* Still concerned regulation may ban some instruments
* Bank comfortable with sovereign, municipal credit
NEW YORK May 11 Balanced U.S. financial reform
will likely prevail, according to JPMorgan Chase & Co's (JPM.N)
investment bank Chief Executive Jes Staley.
U.S. lawmakers are working on a broad overhaul of financial
regulation aimed at preventing a repeat of the massive taxpayer
bailouts of Wall Street in 2008.
JPMorgan has the largest derivatives exposure of the U.S.
banks and Chief Executive Jamie Dimon has been outspoken in his
concern about some plans to force exchange trading of
over-the-counter derivatives instruments.
Dimon told bank analysts last month that forcing dealers to
trade derivatives on exchanges could cost his firm up to a
couple of billion dollars in revenue annually.
Staley, speaking at a conference in New York on Tuesday,
said he remains concerned about regulations that might prohibit
some instruments, although he noted that exchange trading of
certain standardized derivatives contracts could lead to a
pickup in trading volumes.
Separately, the second-largest U.S. bank is comfortable
with its exposure to Southern Europe, Staley said. In response
to an audience member's question, Staley said JPMorgan is also
comfortable with U.S. municipalities' credit and wants to
remain an active player in this business.
(Reporting by Elinor Comlay)