JPMorgan CEO Dimon Sees 'Modest Signs' of Recovery

JPMorgan Chase Chief Executive Jamie Dimon said he sees "modest signs'' of an economic recovery and endorsed a plan to create a U.S. systemic risk regulator.

CNBC.com Jamie Dimon

Dimon, speaking at a U.S. Chamber of Commerce economic conference, also said mark-to-market accounting may have been applied "to a ridiculous point.''

The mark-to-market accounting rule, which requires assets to be valued at market prices, is defended by investor advocates and some lawmakers as giving a clear picture of the assets held on banks' books.

But the banking industry, which has been forced to write down billions of dollars' worth of hard-to-value assets in illiquid markets, has pleaded for a suspension or modification of the rule.

In a separate phone interview with CNBC after the speech, Dimon also said the bank was profitable in January and February. That echoed a statement by Citigroup CEO Vikram Pandit, who sparked a market rally Tuesday by saying his company also turned a profit in the first two months of the year.

In his speech, Dimon endorsed the idea of creating a U.S. systemic risk regulator, an plan proposed by Barney Frank, chairman of the House Financial Services Committee. Frank plans a broad overhaul of U.S. financial regulation this year.

"There are modest signs of recovery and healing out there,'' Dimon said, adding that the market just saw the two most active bond months ever.

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In a wide-ranging speech, he also criticized the Basel II international banking accord and said bank stress tests now underway by federal regulators could help "create a lot of credibility within the system.''

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