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Speaker 1: This is Masters in Business with Barry Ridholts on Bloomberg Radio.

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Speaker 1: We have a very special guest. Uh. It's really kind

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Speaker 1: of a fascinating um individual in that I know of

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Speaker 1: no other person who is responsible for more assets, no

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Speaker 1: other woman who is higher ranking in the world of finance,

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Speaker 1: and yet at the same time is not only unknown

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Speaker 1: to the investing public in general, is probably fairly unknown

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Speaker 1: within the world of financial asset management, meaning people who

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Speaker 1: work in finance probably haven't heard of Horror as much

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Speaker 1: as they've heard of some some more famous money managers.

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Speaker 1: Everybody knows who Jamie Diamond is, He's the CEO of

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Speaker 1: JP Morgan, but how many people know who the chief

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Speaker 1: executive officer, the c e O of JP Morgan Private

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Speaker 1: Bank is. They managed six hundred and fifty billion dollars,

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Speaker 1: They're a huge, huge player in the world of asset management,

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Speaker 1: and I bet most of you don't know who Kelly

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Speaker 1: Coffee is. Well. We spent a delightful hour and change

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Speaker 1: chatting about what it's like being a woman on Wall Street,

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Speaker 1: what it was like being at a big bank in

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Speaker 1: the midst of the financial crisis, and what exactly the

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Speaker 1: CEO of JP Morgan Private Bank actually does. I found

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Speaker 1: the conversation really quite fascinating, and I expect you will also, so,

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Speaker 1: without any further ado, my conversation with Kelly Coffee. This

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Speaker 1: is Masters in Business with Barry Ridholts on Bloomberg Radio.

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Speaker 1: My special guest this week is Kelly Coffee. She might

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Speaker 1: be the most influential woman in finance who you've never

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Speaker 1: heard of. She is the CEO of JP Morrigan Private Bank,

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Speaker 1: which manages over six hundred and fifty billion dollars in

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Speaker 1: client assets. Her background, she has a bachelor's and International

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Speaker 1: Affairs and French at Lafayette College, a master's and Fire

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Speaker 1: and Service at Georgetown University. She's a member of the

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Speaker 1: Global Wealth Management Operating Committee at JP Morgan and also

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Speaker 1: executive sponsor for the Asset Management Woman's Network. Kelly Coffee,

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Speaker 1: Welcome to Boomberg. Thank you. It's wonderful to be here.

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Speaker 1: So you have a really interesting background. Starting you've been

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Speaker 1: at JP Morgan for quite a while. You've worked you

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Speaker 1: withy through number of departments. But before we get to

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Speaker 1: life at JP Morgan, tell us a little bit about

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Speaker 1: your background. How did you get into the financial services

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Speaker 1: industry with a background in French and foreign service. Uh,

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Speaker 1: I think I'm an accidental entrance into this, into this career.

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Speaker 1: My undergrad degree, as you said, in my graduate degrees

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Speaker 1: in international affairs. I wanted to study the world and

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Speaker 1: how how it worked, and that was always fine fascinating

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Speaker 1: to me. My other choice for my undergraduate major would

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Speaker 1: have been math, but at eighteen years old, I couldn't

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Speaker 1: figure out what I would have done with a math degree,

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Speaker 1: so I just studied that um. And so when I

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Speaker 1: was coming out of Georgetown, I had a decision to make.

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Speaker 1: I could have been interestingly an observer at the European

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Speaker 1: Union Integration Talks three pre the the euro and all

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Speaker 1: of the things that we're talking about will it become

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Speaker 1: dismantled today? And the birth you could go to. I

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Speaker 1: could go to the funeral. Let's hope not we're at that,

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Speaker 1: we don't go to that funeral, but or go go

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Speaker 1: to Wall Street. And I thought, since I didn't do

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Speaker 1: an MBA, that I should get just some grounding and finance.

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Speaker 1: So I went to JP Morgan because they had a

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Speaker 1: great training program. I met some fantastic people, and I

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Speaker 1: would do it for a couple of years and years

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Speaker 1: ago probably, and now you're running the private bank. So

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Speaker 1: you were in a number of different departments, kind of

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Speaker 1: work your way through. Tell us about the different divisions

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Speaker 1: that you either worked at or rent. I started in

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Speaker 1: corporate finance and M and A because it was it

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Speaker 1: was what I knew and I thought that would be

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Speaker 1: the best part. It was. It was fantastic place for me.

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Speaker 1: I loved building models, and pretty quickly in that I

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Speaker 1: was asked to move to Argentina for US when Argentina

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Speaker 1: was privatizing its industry. So we actually, hopefully we're going

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Speaker 1: into that kind of phase of Argentina today with ma

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Speaker 1: Cri carry every cycle they did. We've seen the same

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Speaker 1: thing in Brazil and Mexico every few years is a

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Speaker 1: big regime change. So I went. I went there when

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Speaker 1: Menem was president. Cavallo was the finance minister, who was

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Speaker 1: a rock star in my eyes, and they had put

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Speaker 1: in place something called convertibility. They pegged Paso to the

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Speaker 1: dollar one for one, and then we were helping with

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Speaker 1: the privatization program. So JP Morgan, together with the French

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Speaker 1: and the Italian and a local company called pets comp

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Speaker 1: Punk bought the phone company in the north of Argentina,

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Speaker 1: and we financed it and then we ultimately took a

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Speaker 1: public but I I was pulled down there to work

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Speaker 1: on that, and I stayed for about five years. And

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Speaker 1: all these were own entities that were spinning out. They

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Speaker 1: privatized it, then you helped take it public. Did the

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Speaker 1: international affairs French and everything else help with that? Help?

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Speaker 1: I mean, of course now I'm fluent in Spanish, I

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Speaker 1: spoke French when I went there, But it did I

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Speaker 1: think my undergraduate degree and my graduate degree, particular in

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Speaker 1: international affairs from Georgetown. It taught you how to take

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Speaker 1: really complicated things and distill them down to the essence.

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Speaker 1: And there's an analytical part of that. It's not all

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Speaker 1: not all of that is numbers. And I think it

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Speaker 1: did help me, particularly when we were negotiating and you

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Speaker 1: had the French, the Italians, the Argentine and the Americans

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Speaker 1: US trying to agree on something in a consortium as

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Speaker 1: joint owners. I think it served me well. And some

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Speaker 1: of those met everybody speaking English. I'm assuming in those

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Speaker 1: meetings everybody spoke English in those meetings. Of course I

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Speaker 1: became fluent in Spanish. But yeah, we you know a

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Speaker 1: lot of those. A lot of that business is done

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Speaker 1: in English. Uh. And it was interesting even though and

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Speaker 1: even in Argentina are English. We would have held the

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Speaker 1: meetings in Spanish verbally, but all of our presentation materials

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Speaker 1: were in English, but just been because we're in an

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Speaker 1: American bank. How long were you down in Argentina? About

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Speaker 1: five years? Right? It's really lovely. It's beautiful so and

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Speaker 1: I hope it becomes really prosperous now with that they

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Speaker 1: have of tremendous resources and raw materials and commodities. It

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Speaker 1: just seems that every few years they seem to slip

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Speaker 1: off the tracks and it takes a long time to

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Speaker 1: get back on on pace. And hopefully I'm also slaves

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Speaker 1: to the comality market. You have a huge run up

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Speaker 1: cause by China, and then the run back down and

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Speaker 1: suddenly they're out over their skis. And it seems that

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Speaker 1: nobody seems to learn from the cycle. Hey, kamalities are booming,

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Speaker 1: let's let's you know, build this, sell that, and all

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Speaker 1: of a sudden it goes the other way and what

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Speaker 1: a surprise. Yeah. I think Argentina they do have enough

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Speaker 1: of a of a market internally, and and if the

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Speaker 1: government does this right, I think it can work beyond that. Sem.

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Speaker 1: So let's bring you back to UH New York and

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Speaker 1: the private bank. What's the difference between the private bank

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Speaker 1: and a regular bank. The private bank is actually a

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Speaker 1: microcosm of the higher firm because when need think about

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Speaker 1: who we do business with, it's it's it's extremely wealthy

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Speaker 1: clients who probably they might be business owners, they might

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Speaker 1: do entrepreneurs a number of different ways they got there,

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Speaker 1: and they need us for banking, they need us for credit,

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Speaker 1: they need us for investment advice. They also need us

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Speaker 1: to help sell their businesses sometimes help them think about

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Speaker 1: I p O. So there's not a part of JP

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Speaker 1: Morgan that my business doesn't plug into to make sure

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Speaker 1: I'm getting the best of JP women for each of

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Speaker 1: those clients. So it is really like a bank. We

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Speaker 1: have just steered very hard net worth individuals. It is

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Speaker 1: it is, I mean, JP Morgan serves the whole spectrum

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Speaker 1: right between Chase and we. We we coordinate very closely

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Speaker 1: with that. And the idea is to basically say, this

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Speaker 1: is the client, this is what they need, which is

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Speaker 1: not only delineated by their balance sheet. By the way,

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Speaker 1: as you know, very it's it's really what what do

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Speaker 1: they what do they need advice on? And then let's

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Speaker 1: make sure we're getting that right advice to them the

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Speaker 1: way they want it. I'm Barry rid Helps. You're listening

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Speaker 1: to Masters in Business on Bloomberg Radio. My special guest

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Speaker 1: today is Kelly Coffee. She is the CEO of JP

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Speaker 1: Morgan's Private Bank, which manages about six d and fifty

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Speaker 1: billion dollars in client assets. And one of the things

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Speaker 1: that stood out to me on your bio is that

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Speaker 1: you lead the investment banks Woman's network. And one of

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Speaker 1: the things that I've tried to do with this show

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Speaker 1: is bring more women on. And it's not easy. It

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Speaker 1: is very much a male dominated industry. When I look

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Speaker 1: to bring people on who are female, it's harder to

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Speaker 1: find them, the fewer and further between. Why is that?

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Speaker 1: It's a good question. One of my colleagues always refers

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Speaker 1: to me as the spotted owl because but but I

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Speaker 1: actually think at Jpmarren, we have a pretty incredible group

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Speaker 1: of people. You know, I I don't I don't know

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Speaker 1: that I can put pinpoint what exactly is is the issue? Um,

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Speaker 1: you know, I think that we've done I think what

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Speaker 1: it takes to actually help women advance. First of all,

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Speaker 1: they have to be interested, and then second of all,

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Speaker 1: they have to have advocates. And and we've we've done

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Speaker 1: a number of different things. I have, whether it's at

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Speaker 1: the investment bank, in the Women's network, or in my

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Speaker 1: current business now where I sit and talk to women.

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Speaker 1: There are some who come into my office and I'll

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Speaker 1: I'll say I want to give them a promotion and

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Speaker 1: give them a bigger job, and their first response to

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Speaker 1: me sometimes as well, I'm not sure I'm ready for that.

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Speaker 1: And you would never get that same sort of response

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Speaker 1: from a guy. They would They would fake it till

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Speaker 1: they make it as the old old expression, and that's

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Speaker 1: a male attitude. So women sometimes need a little bit

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Speaker 1: of a push to say, you know what, be ambitious,

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Speaker 1: you can do this, You'll figure it out. I wouldn't

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Speaker 1: be offering it to you if I didn't think you

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Speaker 1: could do it, and I couldn't help you do it,

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Speaker 1: And so there's an element of that. So we previously

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Speaker 1: interviewed Michelle Myers is one of the up and coming

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Speaker 1: economists again on the Bank America Merrill Lynch platform, and

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Speaker 1: one of the questions one of the comments she said

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Speaker 1: that I thought was so interesting. The lack of women

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Speaker 1: at the top of the industry is a challenge for

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Speaker 1: the young women coming up in financed today. Agree with that,

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Speaker 1: And the way she probably meant that is when you

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Speaker 1: want to think about how you can do things, most

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Speaker 1: people need to see somebody who's succeeded to do that

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Speaker 1: no career path that you've witnessed. Oh you can do this,

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Speaker 1: and they want to see that you're you're still you're

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Speaker 1: still basically hacking away through the underbrush, through the wilderness. Yeah,

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Speaker 1: and I think there's some truth to that I have found.

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Speaker 1: When I first ran our derivatives marketing group, I remember

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Speaker 1: coming in and there were very few women in the group,

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Speaker 1: and a couple of them that were in the group

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Speaker 1: I knew probably shouldn't be uh, And what I did

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Speaker 1: was actually make it a conscious effort to sit down

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Speaker 1: and think about who can we pull in and enlist

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Speaker 1: the men, the great men that worked for me. I

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Speaker 1: turned to one of them jokingly said today, you're either

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Speaker 1: going to learn a lot about shoes or you're gonna

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Speaker 1: help me recruit some really amazing women to work with us.

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Speaker 1: And he did. He said, I'm going to do that,

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Speaker 1: and when I shifted to run something else, we were

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Speaker 1: over female. I found that if you got to critical mass,

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Speaker 1: it took care of itself. It becomes self sustaining at

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Speaker 1: that point. And I think at JP Morman we've seen

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Speaker 1: that a bit because if you look at our if

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Speaker 1: you look at our organization, you have Marri Edos wh

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Speaker 1: runs asset management, our CFO Marian Lake as a rock star,

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Speaker 1: Our chief marketing officer Kristin Lemcow is incredible. Uh, Aaron

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Speaker 1: Hill runs all of the branches are branch network, and

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Speaker 1: so we have some women in really visible, big jobs

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Speaker 1: that I think give people that who need that there

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Speaker 1: is a track to get there, and I can do

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Speaker 1: it while still having kids and having a life and

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Speaker 1: all the other things that are important. I think that

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Speaker 1: is what is helpful. There's a lot of academic research

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Speaker 1: out there that says, if you're an investor and you're

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Speaker 1: a woman, the odds are that you're going to have

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Speaker 1: a better return because you don't suffer from what we

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Speaker 1: jokingly refer to as testosterone poisoning. Any truth to that

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Speaker 1: in the real world, I don't know. I I think

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Speaker 1: I've seen that research. I think it's interesting I can

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Speaker 1: say that in general, and this is obviously a gross generalization,

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Speaker 1: women tend to be calmer in their reactions to things.

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Speaker 1: And I know with myself when something's going you know,

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Speaker 1: when the market's going crazy, when we have to make

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Speaker 1: it a decision, I get incredibly calm because that's the

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Speaker 1: way I need to think and process to make the

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Speaker 1: decision um And I think that's not always the case

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Speaker 1: with with some of the male counterparts in the past.

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Speaker 1: So you know, maybe you make better decisions when you're

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Speaker 1: when you're calm. Well, it certainly reflects in in that

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Speaker 1: academic data on on performance, although if you read all

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Speaker 1: those studies there's always footnotes says relatively small sample set.

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Speaker 1: I know, you know, you need a few thousands managers

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Speaker 1: in order to be able to to draining real conclusions. So,

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Speaker 1: since you've joined the industry and progressed up the ladder

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Speaker 1: at JP Morgan, what has changed within the industry for better?

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Speaker 1: A lot has changed within the industry for better? I mean,

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Speaker 1: do you mean specifically for women? Are just generally no,

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Speaker 1: I mean generally generally civily for women? Okay, Well, I

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Speaker 1: would say I was just just a general point that

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Speaker 1: I think is also very positive for women. Just think

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Speaker 1: about the use of technology today versus when we started.

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Speaker 1: When I started and I was covering Latin America, not

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Speaker 1: only did I have to finish my model, but I

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Speaker 1: actually had to face it to the client overnight and

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Speaker 1: it would cut off at least ten times. I had

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Speaker 1: at least another hour or two in my schedule at

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Speaker 1: the office to fax it. And because a two clock,

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Speaker 1: three o'clock in the morning, Who's gonna do that for you?

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Speaker 1: When you think about what BlackBerry did for us and

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Speaker 1: now iPhones, where I can be anywhere and responding to

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Speaker 1: what I need, I think it gave people a lot

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Speaker 1: more flexibility. And I think that, along with some of

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Speaker 1: the technology, just even the way those companies have operated

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Speaker 1: has even made our industry much more fluid. I mean,

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Speaker 1: we're on the radio, but you see I'm in a

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Speaker 1: bright blue dress today with boots. When I started at

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Speaker 1: JP Morgan, I never would have worn anything like this

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Speaker 1: because colorful in boots or dude suits. Women didn't wear

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Speaker 1: pants really gerald shoes and a blazer, and years ago

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Speaker 1: that was unthinkable. Also, I think that's I and I

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Speaker 1: think that's somewhat superficial, But I think it manifests itself

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Speaker 1: in terms of our openness to who is in the

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Speaker 1: who is in the organization, women moving along. I think

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Speaker 1: that's all part of the same. There's much more opportunity

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Speaker 1: to express your personality in our industry than there was

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Speaker 1: when I started. You know, you mentioned technology, how much

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Speaker 1: doesn't make a difference that so much communication is being

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Speaker 1: done by email or instant message. We're big slack users.

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Speaker 1: So who's on the other side of the communication You

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Speaker 1: may not even know their gender, or their race or

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Speaker 1: anything else like that. Does that technology change make a

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Speaker 1: difference or is it It's already adopted and pass that.

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Speaker 1: I think it's adopted. I guess what I would say

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Speaker 1: about technologies. I love the flexibility it it affords us.

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Speaker 1: I don't love that so much is done on chat

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Speaker 1: and on email, honestly, because I do think and you

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Speaker 1: I'm sure you've seen this, somebody can misinterpret an email

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Speaker 1: that you very easily, very easily written word to There's

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Speaker 1: also less of a self editing process. I've worked with

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Speaker 1: people in the past who I've seen since horrific emails

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Speaker 1: that had they turned it into a formal memo, it

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Speaker 1: never would have No one would hit that send button.

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Speaker 1: It would be there'd be a little more circumspection about

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Speaker 1: it rather than blah blah blah sends. And and that's

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Speaker 1: the problem with two instant communication or pick up the

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Speaker 1: phone call and and so when I shifted, you know,

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Speaker 1: everybody in ours to use blackberries, and we were all

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Speaker 1: really good with our thumbs typing with blackberries, and we've

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Speaker 1: now shifted to iPhones. There are a good group of

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Speaker 1: people that still like the BlackBerry. But I made the

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Speaker 1: shift to iPhones even though I'm not very good at

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Speaker 1: typing on it, because I figured shorter emails are better

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Speaker 1: and I'm much more likely to just pick up the

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Speaker 1: phone and call a person instead of drafting an email.

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Speaker 1: It's a little bit more of a pain for me

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Speaker 1: to do it on an iPhone. I think that's a

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Speaker 1: good thing. I'm Barry Ridhults. You're listening to Masters in

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Speaker 1: Business on Bloomberg Radio. My guest today is Kelly Coffee.

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Speaker 1: She is chief executive officer of JP Morgan Private Bank,

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Speaker 1: part of JP Morgan Chase, which runs the private bank

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Speaker 1: runs over six d and fifty billion dollars in client assets.

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Speaker 1: You were at JP Morgan during the eighth nine collapse.

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Speaker 1: That had to be quite a interesting couple of months.

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Speaker 1: What was it like at the back front row seat? Yes,

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Speaker 1: it was interesting is a good way to say it.

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Speaker 1: I think it was like always, it was always being

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Speaker 1: tense and on and kind of ready for the next

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Speaker 1: punch and where it was going to come from. I

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Speaker 1: think one of my most vivid memories. I have a

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Speaker 1: lot of vivid memories. One of my most vivid memories

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Speaker 1: is the fact that you would walk onto our trading

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Speaker 1: floor on a Saturday or Sunday and it looked exactly

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Speaker 1: like it did Monday through Friday. Really, why was that?

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Speaker 1: Because you don't know what was happening the weekend, and

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Speaker 1: you know, I remember, you know the night that the

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Speaker 1: weekend that we bought bear Sterns, you know, having that

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Speaker 1: that conversation on Sunday night, like I need everybody in

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Speaker 1: a six am, We're going We ran their risk. From

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Speaker 1: day one, I had to walk into the building and

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Speaker 1: figure out who worked for me and what they were doing,

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Speaker 1: and make sure I was running derivatives marketing. Then make

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Speaker 1: sure that no trade was put on around Wound without

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Speaker 1: my approval. And it was it was moving quickly, and

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Speaker 1: then the weekend Lehman failed. When when that was happening,

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Speaker 1: it was it was extraordinary complex because not only you know,

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Speaker 1: we have collateral posted to one another, so you knew

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Speaker 1: what that was, but you had to actually think about

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Speaker 1: what was going to happen in the markets and how

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Speaker 1: that impacted your derivatives position and therefore what trades you

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Speaker 1: might have to do when the market opened, and and

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Speaker 1: you were just constantly running scenarios to make sure we

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Speaker 1: were ready for that. It was extraordinary, it really, it

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Speaker 1: really was. There was a lot of second level thinking

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Speaker 1: where it's not here's what's going to happen now, how

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Speaker 1: it's going to affect other things that might be based

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Speaker 1: on something else, and at a certain point that decision

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Speaker 1: tree becomes completely unmanageable. But just for the next morning,

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Speaker 1: you had at least have a sense of what was

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Speaker 1: going on. Clients were looking to us for a lot

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Speaker 1: of advice on what was going on in the market,

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Speaker 1: so you were really trying to take it all in

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Speaker 1: and and it really was scenario analysis. The the takeover

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Speaker 1: of Bear Sterns happened fairly rapidly, and Bear wasn't in

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Speaker 1: terrible um shape, and if I recall correctly, you JP

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Speaker 1: Morgan was the big his counterparty to Bear, so you

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Speaker 1: really understood their book better than anybody else, well as

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Speaker 1: well as you can from the outside. I guess it

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Speaker 1: was very quick. It was a Thursday night to Sunday

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Speaker 1: night announcement. That's what A twenty nine billion dollar take

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Speaker 1: over something along those lines. Huge. And the other thing

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Speaker 1: I think that was extraordinary about it because Jamie has

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Speaker 1: told the story I know a number of times where

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Speaker 1: you know he got that diamond Jamie Diamond, right, Okay,

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Speaker 1: he had that call Thursday night. It was his birthday

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Speaker 1: dinner and Uma hearing about that and uh it was

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Speaker 1: all Schwarts that called him and said we have an issue.

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Speaker 1: And he called, you know, the head of our investment

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Speaker 1: in A couple of people. People got out. It was

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Speaker 1: eleven o'clock. People got best back into the office right

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Speaker 1: over to Bear Sterns to figure out and they worked

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Speaker 1: all night to make sure Bear could open the next

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Speaker 1: day and then through the weekend to see what we

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Speaker 1: could do for longer term. It was I think what

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Speaker 1: the I'm not sure how many other institutions, if there's

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Speaker 1: any other institution, could have pilled that off terms of

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Speaker 1: the amount of analysis that we had to do to

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Speaker 1: be able to step in and run that right from Monday,

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Speaker 1: I was incredibly proud of everybody. It was a tough time,

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Speaker 1: but exciting in a way too. At the time, I

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Speaker 1: was critical of the deal from the FED perspective, but

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Speaker 1: objectively looking at it from a corporate perspective, I thought

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Speaker 1: Jamie Diamond pulled off one of the greatest acquisitions of

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Speaker 1: all time, essentially with his little risk as humanly possible

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Speaker 1: for that much of that size, large risky bank, with

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Speaker 1: the FED banking backing it up, and or eventually all

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Speaker 1: but yeah, but when you look at all the main

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Speaker 1: lane one, two, and three that were unwound, these were

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Speaker 1: the derivative positions of of Bear at the time. It

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Speaker 1: really was fairly break even that that unwind wasn't wasn't horrific.

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Speaker 1: And I think people from the outside we're looking and saying,

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Speaker 1: oh my god, this is potentially tens of billions of dollars.

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Speaker 1: It was essentially flat by the time they were done.

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Speaker 1: I don't know. I think I think if you go

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Speaker 1: back and you factor in all the fines that we've

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Speaker 1: paid as a result of that acquisition. You trace a

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Speaker 1: lot of the fines back to that acquisition, particularly in

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Speaker 1: the mortgage space um and they were second, they were

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Speaker 1: the second largest mortgage and interesting that nobody was able

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Speaker 1: to do the same thing with Lehman Brothers. I know, well, yeah,

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Speaker 1: that really was interesting. I didn't think at the time

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Speaker 1: that they were going to let that go, but it

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Speaker 1: became apparent. I remember that weekend very well, series of

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Speaker 1: conference calls. I think one of the things that made

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Speaker 1: JP Morgan able to react so quickly in the crisis

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Speaker 1: was the fact that we had the risk infrastructure already

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Speaker 1: set up. You know, Jamie also likes to say, you

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Speaker 1: don't you don't declare war and then raise your army.

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Speaker 1: You get your army first, and so we had risk

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Speaker 1: meetings that we were doing that were this regular weekly

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Speaker 1: meetings all the time, and during the crisis, what we

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Speaker 1: did is we were just having them maybe four or

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Speaker 1: five times a day. So it was that same infrastructure,

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Speaker 1: but just shortening so that that reporting was instantaneous up

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Speaker 1: and down in terms of understanding what was going on

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Speaker 1: around around the world and in the crisis, it was

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Speaker 1: it was a pretty incredible thing to say, and you

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Speaker 1: ended up with a fantastic building. We did really happy about. Yeah,

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Speaker 1: that's one of the nicest new buildings. The bear Stearns

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Speaker 1: building right next door to us, right, so our headquarters

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Speaker 1: right in the corner. You're on Park and between forty

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Speaker 1: and forty seven and this is seven and Vanderbilts literally

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Speaker 1: in the corner. I'm Barry Ridhults. You're listening to Masters

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Speaker 1: in Business on Bloomberg Radio. My special guest today is

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Speaker 1: Kelly Coffee. She is the CEO at JP Morgan Private Bank,

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Speaker 1: which manages six hundred and fifty plus billion dollars. Let's

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Speaker 1: talk a little bit about investing today. Uh, what are

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Speaker 1: some of the more common questions that the bank is

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Speaker 1: hearing from investors? You know, investors are It's a it's

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Speaker 1: a complicated world out there. You have what's going on

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Speaker 1: in China, what's going on in Europe. You have negative

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Speaker 1: rates in certain places. You have the elect US election

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Speaker 1: going on, you have you know, the FED having moved

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Speaker 1: in December and unclear what's going to happen for the

432
00:22:01,640 --> 00:22:04,320
Speaker 1: rest of the year. So they're asking all of those questions,

433
00:22:04,640 --> 00:22:06,639
Speaker 1: and they're asking them in terms of what does this

434
00:22:06,760 --> 00:22:09,320
Speaker 1: mean for you know, for my portfolio, what I should do.

435
00:22:10,000 --> 00:22:13,400
Speaker 1: I think our job as investors, the most important thing

436
00:22:13,440 --> 00:22:17,200
Speaker 1: to do is to stay invested. And if you look

437
00:22:17,200 --> 00:22:19,560
Speaker 1: at if you look at the performance of clients who

438
00:22:19,640 --> 00:22:23,679
Speaker 1: stay invested through market volatility. Again, this is money that

439
00:22:23,840 --> 00:22:26,119
Speaker 1: is for the long term. They do far better than

440
00:22:26,160 --> 00:22:27,760
Speaker 1: trying to time the market to go in and out.

441
00:22:27,960 --> 00:22:29,879
Speaker 1: Even just a simple if you look at the return

442
00:22:29,920 --> 00:22:32,800
Speaker 1: of the SMP over the last twenty years called eight percent,

443
00:22:33,000 --> 00:22:36,640
Speaker 1: So if you invested about ten thousand dollars you'd have today,

444
00:22:36,680 --> 00:22:38,080
Speaker 1: you know, for eight thousand dollars at the end of

445
00:22:38,160 --> 00:22:42,320
Speaker 1: last year, if you missed the top ten days, your

446
00:22:42,359 --> 00:22:46,800
Speaker 1: investments have that amount. Nobody knows how to time that

447
00:22:46,880 --> 00:22:49,080
Speaker 1: market exactly right. If you miss, if you miss the

448
00:22:49,119 --> 00:22:52,680
Speaker 1: top thirty days, you're you're negative. That's amazing. You know that.

449
00:22:52,760 --> 00:22:55,240
Speaker 1: We've run some studies on that, and it turns out

450
00:22:55,280 --> 00:22:59,800
Speaker 1: that the best ten days are usually adjacent in time

451
00:22:59,840 --> 00:23:02,200
Speaker 1: to of the worst ten days. So if you think

452
00:23:02,240 --> 00:23:05,480
Speaker 1: you're going to get out of the way, you perhaps

453
00:23:05,480 --> 00:23:07,520
Speaker 1: you can, but then to get back in the next

454
00:23:07,600 --> 00:23:10,680
Speaker 1: day when it comes snapping back that people don't do things.

455
00:23:10,840 --> 00:23:14,200
Speaker 1: It's really hard. So I think what we can we

456
00:23:14,280 --> 00:23:15,960
Speaker 1: try we take all of what's going on in the

457
00:23:16,040 --> 00:23:18,360
Speaker 1: world and try to understand what we think it means

458
00:23:18,400 --> 00:23:21,080
Speaker 1: for portfolios. I think it just proves that being diversified

459
00:23:21,440 --> 00:23:24,159
Speaker 1: is the best way to invest for the long term.

460
00:23:24,240 --> 00:23:26,280
Speaker 1: And and so those are those are the those are

461
00:23:26,280 --> 00:23:28,840
Speaker 1: the types of questions we're getting. Are you Are you

462
00:23:28,880 --> 00:23:31,840
Speaker 1: getting similar questions today as to what you got a

463
00:23:31,960 --> 00:23:34,880
Speaker 1: year ago, two years ago, three years ago? And how

464
00:23:34,920 --> 00:23:37,960
Speaker 1: do those questions differ from what we might have heard

465
00:23:37,960 --> 00:23:40,919
Speaker 1: in the two thousand's pre crisis. I think if I

466
00:23:40,960 --> 00:23:43,640
Speaker 1: think about today versus a year or so ago, I

467
00:23:43,680 --> 00:23:46,880
Speaker 1: think the concern about a recession is higher today than

468
00:23:46,920 --> 00:23:50,399
Speaker 1: it was then, so more more concerned about that. And

469
00:23:50,440 --> 00:23:54,480
Speaker 1: then I and then obviously the politics, the political situation

470
00:23:55,240 --> 00:23:57,119
Speaker 1: this year. Yeah, I think the election is coming. I

471
00:23:57,160 --> 00:24:00,960
Speaker 1: think that's that's let me ask you differently because what

472
00:24:01,080 --> 00:24:03,919
Speaker 1: I'm hearing from you aside there are a lot of

473
00:24:03,960 --> 00:24:07,080
Speaker 1: topical things, but it seems like there are, Oh there's

474
00:24:07,119 --> 00:24:13,040
Speaker 1: always something that clients nervously ask about that. Your basic

475
00:24:13,119 --> 00:24:15,320
Speaker 1: answer is always, Hey, you need to write out the

476
00:24:15,400 --> 00:24:18,760
Speaker 1: volatility for the long haul, and don't worry about last

477
00:24:18,840 --> 00:24:22,480
Speaker 1: year was China? The year before do you remember the

478
00:24:22,600 --> 00:24:26,119
Speaker 1: Russian invasion? Oh? No, Cyprus, What is this gonna Cause

479
00:24:26,800 --> 00:24:29,880
Speaker 1: it seems every year there's something horrific, and every year

480
00:24:30,000 --> 00:24:32,920
Speaker 1: goes by and it's not the disaster people forking. I

481
00:24:32,960 --> 00:24:35,160
Speaker 1: think that's exactly right. I think what people have there's

482
00:24:35,200 --> 00:24:37,600
Speaker 1: always going to be uncertainty in the world, and if

483
00:24:37,680 --> 00:24:39,639
Speaker 1: and if you try to wait until it's all certain,

484
00:24:40,720 --> 00:24:42,159
Speaker 1: I don't think you'll ever get to that place. And

485
00:24:42,160 --> 00:24:44,320
Speaker 1: even when it feels more certain, you're probably too late.

486
00:24:44,359 --> 00:24:47,400
Speaker 1: It's probably not the best entry point. Anyway. Market's pretty

487
00:24:47,400 --> 00:24:49,520
Speaker 1: good at discounting these things in advance. They are, and

488
00:24:49,560 --> 00:24:51,560
Speaker 1: I think you know, you say people at the equity market,

489
00:24:51,600 --> 00:24:53,960
Speaker 1: oh it's made, it's made a big run. We do

490
00:24:54,040 --> 00:24:56,320
Speaker 1: tell clients when we're getting someone invested. It depends on

491
00:24:56,359 --> 00:24:59,320
Speaker 1: where they're sitting today, right, But if they're starting from zero,

492
00:24:59,640 --> 00:25:01,720
Speaker 1: we don't do that all in one day or a month.

493
00:25:01,760 --> 00:25:03,920
Speaker 1: We we like to phase into that because I think

494
00:25:03,920 --> 00:25:07,600
Speaker 1: over time that gives them the best return. But there's

495
00:25:07,640 --> 00:25:10,200
Speaker 1: always going to be But there are times where that

496
00:25:10,320 --> 00:25:13,080
Speaker 1: entry point just looks particularly attractive, and they tend to

497
00:25:13,119 --> 00:25:16,760
Speaker 1: be the scariest times to invest. And that's when you

498
00:25:16,840 --> 00:25:19,440
Speaker 1: have to have the long term and just be able

499
00:25:19,480 --> 00:25:21,439
Speaker 1: to say, you know, history is a guide, We're going

500
00:25:21,480 --> 00:25:24,040
Speaker 1: to be fine through all of this, and and and

501
00:25:24,200 --> 00:25:26,159
Speaker 1: it's it's one of the most important lessons in investing,

502
00:25:26,200 --> 00:25:29,719
Speaker 1: I think. So let's let's take it in a different direction.

503
00:25:29,840 --> 00:25:31,239
Speaker 1: What do you what do you think are some of

504
00:25:31,280 --> 00:25:36,040
Speaker 1: the worst investing ideas that are out there these days? Again,

505
00:25:36,080 --> 00:25:38,720
Speaker 1: I got the worst investing idea is to not be invested.

506
00:25:38,920 --> 00:25:41,320
Speaker 1: I mean that that is sort of the base of

507
00:25:41,320 --> 00:25:46,360
Speaker 1: what we're doing. To be not very diversified. It probably

508
00:25:46,400 --> 00:25:49,480
Speaker 1: the other when I would say to be to be concentrated.

509
00:25:49,560 --> 00:25:51,359
Speaker 1: There are times to be concentrated, and there might be

510
00:25:51,400 --> 00:25:54,080
Speaker 1: parts of your wealth to be concentrated in, but overall

511
00:25:54,440 --> 00:25:57,320
Speaker 1: to be too concentrated in in one asset class or

512
00:25:57,359 --> 00:26:00,840
Speaker 1: one style I think is a mistake. Any thoughts on

513
00:26:00,960 --> 00:26:04,880
Speaker 1: smart Beta, Yeah, I think smart Bida is interesting as

514
00:26:04,880 --> 00:26:07,280
Speaker 1: a way to to to think about how do you

515
00:26:07,280 --> 00:26:12,560
Speaker 1: take advantage of some of the um the idist and

516
00:26:13,400 --> 00:26:16,200
Speaker 1: parts of the indices or sort of opportunities exist because

517
00:26:16,240 --> 00:26:19,000
Speaker 1: of of miss pricing. Um. You know, when we look

518
00:26:19,040 --> 00:26:21,000
Speaker 1: at it, when we look at a portfolio, we are

519
00:26:21,080 --> 00:26:24,359
Speaker 1: looking at at it broadly, and I want there to

520
00:26:24,400 --> 00:26:27,720
Speaker 1: be a part that is the most efficient way to

521
00:26:27,760 --> 00:26:31,320
Speaker 1: capture BETA. Sometimes that's passive, right, a lot of times

522
00:26:31,320 --> 00:26:34,240
Speaker 1: that's passive UM. And then think about where are those

523
00:26:34,320 --> 00:26:37,560
Speaker 1: parts of what you're investing in that you really need

524
00:26:38,520 --> 00:26:44,160
Speaker 1: uh differentiated advice or or or strong management to capture UM.

525
00:26:44,240 --> 00:26:46,480
Speaker 1: So emerging markets might be one of those where there's

526
00:26:46,520 --> 00:26:51,400
Speaker 1: just a broader variance of performance UM certainly private equity

527
00:26:52,000 --> 00:26:55,120
Speaker 1: for that portion of your portfolio. So that's the way

528
00:26:55,160 --> 00:26:57,680
Speaker 1: I think about it. Do you what do you guys

529
00:26:57,720 --> 00:27:02,879
Speaker 1: do in terms of alternatives or for UM clients, Because

530
00:27:02,960 --> 00:27:07,760
Speaker 1: we were talking fairly long term broad asset allocation, investing,

531
00:27:08,960 --> 00:27:11,960
Speaker 1: venture capital, private equity, hedge funds. We have a very

532
00:27:12,000 --> 00:27:14,359
Speaker 1: robust platform for that and and what we and and

533
00:27:14,400 --> 00:27:17,520
Speaker 1: it all starts with our view on what's going on

534
00:27:17,600 --> 00:27:20,600
Speaker 1: in the world. So we may say, you know, UM,

535
00:27:20,760 --> 00:27:22,520
Speaker 1: we we have a certain view on what's going on

536
00:27:22,520 --> 00:27:24,240
Speaker 1: in real estate, and then we'll figure out what we

537
00:27:24,280 --> 00:27:26,320
Speaker 1: think the best way and who the best is to

538
00:27:26,359 --> 00:27:29,520
Speaker 1: invest on that. UM same thing in terms of something

539
00:27:29,560 --> 00:27:31,080
Speaker 1: that might be happening in Europe that we want to

540
00:27:31,080 --> 00:27:33,040
Speaker 1: take advantage of and then have the so it is

541
00:27:33,119 --> 00:27:36,240
Speaker 1: theme based. We don't take the approach of saying you

542
00:27:36,280 --> 00:27:39,800
Speaker 1: should have x percent of your portfolio and private equity, therefore,

543
00:27:39,840 --> 00:27:42,400
Speaker 1: let's just fill that bucket. It actually really is more

544
00:27:42,400 --> 00:27:45,359
Speaker 1: of an investing view and that that is a great

545
00:27:45,440 --> 00:27:48,560
Speaker 1: vehicle to do so, particularly when you have the time

546
00:27:48,600 --> 00:27:50,560
Speaker 1: horizons that a lot of our clients have. So it's

547
00:27:50,560 --> 00:27:52,919
Speaker 1: a really important part of how we invest for clients.

548
00:27:52,960 --> 00:27:56,000
Speaker 1: So I've been reading how overvalued the US market is

549
00:27:56,080 --> 00:27:58,800
Speaker 1: for I don't know, four or five years. Eventually they'll

550
00:27:58,800 --> 00:28:01,440
Speaker 1: get it right, But um, what do you think about

551
00:28:01,560 --> 00:28:05,280
Speaker 1: current market valuations in the US and Europe and any emergition.

552
00:28:05,760 --> 00:28:07,560
Speaker 1: You know, it's so interesting how people always zero in

553
00:28:07,600 --> 00:28:10,199
Speaker 1: on the US market as it overvalues undervalued. I do

554
00:28:10,240 --> 00:28:12,399
Speaker 1: think it's about fairly valued right now, particularly if you

555
00:28:12,440 --> 00:28:16,120
Speaker 1: look versus history. But when you stop and just think

556
00:28:16,160 --> 00:28:19,080
Speaker 1: about what the stock market is, it's a collection of

557
00:28:19,119 --> 00:28:22,760
Speaker 1: companies that hopefully their earnings are always growing. So even

558
00:28:22,800 --> 00:28:26,800
Speaker 1: a fairly valued market should appreciate over time. The stock

559
00:28:26,840 --> 00:28:31,040
Speaker 1: market spend at all times highs many many times throughout history,

560
00:28:31,119 --> 00:28:32,840
Speaker 1: and when you think about it, because it's always gone up,

561
00:28:32,920 --> 00:28:35,040
Speaker 1: up up, and there are moments and periods of where

562
00:28:35,040 --> 00:28:38,480
Speaker 1: it comes down. So it really does again come down

563
00:28:38,480 --> 00:28:41,520
Speaker 1: to your your time horizon in your perspective. But I

564
00:28:41,560 --> 00:28:46,680
Speaker 1: think the overall index level probably fairly valued, not that interesting.

565
00:28:47,320 --> 00:28:48,760
Speaker 1: The parts of the market that I think are more

566
00:28:48,800 --> 00:28:53,480
Speaker 1: interesting are really more sectors where we see there there's

567
00:28:53,480 --> 00:28:55,560
Speaker 1: an interesting trend going on, or they may be at

568
00:28:55,600 --> 00:28:58,040
Speaker 1: a discount to where their historical values have been. So

569
00:28:58,120 --> 00:29:01,920
Speaker 1: healthcare and technology you are probably two within that that.

570
00:29:02,040 --> 00:29:06,440
Speaker 1: I so, I think you've got interesting or inexpensive, as

571
00:29:06,520 --> 00:29:09,400
Speaker 1: interesting and less expensive than they have been in the

572
00:29:09,600 --> 00:29:12,480
Speaker 1: in in the past. What about the energy sector which

573
00:29:12,520 --> 00:29:14,800
Speaker 1: has gotten shell lacked over the past couple of years

574
00:29:14,800 --> 00:29:17,600
Speaker 1: and talk about wanting to buy stuff when everybody else

575
00:29:17,640 --> 00:29:19,520
Speaker 1: hates it. What do you think? What are you guys

576
00:29:19,600 --> 00:29:22,000
Speaker 1: looking at that sector? Look carefully at that. I think

577
00:29:22,240 --> 00:29:24,280
Speaker 1: there's a little bit more to play out there, but

578
00:29:24,560 --> 00:29:27,400
Speaker 1: the entry point to that will will be a bit

579
00:29:27,440 --> 00:29:29,560
Speaker 1: more in the fixed income side than the equity side.

580
00:29:29,800 --> 00:29:31,920
Speaker 1: So for us, you know, here we are with six

581
00:29:32,000 --> 00:29:35,240
Speaker 1: years into a bull market. We're having a conversation about

582
00:29:35,360 --> 00:29:39,840
Speaker 1: valuation and this and that, and I hear no euphoria.

583
00:29:39,920 --> 00:29:43,560
Speaker 1: There's still a decent amount of skepticism out there. What

584
00:29:43,560 --> 00:29:47,960
Speaker 1: what does that mean about the market and why we're

585
00:29:48,000 --> 00:29:51,800
Speaker 1: now at at or near all time highs. Where is

586
00:29:51,800 --> 00:29:56,200
Speaker 1: the euphoria this? I think when you go back and

587
00:29:56,200 --> 00:29:58,800
Speaker 1: just remember what two thousand and eight was like, and

588
00:29:58,800 --> 00:30:01,920
Speaker 1: then you think about what happened since, it's been a

589
00:30:02,000 --> 00:30:05,240
Speaker 1: slower grind in terms of what the economy has even done.

590
00:30:05,600 --> 00:30:08,120
Speaker 1: And I think that weighs into people's sentiment today, right

591
00:30:08,120 --> 00:30:10,400
Speaker 1: that that was not that long ago and it was

592
00:30:10,520 --> 00:30:14,600
Speaker 1: so difficult that it really does weigh on people to

593
00:30:14,960 --> 00:30:18,840
Speaker 1: it stays in investors minds quite some post traumatics, I

594
00:30:19,000 --> 00:30:22,080
Speaker 1: crash disorder. I think we have a lot of clients

595
00:30:22,240 --> 00:30:23,960
Speaker 1: um and we have a lot of investors who will

596
00:30:24,000 --> 00:30:26,200
Speaker 1: just hold a higher level of cash than they had

597
00:30:26,200 --> 00:30:29,720
Speaker 1: in the past just because of that. And and that's fine,

598
00:30:29,960 --> 00:30:32,360
Speaker 1: but it it It certainly is a conscious decision, and

599
00:30:32,400 --> 00:30:33,960
Speaker 1: that's going to be a drag on their return. That

600
00:30:33,960 --> 00:30:36,040
Speaker 1: will be a bit of drag, yes, because you know,

601
00:30:36,240 --> 00:30:39,800
Speaker 1: I mean, you have I don't know, something like eleven billion,

602
00:30:39,920 --> 00:30:42,520
Speaker 1: eleven trillion dollars that are earning nothing or negative yield

603
00:30:42,600 --> 00:30:45,880
Speaker 1: in terms of the the overall market. Just look at

604
00:30:46,200 --> 00:30:48,960
Speaker 1: look at where we are. We're at zero to negative

605
00:30:49,040 --> 00:30:51,800
Speaker 1: yields right now, so that is a big drag. But people,

606
00:30:52,040 --> 00:30:54,680
Speaker 1: let's think about as people are are are concerned. It's

607
00:30:54,680 --> 00:30:56,960
Speaker 1: almost like an insurance policy. I'm concerned, so I want

608
00:30:56,960 --> 00:31:00,320
Speaker 1: to keep that. UM. I do think that you know

609
00:31:00,320 --> 00:31:02,200
Speaker 1: whether you're keeping too much or not. It has to

610
00:31:02,240 --> 00:31:05,280
Speaker 1: be answered on an individual level. UM. But I think

611
00:31:05,720 --> 00:31:08,240
Speaker 1: we talked about earlier, all of the uncertainties that we

612
00:31:08,280 --> 00:31:10,840
Speaker 1: have in the world is dragging on this and that's

613
00:31:10,840 --> 00:31:12,920
Speaker 1: why it's not a euphordia. If you if you look

614
00:31:12,960 --> 00:31:16,000
Speaker 1: about at the amount of liquidity that's put into the

615
00:31:16,000 --> 00:31:18,960
Speaker 1: world market and the central banks around the globe, the

616
00:31:19,280 --> 00:31:21,880
Speaker 1: FED is the only one that's starting to say we

617
00:31:21,920 --> 00:31:24,720
Speaker 1: should normalize a bit. And twenty five basis points was

618
00:31:24,760 --> 00:31:27,880
Speaker 1: really nothing. It really doesn't mean anything to anyone, UM,

619
00:31:27,920 --> 00:31:30,840
Speaker 1: But just that start has spooked the market. So I

620
00:31:30,880 --> 00:31:32,719
Speaker 1: think we are We're at a point where it's kind

621
00:31:32,720 --> 00:31:34,800
Speaker 1: of on precedent, and I don't think we should expect

622
00:31:34,800 --> 00:31:37,080
Speaker 1: to see a euphoria like we've seen in the past,

623
00:31:37,120 --> 00:31:39,440
Speaker 1: because the size of what's gone on and what's gone

624
00:31:39,440 --> 00:31:43,560
Speaker 1: on around the world is such that it is it

625
00:31:43,680 --> 00:31:45,719
Speaker 1: is putting a bit of a dampen heer. We've been

626
00:31:45,720 --> 00:31:49,280
Speaker 1: speaking with Kelly Coffee. She is the chief executive officer

627
00:31:49,440 --> 00:31:53,800
Speaker 1: of JP Morgan Private Bank. If you've enjoyed this conversation,

628
00:31:53,920 --> 00:31:56,480
Speaker 1: be sure and stick around for our podcast extras, where

629
00:31:56,480 --> 00:31:59,880
Speaker 1: we keep the tape rolling and continue chatting. You can

630
00:32:00,080 --> 00:32:03,920
Speaker 1: check out my daily column on Bloomberg View dot com

631
00:32:04,040 --> 00:32:07,760
Speaker 1: or follow me on Twitter at rid Halts. I'm Barry

632
00:32:07,840 --> 00:32:11,480
Speaker 1: rid Halts. You're listening to Masters in Business on Bloomberg Radio.

633
00:32:12,440 --> 00:32:14,760
Speaker 1: Welcome to the podcast Extras. I don't know why I

634
00:32:14,800 --> 00:32:16,920
Speaker 1: do this every week, but I do. Kelly, thank you

635
00:32:16,960 --> 00:32:18,800
Speaker 1: so much for doing this. This is uh, it was

636
00:32:18,920 --> 00:32:23,520
Speaker 1: really fun. I have some of my favorite questions. I

637
00:32:23,560 --> 00:32:26,840
Speaker 1: only have you for another twenty minutes or so. There's

638
00:32:26,880 --> 00:32:31,440
Speaker 1: a ton of stuff that I didn't get to, and

639
00:32:32,000 --> 00:32:36,720
Speaker 1: I'm just going through my papers and seeing what else. Yeah,

640
00:32:36,960 --> 00:32:40,760
Speaker 1: everything else is, uh, everything else is is pretty standard.

641
00:32:40,800 --> 00:32:44,760
Speaker 1: So so let me just go through, um, some of

642
00:32:44,800 --> 00:32:49,200
Speaker 1: my usual favorite questions. Your background. Did you go right

643
00:32:49,240 --> 00:32:52,880
Speaker 1: from school to JP Morgan started on this? Basically, you

644
00:32:52,960 --> 00:32:55,880
Speaker 1: found your way into finance and pretty much never left

645
00:32:55,920 --> 00:32:58,080
Speaker 1: and never left, never went back for the n It

646
00:32:58,120 --> 00:33:00,600
Speaker 1: was just always so fun yeah, I because I've done

647
00:33:00,600 --> 00:33:03,720
Speaker 1: a lot of different jobs within JP Morgan, and every

648
00:33:03,760 --> 00:33:07,440
Speaker 1: single one of them has been fascinating, challenging and interesting.

649
00:33:08,080 --> 00:33:10,920
Speaker 1: And I've always felt like everything that was happening in

650
00:33:10,920 --> 00:33:13,080
Speaker 1: the world impacted my day and it was interesting, which

651
00:33:13,120 --> 00:33:15,720
Speaker 1: is what I ultimately that's the best part about working

652
00:33:15,720 --> 00:33:18,880
Speaker 1: in finances. No two days are ever alike. If you

653
00:33:18,960 --> 00:33:21,040
Speaker 1: are in a rut and finance you're doing something wrong

654
00:33:21,040 --> 00:33:25,280
Speaker 1: because it's always different. There's always something blowing up someway.

655
00:33:25,320 --> 00:33:28,040
Speaker 1: Just open your eyes. That's right, the paper every morning.

656
00:33:28,040 --> 00:33:30,320
Speaker 1: We're connected to everything that's going on there. I love that,

657
00:33:30,920 --> 00:33:34,040
Speaker 1: and that really keeps it really keeps it interesting. So

658
00:33:35,920 --> 00:33:39,160
Speaker 1: this is a really naive question. What does the CEO

659
00:33:39,600 --> 00:33:44,000
Speaker 1: of a private bank actually do? That's a really great question.

660
00:33:45,400 --> 00:33:48,080
Speaker 1: I'm responsible for everything that touches a client, sort of

661
00:33:48,120 --> 00:33:51,600
Speaker 1: the end to end business, and so so the advisors,

662
00:33:51,640 --> 00:33:56,000
Speaker 1: the portfolios, the marketing board, across the board, strategy. I

663
00:33:56,000 --> 00:33:57,320
Speaker 1: have a lot of partners on the table to help

664
00:33:57,320 --> 00:34:00,320
Speaker 1: me do that. Across products investing, I have don't do

665
00:34:00,320 --> 00:34:02,040
Speaker 1: that by any stretch on my own, but so there's

666
00:34:02,760 --> 00:34:05,680
Speaker 1: there is a lot of different parts of my job.

667
00:34:05,920 --> 00:34:08,200
Speaker 1: I try to spend a good chunk of my time

668
00:34:08,800 --> 00:34:12,920
Speaker 1: somewhere around uh thirty or forty plus percent with clients.

669
00:34:13,320 --> 00:34:14,840
Speaker 1: If I could get that higher, I would. I always

670
00:34:14,840 --> 00:34:17,480
Speaker 1: try as I get more efficient and things done, because

671
00:34:17,760 --> 00:34:20,640
Speaker 1: when I'm with clients, I'm I'm learning from them, I'm

672
00:34:20,680 --> 00:34:22,920
Speaker 1: hearing how we're doing. I'm also seeing my team in

673
00:34:22,960 --> 00:34:25,239
Speaker 1: action and spending time with them. So I find that's

674
00:34:25,280 --> 00:34:27,200
Speaker 1: a really good way to touch people and to stay

675
00:34:27,200 --> 00:34:29,800
Speaker 1: really attuned to what's going on. I have to spend

676
00:34:29,840 --> 00:34:31,759
Speaker 1: a good portion of my time. You know, we've had

677
00:34:31,800 --> 00:34:34,000
Speaker 1: a lot change on the last over the last couple

678
00:34:34,000 --> 00:34:36,000
Speaker 1: of years UM in terms of the way we have

679
00:34:36,040 --> 00:34:37,799
Speaker 1: to do things, and so we have a lot to

680
00:34:37,880 --> 00:34:41,200
Speaker 1: do to make sure UM our client experience is excellent.

681
00:34:41,239 --> 00:34:43,759
Speaker 1: We're very efficient at doing everything. So I spent a

682
00:34:43,760 --> 00:34:47,520
Speaker 1: good chunk of my time on improving the business UM

683
00:34:47,640 --> 00:34:51,880
Speaker 1: and how many different divisions or different department chiefs are

684
00:34:52,440 --> 00:34:56,880
Speaker 1: directly answering to you. I have about fifteen direct reports

685
00:34:56,880 --> 00:35:01,040
Speaker 1: if you look at what we're organized regionally around the US,

686
00:35:01,040 --> 00:35:04,399
Speaker 1: so that is the regional sort of client facing folk

687
00:35:04,560 --> 00:35:07,920
Speaker 1: that directly report. And then I have the what might

688
00:35:07,960 --> 00:35:13,840
Speaker 1: be a more matrix but sort of all of the operations, technology, business, finance, etcetera.

689
00:35:13,880 --> 00:35:16,440
Speaker 1: That is that is also really much part of my table.

690
00:35:16,760 --> 00:35:19,920
Speaker 1: Let's say as we do that, so folks, etcetera. You

691
00:35:20,200 --> 00:35:22,720
Speaker 1: mentioned how things have changed over the past couple of years.

692
00:35:23,200 --> 00:35:26,839
Speaker 1: How have you guys had to adapt to Well, well,

693
00:35:26,880 --> 00:35:29,279
Speaker 1: here we are in the post crisis world or in

694
00:35:29,280 --> 00:35:33,720
Speaker 1: the post dot frank world. How has the compliance side

695
00:35:33,719 --> 00:35:38,000
Speaker 1: of this changed either your your daily operations or is

696
00:35:38,040 --> 00:35:41,839
Speaker 1: it just another thing to deal with? It's changed, It's

697
00:35:41,920 --> 00:35:44,920
Speaker 1: changed everything. It's changed our daily the way we on

698
00:35:45,080 --> 00:35:47,480
Speaker 1: board a client, a new client, the way we interact

699
00:35:47,520 --> 00:35:49,520
Speaker 1: with every client. That when you think about doing a

700
00:35:49,560 --> 00:35:53,480
Speaker 1: mortgage towards bringing a new client in, we've we've had

701
00:35:53,520 --> 00:35:57,160
Speaker 1: to make sure we're complying not only with pretty complex regulations,

702
00:35:57,200 --> 00:36:00,600
Speaker 1: but a a different standard um in terms of the

703
00:36:00,719 --> 00:36:02,920
Speaker 1: level of questions and the level of monitoring that we

704
00:36:03,000 --> 00:36:05,080
Speaker 1: have to do. So we've we did all of that

705
00:36:05,160 --> 00:36:07,920
Speaker 1: really quickly. And I think that if you ask me

706
00:36:07,960 --> 00:36:10,880
Speaker 1: what the biggest I think the biggest factor for change

707
00:36:10,880 --> 00:36:12,680
Speaker 1: will be going forward is similar to what it's been

708
00:36:12,719 --> 00:36:14,560
Speaker 1: in the past in terms of technology, but I think

709
00:36:14,560 --> 00:36:17,359
Speaker 1: at a much faster pace because we need to make

710
00:36:17,400 --> 00:36:20,920
Speaker 1: sure we're interacting with our clients digitally more efficiently. You know,

711
00:36:21,000 --> 00:36:24,839
Speaker 1: their expectations of us aren't measured versus other financial institutions.

712
00:36:25,000 --> 00:36:27,840
Speaker 1: Their measured versus how they how they interacting with Amazon

713
00:36:27,920 --> 00:36:30,799
Speaker 1: and Google and Apple, and we need to make sure

714
00:36:30,840 --> 00:36:33,279
Speaker 1: we're we're staying pace with that. You want to be

715
00:36:33,280 --> 00:36:35,759
Speaker 1: a technology play or not just to find it. So

716
00:36:35,960 --> 00:36:37,960
Speaker 1: let's talk a little bit about fintech. What do you

717
00:36:38,000 --> 00:36:42,839
Speaker 1: guys think about all the new technological innovations, whether it's

718
00:36:42,840 --> 00:36:46,280
Speaker 1: the ability to analyze the portfolio and generate a risk score,

719
00:36:47,080 --> 00:36:50,279
Speaker 1: or the robo advisors or anything along those lines. How

720
00:36:50,320 --> 00:36:54,719
Speaker 1: has financial technology changed the way JP Morgan operates. We

721
00:36:54,880 --> 00:36:58,400
Speaker 1: we we are critically, We're really focused on it's critical

722
00:36:58,640 --> 00:37:00,799
Speaker 1: change a lot of what we do. How you think

723
00:37:00,840 --> 00:37:02,840
Speaker 1: about well, first of all, not only how you interact

724
00:37:02,840 --> 00:37:05,520
Speaker 1: with your clients right, making sure they can see our

725
00:37:05,520 --> 00:37:08,000
Speaker 1: thought leadership on their phone, they can move money on

726
00:37:08,040 --> 00:37:10,560
Speaker 1: their phone, everything that everybody does with these with these

727
00:37:10,560 --> 00:37:14,360
Speaker 1: little devices they care in their pocket. We're changing that. Um,

728
00:37:14,440 --> 00:37:18,640
Speaker 1: we're the bank, So let me just like bank JP Morgan, Bank,

729
00:37:19,400 --> 00:37:24,520
Speaker 1: JP Morgan Chase actual depository bank. I mentioned we were

730
00:37:24,520 --> 00:37:27,120
Speaker 1: talking earlier about the mobile Bloomberg Gap, which I think

731
00:37:27,200 --> 00:37:32,520
Speaker 1: is awesome. Your mobile bank app, which I use, is great.

732
00:37:32,680 --> 00:37:35,320
Speaker 1: You could you could move money around, you could pay bills,

733
00:37:35,360 --> 00:37:38,680
Speaker 1: you can do different things. It's really like a full

734
00:37:38,760 --> 00:37:42,319
Speaker 1: computer on your iPhone, which is really impressive. And we're

735
00:37:42,320 --> 00:37:44,160
Speaker 1: working every single day to improve it. And so that

736
00:37:44,239 --> 00:37:45,920
Speaker 1: that's one of the benefits I have. When you sit

737
00:37:45,960 --> 00:37:48,040
Speaker 1: at the private bank, I'm part of this huge organization

738
00:37:48,120 --> 00:37:50,959
Speaker 1: that covers you know, we interact with at least half

739
00:37:51,000 --> 00:37:55,120
Speaker 1: of the consumers in the US. Silly everything we do.

740
00:37:56,080 --> 00:37:58,040
Speaker 1: What what I do is I just take it and

741
00:37:58,080 --> 00:38:01,160
Speaker 1: adapt it for certain clients segment, whether it's the private

742
00:38:01,200 --> 00:38:03,760
Speaker 1: bank or another part. And that's so it's changing everything

743
00:38:03,800 --> 00:38:06,160
Speaker 1: we do how I look at how I'm looking at

744
00:38:06,280 --> 00:38:09,120
Speaker 1: data in terms of giving clients advice. You know, we

745
00:38:09,160 --> 00:38:11,400
Speaker 1: have a big data team at JP Morran. That's fabulous.

746
00:38:11,719 --> 00:38:15,520
Speaker 1: How we think about who our next clients should be.

747
00:38:15,640 --> 00:38:20,279
Speaker 1: It's it's uh, it's changing every day. Huh. It's um

748
00:38:20,320 --> 00:38:23,600
Speaker 1: and it's fun. Full disclosure. We we bank with you,

749
00:38:24,040 --> 00:38:26,400
Speaker 1: My wife as an account with you guys, so we

750
00:38:26,400 --> 00:38:29,120
Speaker 1: were in the household for that. Our corporate account is

751
00:38:29,160 --> 00:38:33,880
Speaker 1: also there. We found that your ability to do a

752
00:38:34,320 --> 00:38:38,160
Speaker 1: H S and other things, the interface was just very

753
00:38:38,239 --> 00:38:40,160
Speaker 1: ahead of everything else. We we looked at a bunch

754
00:38:40,160 --> 00:38:42,839
Speaker 1: of banks and you guys were just heading shoulders above that.

755
00:38:43,040 --> 00:38:45,280
Speaker 1: But that is not an official endorsement. I just wanted

756
00:38:45,320 --> 00:38:48,200
Speaker 1: to disclose because someone's gonna say, hey, don't you bank

757
00:38:48,239 --> 00:38:50,839
Speaker 1: with those guys. Yeah, they're not waving my monthly fee.

758
00:38:50,880 --> 00:38:53,359
Speaker 1: Because if you look at everything, right, if you will,

759
00:38:53,360 --> 00:38:55,239
Speaker 1: thank you for your business first of all, um, but

760
00:38:55,280 --> 00:38:57,799
Speaker 1: if you look at all the money we move. We've

761
00:38:57,840 --> 00:39:00,239
Speaker 1: said this publicly, it's somewhere between five and ten million

762
00:39:00,280 --> 00:39:03,759
Speaker 1: dollars a day. That day. That's insane, five to ten

763
00:39:03,800 --> 00:39:06,960
Speaker 1: trillion dollars a day. So let's one of the questions

764
00:39:07,000 --> 00:39:10,799
Speaker 1: I asked earlier was about some of your mentors, um,

765
00:39:10,840 --> 00:39:14,040
Speaker 1: but let's talk take this uh in general about mentors

766
00:39:14,080 --> 00:39:17,279
Speaker 1: for women. But who were some of your early mentors

767
00:39:17,640 --> 00:39:19,440
Speaker 1: in the world to find it. I've been lucky to

768
00:39:19,440 --> 00:39:21,200
Speaker 1: have a lot of great mentors. Probably what I would

769
00:39:21,239 --> 00:39:22,840
Speaker 1: consider one of my first mentors, it might be a

770
00:39:22,840 --> 00:39:25,359
Speaker 1: strange way to call him, was my grandfather, who ran

771
00:39:25,360 --> 00:39:29,520
Speaker 1: a bank in Pennsylvania, and he passed away. So you're

772
00:39:29,600 --> 00:39:32,279
Speaker 1: from a banking fan, banking family, you could say, a

773
00:39:32,400 --> 00:39:37,239
Speaker 1: small hometown bank, the old Forge Bank, and and he

774
00:39:37,320 --> 00:39:39,120
Speaker 1: was pretty incredible. And so when I went into finance,

775
00:39:39,160 --> 00:39:41,120
Speaker 1: and and I worked for him in the summers when

776
00:39:41,160 --> 00:39:43,000
Speaker 1: I was in high school and and did a couple

777
00:39:43,040 --> 00:39:45,239
Speaker 1: other things too. But you know, it was it was

778
00:39:45,280 --> 00:39:48,720
Speaker 1: a really great relationship because it's it's someone you could,

779
00:39:48,960 --> 00:39:51,440
Speaker 1: you know, you could talk to about everything, including you know,

780
00:39:51,440 --> 00:39:52,920
Speaker 1: at the time, what we thought Greenspan was going to

781
00:39:53,000 --> 00:39:54,319
Speaker 1: do next on the FED. I mean, it was it

782
00:39:54,360 --> 00:39:56,799
Speaker 1: was a really close relationship and I think, um that

783
00:39:56,880 --> 00:39:59,480
Speaker 1: formed a lot of a lot of who I am.

784
00:39:59,600 --> 00:40:01,560
Speaker 1: And then when I came into the business, I've had

785
00:40:01,600 --> 00:40:05,839
Speaker 1: some pretty you know, pretty amazing uh people that I've

786
00:40:05,840 --> 00:40:07,960
Speaker 1: worked with that have just given me good advice as

787
00:40:08,040 --> 00:40:10,920
Speaker 1: different points in time. I think, I think JP Morgan

788
00:40:11,040 --> 00:40:13,680
Speaker 1: is a place where it's not too often where you're

789
00:40:13,719 --> 00:40:15,840
Speaker 1: you're a couple. I might have been just for the

790
00:40:15,880 --> 00:40:17,520
Speaker 1: training program month out when they tapped me in the

791
00:40:17,520 --> 00:40:19,319
Speaker 1: shoulder and sent me down to Bueno Side's to work

792
00:40:19,320 --> 00:40:22,600
Speaker 1: in Argentina, uh to to do project there and then

793
00:40:22,600 --> 00:40:25,160
Speaker 1: asked me to move a year or two later, and

794
00:40:25,160 --> 00:40:28,960
Speaker 1: and you know, there's been a lot of either, you know,

795
00:40:28,960 --> 00:40:31,279
Speaker 1: and it cuts across the levels. I have mentors that

796
00:40:31,360 --> 00:40:34,120
Speaker 1: are more junior and more senior that I looked to

797
00:40:34,239 --> 00:40:36,399
Speaker 1: and I learned from all the time. They tapped you

798
00:40:36,560 --> 00:40:39,279
Speaker 1: right out of the training program to go to South,

799
00:40:40,200 --> 00:40:42,520
Speaker 1: so they obviously saw a little skill there. And I

800
00:40:42,520 --> 00:40:44,480
Speaker 1: don't know. I think it was I spoke French. They

801
00:40:44,520 --> 00:40:47,239
Speaker 1: sent me to Argentina. That's how much thought went into it.

802
00:40:47,280 --> 00:40:49,200
Speaker 1: But it was. It was fabulous, and we went down.

803
00:40:49,200 --> 00:40:52,520
Speaker 1: We were selling a company. We were selling a phone company.

804
00:40:52,640 --> 00:40:54,440
Speaker 1: No well that we were buying the phone company in

805
00:40:54,440 --> 00:40:55,839
Speaker 1: the north. But the first time I went down, we

806
00:40:55,840 --> 00:40:58,400
Speaker 1: were selling a factory for European company and it was

807
00:40:58,440 --> 00:41:02,240
Speaker 1: in the south of Argentina, a little place called Commodo Ladavia.

808
00:41:02,320 --> 00:41:04,120
Speaker 1: And there were no women that lived in the town

809
00:41:04,160 --> 00:41:06,040
Speaker 1: except for the women that served the lunch at the factory,

810
00:41:06,080 --> 00:41:07,399
Speaker 1: and they didn't really live with the town. I think

811
00:41:07,440 --> 00:41:10,879
Speaker 1: they they live far away. And they sent me down

812
00:41:10,920 --> 00:41:13,320
Speaker 1: to two due diligence on it, which was pretty funny.

813
00:41:13,360 --> 00:41:17,760
Speaker 1: I got a lot of lot of in the town. Um.

814
00:41:17,800 --> 00:41:25,040
Speaker 1: What investors influenced your approach to thinking about private banking? Uh,

815
00:41:25,080 --> 00:41:28,680
Speaker 1: A lot of investors have influenced my approach. I you know,

816
00:41:29,040 --> 00:41:31,440
Speaker 1: all of the greats I and I love the simplicity

817
00:41:31,440 --> 00:41:34,279
Speaker 1: of Buffett. I think, you know, us internally have some

818
00:41:34,360 --> 00:41:37,640
Speaker 1: pretty extraordinary investors. Whether you you look at some of

819
00:41:37,640 --> 00:41:40,400
Speaker 1: our ceios, like Mike Symbolist, who has been at jpmore

820
00:41:40,400 --> 00:41:42,480
Speaker 1: in a long time. It just has a unique perspective

821
00:41:42,600 --> 00:41:46,600
Speaker 1: on the world. Um. You know, we also on our

822
00:41:46,640 --> 00:41:50,760
Speaker 1: platform have a number of the best managers in the world,

823
00:41:51,000 --> 00:41:53,839
Speaker 1: and we have names any want to mention. I don't

824
00:41:53,840 --> 00:41:55,719
Speaker 1: think I want to mention any names, but I think

825
00:41:56,080 --> 00:41:57,600
Speaker 1: that we have them. You know, we spent a lot

826
00:41:57,640 --> 00:41:58,880
Speaker 1: of time with them, and when they come in and

827
00:41:58,920 --> 00:42:01,440
Speaker 1: think about and talk about what's going on in the

828
00:42:01,480 --> 00:42:04,279
Speaker 1: world and what they do, I learned something from every

829
00:42:04,320 --> 00:42:06,640
Speaker 1: single one of them. It's an incredible position to be in.

830
00:42:07,040 --> 00:42:10,440
Speaker 1: How about books, What are some of your favorite books?

831
00:42:10,440 --> 00:42:14,040
Speaker 1: And they could be fiction and nonfiction, investing related or

832
00:42:14,440 --> 00:42:17,160
Speaker 1: non investing. That's a really hard question for me because

833
00:42:17,160 --> 00:42:19,520
Speaker 1: I love to read, so I could give you a

834
00:42:19,560 --> 00:42:22,719
Speaker 1: super super long list if you think about if I'm

835
00:42:22,719 --> 00:42:24,680
Speaker 1: starting with fiction because that's fun because I do like

836
00:42:24,760 --> 00:42:27,080
Speaker 1: mostly on vacation to to get into something that kind

837
00:42:27,080 --> 00:42:29,799
Speaker 1: of takes my mind completely out of finance. I like

838
00:42:30,000 --> 00:42:32,319
Speaker 1: books that take you to a different time period and

839
00:42:32,320 --> 00:42:34,640
Speaker 1: then explore characters there. So if you think about one

840
00:42:34,640 --> 00:42:36,640
Speaker 1: of my favorite series is ken Fall. It's a great

841
00:42:36,640 --> 00:42:39,680
Speaker 1: writer and um he wrote Pillows of the Earth. But

842
00:42:39,719 --> 00:42:41,439
Speaker 1: the you know, The Winters of the World, the Three,

843
00:42:41,520 --> 00:42:43,319
Speaker 1: the trilogy that goes from World War One through World

844
00:42:43,320 --> 00:42:47,600
Speaker 1: War Two. That's that's a favorite of mine. UM. And

845
00:42:47,920 --> 00:42:49,759
Speaker 1: you know, I love Henry James Portrait of a Lady.

846
00:42:49,840 --> 00:42:52,160
Speaker 1: That's again that period that kind of takes you back

847
00:42:52,200 --> 00:42:54,640
Speaker 1: really interesting characters. And then I and then I like

848
00:42:54,760 --> 00:42:58,279
Speaker 1: to read about a lot of business books, business or

849
00:42:58,280 --> 00:43:00,920
Speaker 1: investing books. So there's a great book Hilary Bossity that's

850
00:43:00,920 --> 00:43:03,560
Speaker 1: called Execution, Getting It Done. I think, you know a

851
00:43:03,600 --> 00:43:05,680
Speaker 1: lot of what I have to do in my business

852
00:43:05,760 --> 00:43:09,480
Speaker 1: is execute. And you know, even a great strategy poorly

853
00:43:09,480 --> 00:43:12,960
Speaker 1: executed doesn't do anything. Um. I like Stephen Pinker, I

854
00:43:12,960 --> 00:43:15,040
Speaker 1: like Malcol Gladwell, I like Adam Grant. So those are

855
00:43:15,040 --> 00:43:17,799
Speaker 1: the types of things that I that I tend to read.

856
00:43:18,520 --> 00:43:21,719
Speaker 1: I have Pinkered and Grant both queued up in the

857
00:43:21,800 --> 00:43:25,399
Speaker 1: coming months. I'm excited. I just started Originals. I don't

858
00:43:25,400 --> 00:43:27,480
Speaker 1: know if you just starting that one. That's just and

859
00:43:28,239 --> 00:43:30,840
Speaker 1: Pinker has so many gratefulks don't even know where to

860
00:43:30,880 --> 00:43:34,960
Speaker 1: begin exactly. But he's really a deep thinker and really

861
00:43:35,000 --> 00:43:39,360
Speaker 1: an interesting interesting guy. Any finance books of mentioned of

862
00:43:39,480 --> 00:43:45,960
Speaker 1: note that you want to mention um House of Morgan. Okay,

863
00:43:46,080 --> 00:43:50,759
Speaker 1: that's about the history ji. No, Bill Cohen didn't write that.

864
00:43:50,800 --> 00:43:52,400
Speaker 1: He wrote a new it was I can't remember who

865
00:43:52,440 --> 00:43:54,440
Speaker 1: the author was. I can't remember right now because it's

866
00:43:54,480 --> 00:43:59,840
Speaker 1: it stops probably in or two. It's it's actually it

867
00:44:00,040 --> 00:44:02,759
Speaker 1: actually ends quite a while go. Bill wrote a newer one,

868
00:44:03,400 --> 00:44:05,680
Speaker 1: and I actually I read some of his. I think

869
00:44:05,680 --> 00:44:10,680
Speaker 1: they're good. My head of research just read the one

870
00:44:10,719 --> 00:44:14,719
Speaker 1: of the more recent biographies of James pier what his name,

871
00:44:14,760 --> 00:44:18,120
Speaker 1: Pierpont Morgan JP Morgan, the actual man, and said it

872
00:44:18,160 --> 00:44:20,279
Speaker 1: was utterly rivening and he couldn't put it down. And

873
00:44:20,400 --> 00:44:24,640
Speaker 1: the biography Steve Jobs, his biography was was pretty incredible. Yeah.

874
00:44:24,719 --> 00:44:27,520
Speaker 1: And the Graham there's a great one about her Washington Post.

875
00:44:28,080 --> 00:44:30,520
Speaker 1: That's a really good one. The Right Brothers one everybody

876
00:44:30,560 --> 00:44:32,959
Speaker 1: has been raving about on my bookshelf. I haven't gotten.

877
00:44:32,960 --> 00:44:35,400
Speaker 1: I think you're making that into a movie too. Really,

878
00:44:35,480 --> 00:44:38,440
Speaker 1: I thought I heard that everything. He's the author of

879
00:44:38,480 --> 00:44:41,520
Speaker 1: that book who escapes Me at the moment? Who was

880
00:44:41,600 --> 00:44:43,160
Speaker 1: the author that wrote I can't believe in forget his

881
00:44:43,200 --> 00:44:46,319
Speaker 1: name right now. Barbarian's the Gate give me a and

882
00:44:46,320 --> 00:44:49,279
Speaker 1: he wrote The Fastball. He's a Really I do read

883
00:44:49,320 --> 00:44:53,040
Speaker 1: a lot of his too. It'll it'll come to me

884
00:44:53,080 --> 00:44:56,839
Speaker 1: give me a minute. That's the problem with getting older names.

885
00:44:56,960 --> 00:44:59,880
Speaker 1: Just I used to have these an go on and

886
00:45:00,000 --> 00:45:01,600
Speaker 1: on and on. I get out my little kindle, app

887
00:45:01,640 --> 00:45:04,120
Speaker 1: on my iPhone and it it just I'm constantly putting

888
00:45:04,120 --> 00:45:06,200
Speaker 1: books on there that people recommend to me. You know,

889
00:45:06,280 --> 00:45:09,359
Speaker 1: we have a summer reading list and a winter reading list,

890
00:45:09,400 --> 00:45:11,480
Speaker 1: so we're now preparing for our summer reading list, which

891
00:45:11,520 --> 00:45:13,799
Speaker 1: is not out yet. I put one out of this

892
00:45:13,880 --> 00:45:16,080
Speaker 1: is what I hope to read this summer, and then

893
00:45:16,120 --> 00:45:19,640
Speaker 1: we see how many I I actually get through that. Um,

894
00:45:19,760 --> 00:45:24,239
Speaker 1: there's there's there's so many fascinating books. McCullough is the

895
00:45:24,239 --> 00:45:27,640
Speaker 1: guy who wrote He's the Right Brothers and everything he's written,

896
00:45:28,000 --> 00:45:30,560
Speaker 1: including was at Hamilton's. He may have written the Hamilton's

897
00:45:30,600 --> 00:45:34,280
Speaker 1: book that became the basis of the play Um which

898
00:45:34,360 --> 00:45:38,760
Speaker 1: is now Hamilton is incredible. All right, So we talked

899
00:45:38,760 --> 00:45:42,600
Speaker 1: about the changes since you've joined the industry. Let's talk

900
00:45:42,640 --> 00:45:46,440
Speaker 1: about the next shifts. You mentioned technology. What are some

901
00:45:46,520 --> 00:45:50,160
Speaker 1: of the other major shifts that are coming to finance? Well,

902
00:45:50,200 --> 00:45:52,840
Speaker 1: I I think technology. You mentioned fintech. I think that

903
00:45:53,040 --> 00:45:57,319
Speaker 1: is the absolute biggest, biggest change because you have a

904
00:45:57,400 --> 00:46:00,080
Speaker 1: lot of different companies that come into the space that

905
00:46:00,120 --> 00:46:02,560
Speaker 1: are all doing the same thing in a way, They're

906
00:46:02,560 --> 00:46:06,200
Speaker 1: all trying to solve a problem that finances. The financial

907
00:46:06,239 --> 00:46:08,879
Speaker 1: industries is incredibly complex. We're regulated in a complex way.

908
00:46:09,120 --> 00:46:11,719
Speaker 1: What we do is somewhat complex, and they're really good

909
00:46:11,760 --> 00:46:13,640
Speaker 1: at figuring out what's that pain point, how do you

910
00:46:13,719 --> 00:46:16,960
Speaker 1: solve it? How do you make a mortgage process easier?

911
00:46:17,000 --> 00:46:19,799
Speaker 1: So you know what's what's you know going where you

912
00:46:19,840 --> 00:46:21,880
Speaker 1: are in that process. One of the most highly regulated

913
00:46:21,960 --> 00:46:26,200
Speaker 1: processes um in the world, I believe, and and so

914
00:46:26,320 --> 00:46:29,200
Speaker 1: I think that's going to change the way we even

915
00:46:29,440 --> 00:46:32,240
Speaker 1: we we we interact with our clients and the way

916
00:46:32,440 --> 00:46:34,600
Speaker 1: we serve our clients and the way we think about it.

917
00:46:34,680 --> 00:46:36,960
Speaker 1: And it's changing. Like I said before, everything we do.

918
00:46:37,239 --> 00:46:39,359
Speaker 1: A lot of the analyzes we're doing inside to make

919
00:46:39,920 --> 00:46:42,359
Speaker 1: you know, I think we we just need to have

920
00:46:42,800 --> 00:46:46,320
Speaker 1: used technology to interpret data better so that we're spending

921
00:46:46,320 --> 00:46:48,840
Speaker 1: our time. And when I say we, I mean a

922
00:46:48,880 --> 00:46:52,120
Speaker 1: banker as someone who's who's talking to a client on

923
00:46:52,360 --> 00:46:57,080
Speaker 1: interpreting and advising them, but making people smarter through their

924
00:46:57,160 --> 00:47:00,960
Speaker 1: use of technology. And I think that's going to be, um,

925
00:47:01,120 --> 00:47:04,600
Speaker 1: probably the biggest change to our industry, and we're working

926
00:47:04,640 --> 00:47:06,520
Speaker 1: on it every day. So my we're down to our

927
00:47:06,600 --> 00:47:08,959
Speaker 1: last two questions because I know they're coming to drag

928
00:47:09,000 --> 00:47:12,719
Speaker 1: you away shortly. UM, So what sort of advice would

929
00:47:12,760 --> 00:47:15,439
Speaker 1: you give to a millennial or a recent college grad

930
00:47:15,480 --> 00:47:18,160
Speaker 1: who came to you and said, I'm thinking about going

931
00:47:18,160 --> 00:47:22,000
Speaker 1: into finance. What would you tell them? I would say,

932
00:47:22,160 --> 00:47:24,000
Speaker 1: take a chance and go for it. Make sure you

933
00:47:24,040 --> 00:47:26,080
Speaker 1: love it. I think one of the things that's happened

934
00:47:26,080 --> 00:47:29,480
Speaker 1: in our industry that's been good is through the crisis

935
00:47:29,520 --> 00:47:31,840
Speaker 1: there was a fair shakeout, and I think there was

936
00:47:31,880 --> 00:47:34,279
Speaker 1: a time when everybody gravitated toward finance because it was

937
00:47:34,320 --> 00:47:36,120
Speaker 1: a thing to do. It was a way to make

938
00:47:36,160 --> 00:47:39,319
Speaker 1: a lot of money if the money. I think that

939
00:47:39,480 --> 00:47:41,960
Speaker 1: cohort has been sort of selected out. I think it's

940
00:47:41,960 --> 00:47:45,040
Speaker 1: select it out. Rising title of sallship. I think it's

941
00:47:45,040 --> 00:47:47,080
Speaker 1: a great thing, um, and I think it's better for

942
00:47:47,080 --> 00:47:49,040
Speaker 1: those individuals they didn't love what they were doing. Those

943
00:47:49,040 --> 00:47:52,239
Speaker 1: are the people, you know, if you're miserable doing this,

944
00:47:52,520 --> 00:47:54,920
Speaker 1: that's kind of crazy because there's so much exciting things,

945
00:47:54,920 --> 00:47:56,960
Speaker 1: so many things going on, and so I think we

946
00:47:57,040 --> 00:47:59,759
Speaker 1: cleared that out, and so I would say, make sure

947
00:47:59,760 --> 00:48:02,680
Speaker 1: you of it, um, and take some chances. I do

948
00:48:02,800 --> 00:48:08,000
Speaker 1: find sometimes that are our younger UH employees or younger

949
00:48:08,040 --> 00:48:12,440
Speaker 1: members of our team tend to be very, um, a

950
00:48:12,440 --> 00:48:15,560
Speaker 1: little bit risk averse. You know, they're they're they're they're purposeful,

951
00:48:15,640 --> 00:48:18,440
Speaker 1: so they're moving toward a purpose, maybe maybe more strongly

952
00:48:18,440 --> 00:48:20,719
Speaker 1: than certainly I was. You know, I came in on

953
00:48:20,800 --> 00:48:23,520
Speaker 1: intending to stay in the industry. I look to the

954
00:48:23,520 --> 00:48:25,640
Speaker 1: next thing to make sure I would be learning, having fun,

955
00:48:26,200 --> 00:48:28,759
Speaker 1: you know, working with people I liked. I didn't necessarily

956
00:48:28,800 --> 00:48:30,680
Speaker 1: say I wanted to be the head of the private bank.

957
00:48:30,840 --> 00:48:34,200
Speaker 1: I wanted to be this. They're more purposeful, which is good,

958
00:48:34,200 --> 00:48:37,160
Speaker 1: but I think it makes them a little bit less

959
00:48:37,200 --> 00:48:40,600
Speaker 1: willing to jump and move to Argentina, for example, or

960
00:48:41,040 --> 00:48:43,719
Speaker 1: gives you the ability to pivot towards an opportunity that

961
00:48:43,800 --> 00:48:45,879
Speaker 1: comes along as opposed to just being on the straight

962
00:48:45,920 --> 00:48:47,759
Speaker 1: and arrow. Yeah, I don't don't have blinders on. I

963
00:48:47,800 --> 00:48:50,160
Speaker 1: think that's really important. I think it's important to choose

964
00:48:50,360 --> 00:48:53,080
Speaker 1: to work with someone you think you'll they'll learn from.

965
00:48:53,280 --> 00:48:56,040
Speaker 1: Who you work for so important, it might even be

966
00:48:56,120 --> 00:48:58,120
Speaker 1: more important than what you do. One of the most

967
00:48:58,120 --> 00:49:01,640
Speaker 1: surprising things Arthur of It had said when we had

968
00:49:01,719 --> 00:49:04,200
Speaker 1: him on the show was don't be afraid to pick

969
00:49:04,239 --> 00:49:05,640
Speaker 1: up and move to a new city and say I'm

970
00:49:05,680 --> 00:49:10,160
Speaker 1: gonna I'm gonna try Chicago or New Orleans or Cleveland

971
00:49:10,239 --> 00:49:12,279
Speaker 1: for a year or two, just to get that sort

972
00:49:12,280 --> 00:49:16,640
Speaker 1: of experience. And if I come back to wherever, New York,

973
00:49:16,680 --> 00:49:19,719
Speaker 1: San Francisco, wherever, Hey, at least I've experienced something else

974
00:49:19,760 --> 00:49:22,480
Speaker 1: and I have a frame of reference abroad. I have

975
00:49:22,520 --> 00:49:25,759
Speaker 1: to say, you know why I think. I mean, I

976
00:49:25,800 --> 00:49:30,600
Speaker 1: had studied abroad in in college, but moving abroad early

977
00:49:30,640 --> 00:49:32,239
Speaker 1: in my career was one of the best things I did.

978
00:49:32,239 --> 00:49:34,920
Speaker 1: It's it's eye opening, and you know, I sometimes I'll

979
00:49:34,960 --> 00:49:36,480
Speaker 1: have a conversations with people where they don't they don't

980
00:49:36,480 --> 00:49:38,200
Speaker 1: want to move across country or they don't want to move.

981
00:49:38,280 --> 00:49:40,160
Speaker 1: You know, you get a job in Hong Kong and

982
00:49:40,200 --> 00:49:42,239
Speaker 1: a heartbeat. I could give people Hong Kong London. Just

983
00:49:42,280 --> 00:49:44,040
Speaker 1: take advantage of it. I mean, the world is an

984
00:49:44,040 --> 00:49:48,040
Speaker 1: incredible place, and um I I that's my advice would

985
00:49:48,040 --> 00:49:50,200
Speaker 1: be to be open minded and to take some risks

986
00:49:50,200 --> 00:49:53,280
Speaker 1: and make sure they're doing something they love. Take risks,

987
00:49:53,320 --> 00:49:55,359
Speaker 1: do something you love. All right, let me let me

988
00:49:55,640 --> 00:49:58,520
Speaker 1: see if I can remember that and our last question,

989
00:49:58,760 --> 00:50:00,600
Speaker 1: and I'm going to change the aid on this a

990
00:50:00,600 --> 00:50:03,800
Speaker 1: little bit. What is it that you know about banking

991
00:50:03,920 --> 00:50:07,600
Speaker 1: and investing and running a company that you wish you

992
00:50:07,680 --> 00:50:11,879
Speaker 1: knew twenty plus years ago? You know when people always

993
00:50:11,880 --> 00:50:13,320
Speaker 1: ask me, what would you go back and do differently?

994
00:50:13,360 --> 00:50:16,600
Speaker 1: That's that type of question. I always say nothing because

995
00:50:16,640 --> 00:50:18,960
Speaker 1: I'm afraid that I wouldn't get to where I am now.

996
00:50:19,239 --> 00:50:22,319
Speaker 1: The path is what leads you to to what you know.

997
00:50:23,000 --> 00:50:26,200
Speaker 1: But all that said, what do you wish you not?

998
00:50:26,320 --> 00:50:28,120
Speaker 1: I'm not asking you what you would have done differently?

999
00:50:28,400 --> 00:50:31,600
Speaker 1: What did? What do I wish you knew way back

1000
00:50:31,600 --> 00:50:33,400
Speaker 1: when there is that you know today you didn't know

1001
00:50:33,480 --> 00:50:37,000
Speaker 1: then they I wish I knew how successful Amazon would be,

1002
00:50:37,040 --> 00:50:41,880
Speaker 1: an Apple would be. I mean, you know, investing the

1003
00:50:42,200 --> 00:50:45,359
Speaker 1: SEC has a temporal department that prevents people from going

1004
00:50:45,360 --> 00:50:47,680
Speaker 1: back in time, and I'm not allowed, so you can't.

1005
00:50:47,719 --> 00:50:50,680
Speaker 1: You can't use that. But but just as a like,

1006
00:50:50,800 --> 00:50:53,400
Speaker 1: I think back when I was younger, and I'm like, oh,

1007
00:50:53,440 --> 00:50:55,960
Speaker 1: what an idiot I was. If only I had at

1008
00:50:56,000 --> 00:50:58,920
Speaker 1: least a little more awareness of the world around me.

1009
00:50:59,280 --> 00:51:01,600
Speaker 1: So that's like, I wish I knew that it was

1010
00:51:01,640 --> 00:51:05,680
Speaker 1: actually a full planet and it wasn't just involving around me.

1011
00:51:06,600 --> 00:51:10,920
Speaker 1: But career wise, I understand exactly what you're saying in

1012
00:51:11,040 --> 00:51:13,200
Speaker 1: terms of you don't want to change the path, but

1013
00:51:13,239 --> 00:51:15,799
Speaker 1: I would love to know a lot of the things

1014
00:51:15,800 --> 00:51:20,720
Speaker 1: I know today in terms of, uh, you know, making sure.

1015
00:51:20,840 --> 00:51:24,200
Speaker 1: I think there were times in particularly in my career,

1016
00:51:24,239 --> 00:51:26,280
Speaker 1: in particularly when I was doing M and A, where

1017
00:51:26,440 --> 00:51:30,520
Speaker 1: I buried myself in my work. Um and as you know,

1018
00:51:30,560 --> 00:51:32,319
Speaker 1: as my husband likes to remind me, you thought it

1019
00:51:32,320 --> 00:51:33,640
Speaker 1: was the coolest thing in the world. You never would

1020
00:51:33,640 --> 00:51:35,040
Speaker 1: have wanted to be somewhere else on a Friday night

1021
00:51:35,080 --> 00:51:38,440
Speaker 1: or Saturday night. But I do think sitting back and

1022
00:51:38,480 --> 00:51:42,120
Speaker 1: saying there you could have backed off a little bit

1023
00:51:42,280 --> 00:51:45,680
Speaker 1: and done some more really interesting things, and you didn't

1024
00:51:45,680 --> 00:51:51,000
Speaker 1: need to be so focused on one part of your life,

1025
00:51:51,000 --> 00:51:54,680
Speaker 1: probably for as long as I would have I tend

1026
00:51:54,680 --> 00:51:56,600
Speaker 1: to get that way when I'm focused on some hyper

1027
00:51:57,040 --> 00:51:59,200
Speaker 1: I'm hyper focused on it, and that that can be

1028
00:51:59,239 --> 00:52:01,280
Speaker 1: a benefit. But you know, I think your biggest strength

1029
00:52:01,320 --> 00:52:05,280
Speaker 1: is usually your biggest weakness. Your biggest strength is okay,

1030
00:52:05,880 --> 00:52:09,239
Speaker 1: there's a blind side there, and right, the tendency to

1031
00:52:09,600 --> 00:52:13,320
Speaker 1: take it to to a place that's one notch beyond

1032
00:52:13,360 --> 00:52:16,480
Speaker 1: where it should have gone. Short, Kelly, thank you so much.

1033
00:52:16,520 --> 00:52:20,680
Speaker 1: This has been absolutely fascinating. We have been speaking with

1034
00:52:20,800 --> 00:52:25,480
Speaker 1: Kelly Coffee. She is the CEO of JP Morgan Private Bank.

1035
00:52:26,200 --> 00:52:28,799
Speaker 1: If you enjoy this conversation, be sure and look up

1036
00:52:28,800 --> 00:52:31,360
Speaker 1: an inch or down an inch on Apple iTunes and

1037
00:52:31,400 --> 00:52:34,840
Speaker 1: you could see the other ninety or so of these

1038
00:52:34,880 --> 00:52:38,440
Speaker 1: podcasts that we've done. I would be remiss if I

1039
00:52:38,480 --> 00:52:42,040
Speaker 1: did not thank my booker and producer, Taylor Riggs are

1040
00:52:42,160 --> 00:52:46,799
Speaker 1: chief engineer Charlie Bohmer. Today's sound engineer is Genie. Is

1041
00:52:46,800 --> 00:52:51,160
Speaker 1: that right? And my head of research is Michael Batnick,

1042
00:52:51,239 --> 00:52:54,160
Speaker 1: who helps prepare all the questions for this. You've been

1043
00:52:54,160 --> 00:52:57,160
Speaker 1: listening to Masters in Business on Bloomberg Radio