JP Morgan's CEO calls for modernizing regulation

"[L]ong-term recovery will elude the financial industry unless we modernize our financial regulatory system and address the regulatory weaknesses that recent events have uncovered," he will say today, according to prepared remarks ahead of his appearance on Tuesday before a congressional committee on financial services.

He called the current regulatory system "fragmented and overly-complex."

Separate government agencies tracking banking, securities and insurances businesses is inefficient and does not allow one agency "access to complete information" across the entire financial system, he said.

He said he agrees with the idea of establishing a "systemic risk regulator."

"Every credible regulatory modernization plan includes the creation of a systemic risk regulator, and everyone agrees that this needs to be done and done right away," he said.

For longer term solutions he said the company would work with congress and others to think how to solve "any number of complex issues."

He is scheduled to speak on the company's use of federal funds from the Troubled Assets Relief Program. In his remarks, Dimon noted that JP Morgan took the funds, not because it needed them, but because the Federal government wanted all the major banks to receive it.