is that they recognize that hedging and portfolio hedging are acceptable. They recognize that market making is something that is required.
"I thought [that] the best part of [Dimon's] testimony, was talking about the vibrancy of the capital markets, the need for the ability for banks to make markets and provide liquidity, and for the government not to really mess that up.”
