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JPMorgan Chase CEO Jamie Dimon on the future of financial regulation and the impact of the “London Whale”, and the state of economic growth.
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-- thank you so much Stuart we really appreciate it yes I'm sitting here with chairman and CEO and president of JPMorgan.
Jamie -- and you know we have this opportunity to talk about all kinds of things about banking and what's happening here in Davos but I first wanna get your very first reaction.
It's just broken in the past hour that President Obama will nominate Mary Jo White the former US attorney from.
As the head of the Securities and Exchange Commission.
You having to deal with the SEC as a bank what do you think about nomination first.
Welcome I'm happy -- a year ago your viewers in.
Thank you you -- -- -- met Mary Jo White and I would say that anymore and those are all extremely capable confident right.
Tough and perfect -- he will also re nominate -- -- -- for a job that in the past.
You've been a little at least may be contentious about a critical -- yet consumer financial protection agency bureau.
A -- portray him I was critical -- noticed before the banking and has -- -- separate to coordinate better but I think they've done a great job for list are from ground zero.
-- on these relations -- -- Warren.
They -- from ground zero and they're making real progress like they came at you through the -- -- -- week we -- to go to qualified board rules do good -- -- thoughtful.
He did it quickly denied -- to -- -- I think a lot of progress -- -- -- continues to do that won't let the record show that Jamie Dimon is not ripping all regulations this is a little bit of surprise because you have come out.
Highly critical in some cases just -- -- disagree misnomer.
There are hundreds maybe 101000 rules coming out we were -- -- supporter of oversight.
-- -- clearing houses higher capital higher liquidity.
Even even a consumer protection strengthened somewhere.
But there's so many rules global rules yet there's certain ones I picked out like I don't need to find a three people -- read all -- so we've we've we're very clear about very certain -- we and -- good advice drink more refined.
They weren't I don't think that they -- -- -- the financial system but isn't it it is what it is this -- points -- we're moving on.
You're moving on -- you know I'd look at our look at all that you guys have been through in the past couple years in the wake up us works as a lot of the luminaries like Jamie -- we'll sit on panels and I heard yesterday that at the start of your panel which was about looking forward with the banks.
They ran a two minute clip and I heard this from bankers at a competitive banks were actually very.
Much defensive of what happened to you yesterday -- that is they ran a very negative two minute piece that really.
Beat up on the banks and you know three years ago stored -- brought the Sutton said.
I think stopping the beating up -- the bankers yet.
We put this way effort to I think the press -- do whatever wants to free country and I really believe that but doesn't have to like it.
But they did run two minutes of unabated.
Bastion of bank side it's complete and appropriate you got it right.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- I tend to -- the senior producer -- that's the big what they want I'm not arguing their right to do it I just think it's silly it was it was completely one side is -- Feels like you were a victim of a snow job and I'm -- -- -- -- -- -- -- Look you know you say -- completely fine but there's been new compensation for you where they chopped or compensation in half after -- these so called London -- trait that went south which was a big bet on something that was a little bit exotic.
Customer relationship with the port right now in the -- you cannot view getting cut.
Half -- we've lost money as a terrible thing to do her customers -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- So wasn't done to speculate and make a lot of money is something like that.
And it was terrible -- my -- -- my board.
-- -- -- -- -- -- -- -- Has to decide -- measure all these things were only look at one your performance but a we go to great company for his performance systems people recruiting.
Marketing all those things in a tough decision this year to look at how do you -- this terrible thing but all the good stuff -- there was as you know is a record year and a lot of good stuff so.
I complete respect -- decision.
You guys are doing well however and and I've got a friend from a call from your friend of -- Charlie Gasparino of fox business and he said asked Jamie this because of very good source.
Of Charlie's has said that there is a large so called too big to fail bank that may break itself up.
Because of big business conditions break itself up voluntarily.
Is that you just don't know what.
Well -- only a couple of other usual suspects -- Citi either Bank of America UBS.
I don't overthrown or we're Charlie goes whose information from what a lot of a lot of banks are looking and even here -- close European banks looking at.
Their business models to change their models are they're adjusting to new rules or regulations to you have seen some banks makes more drastic decisions -- All we're -- for businesses to -- doing very well.
They there's a lot of cross sell we have good return the capital thirty year record profits there's no reason for us to contemplate so you won't spin off an arm of JPMorgan now.
Okay I I wanted to also because as we move to the Fed and treasury Jack -- is the nominee for Treasury Secretary.
Your thoughts on that.
I know Jack a little bit but a lot -- known capable competent bright.
You know I hope -- great I hope they'll do -- -- I want to -- job inject more awards were keen to help them accomplish their objectives.
Well you know the Fed has worked very hard headed for better for worse putting a lot of liquidity and it you know the recent fed minutes indicated that.
Maybe they might slow down or at least and some quantitative easing by the 12013.
Do you think that will happen -- how would it affect JPMorgan.
It won't affect us at all really at all and almost not at all I mean the Fed Dave I think they -- about 07 no way don't know I mean unbelievable -- that.
Probably -- he's been far worse -- -- one point they have to.
Removes some estimates -- stopped doing it and are brought right -- that he's now usually is good fiscal policy.
It's not monetary policy so they remove that stimulus in the country's growing and -- -- that's fine.
You know if things will be fine won't be happy and so you know there -- -- -- -- -- their judgment.
You know we if if something happens it was a -- recession that's not -- that would hurt JPMorgan is.
More the underlying economy didn't exactly -- -- levels or anything else.
We had a couple of guests coming through here we're very optimistic on on budget -- of the Indian conglomerate may hypocrite but we've had BTP back.
Which is a Russian bank we've -- Derek -- that was -- Russian oligarchs.
All three of them extremely optimistic particularly about the US economy are you.
It's been the United States as -- people's view -- set.
Businesses -- great shape and by that I mean.
Capable plenty of cash low leverage.
That's true for large medium and small the consumers a better shape five million more working they're buying cars.
Household formation is going up.
Housing has turned totally all time affordability that's almost totally on -- it -- Grow it will get better in spite of the economy was -- economy -- get -- as destructive as -- supply demand.
All -- affordability more household formation took a look at America it's an end by look at other things.
Why isn't it this couple more Christian world.
And the best and most men and most liquid so although those things right can you give.
-- analyst on the good policy I think that policy could do what point can register.
So to -- good policy be something -- of the grand bargain however you know have you talk about it but rational tax policy tax reform.
You know reform the people believe -- along to entitlements.
Credible believable reform can you give the president credit or can you criticize him up four of the past.
Four years or at least the stabilization where do you stand with your relationship with him.
My relation the president is always -- -- never bad it was never could -- -- prevent them that we we were always always had conversation wouldn't like me vice Versa.
And you know my attitude is always been that we have to work with.
Governments -- on the world.
The -- amid and the united them where we try to have more -- -- courses were there we do business and we try to help every Carter and -- they still lot of stuff to get things turned around he was part of that so was -- sort Paulson before that George George Bush so.
But it did all the fresh America where that is it came up probably just kept -- -- until.
They stop the deterioration and and and I think if you're here most with say America because of the quick rapid stronger actions is a much better shape today -- Europe and I think that's true.
As we finish from when you wake up today it's a little bit -- -- and it's John Walters fish but.
Hello my parents I got what what country would you be I've never had a desired killing -- accurate but -- If you -- -- rate how you feel waking up every day to day vs how you did every day back -- the height of the crisis of 2008 how would you say I have completely repressed the height of the crisis that would get up every day and evidence that -- regular form.
Three years of -- that I signed initialed -- of those on the phone won't close some top the top officials at 33 area.
They also work -- written o'clock.
Pretty hard so what things about it I think too much -- than were before him Jamie Dimon chairman and CEO of JPMorgan we appreciate you coming on Fox Business with thank you what you.
