TARP funding rules that prevent U.S. banks from hiring foreigners could cause foreign governments to retaliate against Americans living abroad, warns JP Morgan Chase CEO Jamie Dimon in the Financial Times.
Moreover, the rules - which make it difficult for banks receiving taxpayers' funds to apply for H1-B visas for skilled immigrants if they have recently made U.S. workers redundant - are a "complete and utter disgrace" Dimon told shareholders.
Dimon says the provisions had forced JPMorgan’s executives to “look 40 or 50 overseas (graduates) in the eye” and tell them their job offers had been rescinded.
“We should be able to go to colleges and give jobs to kids without regard to where they were born,” he adds.
“The worst thing that can happen . . . is that foreign governments will tell Americans they cannot have jobs over there.”
Dimon isn’t alone is wanting to repay TARP funds quickly in order to get Washington out of banks’ hair.
However, TARP regulations say that no bank will be allowed to repay to do so until 10 of the 19 biggest banks present plans to boost their capital under the government's stress tests, Zack’s Investment Research reports.
Then the banks will have to pass another stress test and issue non-government guaranteed debt to prove they can self-fund in the market.
Only after those hurdles are cleared will regulators will certify that a bank is sound and allow it repay TARP funds.
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