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J.P. Morgan Chase Mortgage Banking CEO Frank Bisignano on the steps to turning the economy around and boosting job growth.
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Sitting on mr.
fix it friend visiting Otto is the co CE OO of JPMorgan Chase he's credited with turning rather banks mortgage business.
Restoring it to profitability and increasing market share -- 30% when Jamie Dimon has a problem.
He calls -- so we thought asking to fix the and it probably make.
-- market.
We could start with jobs going to fix that -- thing that we know as -- their.
Like -- do you by the way just for -- in my neighborhood now passed by the related to a demo little guys help -- -- -- yet I think -- I don't know how quickly it's gonna resolve that.
And jobs.
You know the unemployment that picture in -- country's bleak.
There -- not changing jobs that are wide open that what would you do to fix the jobs crisis.
We need engineers.
If you look across the graduates this year we graduate 60000 engineers.
70000.
Engineers thirty years ago.
Thank you Jim picture of that type of industrial country who he had -- -- we're growing -- growing today that it would need to grow engineers.
How do we get people to study got -- mean do we have that natural aptitude we have to set up special schools what about you -- -- loan incentives for per higher education.
I think.
I think the first thing as she got to look at the universe is themselves we -- In excess of 300 universities that have real engineering programs.
If you look at India it's 4000 university's -- and universities have to be motivated to do it and that's the place -- -- Why have we gotten to this point of the jobs not lucrative -- not our our American not natural interest and asked.
Well I it's interesting because if you take the software industry were short engineers continually.
In America are now engineering is is a full -- appointment.
Practice.
So it is a great place a Starker it's a rule -- rewarding career.
And I.
-- -- -- Create manufacturing opportunities -- create jobs in America.
You're all about economic incentives I -- should we structure the loan programs -- make it cheaper to borrow money to go to school to become and generic.
And I I I don't think you need to do that I think we need the engineering programs and I think we have to get people in this country to understand exactly where engineering can take people.
It is it the quarter of many of the things we do whether it's process or whether it's technology.
Whether it's business generation engineers are at the core of it.
I know another issue that you're really behind is putting veterans back to work right how do we -- that.
Well it's you know we felt an obligation.
JPMorgan himself and it's when he said.
When they come back you know it's our requirement to have put them to work.
They -- the country we really feel a deep need to put them to work so we have to start we're retraining.
But I.
I think -- mean.
To make some changes bringing -- military backed as an example and putting them to work is a big deal we need a business friendly environment.
In a business friendly environment -- courage in fact asked him what people can't fix the mortgage market how about that.
Housing -- we bring housing back.
What you know housing -- hit a bottom.
You know we said that we said that before I think what you're really seeing -- -- recovery.
We collected data we see data that shows.
10% less foreclosures.
Then a year ago seed over sixty giggling when these down significantly.
And re defaults -- all time low -- -- post crisis so I think that data shows that it's in the right direction but the fact that.
We got to work together collaborate government.
Financial institutions.
-- used again.
How do that -- you have a bird's eye view into who is paying their mortgage and who is and who who's hopeless at this point how do you fix that problem.
Well I think we've gone through a lot of that it's in foreclosure it's in bankruptcy they've had their opportunity -- modify.
And what we did in the settlement.
Led by the housing secretary.
Was an example a collaboration.
Between financial institutions.
Between regulatory agencies between the government.
They're really created something that was helpful I think that's had -- go -- housing in total so how do we pick up the rest of the mortgage market and as a result I mean how how do we move out from here.
Are they telling move out when he GSE reform.
Knowing -- privatized market when an analyst how do we reform -- GSA's well I think this shape and form and it's -- has caused it to be a single.
The single place and and brought us the issues that we had from before.
If we get around the table like we did on other issues and bring everybody together.
We will come up what a good way to structured GICs work together and have an active mortgage market and also have a privatized market.
It is important that we have privatized more -- so RE -- is that mount up thanks so much attic at that lukoil station -- -- -- he really needs you sort of figure out there and acts thank you forgot.
