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JPMorgan Chase CEO Jamie Dimon weighs in on regulation and what he hopes to accomplish in Davos.
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Breaking news in the hours before he leaves the data also in the World Economic Forum JPMorgan Chase chairman and CEO Jamie Dimon.
Sat down for an exclusive interview -- very own Charlie Gasparino Charlie literally just back from that interviewed joins us now.
Resorts holding him holding hands walking around the office you guys that very chummy we're always miss the document.
I feel pretty good -- I've known for years.
I joked you know I knew you when neither of us agree here at an outlook because good but now look at -- actually has more greater than I can without.
You know here's an interesting thing about should be done you know we have to submit questions I mean generally do we're gonna talk -- he agreed to take every question.
No time limit.
And you know what I like about him is that he's certain about his job he has confidence in his ability he's -- like a lot of CEOs like James Gorman from for Morgan Stanley you know.
Good guy yet but not UGU won't go before a character straight on and he won't go for -- -- did he went before a camera for Fox Business we spent about 25 minutes with a yes.
Or -- all sorts of questions we have breaking news throughout today but in this segment I wanna focus on regulation -- -- Very critical about regulation and over regulation convoluted regulation G thinks.
Is hurting the US banking system vehicles and on American that's hurting the economic recovery we do of recovery its dining -- And to specifically I asked them about three sort of regulations that are out there that that he's gonna go to dot most member the world economic for right or the regulators are one place but he tells the -- network he's gonna go to doubles.
He's gonna press his case -- three regulations it's essentially the Basel III regulation -- it's Dodd-Frank and an aspect of Dodd-Frank.
Called the vocal rule was into -- -- For the -- Roy agreed with which is no prop trading we did very little or no problem.
Put but market making is an essential function and the public should recognize that we have the widest deepest the most transparent -- -- -- world.
And that part of that because we have enormous more commission.
The market making -- cost Ding used to run the systems.
-- -- -- -- your research and the beneficiary of that is you do investor whether that's for comments we don't know the outcome of -- -- know a lot of building will be OK and some think it could be a disaster music.
I don't know yet.
Time we've given our comments I think it if the rules will.
Were written as some of those things they -- -- they -- originally -- and you know just some of the comments it would be pretty -- it would move.
The best capital markets overseas what did you mean by some of the global regulations being an American was that was out of quota -- -- there was I question -- from our anti American summer anti European -- -- so what I say to some -- So what I said is -- in Basel III.
Some of the rules in Basel III.
Or directly aimed at just American banks they don't have those -- assets overseas.
System one number two did you risk weighted assets it's quite clear that in certain parts the world a much more aggressive -- that so that is clear against American banks you don't Tim Geithner.
You're on the Fed board Tim -- ECB president of the New York fed.
I mean why did he take these comments you your critique is not against regulation -- like -- take its -- high import I don't know professional review those who I spoke to knows exactly right thing but I think a lot of people.
-- -- -- -- Like Barney Frank would listening to set.
It's just there's so many people who know throwing things and -- with that you're their favorite pet -- in there that it it just became a very convoluted kind of thing so.
Hopefully so -- be fixed.
And and and again I've seen JPMorgan refine -- -- I detection hurt medium sized small banks more which I'm not in favor of let me be against that is -- coming -- unintended consequence so you're basically -- in terms of regulation there is no adult in the room.
There's been don't charge.
There's no one person in charge and we set up when the regulations in favor as the financial services oversight committee and because one -- -- we had is that we didn't have.
One place -- we had a lot of things on regulator improperly -- becoming gaps in the system.
But the financial oversight we wouldn't -- enough teeth so here I'm complained that that particular regular regular role should be doing more -- not -- -- So so that would give its own charges say no we're not gonna do a B and seeks a bid for the system.
We know that but -- -- that we have ten -- twenty major regulars now.
So remember live regular is all the -- were protects their own entity.
And I'm looking across the whole system anymore so when you go to -- -- you corner of one of these regulators what -- Scotch and or class of one would have preferred drink.
We have what I what I poses a wind -- of his -- about what -- didn't tell.
The -- that I and I really do visit that if people got together.
And and because Democrats Republicans Europe US and actually thought across the whole picture about policy leverage Basel III Dodd-Frank.
What works what we need to fix we don't need to fix.
I think you could actually have more consistent -- policy and a better recovery I can't prove it.
I think it says -- written ten years from now but what some think -- that's it isn't that -- not just saying this from a personal standpoint.
JPMorgan -- ship when you're saying that these regulations are hampering the recovery that's going actually break vision for the tighter policies.
So we're -- policies so I was just in Berlin.
And quite clearly the ECB and the leaders of Germany but look to see you think be more aggressive making loans and buying sovereign -- and staying there.
But quite obviously speak the -- over there they want to see less sovereign debt.
They wanted to have more stress tests and -- -- more capital those will be account purposes like I'm not saying that that's something to -- more capital.
I'm simply saying if you want to work he's got to stop doing things which are spread across purposes -- -- kind of interest seen on the other hand quite critical of the regulations.
You do believe five seats in your comments your in the analyst call.
That we are in the middle of a recovery that could pick up steam.
Fairly significant that's correct and Comerica.
And it's a mild recovery but is broad based and it could be strengthened as we speak -- we took -- in your view Jamie Dimon economists.
4% GDP this year to be three -- -- -- here.
Interest -- that will that translate into jobs because that's the interesting thing here we have.
We do have positive GDP growth very little job for creation do you think that might translate into job we've had I African remain in the UK jobs in the last twelve months or so it's taken up here and housing I think is bottoming out and -- -- supply and demand coming -- So United States get three million Americans a year.
Household formation.
Which normally one point 31 point four million homes a year it's been half that.
-- household formation goes up which I think we'll -- jobs we're inevitably more homes really there we go back to building a 1000003 year which are economists think we gonna have to start building soon -- -- saint.
You too much -- could be six months nine months twelve months eighteen months that that -- -- two -- three million jobs so that is what I record could be due to give itself sustain recovery.
Our jobs more -- comes more jobs more homes for people employed were kids moving out of their parents homes and that kids right that they have -- out some of.
Back and I applaud you actually look have been -- Not bad not that we have more to make headlines yeah I mean.
What's -- interest in -- he's going to Davos this is key and I think you -- -- we should we should make this point.
He's going to gobbles essentially to press his case.
About the about the state of banking regulation -- -- convoluted as he put a convoluted.
Nature of -- that's where he's going.
We should point out that you also thinks housing spotting -- -- that's not really -- headline.
The bigger headlines what -- -- to do in Dallas he's gonna we -- meetings audition listening I I think so I mean when you what do you think of him go and adopt those and you know he has all the regulators in one place.
So which is why and in Atlanta headline one place to get to meet all the regulators.
You can essentially pressure case and that's what he's gonna do not just talking about -- -- position deregulation yep -- over regulation we should point out that this is a wide ranging interview.
I -- to everything within what else are gonna be hearing today well I think you're gonna be here and later and at 1 o'clock about how long.
He plans to stay at JPMorgan at least on -- identical thing and what he pledged to do next which and he talks about that openly talks about that openly and which kind of surprising to me.
It's been mild recovery GDP -- three to 43 to 4% that's a that's an interest -- that life.
Lots of interest -- headlines Johnny thank you very much exclusive interview would think it.
