WEBVTT - BONUS EPISODE: Jamie Dimon Exclusive Interview 0:00:00.480 --> 0:00:03.000 We'd like to welcome in now the chairman and CEO 0:00:03.000 --> 0:00:06.040 of JP Morgan Jamie Diamond, who's joining us from the 0:00:06.040 --> 0:00:10.080 Global China Summit in Shanghai. Thanks so much for joining 0:00:10.200 --> 0:00:13.880 us exclusively on Bloomberg Television. Obviously, it's been a few 0:00:13.960 --> 0:00:16.560 years since you've held this in person summit. 0:00:16.880 --> 0:00:19.079 The last time you and I talked was that the last. 0:00:18.920 --> 0:00:22.320 Time you held one in person in Beijing in twenty nineteen. 0:00:22.400 --> 0:00:23.720 A lot has changed. 0:00:24.400 --> 0:00:26.960 Why are you willing to go high profile as a 0:00:27.040 --> 0:00:30.960 major CEO of a company from America when others they 0:00:31.040 --> 0:00:33.560 want to stay low profile and keep their heads low. 0:00:33.680 --> 0:00:35.280 How do you assess the US. 0:00:35.200 --> 0:00:37.760 China relationship and the impact it's having on business? 0:00:38.159 --> 0:00:40.600 Okay, well, first, all thrilled to be back again after 0:00:40.640 --> 0:00:44.239 all this time. And it's important for CEO to visit 0:00:44.320 --> 0:00:47.440 their people and their clients around the world, particularly in 0:00:47.520 --> 0:00:50.440 when you think times a little more complicated, etc. But 0:00:50.479 --> 0:00:53.400 I think it's important for the viewership to understand there 0:00:53.440 --> 0:00:55.880 are like three thousand investors here from around the world. 0:00:56.080 --> 0:00:59.680 There are hundreds of companies of Chinese and non Chinese 0:00:59.720 --> 0:01:02.920 company he's learning about the world. We do research on 0:01:03.040 --> 0:01:06.360 five hundred companies that research circulates the world, and hopefully 0:01:06.400 --> 0:01:08.360 business could be a you know, it could be for 0:01:08.400 --> 0:01:11.160 good to help the countries lift up. I have enormous 0:01:11.160 --> 0:01:15.160 respect for the Chinese people. The Martization's countries has been extraordinary, 0:01:15.440 --> 0:01:17.560 and yes, there are some very complex issues that have 0:01:17.600 --> 0:01:18.200 to be dealt with. 0:01:18.600 --> 0:01:21.760 At what point does Jamie Diamond have to become the diplomat? Look, 0:01:21.959 --> 0:01:24.920 Joe Biden has not spoken to Siegen Ping since November, 0:01:25.080 --> 0:01:29.319 the Bali meeting. Military to military discussions are being rebuffed 0:01:29.319 --> 0:01:33.600 and not even happening. Business to business is tenuous at best. 0:01:33.640 --> 0:01:36.440 What role can you and should you play while you're there? 0:01:36.959 --> 0:01:38.760 Yeah? No, I think I look at a little bit differently. 0:01:38.880 --> 0:01:41.800 So there are conversations took place recently that you know 0:01:41.840 --> 0:01:43.360 have been in the press, which I think you're great. 0:01:43.400 --> 0:01:45.600 I mean, it's hard to resolve issues when you have 0:01:45.640 --> 0:01:47.920 the echo chain in your own brain telling yourself what 0:01:47.960 --> 0:01:50.120 you already think. And I think business could be a 0:01:50.120 --> 0:01:52.960 force for good. But I don't represent the government. But 0:01:53.040 --> 0:01:55.400 you know, everyone knows I'm an American patriot, so I'm 0:01:55.400 --> 0:01:58.080 sitting here in China, but I'm a red blooded, full 0:01:58.120 --> 0:02:03.040 throated free enterprise capitalists, and so the governments have to talk. 0:02:03.240 --> 0:02:06.120 Every government has national security in mind and how do 0:02:06.160 --> 0:02:09.720 they how do they get better announced security? And I 0:02:09.760 --> 0:02:12.239 should point out is that this globe of ours has 0:02:12.320 --> 0:02:15.400 benefited from trade. You know, it's benefited from all these 0:02:15.440 --> 0:02:19.200 things taking place, and so it's lifted and even taking 0:02:19.240 --> 0:02:21.799 this country, you know, they have benefited. I know this 0:02:21.919 --> 0:02:25.640 criticism about the American global system, but that American global 0:02:25.680 --> 0:02:28.800 system has done an extraordinary It's not American. You know, 0:02:29.080 --> 0:02:30.919 if you go to America, a lot of Americans complain 0:02:30.919 --> 0:02:34.320 about NATO and WTO and WHO and the United Nations, 0:02:34.680 --> 0:02:36.880 but it's lifted up. Look what it's done for China. 0:02:37.080 --> 0:02:40.120 I think that the global system has been fabulous for China. 0:02:40.120 --> 0:02:42.400 And they may have complaints about it, just like the 0:02:42.400 --> 0:02:45.520 rest of us have complaints. But I'm thrilled to be 0:02:45.560 --> 0:02:47.720 here again. You know we have you have to go 0:02:47.800 --> 0:02:49.760 see your people and thank your people what they've done, 0:02:49.800 --> 0:02:52.600 particularly through this terrible time of COVID, which I think 0:02:52.600 --> 0:02:54.120 has done a lot of damage to the world in 0:02:54.120 --> 0:02:56.640 a lot of different ways. So getting out is the 0:02:56.680 --> 0:02:57.200 right thing to do. 0:02:58.000 --> 0:02:59.480 Yeah, what is your calculus? 0:02:59.480 --> 0:03:02.120 Has it changed over these four years on how you 0:03:02.160 --> 0:03:03.840 want to expand in China. 0:03:03.919 --> 0:03:07.560 Obviously you're fully licensed up now. You are very productive. 0:03:07.680 --> 0:03:11.800 During the pandemic, you got full jvs and full ventures 0:03:11.800 --> 0:03:16.960 in securities and the mutual funds and futures. You're pretty 0:03:17.040 --> 0:03:20.240 much well established on the mainland, which was your goal. 0:03:20.520 --> 0:03:23.400 But the things have changed. China is not necessarily the 0:03:23.440 --> 0:03:27.799 be all end all anymore. We've had simultaneous crackdowns domestically 0:03:28.120 --> 0:03:31.959 on the platform economy, on property, on online gaming, on 0:03:31.960 --> 0:03:35.440 online education, not to mention COVID zero, you have a 0:03:35.440 --> 0:03:39.320 crackdown on consultancies. There's lots of pressure. I mean, are 0:03:39.360 --> 0:03:43.520 you recalculating your growth projection and the capability of that 0:03:43.560 --> 0:03:44.440 growth in China? 0:03:45.480 --> 0:03:47.680 You went through a long list there which I may 0:03:47.720 --> 0:03:49.680 not win agree with all of it, but I think 0:03:50.720 --> 0:03:52.800 when we do visit a country, and we do visit 0:03:52.840 --> 0:03:54.760 one hundred countries around the world, we are there for 0:03:54.840 --> 0:03:57.760 the systems of the country, and we're there hopefully through 0:03:57.760 --> 0:03:59.960 good times and bedtimes. We tend not to leave other 0:04:00.000 --> 0:04:03.240 and there's war, civil war, and so we're not predicting 0:04:03.240 --> 0:04:05.360 any of that here. You know. Obviously it's become a 0:04:05.480 --> 0:04:09.080 far more complex situation. You know, for some for good reason, 0:04:09.240 --> 0:04:12.160 some not for good reason, and you know there's risk. 0:04:12.280 --> 0:04:14.119 There's always going to be risk, and I think you'll 0:04:14.120 --> 0:04:17.279 see companies react to different things for different reasons, some 0:04:17.320 --> 0:04:21.599 of their own resiliency. Some is obviously national security, you know, 0:04:21.640 --> 0:04:24.200 will trump all other things. So you know, our government 0:04:24.200 --> 0:04:25.760 tells us to do AB and C, We're gonna do 0:04:25.800 --> 0:04:28.840 a B and C and support it. And I think 0:04:28.920 --> 0:04:32.000 there's there's a risk in China itself that you know, 0:04:32.080 --> 0:04:34.919 if you I've met with several people here, if you 0:04:35.120 --> 0:04:38.720 have more uncertainty, some are caused by the Chinese government. Well, 0:04:38.720 --> 0:04:41.560 of course it's gonna not just change foreign direct investment, 0:04:41.560 --> 0:04:44.520 which has gone up a little surprisingly, and I don't 0:04:44.520 --> 0:04:46.640 think they should assume that's continue, but it's going to 0:04:46.760 --> 0:04:49.400 change the people here, their own confidence, their own ability 0:04:49.200 --> 0:04:53.000 to invest and do things. And so, like I said, 0:04:53.080 --> 0:04:57.840 if people have deep conversations, respect each other, engage properly. 0:04:58.240 --> 0:05:00.720 I think the American government said all the right things recently, 0:05:00.760 --> 0:05:03.359 which is cause you heard it from Treasury Secretary Yellen, 0:05:03.440 --> 0:05:05.960 You've heard from President Biden. You've heard it from National 0:05:05.960 --> 0:05:08.599 Security Advisor Jake Sullivan, you heard it from Secretary as 0:05:08.640 --> 0:05:12.159 day Tony Blincoln that this is not decoupling. This is 0:05:12.240 --> 0:05:15.280 de risking. The world's changed a little bit. Obviously, they 0:05:15.320 --> 0:05:18.080 are concerned about the war in Ukraine. They should be. 0:05:18.320 --> 0:05:19.719 I think that is probably one of the most serious 0:05:19.760 --> 0:05:22.120 things affecting the future of the globe, and I mean 0:05:22.160 --> 0:05:24.200 the future of glow for the next fifty years. And 0:05:24.240 --> 0:05:26.560 I think they're doing the right things. I'm completely supportive 0:05:26.600 --> 0:05:28.920 of that. So you know, China's obviously going to do 0:05:29.000 --> 0:05:31.480 what they think is good for itself. And business might 0:05:31.520 --> 0:05:35.720 be a positive attribute, but national security will trump all 0:05:35.720 --> 0:05:36.320 our issues. 0:05:37.240 --> 0:05:39.360 Now. I was just at G seven where we heard 0:05:39.400 --> 0:05:43.120 a lot of that rhetoric where they're de risking, not decoupling. 0:05:43.760 --> 0:05:46.800 But again, you know the Chinese say it's one and 0:05:46.839 --> 0:05:50.800 the same. It's America trying to limit China's rise, and 0:05:50.839 --> 0:05:52.520 you've seen that bifurcation. 0:05:52.640 --> 0:05:53.640 There's more jargon. 0:05:53.920 --> 0:05:57.000 Not to overemphasize all this jargon that's going out there, 0:05:57.000 --> 0:06:03.359 But again, do you see d risking different from decoupling totally? 0:06:03.720 --> 0:06:05.400 I mean, look, you know, Stevie, I look at the 0:06:05.400 --> 0:06:09.599 fact trade actually went up and last year, and I 0:06:09.600 --> 0:06:12.880 think d risky means national security. You know, everyone's gonna 0:06:12.920 --> 0:06:15.159 do every country's gonna turn out their own way. You know, 0:06:15.200 --> 0:06:18.000 now we're talking about very advanced chips. We kind of reasonable, 0:06:18.040 --> 0:06:20.440 you know, not to help non allies have things that 0:06:20.560 --> 0:06:23.279 can help their military. You know, obviously there are you know, 0:06:23.400 --> 0:06:25.800 rare earths and things like that, so American is going 0:06:25.839 --> 0:06:27.880 to look at that. They were very clear they term 0:06:27.920 --> 0:06:30.880 about it. They used the word, you know, a small 0:06:30.920 --> 0:06:34.000 guarden with high walls as opposed to everything, and let's 0:06:34.080 --> 0:06:35.839 you know, we should hope that, let's not make it everything. 0:06:35.839 --> 0:06:37.719 I think the business Comunity is trying to help advise them, 0:06:37.720 --> 0:06:40.279 and that then there's going to be companies doing things 0:06:40.320 --> 0:06:43.320 just for their own resiliency. That's a perfectly reasonable thing 0:06:43.320 --> 0:06:46.000 to do too. And then there's the big one, which 0:06:46.040 --> 0:06:49.160 is also this constant negotia about trade on fair trade, 0:06:49.200 --> 0:06:52.000 free access, fair access that's been going on with for 0:06:52.120 --> 0:06:54.919 my whole life is about every country and countries should 0:06:55.000 --> 0:06:57.960 learn about when they're legitimate concerns and when they're not 0:06:58.040 --> 0:07:02.640 legitimate concerns, and like listen to it deeply and adjust accordingly. 0:07:02.880 --> 0:07:05.280 So if you ask me, over time, yeah, there'll be 0:07:05.640 --> 0:07:08.400 less trade. You know, it'll take years for these things 0:07:08.480 --> 0:07:11.160 to take place, but it won't be a decoupling and 0:07:11.840 --> 0:07:14.160 the world will go on. I think, like I said, 0:07:14.160 --> 0:07:17.160 I think far more important is what's happening in Ukraine 0:07:17.240 --> 0:07:20.840 right now, and so hopefully this will sort out and 0:07:20.920 --> 0:07:22.760 it'll never short out if you don't talk. So I 0:07:23.000 --> 0:07:25.920 urge people you have some real deep conversation. You get 0:07:25.920 --> 0:07:27.720 to know each other a little bit, a little bit 0:07:27.800 --> 0:07:30.680 each other's concerns about some of these issues, and things 0:07:30.800 --> 0:07:31.960 would be better if we have that. 0:07:33.560 --> 0:07:36.000 Well, do you have these conversations as well, because a 0:07:36.040 --> 0:07:39.640 lot of people do try to extrapolate what's happening in 0:07:39.720 --> 0:07:43.960 Ukraine with the potentiality in East Asia with Taiwan. We 0:07:44.040 --> 0:07:49.000 know Warren Buffett has divested completely its investment Berkshire Hathaway's 0:07:49.000 --> 0:07:53.760 investment in Taiwan Semiconductor. There's nervousness and that creates hesitancy 0:07:54.120 --> 0:07:58.120 for investment and fun flows which are down. Obviously trade 0:07:58.120 --> 0:08:01.040 deals are down. Do you see the direct correlation of 0:08:01.080 --> 0:08:05.520 the risks that have risen in East Asia because of Taiwan, 0:08:05.640 --> 0:08:09.280 because of what's happening in Ukraine exacerbating that? 0:08:10.400 --> 0:08:13.000 Yeah, I think. Look, I'm not an expert on Taiwan, 0:08:13.080 --> 0:08:16.360 and I would defer to Bob Gates and Henry Kissinger 0:08:16.400 --> 0:08:19.400 about how to de escalate that situation and obviously as 0:08:19.440 --> 0:08:22.760 to the tension things like that. But remember this is 0:08:22.800 --> 0:08:25.880 a world issue. All the country around the world would 0:08:25.880 --> 0:08:28.600 be concerned about Taiwan and the outcome of that. I 0:08:28.640 --> 0:08:31.840 think what Ukraine showed people is that the world wasn't 0:08:31.880 --> 0:08:34.920 safe that you know, oil and gas supply chains aren't safe, 0:08:34.920 --> 0:08:38.120 food supply lines aren't safe. You know, everyone's starting to 0:08:38.120 --> 0:08:41.400 relook at what is national security. Had Germany important, I think, 0:08:41.480 --> 0:08:43.800 was half of their natural gas from Russia. So I 0:08:43.800 --> 0:08:47.000 think that did cause people look at what are their alliances, 0:08:47.040 --> 0:08:49.440 what are their trade what are the things? And obviously 0:08:49.480 --> 0:08:51.920 it's causing a lot of confusion and a lot of issues. 0:08:51.920 --> 0:08:55.240 But hopefully we'll make a lot of progress on it. 0:08:55.360 --> 0:08:58.160 Like I said, that comes with engagement, and that comes 0:08:58.240 --> 0:09:01.240 with you know the one the American government and other folks, 0:09:01.480 --> 0:09:02.320 you know, city down. 0:09:03.040 --> 0:09:03.240 Yeah. 0:09:03.240 --> 0:09:05.199 I don't want to keep on harping on the negative 0:09:05.200 --> 0:09:07.440 side of it, but is there any scenario, the worst 0:09:07.480 --> 0:09:11.720 case scenario that would make your investment, and look, it's 0:09:11.720 --> 0:09:16.480 a sizeable investment in China, make it untenable for you? 0:09:16.480 --> 0:09:18.480 You know, Steve, you're going here you're going to repeat 0:09:18.520 --> 0:09:21.840 yourself over and over. We're here, We're going to support 0:09:21.880 --> 0:09:25.000 the Chinese people, of the Chinese governments. We do business 0:09:25.000 --> 0:09:28.440 with a thousand companies here. Half are multinationals, coming in 0:09:28.840 --> 0:09:32.959 half are local companies. You know, we always have managed 0:09:32.960 --> 0:09:35.840 our risk that we can handle almost whatever happens around 0:09:35.840 --> 0:09:38.880 the world. And I am an American patriot. I will 0:09:38.920 --> 0:09:40.640 do what my government tells me. I'm going to salute 0:09:40.640 --> 0:09:43.160 like anybody else. But I can tell them what I think, 0:09:43.360 --> 0:09:45.760 and you could imagine that I've been very clear when 0:09:45.760 --> 0:09:47.640 I sit down with them what I think and what 0:09:47.679 --> 0:09:49.240 we think matters. And like I said, a lot of 0:09:49.240 --> 0:09:51.200 the business community think would be very helpful in that 0:09:51.440 --> 0:09:54.679 this is not a simple matter, and sometimes we oversimplify 0:09:54.760 --> 0:09:57.320 things in a way which actually damage, you know, the 0:09:57.400 --> 0:09:58.319 ultimate outcomes. 0:09:59.120 --> 0:10:00.400 Will you have an opportunit unity? 0:10:00.440 --> 0:10:03.400 Can you reveal whether you're going to meet with Lee Chong, 0:10:03.520 --> 0:10:06.480 the premiere or any of the other senior Chinese leaders, 0:10:06.480 --> 0:10:10.040 and what would you like to get from them. 0:10:09.720 --> 0:10:13.000 I'm I'm me a very limited amount of Chinese leaders. 0:10:13.040 --> 0:10:15.640 I met with one by I'll keep that conversation private, 0:10:15.679 --> 0:10:19.000 and like I said, you know, I'm here for our people. 0:10:19.080 --> 0:10:21.520 I'm here for these clients. I think it's great that 0:10:21.600 --> 0:10:23.920 this is taking place. I think humanity is better off 0:10:24.000 --> 0:10:27.079 this type of thing. And obviously national security will reign 0:10:27.240 --> 0:10:30.600 supreme and so. But but you don't stop doing one 0:10:30.640 --> 0:10:33.280 because of the other. And so, like I said, I'm 0:10:33.280 --> 0:10:35.840 thrilled to be here. And it's amazing, which I've what 0:10:35.880 --> 0:10:38.480 I've seen take place in Chino the last twenty five 0:10:38.559 --> 0:10:42.000 years partially because of the global system, and I think 0:10:42.000 --> 0:10:44.560 they should be clear about that. And you know, they 0:10:44.600 --> 0:10:47.880 have their own problems here. You know, twenty percent unemployment 0:10:47.960 --> 0:10:49.679 and youth. I mean that's a scary number. And so 0:10:50.000 --> 0:10:52.600 you know, growth, they need growth too, and confidence is 0:10:52.760 --> 0:10:53.840 very important for growth. 0:10:54.600 --> 0:10:56.920 When do you see cross border deal making picking up? 0:10:56.920 --> 0:10:59.679 It's been quite a nator on that front. 0:11:02.880 --> 0:11:06.319 Course, border between China and other people are just globally. 0:11:06.160 --> 0:11:10.360 Right, Well, let's let's talk about China, say China US 0:11:10.480 --> 0:11:12.680 or outbound from China and the like. 0:11:16.800 --> 0:11:19.080 Outbound you know, I don't know the answer to that. 0:11:19.160 --> 0:11:22.360 I think there are always a lot more conversations, you think, 0:11:22.640 --> 0:11:24.760 and obviously it's been damped a little bit. I think 0:11:24.760 --> 0:11:27.480 America is still open for business, you know, Chinese company's 0:11:27.480 --> 0:11:29.200 gonna be a little concerned. You know, we've we've had 0:11:29.240 --> 0:11:31.559 siphias for a long time now. But I would say 0:11:31.679 --> 0:11:34.040 we're still generally open for business. And if you're in 0:11:34.040 --> 0:11:35.840 a Chinese company you want to do something, you know, 0:11:36.840 --> 0:11:39.080 look at it, don't back off just because you're afraid 0:11:39.160 --> 0:11:41.320 of something, and you get some advice and helping how 0:11:41.360 --> 0:11:44.040 you go about that the right way. But America is 0:11:44.040 --> 0:11:46.000 still open for business, and I think you've heard that 0:11:46.040 --> 0:11:51.400 from Secretary yelling, Secretary blinking, and all those Still we 0:11:51.440 --> 0:11:54.000 still believe in, you know, open and philly free markets. 0:11:54.600 --> 0:11:57.319 Let's pivot to what's happening in the United States. Obviously, 0:11:57.360 --> 0:12:01.000 the debt ceiling impasse is coming to head, perhaps with 0:12:01.080 --> 0:12:03.840 a House vote coming up. Can you kind of tell 0:12:03.840 --> 0:12:05.839 me what your war room, your debt ceiling war room 0:12:05.920 --> 0:12:09.880 is advising you on the unintended consequences a of a 0:12:09.960 --> 0:12:14.959 default or even buh, the ramifications even if a deal 0:12:15.559 --> 0:12:18.800 is done in Congress, on whether that could mean you know, 0:12:18.880 --> 0:12:21.520 higher rates as well as we head towards a possible 0:12:21.600 --> 0:12:22.440 mild recession. 0:12:23.280 --> 0:12:28.000 So I, first of all, I think I think Kevin McCarthy, 0:12:29.080 --> 0:12:34.800 Kim Jefferies, the President, Chuck Schumer, Miss McCabe all did 0:12:34.800 --> 0:12:37.520 a great job, and I think it's great. This is 0:12:37.720 --> 0:12:40.520 this is democracy and bipartisanship, and I think they did 0:12:40.559 --> 0:12:42.079 the right thing. And I think it's going to happen. 0:12:42.280 --> 0:12:43.839 If I thought it wasn't going to happen, I probably 0:12:43.840 --> 0:12:46.760 wouldn't be here right now. Uh So, And obviously it's 0:12:46.800 --> 0:12:48.520 got to get through a couple of votes in Congress, 0:12:48.559 --> 0:12:52.320 and our people pretty comfortable will happen. You know, I've 0:12:52.320 --> 0:12:54.840 been We've been public for years. If if you actually 0:12:55.040 --> 0:12:58.240 an actual default, it's not good. You know, America, the 0:12:58.280 --> 0:13:01.480 financial as system America, and the econom economy of America, 0:13:01.520 --> 0:13:03.480 it's still the most prosperous and largest economy of the 0:13:03.480 --> 0:13:06.600 world've ever seen, the most innovative, the most growing, and 0:13:06.720 --> 0:13:08.640 the rest of the world relies on it, you know, 0:13:08.720 --> 0:13:12.080 So I think we shouldn't create any instability there. So 0:13:12.120 --> 0:13:13.760 I wish one day we'd get rid of the whole 0:13:13.760 --> 0:13:16.319 debt ceiling thing. But I understand, when you know, it's 0:13:16.320 --> 0:13:18.800 a democracy, people have different opinions about what we should 0:13:18.800 --> 0:13:21.480 be doing, and it's just one tool for one party 0:13:21.520 --> 0:13:23.520 to you know, get the other part of the table. 0:13:23.559 --> 0:13:27.160 So I'm quite optimistic there, and I really do applaud 0:13:27.200 --> 0:13:28.960 the fact that they all sat down and spoke got 0:13:28.960 --> 0:13:29.760 something done. 0:13:29.920 --> 0:13:32.640 What's your read on inflation, on whether the FED will 0:13:32.679 --> 0:13:34.679 go beyond the pause and hike again. 0:13:36.040 --> 0:13:39.319 You know, my simple view is that you know, their 0:13:39.400 --> 0:13:41.720 right to pause at this point has been a big increase, 0:13:41.720 --> 0:13:45.080 you know, five hundred basis points to so take a pause. 0:13:45.440 --> 0:13:47.920 But I do think it's possible they're going to raise 0:13:47.920 --> 0:13:50.400 a little bit more. Then the inflation is kind of stickier. 0:13:50.440 --> 0:13:52.600 I think people are coming around to that, which means 0:13:52.679 --> 0:13:54.000 race may have to go up a little bit more. 0:13:54.200 --> 0:13:56.880 People should be a little prepared for that. There's just 0:13:56.960 --> 0:13:59.240 as a matter of manage your own business, be a 0:13:59.280 --> 0:14:02.320 little prepared for, whether you're a financial company or real 0:14:02.440 --> 0:14:05.000 estate company, etc. I think the other thing I'd be 0:14:05.040 --> 0:14:07.079 a little prepared for is the volatility that might very 0:14:07.080 --> 0:14:10.080 well be created by quantitative tightening. We've never really had 0:14:10.160 --> 0:14:13.080 quantitative easying, which we've had now for the better part 0:14:13.080 --> 0:14:15.920 of fifteen years, and now you're going to see quantitative tightening, 0:14:15.960 --> 0:14:18.080 and I think the effects may be a little harsher 0:14:18.120 --> 0:14:20.920 than people expect. But hopefully we'll get through all of 0:14:20.920 --> 0:14:22.880 that and'll be okay. 0:14:23.400 --> 0:14:26.120 How would you assess the banking crisis whether we're still 0:14:26.160 --> 0:14:30.000 facing a banking crisis. Obviously you come from a very 0:14:30.040 --> 0:14:33.240 interesting purge having taken over a first Republic. Do you 0:14:33.280 --> 0:14:35.440 see more pain coming down to what needs to be 0:14:35.520 --> 0:14:38.640 done on the regulatory front to prevent this from happening again. 0:14:39.320 --> 0:14:42.400 Yeah. So the first thing is it's nothing like, oh wait, 0:14:42.760 --> 0:14:45.840 there's nothing like that. Leverage in the system private the 0:14:45.880 --> 0:14:49.000 private companies are in actually very good shape. The banking 0:14:49.040 --> 0:14:51.720 system is in pretty good shape. You've seen regional banks 0:14:51.760 --> 0:14:55.120 just report very good numbers. The deposits didn't run out 0:14:55.200 --> 0:14:57.760 like people are talking about. This is nothing like that. 0:14:58.040 --> 0:14:59.840 There are a couple of banks that are offside this 0:15:00.000 --> 0:15:03.200 I to have size and industraight exposure and things like that, 0:15:03.240 --> 0:15:05.640 First Republic being one of them. We were asked by 0:15:05.680 --> 0:15:07.400 our government to step in, and we did, and we 0:15:07.400 --> 0:15:10.320 were able to handle it. I'm extremely proud. I hope 0:15:10.400 --> 0:15:12.520 Jen Peepzak and Marion Lake will looking at me now 0:15:12.560 --> 0:15:15.000 like what you all have done. Get an airplane Sunday 0:15:15.080 --> 0:15:17.600 night to fly out talk to people. You know, obviously 0:15:17.680 --> 0:15:20.400 it's a lot of work and you know, hard for people, 0:15:20.440 --> 0:15:23.200 but we're trying to show real humanity, you know, using 0:15:23.280 --> 0:15:26.040 redeployment of anyone who lose their job is try to 0:15:26.040 --> 0:15:29.240 find other jobs. At JP Morgan or elsewhere we had 0:15:29.280 --> 0:15:31.440 the cability to handle it. I think it's also assigned 0:15:31.480 --> 0:15:34.760 by the way, because we totally support community banks, we 0:15:34.840 --> 0:15:38.120 totally support regional banks. I would be carefully think what 0:15:38.280 --> 0:15:41.640 regulations have to be done as opposed to supervision, and 0:15:41.680 --> 0:15:43.920 we want them to do well. So I want to 0:15:43.960 --> 0:15:46.880 be very careful people go about that. So these this 0:15:47.000 --> 0:15:49.240 banking system, you know, we acknowledge their community banks do 0:15:49.240 --> 0:15:51.440 a lot of things we can't do. And so I 0:15:51.520 --> 0:15:54.000 think there are a critical part of the system. But 0:15:54.120 --> 0:15:56.920 so is a JP Morgan. You know, we bank small companies, 0:15:57.000 --> 0:15:59.520 large companies, We bank the IMF, the World Bank, we 0:15:59.600 --> 0:16:03.520 bank these stools, states, hospitals, We bank companies in thirty countries, 0:16:03.920 --> 0:16:05.560 you know, And so there's a reason that you have 0:16:05.640 --> 0:16:09.160 both large and small and all different types. And so 0:16:09.880 --> 0:16:12.000 I think we're over this part of it for the 0:16:12.000 --> 0:16:15.600 most part. There may be something else, but rising rates, 0:16:15.720 --> 0:16:18.760 if they get high enough, it canreers uglyhead again. And 0:16:18.800 --> 0:16:20.240 so I think, like I said, it's not just banks. 0:16:20.240 --> 0:16:22.960 People should be prepared for slightly higher rates than they've 0:16:22.960 --> 0:16:25.120 been used to in the past fifteen years. 0:16:25.800 --> 0:16:29.440 Are there further redundancies necessary associated with First Republic? We 0:16:29.520 --> 0:16:31.080 knew we were going to get a plan from you 0:16:31.080 --> 0:16:32.720 guys by the end of the month. It's the end 0:16:32.760 --> 0:16:35.360 of the month. We know, maybe a thousand jobs cut, 0:16:35.480 --> 0:16:38.520 but there's seven thousand employees there. Is there anything you 0:16:38.560 --> 0:16:42.000 can reveal on what further tightening is necessary as you 0:16:42.040 --> 0:16:43.360 integrate that bank. 0:16:43.760 --> 0:16:45.600 No, you know, I think the thousand bud it was 0:16:45.680 --> 0:16:47.040 less than what they had planned to do in their 0:16:47.040 --> 0:16:49.720 own And we need a lot of people, and you know, 0:16:49.760 --> 0:16:51.200 we have a lot of you know, we hire a 0:16:51.200 --> 0:16:53.400 lot of people. Hear, so I use the word redeployment. 0:16:53.680 --> 0:16:56.680 We're hoping that almost everyone who might lose their job, 0:16:57.160 --> 0:16:58.800 you know, and there might be some more, but almost 0:16:58.840 --> 0:17:01.040 everyone we could say, hey, we have this other job 0:17:01.080 --> 0:17:03.360 for you in the same city, you know, or or 0:17:03.360 --> 0:17:05.480 something like that. So you know, we're pretty good at 0:17:05.480 --> 0:17:08.600 that and hopefully we can provide opportunity. You know, we 0:17:08.600 --> 0:17:11.840 welcome the First First Republic people of a company. We're 0:17:11.840 --> 0:17:13.960 treating them with great humanity. I hope we're going to 0:17:14.040 --> 0:17:15.560 learn a lot from them. You know, very often when 0:17:15.560 --> 0:17:17.400 you do a do like this, you know people are angry. 0:17:17.640 --> 0:17:20.040 We're not. I've never been part of a company. We 0:17:20.080 --> 0:17:22.400 didn't buy someone, merger someone where you don't learn somebody 0:17:22.400 --> 0:17:24.520 from both sides, and so you know they have this 0:17:24.760 --> 0:17:28.840 wonderful wealth uh business, you know, in banking and wealth management, 0:17:28.920 --> 0:17:30.840 and you know we're we have a few things to 0:17:30.920 --> 0:17:33.240 learn and do. I mean, I've never seen I've gotten 0:17:33.240 --> 0:17:36.399 so many emails from very happy customers and that's a 0:17:36.440 --> 0:17:38.119 great thing. So what can we learn and what can 0:17:38.160 --> 0:17:39.880 we do better? For JP? Morgan Jayson. 0:17:40.240 --> 0:17:42.560 Now, Jamie, I know last week you talked a lot 0:17:42.600 --> 0:17:46.040 about succession or about your position that you're not talking 0:17:46.040 --> 0:17:48.800 about retirement right now. I do need to ask you though, 0:17:48.840 --> 0:17:51.879 And your name has been bandied about for years about 0:17:51.880 --> 0:17:55.040 public office. I mean, I don't think Wall Street's too 0:17:55.040 --> 0:17:58.760 pleased about the potential Trump versus Biden runoff next year. 0:17:59.680 --> 0:18:03.719 Is it any has that scenario ever crossed your mind 0:18:03.880 --> 0:18:06.480 that you would run from public office or even accept 0:18:06.480 --> 0:18:07.320 a cabinet position. 0:18:09.080 --> 0:18:12.040 You know, obviously it's crossed my mind because people mention 0:18:12.240 --> 0:18:14.520 things to you and stuff like that. I love my 0:18:14.600 --> 0:18:16.879 country and maybe one day I'll serve my country in 0:18:16.880 --> 0:18:18.680 one capacity or another. But I love what I do. 0:18:19.200 --> 0:18:21.080 I think, Jade, we're going to do a great job 0:18:21.119 --> 0:18:24.200 for helping Americans, helping countries around the world. And this 0:18:24.280 --> 0:18:26.000 is my job. This is what I'm going to do, 0:18:26.080 --> 0:18:27.919 and I'm quite happy doing it. I still have the 0:18:28.000 --> 0:18:30.200 energy to do it. I mentioned you know that when 0:18:30.200 --> 0:18:32.440 you don't, I think people should give up the job. 0:18:32.640 --> 0:18:35.600 I've got a fabulous management team what I really enjoy 0:18:35.720 --> 0:18:38.360 working with. So I'm here. 0:18:39.480 --> 0:18:42.160 David Diamond, thanks so much for your time. I'm Blueberg. 0:18:42.520 --> 0:18:42.880 Thank you.