We like to publish silly quotes from high-flying folks whenever we see them. Here's one related to U.S. banks cutting their relationships with Mexican banks owing to increased regulatory rules.
In 2014 Mexico received nearly $25 billion in U.S. dollars from people living in the U.S. At risk here, according to reports, is cross-border transactions that give Mexican banks access to the U.S. financial systems. More and more banks it seems are leaving emerging markets because of this increased scrutiny coupled with possible regulatory imposed fines.
The major concern given: a usual suspect regulators and bankers love to roll out--money laundering. For those with a long memory, U.S. regulators in the 1970s imposed reporting standards on banks for any transaction of $10,000 or more. Though 10 grand today is hardly the big wallop 10Gs was then, the restriction remains, playing much havoc with small business owners and just ordinary citizens in America.
Has it stopped the laundering? How many actual launderers has it caught? Anyone laundering only $10, 000 today, he or she is small peanuts with a capital S and a capital P. How much suspicion and inconvenience has it aroused? Money laundering has become the surrogate for apple pie, motherhood and the American staff.
Back to the quote. It's pretty difficult to find a bigger hitter in the financial industry than Jamie Dimon, CEO at J.P. Morgan. Dimon in his time has been around many banking rodeos going all the way the back to his days with Sandy Weill at American Express and after that at Citigroup.
"We do move $6 trillion a day and I am terrified if $100 goes to the wrong place."
Not so long ago it was all about the North American Free Trade Agreement and those wonderful opportunities free trade offered. That included the banking world. With all due respect we think Mr. Dimon gets terrified pretty easily.
Either that or Mr. Dimon likes his mayonnaise spread pretty thick.
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