1 00:00:00,480 --> 00:00:03,000 Speaker 1: We'd like to welcome in now the chairman and CEO 2 00:00:03,000 --> 00:00:06,040 Speaker 1: of JP Morgan Jamie Diamond, who's joining us from the 3 00:00:06,040 --> 00:00:10,080 Speaker 1: Global China Summit in Shanghai. Thanks so much for joining 4 00:00:10,200 --> 00:00:13,880 Speaker 1: us exclusively on Bloomberg Television. Obviously, it's been a few 5 00:00:13,960 --> 00:00:16,560 Speaker 1: years since you've held this in person summit. 6 00:00:16,880 --> 00:00:19,079 Speaker 2: The last time you and I talked was that the last. 7 00:00:18,920 --> 00:00:22,320 Speaker 1: Time you held one in person in Beijing in twenty nineteen. 8 00:00:22,400 --> 00:00:23,720 Speaker 2: A lot has changed. 9 00:00:24,400 --> 00:00:26,960 Speaker 1: Why are you willing to go high profile as a 10 00:00:27,040 --> 00:00:30,960 Speaker 1: major CEO of a company from America when others they 11 00:00:31,040 --> 00:00:33,560 Speaker 1: want to stay low profile and keep their heads low. 12 00:00:33,680 --> 00:00:35,280 Speaker 2: How do you assess the US. 13 00:00:35,200 --> 00:00:37,760 Speaker 1: China relationship and the impact it's having on business? 14 00:00:38,159 --> 00:00:40,600 Speaker 3: Okay, well, first, all thrilled to be back again after 15 00:00:40,640 --> 00:00:44,239 Speaker 3: all this time. And it's important for CEO to visit 16 00:00:44,320 --> 00:00:47,440 Speaker 3: their people and their clients around the world, particularly in 17 00:00:47,520 --> 00:00:50,440 Speaker 3: when you think times a little more complicated, etc. But 18 00:00:50,479 --> 00:00:53,400 Speaker 3: I think it's important for the viewership to understand there 19 00:00:53,440 --> 00:00:55,880 Speaker 3: are like three thousand investors here from around the world. 20 00:00:56,080 --> 00:00:59,680 Speaker 3: There are hundreds of companies of Chinese and non Chinese 21 00:00:59,720 --> 00:01:02,920 Speaker 3: company he's learning about the world. We do research on 22 00:01:03,040 --> 00:01:06,360 Speaker 3: five hundred companies that research circulates the world, and hopefully 23 00:01:06,400 --> 00:01:08,360 Speaker 3: business could be a you know, it could be for 24 00:01:08,400 --> 00:01:11,160 Speaker 3: good to help the countries lift up. I have enormous 25 00:01:11,160 --> 00:01:15,160 Speaker 3: respect for the Chinese people. The Martization's countries has been extraordinary, 26 00:01:15,440 --> 00:01:17,560 Speaker 3: and yes, there are some very complex issues that have 27 00:01:17,600 --> 00:01:18,200 Speaker 3: to be dealt with. 28 00:01:18,600 --> 00:01:21,760 Speaker 1: At what point does Jamie Diamond have to become the diplomat? Look, 29 00:01:21,959 --> 00:01:24,920 Speaker 1: Joe Biden has not spoken to Siegen Ping since November, 30 00:01:25,080 --> 00:01:29,319 Speaker 1: the Bali meeting. Military to military discussions are being rebuffed 31 00:01:29,319 --> 00:01:33,600 Speaker 1: and not even happening. Business to business is tenuous at best. 32 00:01:33,640 --> 00:01:36,440 Speaker 2: What role can you and should you play while you're there? 33 00:01:36,959 --> 00:01:38,760 Speaker 3: Yeah? No, I think I look at a little bit differently. 34 00:01:38,880 --> 00:01:41,800 Speaker 3: So there are conversations took place recently that you know 35 00:01:41,840 --> 00:01:43,360 Speaker 3: have been in the press, which I think you're great. 36 00:01:43,400 --> 00:01:45,600 Speaker 3: I mean, it's hard to resolve issues when you have 37 00:01:45,640 --> 00:01:47,920 Speaker 3: the echo chain in your own brain telling yourself what 38 00:01:47,960 --> 00:01:50,120 Speaker 3: you already think. And I think business could be a 39 00:01:50,120 --> 00:01:52,960 Speaker 3: force for good. But I don't represent the government. But 40 00:01:53,040 --> 00:01:55,400 Speaker 3: you know, everyone knows I'm an American patriot, so I'm 41 00:01:55,400 --> 00:01:58,080 Speaker 3: sitting here in China, but I'm a red blooded, full 42 00:01:58,120 --> 00:02:03,040 Speaker 3: throated free enterprise capitalists, and so the governments have to talk. 43 00:02:03,240 --> 00:02:06,120 Speaker 3: Every government has national security in mind and how do 44 00:02:06,160 --> 00:02:09,720 Speaker 3: they how do they get better announced security? And I 45 00:02:09,760 --> 00:02:12,239 Speaker 3: should point out is that this globe of ours has 46 00:02:12,320 --> 00:02:15,400 Speaker 3: benefited from trade. You know, it's benefited from all these 47 00:02:15,440 --> 00:02:19,200 Speaker 3: things taking place, and so it's lifted and even taking 48 00:02:19,240 --> 00:02:21,799 Speaker 3: this country, you know, they have benefited. I know this 49 00:02:21,919 --> 00:02:25,640 Speaker 3: criticism about the American global system, but that American global 50 00:02:25,680 --> 00:02:28,800 Speaker 3: system has done an extraordinary It's not American. You know, 51 00:02:29,080 --> 00:02:30,919 Speaker 3: if you go to America, a lot of Americans complain 52 00:02:30,919 --> 00:02:34,320 Speaker 3: about NATO and WTO and WHO and the United Nations, 53 00:02:34,680 --> 00:02:36,880 Speaker 3: but it's lifted up. Look what it's done for China. 54 00:02:37,080 --> 00:02:40,120 Speaker 3: I think that the global system has been fabulous for China. 55 00:02:40,120 --> 00:02:42,400 Speaker 3: And they may have complaints about it, just like the 56 00:02:42,400 --> 00:02:45,520 Speaker 3: rest of us have complaints. But I'm thrilled to be 57 00:02:45,560 --> 00:02:47,720 Speaker 3: here again. You know we have you have to go 58 00:02:47,800 --> 00:02:49,760 Speaker 3: see your people and thank your people what they've done, 59 00:02:49,800 --> 00:02:52,600 Speaker 3: particularly through this terrible time of COVID, which I think 60 00:02:52,600 --> 00:02:54,120 Speaker 3: has done a lot of damage to the world in 61 00:02:54,120 --> 00:02:56,640 Speaker 3: a lot of different ways. So getting out is the 62 00:02:56,680 --> 00:02:57,200 Speaker 3: right thing to do. 63 00:02:58,000 --> 00:02:59,480 Speaker 2: Yeah, what is your calculus? 64 00:02:59,480 --> 00:03:02,120 Speaker 1: Has it changed over these four years on how you 65 00:03:02,160 --> 00:03:03,840 Speaker 1: want to expand in China. 66 00:03:03,919 --> 00:03:07,560 Speaker 2: Obviously you're fully licensed up now. You are very productive. 67 00:03:07,680 --> 00:03:11,800 Speaker 1: During the pandemic, you got full jvs and full ventures 68 00:03:11,800 --> 00:03:16,960 Speaker 1: in securities and the mutual funds and futures. You're pretty 69 00:03:17,040 --> 00:03:20,240 Speaker 1: much well established on the mainland, which was your goal. 70 00:03:20,520 --> 00:03:23,400 Speaker 1: But the things have changed. China is not necessarily the 71 00:03:23,440 --> 00:03:27,799 Speaker 1: be all end all anymore. We've had simultaneous crackdowns domestically 72 00:03:28,120 --> 00:03:31,959 Speaker 1: on the platform economy, on property, on online gaming, on 73 00:03:31,960 --> 00:03:35,440 Speaker 1: online education, not to mention COVID zero, you have a 74 00:03:35,440 --> 00:03:39,320 Speaker 1: crackdown on consultancies. There's lots of pressure. I mean, are 75 00:03:39,360 --> 00:03:43,520 Speaker 1: you recalculating your growth projection and the capability of that 76 00:03:43,560 --> 00:03:44,440 Speaker 1: growth in China? 77 00:03:45,480 --> 00:03:47,680 Speaker 3: You went through a long list there which I may 78 00:03:47,720 --> 00:03:49,680 Speaker 3: not win agree with all of it, but I think 79 00:03:50,720 --> 00:03:52,800 Speaker 3: when we do visit a country, and we do visit 80 00:03:52,840 --> 00:03:54,760 Speaker 3: one hundred countries around the world, we are there for 81 00:03:54,840 --> 00:03:57,760 Speaker 3: the systems of the country, and we're there hopefully through 82 00:03:57,760 --> 00:03:59,960 Speaker 3: good times and bedtimes. We tend not to leave other 83 00:04:00,000 --> 00:04:03,240 Speaker 3: and there's war, civil war, and so we're not predicting 84 00:04:03,240 --> 00:04:05,360 Speaker 3: any of that here. You know. Obviously it's become a 85 00:04:05,480 --> 00:04:09,080 Speaker 3: far more complex situation. You know, for some for good reason, 86 00:04:09,240 --> 00:04:12,160 Speaker 3: some not for good reason, and you know there's risk. 87 00:04:12,280 --> 00:04:14,119 Speaker 3: There's always going to be risk, and I think you'll 88 00:04:14,120 --> 00:04:17,279 Speaker 3: see companies react to different things for different reasons, some 89 00:04:17,320 --> 00:04:21,599 Speaker 3: of their own resiliency. Some is obviously national security, you know, 90 00:04:21,640 --> 00:04:24,200 Speaker 3: will trump all other things. So you know, our government 91 00:04:24,200 --> 00:04:25,760 Speaker 3: tells us to do AB and C, We're gonna do 92 00:04:25,800 --> 00:04:28,840 Speaker 3: a B and C and support it. And I think 93 00:04:28,920 --> 00:04:32,000 Speaker 3: there's there's a risk in China itself that you know, 94 00:04:32,080 --> 00:04:34,919 Speaker 3: if you I've met with several people here, if you 95 00:04:35,120 --> 00:04:38,720 Speaker 3: have more uncertainty, some are caused by the Chinese government. Well, 96 00:04:38,720 --> 00:04:41,560 Speaker 3: of course it's gonna not just change foreign direct investment, 97 00:04:41,560 --> 00:04:44,520 Speaker 3: which has gone up a little surprisingly, and I don't 98 00:04:44,520 --> 00:04:46,640 Speaker 3: think they should assume that's continue, but it's going to 99 00:04:46,760 --> 00:04:49,400 Speaker 3: change the people here, their own confidence, their own ability 100 00:04:49,200 --> 00:04:53,000 Speaker 3: to invest and do things. And so, like I said, 101 00:04:53,080 --> 00:04:57,840 Speaker 3: if people have deep conversations, respect each other, engage properly. 102 00:04:58,240 --> 00:05:00,720 Speaker 3: I think the American government said all the right things recently, 103 00:05:00,760 --> 00:05:03,359 Speaker 3: which is cause you heard it from Treasury Secretary Yellen, 104 00:05:03,440 --> 00:05:05,960 Speaker 3: You've heard from President Biden. You've heard it from National 105 00:05:05,960 --> 00:05:08,599 Speaker 3: Security Advisor Jake Sullivan, you heard it from Secretary as 106 00:05:08,640 --> 00:05:12,159 Speaker 3: day Tony Blincoln that this is not decoupling. This is 107 00:05:12,240 --> 00:05:15,280 Speaker 3: de risking. The world's changed a little bit. Obviously, they 108 00:05:15,320 --> 00:05:18,080 Speaker 3: are concerned about the war in Ukraine. They should be. 109 00:05:18,320 --> 00:05:19,719 Speaker 3: I think that is probably one of the most serious 110 00:05:19,760 --> 00:05:22,120 Speaker 3: things affecting the future of the globe, and I mean 111 00:05:22,160 --> 00:05:24,200 Speaker 3: the future of glow for the next fifty years. And 112 00:05:24,240 --> 00:05:26,560 Speaker 3: I think they're doing the right things. I'm completely supportive 113 00:05:26,600 --> 00:05:28,920 Speaker 3: of that. So you know, China's obviously going to do 114 00:05:29,000 --> 00:05:31,480 Speaker 3: what they think is good for itself. And business might 115 00:05:31,520 --> 00:05:35,720 Speaker 3: be a positive attribute, but national security will trump all 116 00:05:35,720 --> 00:05:36,320 Speaker 3: our issues. 117 00:05:37,240 --> 00:05:39,360 Speaker 1: Now. I was just at G seven where we heard 118 00:05:39,400 --> 00:05:43,120 Speaker 1: a lot of that rhetoric where they're de risking, not decoupling. 119 00:05:43,760 --> 00:05:46,800 Speaker 1: But again, you know the Chinese say it's one and 120 00:05:46,839 --> 00:05:50,800 Speaker 1: the same. It's America trying to limit China's rise, and 121 00:05:50,839 --> 00:05:52,520 Speaker 1: you've seen that bifurcation. 122 00:05:52,640 --> 00:05:53,640 Speaker 2: There's more jargon. 123 00:05:53,920 --> 00:05:57,000 Speaker 1: Not to overemphasize all this jargon that's going out there, 124 00:05:57,000 --> 00:06:03,359 Speaker 1: But again, do you see d risking different from decoupling totally? 125 00:06:03,720 --> 00:06:05,400 Speaker 3: I mean, look, you know, Stevie, I look at the 126 00:06:05,400 --> 00:06:09,599 Speaker 3: fact trade actually went up and last year, and I 127 00:06:09,600 --> 00:06:12,880 Speaker 3: think d risky means national security. You know, everyone's gonna 128 00:06:12,920 --> 00:06:15,159 Speaker 3: do every country's gonna turn out their own way. You know, 129 00:06:15,200 --> 00:06:18,000 Speaker 3: now we're talking about very advanced chips. We kind of reasonable, 130 00:06:18,040 --> 00:06:20,440 Speaker 3: you know, not to help non allies have things that 131 00:06:20,560 --> 00:06:23,279 Speaker 3: can help their military. You know, obviously there are you know, 132 00:06:23,400 --> 00:06:25,800 Speaker 3: rare earths and things like that, so American is going 133 00:06:25,839 --> 00:06:27,880 Speaker 3: to look at that. They were very clear they term 134 00:06:27,920 --> 00:06:30,880 Speaker 3: about it. They used the word, you know, a small 135 00:06:30,920 --> 00:06:34,000 Speaker 3: guarden with high walls as opposed to everything, and let's 136 00:06:34,080 --> 00:06:35,839 Speaker 3: you know, we should hope that, let's not make it everything. 137 00:06:35,839 --> 00:06:37,719 Speaker 3: I think the business Comunity is trying to help advise them, 138 00:06:37,720 --> 00:06:40,279 Speaker 3: and that then there's going to be companies doing things 139 00:06:40,320 --> 00:06:43,320 Speaker 3: just for their own resiliency. That's a perfectly reasonable thing 140 00:06:43,320 --> 00:06:46,000 Speaker 3: to do too. And then there's the big one, which 141 00:06:46,040 --> 00:06:49,160 Speaker 3: is also this constant negotia about trade on fair trade, 142 00:06:49,200 --> 00:06:52,000 Speaker 3: free access, fair access that's been going on with for 143 00:06:52,120 --> 00:06:54,919 Speaker 3: my whole life is about every country and countries should 144 00:06:55,000 --> 00:06:57,960 Speaker 3: learn about when they're legitimate concerns and when they're not 145 00:06:58,040 --> 00:07:02,640 Speaker 3: legitimate concerns, and like listen to it deeply and adjust accordingly. 146 00:07:02,880 --> 00:07:05,280 Speaker 3: So if you ask me, over time, yeah, there'll be 147 00:07:05,640 --> 00:07:08,400 Speaker 3: less trade. You know, it'll take years for these things 148 00:07:08,480 --> 00:07:11,160 Speaker 3: to take place, but it won't be a decoupling and 149 00:07:11,840 --> 00:07:14,160 Speaker 3: the world will go on. I think, like I said, 150 00:07:14,160 --> 00:07:17,160 Speaker 3: I think far more important is what's happening in Ukraine 151 00:07:17,240 --> 00:07:20,840 Speaker 3: right now, and so hopefully this will sort out and 152 00:07:20,920 --> 00:07:22,760 Speaker 3: it'll never short out if you don't talk. So I 153 00:07:23,000 --> 00:07:25,920 Speaker 3: urge people you have some real deep conversation. You get 154 00:07:25,920 --> 00:07:27,720 Speaker 3: to know each other a little bit, a little bit 155 00:07:27,800 --> 00:07:30,680 Speaker 3: each other's concerns about some of these issues, and things 156 00:07:30,800 --> 00:07:31,960 Speaker 3: would be better if we have that. 157 00:07:33,560 --> 00:07:36,000 Speaker 1: Well, do you have these conversations as well, because a 158 00:07:36,040 --> 00:07:39,640 Speaker 1: lot of people do try to extrapolate what's happening in 159 00:07:39,720 --> 00:07:43,960 Speaker 1: Ukraine with the potentiality in East Asia with Taiwan. We 160 00:07:44,040 --> 00:07:49,000 Speaker 1: know Warren Buffett has divested completely its investment Berkshire Hathaway's 161 00:07:49,000 --> 00:07:53,760 Speaker 1: investment in Taiwan Semiconductor. There's nervousness and that creates hesitancy 162 00:07:54,120 --> 00:07:58,120 Speaker 1: for investment and fun flows which are down. Obviously trade 163 00:07:58,120 --> 00:08:01,040 Speaker 1: deals are down. Do you see the direct correlation of 164 00:08:01,080 --> 00:08:05,520 Speaker 1: the risks that have risen in East Asia because of Taiwan, 165 00:08:05,640 --> 00:08:09,280 Speaker 1: because of what's happening in Ukraine exacerbating that? 166 00:08:10,400 --> 00:08:13,000 Speaker 3: Yeah, I think. Look, I'm not an expert on Taiwan, 167 00:08:13,080 --> 00:08:16,360 Speaker 3: and I would defer to Bob Gates and Henry Kissinger 168 00:08:16,400 --> 00:08:19,400 Speaker 3: about how to de escalate that situation and obviously as 169 00:08:19,440 --> 00:08:22,760 Speaker 3: to the tension things like that. But remember this is 170 00:08:22,800 --> 00:08:25,880 Speaker 3: a world issue. All the country around the world would 171 00:08:25,880 --> 00:08:28,600 Speaker 3: be concerned about Taiwan and the outcome of that. I 172 00:08:28,640 --> 00:08:31,840 Speaker 3: think what Ukraine showed people is that the world wasn't 173 00:08:31,880 --> 00:08:34,920 Speaker 3: safe that you know, oil and gas supply chains aren't safe, 174 00:08:34,920 --> 00:08:38,120 Speaker 3: food supply lines aren't safe. You know, everyone's starting to 175 00:08:38,120 --> 00:08:41,400 Speaker 3: relook at what is national security. Had Germany important, I think, 176 00:08:41,480 --> 00:08:43,800 Speaker 3: was half of their natural gas from Russia. So I 177 00:08:43,800 --> 00:08:47,000 Speaker 3: think that did cause people look at what are their alliances, 178 00:08:47,040 --> 00:08:49,440 Speaker 3: what are their trade what are the things? And obviously 179 00:08:49,480 --> 00:08:51,920 Speaker 3: it's causing a lot of confusion and a lot of issues. 180 00:08:51,920 --> 00:08:55,240 Speaker 3: But hopefully we'll make a lot of progress on it. 181 00:08:55,360 --> 00:08:58,160 Speaker 3: Like I said, that comes with engagement, and that comes 182 00:08:58,240 --> 00:09:01,240 Speaker 3: with you know the one the American government and other folks, 183 00:09:01,480 --> 00:09:02,320 Speaker 3: you know, city down. 184 00:09:03,040 --> 00:09:03,240 Speaker 2: Yeah. 185 00:09:03,240 --> 00:09:05,199 Speaker 1: I don't want to keep on harping on the negative 186 00:09:05,200 --> 00:09:07,440 Speaker 1: side of it, but is there any scenario, the worst 187 00:09:07,480 --> 00:09:11,720 Speaker 1: case scenario that would make your investment, and look, it's 188 00:09:11,720 --> 00:09:16,480 Speaker 1: a sizeable investment in China, make it untenable for you? 189 00:09:16,480 --> 00:09:18,480 Speaker 3: You know, Steve, you're going here you're going to repeat 190 00:09:18,520 --> 00:09:21,840 Speaker 3: yourself over and over. We're here, We're going to support 191 00:09:21,880 --> 00:09:25,000 Speaker 3: the Chinese people, of the Chinese governments. We do business 192 00:09:25,000 --> 00:09:28,440 Speaker 3: with a thousand companies here. Half are multinationals, coming in 193 00:09:28,840 --> 00:09:32,959 Speaker 3: half are local companies. You know, we always have managed 194 00:09:32,960 --> 00:09:35,840 Speaker 3: our risk that we can handle almost whatever happens around 195 00:09:35,840 --> 00:09:38,880 Speaker 3: the world. And I am an American patriot. I will 196 00:09:38,920 --> 00:09:40,640 Speaker 3: do what my government tells me. I'm going to salute 197 00:09:40,640 --> 00:09:43,160 Speaker 3: like anybody else. But I can tell them what I think, 198 00:09:43,360 --> 00:09:45,760 Speaker 3: and you could imagine that I've been very clear when 199 00:09:45,760 --> 00:09:47,640 Speaker 3: I sit down with them what I think and what 200 00:09:47,679 --> 00:09:49,240 Speaker 3: we think matters. And like I said, a lot of 201 00:09:49,240 --> 00:09:51,200 Speaker 3: the business community think would be very helpful in that 202 00:09:51,440 --> 00:09:54,679 Speaker 3: this is not a simple matter, and sometimes we oversimplify 203 00:09:54,760 --> 00:09:57,320 Speaker 3: things in a way which actually damage, you know, the 204 00:09:57,400 --> 00:09:58,319 Speaker 3: ultimate outcomes. 205 00:09:59,120 --> 00:10:00,400 Speaker 2: Will you have an opportunit unity? 206 00:10:00,440 --> 00:10:03,400 Speaker 1: Can you reveal whether you're going to meet with Lee Chong, 207 00:10:03,520 --> 00:10:06,480 Speaker 1: the premiere or any of the other senior Chinese leaders, 208 00:10:06,480 --> 00:10:10,040 Speaker 1: and what would you like to get from them. 209 00:10:09,720 --> 00:10:13,000 Speaker 3: I'm I'm me a very limited amount of Chinese leaders. 210 00:10:13,040 --> 00:10:15,640 Speaker 3: I met with one by I'll keep that conversation private, 211 00:10:15,679 --> 00:10:19,000 Speaker 3: and like I said, you know, I'm here for our people. 212 00:10:19,080 --> 00:10:21,520 Speaker 3: I'm here for these clients. I think it's great that 213 00:10:21,600 --> 00:10:23,920 Speaker 3: this is taking place. I think humanity is better off 214 00:10:24,000 --> 00:10:27,079 Speaker 3: this type of thing. And obviously national security will reign 215 00:10:27,240 --> 00:10:30,600 Speaker 3: supreme and so. But but you don't stop doing one 216 00:10:30,640 --> 00:10:33,280 Speaker 3: because of the other. And so, like I said, I'm 217 00:10:33,280 --> 00:10:35,840 Speaker 3: thrilled to be here. And it's amazing, which I've what 218 00:10:35,880 --> 00:10:38,480 Speaker 3: I've seen take place in Chino the last twenty five 219 00:10:38,559 --> 00:10:42,000 Speaker 3: years partially because of the global system, and I think 220 00:10:42,000 --> 00:10:44,560 Speaker 3: they should be clear about that. And you know, they 221 00:10:44,600 --> 00:10:47,880 Speaker 3: have their own problems here. You know, twenty percent unemployment 222 00:10:47,960 --> 00:10:49,679 Speaker 3: and youth. I mean that's a scary number. And so 223 00:10:50,000 --> 00:10:52,600 Speaker 3: you know, growth, they need growth too, and confidence is 224 00:10:52,760 --> 00:10:53,840 Speaker 3: very important for growth. 225 00:10:54,600 --> 00:10:56,920 Speaker 1: When do you see cross border deal making picking up? 226 00:10:56,920 --> 00:10:59,679 Speaker 1: It's been quite a nator on that front. 227 00:11:02,880 --> 00:11:06,319 Speaker 3: Course, border between China and other people are just globally. 228 00:11:06,160 --> 00:11:10,360 Speaker 1: Right, Well, let's let's talk about China, say China US 229 00:11:10,480 --> 00:11:12,680 Speaker 1: or outbound from China and the like. 230 00:11:16,800 --> 00:11:19,080 Speaker 3: Outbound you know, I don't know the answer to that. 231 00:11:19,160 --> 00:11:22,360 Speaker 3: I think there are always a lot more conversations, you think, 232 00:11:22,640 --> 00:11:24,760 Speaker 3: and obviously it's been damped a little bit. I think 233 00:11:24,760 --> 00:11:27,480 Speaker 3: America is still open for business, you know, Chinese company's 234 00:11:27,480 --> 00:11:29,200 Speaker 3: gonna be a little concerned. You know, we've we've had 235 00:11:29,240 --> 00:11:31,559 Speaker 3: siphias for a long time now. But I would say 236 00:11:31,679 --> 00:11:34,040 Speaker 3: we're still generally open for business. And if you're in 237 00:11:34,040 --> 00:11:35,840 Speaker 3: a Chinese company you want to do something, you know, 238 00:11:36,840 --> 00:11:39,080 Speaker 3: look at it, don't back off just because you're afraid 239 00:11:39,160 --> 00:11:41,320 Speaker 3: of something, and you get some advice and helping how 240 00:11:41,360 --> 00:11:44,040 Speaker 3: you go about that the right way. But America is 241 00:11:44,040 --> 00:11:46,000 Speaker 3: still open for business, and I think you've heard that 242 00:11:46,040 --> 00:11:51,400 Speaker 3: from Secretary yelling, Secretary blinking, and all those Still we 243 00:11:51,440 --> 00:11:54,000 Speaker 3: still believe in, you know, open and philly free markets. 244 00:11:54,600 --> 00:11:57,319 Speaker 1: Let's pivot to what's happening in the United States. Obviously, 245 00:11:57,360 --> 00:12:01,000 Speaker 1: the debt ceiling impasse is coming to head, perhaps with 246 00:12:01,080 --> 00:12:03,840 Speaker 1: a House vote coming up. Can you kind of tell 247 00:12:03,840 --> 00:12:05,839 Speaker 1: me what your war room, your debt ceiling war room 248 00:12:05,920 --> 00:12:09,880 Speaker 1: is advising you on the unintended consequences a of a 249 00:12:09,960 --> 00:12:14,959 Speaker 1: default or even buh, the ramifications even if a deal 250 00:12:15,559 --> 00:12:18,800 Speaker 1: is done in Congress, on whether that could mean you know, 251 00:12:18,880 --> 00:12:21,520 Speaker 1: higher rates as well as we head towards a possible 252 00:12:21,600 --> 00:12:22,440 Speaker 1: mild recession. 253 00:12:23,280 --> 00:12:28,000 Speaker 3: So I, first of all, I think I think Kevin McCarthy, 254 00:12:29,080 --> 00:12:34,800 Speaker 3: Kim Jefferies, the President, Chuck Schumer, Miss McCabe all did 255 00:12:34,800 --> 00:12:37,520 Speaker 3: a great job, and I think it's great. This is 256 00:12:37,720 --> 00:12:40,520 Speaker 3: this is democracy and bipartisanship, and I think they did 257 00:12:40,559 --> 00:12:42,079 Speaker 3: the right thing. And I think it's going to happen. 258 00:12:42,280 --> 00:12:43,839 Speaker 3: If I thought it wasn't going to happen, I probably 259 00:12:43,840 --> 00:12:46,760 Speaker 3: wouldn't be here right now. Uh So, And obviously it's 260 00:12:46,800 --> 00:12:48,520 Speaker 3: got to get through a couple of votes in Congress, 261 00:12:48,559 --> 00:12:52,320 Speaker 3: and our people pretty comfortable will happen. You know, I've 262 00:12:52,320 --> 00:12:54,840 Speaker 3: been We've been public for years. If if you actually 263 00:12:55,040 --> 00:12:58,240 Speaker 3: an actual default, it's not good. You know, America, the 264 00:12:58,280 --> 00:13:01,480 Speaker 3: financial as system America, and the econom economy of America, 265 00:13:01,520 --> 00:13:03,480 Speaker 3: it's still the most prosperous and largest economy of the 266 00:13:03,480 --> 00:13:06,600 Speaker 3: world've ever seen, the most innovative, the most growing, and 267 00:13:06,720 --> 00:13:08,640 Speaker 3: the rest of the world relies on it, you know, 268 00:13:08,720 --> 00:13:12,080 Speaker 3: So I think we shouldn't create any instability there. So 269 00:13:12,120 --> 00:13:13,760 Speaker 3: I wish one day we'd get rid of the whole 270 00:13:13,760 --> 00:13:16,319 Speaker 3: debt ceiling thing. But I understand, when you know, it's 271 00:13:16,320 --> 00:13:18,800 Speaker 3: a democracy, people have different opinions about what we should 272 00:13:18,800 --> 00:13:21,480 Speaker 3: be doing, and it's just one tool for one party 273 00:13:21,520 --> 00:13:23,520 Speaker 3: to you know, get the other part of the table. 274 00:13:23,559 --> 00:13:27,160 Speaker 3: So I'm quite optimistic there, and I really do applaud 275 00:13:27,200 --> 00:13:28,960 Speaker 3: the fact that they all sat down and spoke got 276 00:13:28,960 --> 00:13:29,760 Speaker 3: something done. 277 00:13:29,920 --> 00:13:32,640 Speaker 1: What's your read on inflation, on whether the FED will 278 00:13:32,679 --> 00:13:34,679 Speaker 1: go beyond the pause and hike again. 279 00:13:36,040 --> 00:13:39,319 Speaker 3: You know, my simple view is that you know, their 280 00:13:39,400 --> 00:13:41,720 Speaker 3: right to pause at this point has been a big increase, 281 00:13:41,720 --> 00:13:45,080 Speaker 3: you know, five hundred basis points to so take a pause. 282 00:13:45,440 --> 00:13:47,920 Speaker 3: But I do think it's possible they're going to raise 283 00:13:47,920 --> 00:13:50,400 Speaker 3: a little bit more. Then the inflation is kind of stickier. 284 00:13:50,440 --> 00:13:52,600 Speaker 3: I think people are coming around to that, which means 285 00:13:52,679 --> 00:13:54,000 Speaker 3: race may have to go up a little bit more. 286 00:13:54,200 --> 00:13:56,880 Speaker 3: People should be a little prepared for that. There's just 287 00:13:56,960 --> 00:13:59,240 Speaker 3: as a matter of manage your own business, be a 288 00:13:59,280 --> 00:14:02,320 Speaker 3: little prepared for, whether you're a financial company or real 289 00:14:02,440 --> 00:14:05,000 Speaker 3: estate company, etc. I think the other thing I'd be 290 00:14:05,040 --> 00:14:07,079 Speaker 3: a little prepared for is the volatility that might very 291 00:14:07,080 --> 00:14:10,080 Speaker 3: well be created by quantitative tightening. We've never really had 292 00:14:10,160 --> 00:14:13,080 Speaker 3: quantitative easying, which we've had now for the better part 293 00:14:13,080 --> 00:14:15,920 Speaker 3: of fifteen years, and now you're going to see quantitative tightening, 294 00:14:15,960 --> 00:14:18,080 Speaker 3: and I think the effects may be a little harsher 295 00:14:18,120 --> 00:14:20,920 Speaker 3: than people expect. But hopefully we'll get through all of 296 00:14:20,920 --> 00:14:22,880 Speaker 3: that and'll be okay. 297 00:14:23,400 --> 00:14:26,120 Speaker 1: How would you assess the banking crisis whether we're still 298 00:14:26,160 --> 00:14:30,000 Speaker 1: facing a banking crisis. Obviously you come from a very 299 00:14:30,040 --> 00:14:33,240 Speaker 1: interesting purge having taken over a first Republic. Do you 300 00:14:33,280 --> 00:14:35,440 Speaker 1: see more pain coming down to what needs to be 301 00:14:35,520 --> 00:14:38,640 Speaker 1: done on the regulatory front to prevent this from happening again. 302 00:14:39,320 --> 00:14:42,400 Speaker 3: Yeah. So the first thing is it's nothing like, oh wait, 303 00:14:42,760 --> 00:14:45,840 Speaker 3: there's nothing like that. Leverage in the system private the 304 00:14:45,880 --> 00:14:49,000 Speaker 3: private companies are in actually very good shape. The banking 305 00:14:49,040 --> 00:14:51,720 Speaker 3: system is in pretty good shape. You've seen regional banks 306 00:14:51,760 --> 00:14:55,120 Speaker 3: just report very good numbers. The deposits didn't run out 307 00:14:55,200 --> 00:14:57,760 Speaker 3: like people are talking about. This is nothing like that. 308 00:14:58,040 --> 00:14:59,840 Speaker 3: There are a couple of banks that are offside this 309 00:15:00,000 --> 00:15:03,200 Speaker 3: I to have size and industraight exposure and things like that, 310 00:15:03,240 --> 00:15:05,640 Speaker 3: First Republic being one of them. We were asked by 311 00:15:05,680 --> 00:15:07,400 Speaker 3: our government to step in, and we did, and we 312 00:15:07,400 --> 00:15:10,320 Speaker 3: were able to handle it. I'm extremely proud. I hope 313 00:15:10,400 --> 00:15:12,520 Speaker 3: Jen Peepzak and Marion Lake will looking at me now 314 00:15:12,560 --> 00:15:15,000 Speaker 3: like what you all have done. Get an airplane Sunday 315 00:15:15,080 --> 00:15:17,600 Speaker 3: night to fly out talk to people. You know, obviously 316 00:15:17,680 --> 00:15:20,400 Speaker 3: it's a lot of work and you know, hard for people, 317 00:15:20,440 --> 00:15:23,200 Speaker 3: but we're trying to show real humanity, you know, using 318 00:15:23,280 --> 00:15:26,040 Speaker 3: redeployment of anyone who lose their job is try to 319 00:15:26,040 --> 00:15:29,240 Speaker 3: find other jobs. At JP Morgan or elsewhere we had 320 00:15:29,280 --> 00:15:31,440 Speaker 3: the cability to handle it. I think it's also assigned 321 00:15:31,480 --> 00:15:34,760 Speaker 3: by the way, because we totally support community banks, we 322 00:15:34,840 --> 00:15:38,120 Speaker 3: totally support regional banks. I would be carefully think what 323 00:15:38,280 --> 00:15:41,640 Speaker 3: regulations have to be done as opposed to supervision, and 324 00:15:41,680 --> 00:15:43,920 Speaker 3: we want them to do well. So I want to 325 00:15:43,960 --> 00:15:46,880 Speaker 3: be very careful people go about that. So these this 326 00:15:47,000 --> 00:15:49,240 Speaker 3: banking system, you know, we acknowledge their community banks do 327 00:15:49,240 --> 00:15:51,440 Speaker 3: a lot of things we can't do. And so I 328 00:15:51,520 --> 00:15:54,000 Speaker 3: think there are a critical part of the system. But 329 00:15:54,120 --> 00:15:56,920 Speaker 3: so is a JP Morgan. You know, we bank small companies, 330 00:15:57,000 --> 00:15:59,520 Speaker 3: large companies, We bank the IMF, the World Bank, we 331 00:15:59,600 --> 00:16:03,520 Speaker 3: bank these stools, states, hospitals, We bank companies in thirty countries, 332 00:16:03,920 --> 00:16:05,560 Speaker 3: you know, And so there's a reason that you have 333 00:16:05,640 --> 00:16:09,160 Speaker 3: both large and small and all different types. And so 334 00:16:09,880 --> 00:16:12,000 Speaker 3: I think we're over this part of it for the 335 00:16:12,000 --> 00:16:15,600 Speaker 3: most part. There may be something else, but rising rates, 336 00:16:15,720 --> 00:16:18,760 Speaker 3: if they get high enough, it canreers uglyhead again. And 337 00:16:18,800 --> 00:16:20,240 Speaker 3: so I think, like I said, it's not just banks. 338 00:16:20,240 --> 00:16:22,960 Speaker 3: People should be prepared for slightly higher rates than they've 339 00:16:22,960 --> 00:16:25,120 Speaker 3: been used to in the past fifteen years. 340 00:16:25,800 --> 00:16:29,440 Speaker 1: Are there further redundancies necessary associated with First Republic? We 341 00:16:29,520 --> 00:16:31,080 Speaker 1: knew we were going to get a plan from you 342 00:16:31,080 --> 00:16:32,720 Speaker 1: guys by the end of the month. It's the end 343 00:16:32,760 --> 00:16:35,360 Speaker 1: of the month. We know, maybe a thousand jobs cut, 344 00:16:35,480 --> 00:16:38,520 Speaker 1: but there's seven thousand employees there. Is there anything you 345 00:16:38,560 --> 00:16:42,000 Speaker 1: can reveal on what further tightening is necessary as you 346 00:16:42,040 --> 00:16:43,360 Speaker 1: integrate that bank. 347 00:16:43,760 --> 00:16:45,600 Speaker 3: No, you know, I think the thousand bud it was 348 00:16:45,680 --> 00:16:47,040 Speaker 3: less than what they had planned to do in their 349 00:16:47,040 --> 00:16:49,720 Speaker 3: own And we need a lot of people, and you know, 350 00:16:49,760 --> 00:16:51,200 Speaker 3: we have a lot of you know, we hire a 351 00:16:51,200 --> 00:16:53,400 Speaker 3: lot of people. Hear, so I use the word redeployment. 352 00:16:53,680 --> 00:16:56,680 Speaker 3: We're hoping that almost everyone who might lose their job, 353 00:16:57,160 --> 00:16:58,800 Speaker 3: you know, and there might be some more, but almost 354 00:16:58,840 --> 00:17:01,040 Speaker 3: everyone we could say, hey, we have this other job 355 00:17:01,080 --> 00:17:03,360 Speaker 3: for you in the same city, you know, or or 356 00:17:03,360 --> 00:17:05,480 Speaker 3: something like that. So you know, we're pretty good at 357 00:17:05,480 --> 00:17:08,600 Speaker 3: that and hopefully we can provide opportunity. You know, we 358 00:17:08,600 --> 00:17:11,840 Speaker 3: welcome the First First Republic people of a company. We're 359 00:17:11,840 --> 00:17:13,960 Speaker 3: treating them with great humanity. I hope we're going to 360 00:17:14,040 --> 00:17:15,560 Speaker 3: learn a lot from them. You know, very often when 361 00:17:15,560 --> 00:17:17,400 Speaker 3: you do a do like this, you know people are angry. 362 00:17:17,640 --> 00:17:20,040 Speaker 3: We're not. I've never been part of a company. We 363 00:17:20,080 --> 00:17:22,400 Speaker 3: didn't buy someone, merger someone where you don't learn somebody 364 00:17:22,400 --> 00:17:24,520 Speaker 3: from both sides, and so you know they have this 365 00:17:24,760 --> 00:17:28,840 Speaker 3: wonderful wealth uh business, you know, in banking and wealth management, 366 00:17:28,920 --> 00:17:30,840 Speaker 3: and you know we're we have a few things to 367 00:17:30,920 --> 00:17:33,240 Speaker 3: learn and do. I mean, I've never seen I've gotten 368 00:17:33,240 --> 00:17:36,399 Speaker 3: so many emails from very happy customers and that's a 369 00:17:36,440 --> 00:17:38,119 Speaker 3: great thing. So what can we learn and what can 370 00:17:38,160 --> 00:17:39,880 Speaker 3: we do better? For JP? Morgan Jayson. 371 00:17:40,240 --> 00:17:42,560 Speaker 1: Now, Jamie, I know last week you talked a lot 372 00:17:42,600 --> 00:17:46,040 Speaker 1: about succession or about your position that you're not talking 373 00:17:46,040 --> 00:17:48,800 Speaker 1: about retirement right now. I do need to ask you though, 374 00:17:48,840 --> 00:17:51,879 Speaker 1: And your name has been bandied about for years about 375 00:17:51,880 --> 00:17:55,040 Speaker 1: public office. I mean, I don't think Wall Street's too 376 00:17:55,040 --> 00:17:58,760 Speaker 1: pleased about the potential Trump versus Biden runoff next year. 377 00:17:59,680 --> 00:18:03,719 Speaker 1: Is it any has that scenario ever crossed your mind 378 00:18:03,880 --> 00:18:06,480 Speaker 1: that you would run from public office or even accept 379 00:18:06,480 --> 00:18:07,320 Speaker 1: a cabinet position. 380 00:18:09,080 --> 00:18:12,040 Speaker 3: You know, obviously it's crossed my mind because people mention 381 00:18:12,240 --> 00:18:14,520 Speaker 3: things to you and stuff like that. I love my 382 00:18:14,600 --> 00:18:16,879 Speaker 3: country and maybe one day I'll serve my country in 383 00:18:16,880 --> 00:18:18,680 Speaker 3: one capacity or another. But I love what I do. 384 00:18:19,200 --> 00:18:21,080 Speaker 3: I think, Jade, we're going to do a great job 385 00:18:21,119 --> 00:18:24,200 Speaker 3: for helping Americans, helping countries around the world. And this 386 00:18:24,280 --> 00:18:26,000 Speaker 3: is my job. This is what I'm going to do, 387 00:18:26,080 --> 00:18:27,919 Speaker 3: and I'm quite happy doing it. I still have the 388 00:18:28,000 --> 00:18:30,200 Speaker 3: energy to do it. I mentioned you know that when 389 00:18:30,200 --> 00:18:32,440 Speaker 3: you don't, I think people should give up the job. 390 00:18:32,640 --> 00:18:35,600 Speaker 3: I've got a fabulous management team what I really enjoy 391 00:18:35,720 --> 00:18:38,360 Speaker 3: working with. So I'm here. 392 00:18:39,480 --> 00:18:42,160 Speaker 1: David Diamond, thanks so much for your time. I'm Blueberg. 393 00:18:42,520 --> 00:18:42,880 Speaker 3: Thank you.