Here's the whole memo:
JPMorgan Chase Analyst Takes Aim At U.S. Senators -
Here's one of several money shots:
The low level of economic literacy exposed in last week’s hearings before the Senate’s Permanent Subcommittee on Investigations offered an unnerving insight into much that is driving the financial reform effort.
Proposed regulatory reform—specifically interest-rate caps and interchange fees—will merely exacerbate the cycle of credit contraction plaguing small businesses.
If banks are not allowed to effectively price for risk, they will not take the risk. Right now we need banks, and particularly community banks, more than ever to step in and provide liquidity to small businesses. Interest-rate caps and interchange fees will more likely drive consumer credit out of the market and many community banks out of business.