Dean's Distinguished Speaker Series: Mary Callahan Erdoes

good morning everyone and welcome to today's jeans distinguished speaker series event I'm Laurie and gentlemen president of the women's business connection one of the event co-sponsors today it is my pleasure to introduce Mary Callahan Erdos chief executive officer of JP Morgan Asset Management's a staple on both forb and Fortune Magazine's world's most powerful women mr. tose has been dubbed Wall Street's trillion-dollar woman but that title is misleading mr. tose who also leads the firm strategic partnership with Highbridge Capital Management is actually a two trillion dollar woman and as such the most influential woman in finance a self-proclaimed women's advocate mis oidos is an active participant of the lean in community and has recently launched a similar with program within JPMorgan entitled women on the move as a pioneer for all professional women and an advocate for them to take responsibility in their own success mis oidos is a true inspiration for all but mr. tose is so much more than that she's also one of the industry's most respected executives managing a team of over 20,000 people while having increased assets for 19 straight quarters I know each one of us here today has a lot to learn from his eros both from a professional and personal standpoint we are honored to have her join us today please join me in extending a warm welcome to Mary Callahan Ernest thanks everyone for coming and we're this only took us four years for Mary to make a special trip out here she's incredibly busy globally so we're so appreciative and we have a wonderful relationship with JPMorgan all over the world with some of our alumni placed in in key places in the various parts of of this huge banking institution so the drill will be there I'll speak with Mary on some very open-ended questions for about 20 well be more than 20 minutes and then it'll be you to have your share of asking Mary questions and some of you submitted questions which I appreciate I know I got them from a few faculty and from some of the students so I'll mention them as we go along so let's just start Marian and and again it's it's really a delight because Mary and I see each other in different places and I try and convince her that Los Angeles actually has people that are wealthy enough to be managed by JP Morgan and here she is how you connect the dots in your career from where it started in Chicago where you grew up to where you're at today what have been some of the key formative experiences I will tell you that after I tell you that this has been deemed the judi trip so I have felt so bad because I've never been doing able to arrange a proper time and so I said we're doing a California trip it's going to be grounded with the UCLA visit and you can put anything else around it but you can't move that and of course the president comes in town I try to give I said it can't move it's the duty trip and this is gonna stay so I'm really I'm so thrilled to be here I reminded Judy that during my two years of Business School I actually lived on the UCLA campus in a dorm when I worked at Paramount Pictures and I just think you have the greatest school the greatest campus and of course the greatest Dean this woman is just she is unbelievable and really really a special special person so thank you very you and yeah you okay and say you know very often I get asked this question about careers and I'm looking at this great group of potential future leaders of the world sitting out here and if anybody ever sits in these seats and says well here's how I plotted it out I plan to be this I had you know the goal to do this I knew I was gonna grow up to be CEO of this they're lying there I mean it's just there is no you never have a long term plan you never really know what you're gonna be in life don't stressed out if you don't have that grand master plan in your head don't stress out if you haven't decided on sort of which way you're gonna go big company small company entrepreneurial finance you know this that because whatever happens in life it will just take you to the next thing and I think each step you take is a stepping stone one of the first jobs that I've ever had was when I was still in Chicago before I graduated from Georgetown University I worked in a mailroom of a financial services firm and actually I think that's how it all started and it was just because I needed a job and like sorry it wasn't a mailroom it was the computer room they used to have these tapes that there were tapes back then I know you put any value don't understand that and you had to print out the tapes and then you ran the portfolio's too different you were after the cards though you never you're younger than me you never had those boxes they were there - yeah I just didn't want to age myself but now you put us both in the same category so but it's so I did that and then I went and then I went on to Wall Street from right out of school after having been a math major and did the traditional training program on Wall Street and why did I do that not because I knew I was gonna be a finance person but because I thought well I'm young enough and it's kind of a hazing program and it's sort of an extension of school and it'll teach me lots of things and I definitely won't do it for a living but I'll do it for two years and I did that and then I ended up being lucky enough to go to business school another business school and not this one the UCLA of the East the UCLA yes Harvard and it was and it was a great experience but I remember thinking okay now is my chance to escape finance and I came out to work at Paramount Pictures and I just thought that was the greatest thing in the world and like all this stuff is so fabulous but what I actually realized was that there what and and it this is about sewing your career together once you have different jobs you can get a compare and contrast and until you do that you can't so one of the reasons you go to business school is to get a new sort of opening of what to do and I realized that I loved the pace of Finance I love the the fact that if you could find out how to be a subject matter expert you could really you could really make a difference but I didn't love the evil finance sort of parts of it and so what I did was I was able to find this asset management niche which is managing money for other people so doing all the financial related stuff but I'm now feeling like I escaped the evilness of the awful bankers but now I'm called an evil banker anyway so we're still working on getting rid of those those bad titles but now I joined the asset management group and we just sort of worked worked my way up and one day I turned around and I was head of investments for what was then called the JPMorgan private bank and a couple years later they said do you want to be CEO of the global private banker sure and and then one day they said would you like to head up all of asset management which at the time was a trillion dollars so it's quite large and well yeah but I mean I don't really know about some of these pieces and and often times in life you think to yourself yeah but I don't know and the thing I always say to people is well if you knew you would have already had the job like what a stupid comment of course you don't know you that's why you're being offered the stretch assignment and you just need to go with those stretch assignments and so that's the long and short of it and now I'm on the operating committee of JPMorgan Chase it's a very very humbling experience we've been through a lot over the past couple years we have found ourselves in the newspapers on a daily basis now not so much as last year and and you and you you just learn a lot about how things really work in the world versus what they feel like in a newspaper article and you do a lot of soul-searching in terms of what you want to do and who you want to do it for but in finance I get grounded every day and the fact that I wake up every morning and I manage money for pension funds and and rich people but the more rewarding part is the pension funds because in the pension funds are the teachers and the firemen and the policemen of the world who if I do a good job they'll have more money for their retirement and those are all really good things to do so when whatever you do in whatever path you have to find the good because you need that energy to go every day I heard a story that you've relayed about a learning experience that you had with when you had a co CEO in part of your career who was an operating person where you were the banking person and how you resisted it initially and then came around why don't you tell yes sorry you'll all go through this at some point in your life but there's a great thing about diversity which is diversity makes you make better decisions diversity brings out better companies and that's diversity of thinking diversity of types of people in addition to diversity of your color of your skin and and male-female etc well I had the most diverse opposite polar person in the plant on the planet that they could find to pair me to be Co heads of when I first took the head of the private bank job and he was this with all due respect like totally nerdy like hyper super agitated spreadsheet guy who wanted to do everything then I made her do this we're gonna do that I go check the tech plans and the op plans and this and and I was the person that could hold the town halls and go see the clients and manage the money and I thought like why do I need this horrible human being with me and what does he have to offer and they rightly said we're gonna we need you to be Co heads for a while what they what they weren't telling me obviously very subtly I learned quickly was you've got all these muscles of the Town Hall the client all that stuff you don't have these other muscles you can't run a front to back tech and ops plan you don't actually know all the streams of work you don't know how this stuff four year plans of spending and all that and we're gonna give you the keys to spending you know hundreds of millions of dollars a year on tech and ops and all that you need to partner with this person and I mean it was awful it was I did everything I could to go to the bathroom the other way to be late to a meeting so that I didn't have to make small talk and we could just like have the meeting with all the other people and one day my head of HR HR will end up being the most important part of any company you join please listen most important point head of HR came to me and she said I need to tell you something you're like missing the plot here you are supposed to be learning from him do something different embrace it and make it happen I have an idea for you move your office next to him office like I've been trying to avoid him since the beginning of time I move my office next to him and one day she that she goes that's good you haven't gone far enough she came back in and she said go ask him for a beer outside of the bank ok we I asked him for a beer we spent three hours together one night outside of Grand Central Station because he was taking the train and and the first hour was awful and miserable and the second two hours I learned about his family I learned about his background I learned about why he cares so much about what he does he learned about why I care so much about what I do and fast forward basically ten years later he is probably the person that shaped my career the most I credit him for that he's not a JP Morgan anymore he went on to Salomon Smith Barney and completely transform the whole merger of Morgan Stanley Salomon Smith Barney I about him in every form that I can because I think it's one of the greatest learning experiences and it embraces everything you need to know in life you've got to find polar opposites surround yourself with them when you're doing a project or a case don't ask your four best friends to be on the project go ask for people that are totally opposite you you will have a better outcome and learn the things you don't know and embrace the kind of people that you and it's really it was one of one of my really great lessons I hope he's saying the same thing all she wanted to do is talk to people and talk to me right now I see people in your organization all around the world and I and I I say this behind Mary's back but I'll say it in front of her - she is revered she she touches people they feel they know her and this is an organization that she runs of 20,000 people flung in almost 35 countries all over the world how how do you touch them so that you make sure especially in a highly regulated and and volatile financial environment that you that they are walking in the same direction that they share the same values that they have a sense of common purpose how do you do that such an organization I don't know if you're born with this or if you learn this but you go to business school and you try to figure out or any school and you try and figure out they teach you all about and it acts like half the game what you actually need is leadership and and they teach leadership courses but it's it's sort of one of these funny things where you have to just assume the position of leadership and leadership is much different than management because I work with a lot of people that can manage people very well they sit in their office they have the org structure they call on the people that work for them they dictate out the stuff that needs to be done they wait for the reports to come back you know bla bla bla but leadership what I've learned is is much different than that it's it's about walking the halls it's all the soft stuff I don't know what the equivalent of your courses here are where they teach you all the soft stuff and you don't pay attention in that course and you think it's the stupidest waste of time of course there is it could be HR that you it's the single most important course that you will have because it's teaching you not how to be the head of an HR department it's teaching you how to be a leader and the potential to be a CEO of something anything one day and and and it's about trying to understand how to be with your people so that they respect you they hear your vision it's it's it's going out in the field it's you know my more my my day yesterday was up in San Francisco and listening to the way that they're surrounded with this whole tech world and the things that are important to them and how they see the world is very different than the way New York sees things and you know like New York is a hundred years behind now the West Coast is the leader of like how we're gonna do things and how do you how do you hear what they need and and deliver it to them give them enough time you don't spend all day with them you could you got other things to do and and being able to then look them in the whites of their eyes to also see the people that are not you know they're not tracking or you know they're not there for the right reasons and being able to make quick decisions I'm getting rid of them that only happens when you're out there you can't read it on a resume you can't you actually can't even read it in their results some of them can be your best producers but they may be the worst sort of cogs in the wheel and and so I think it just comes from a lot a lot of that a lot of just the and people caught the soft side or they it's not the soft side and Jamie Dimon walks on my own just once a day most of the time for absolutely nothing to do with business he's kind of trying to gauge whether I'm frazzled or calm whether I need help whether I have got my feet underneath me he can sort of jets and that's that's what leaders do that's what great business people do maybe will ask you about your view of Jamie diamonds leadership in a moment because it's an interesting complex issue but I want to turn to some more finance issues by the way I'm a I'm an HR professor and I've always said that that's the most important course that you can take you know everyone talks about compliance oversight and regulation as being not just burdensome but also sometimes suffocating banks today and they mentioned dodd-frank in the same breath talk about your view of dodd-frank and the compliance requirements and how that is balanced need this is yeah overdoing it so you look at the financial crisis of 2008 and you ask yourself like well how do we get there and why was it so bad and like every story that came out afterwards like it just got worse you know first there were people you know the mortgage issues were bad enough now we've got people cheating on LIBOR things they don't even understand that I would have to read 19 articles to be able to know what that meant and effect stuff and every other day someone's being indicted or going to jail or you know insider trading and Ponzi schemes and like this whole thing is kind of crazy and and there's a lot of denial about how we got there and well mortgage or underwriting was easy well the government wanted you to give more money to lend houses so that the wealth of America would go up so they would spend more at the gap and at the you know that McDonald's and then we'd have better bigger GDP and you know blah blah blah and then they could spend more on the president who was gonna be elected to be voted in or whatever the reality is there was a lot broken in the financial services world like a lot and a lot needed to be fixed and a lot needed to be regulated and and there were a lot of good actors that came out of the financial crisis but there were a lot of bad actors and I would put our ourselves JPMorgan Chase in the good actor camp but we did a lot of really stupid things like we had a six million dollar error after the crisis it would have been understandable if we had it in the crisis we had after the crisis and so there's just a lot of stuff where you have all these lessons learned and what you need in in any environment whether you work in the in the tech world and you need to deal with the regulations of tech or whether the air B&B should actually pay taxes in the state where they're renting out you know the apartment like that's just regulation and businesses trying to come together to figure out like what's fair cuz it's not fair if you run a hotel and have to pay taxes and then somebody else gets to rent out apartments and not pay taxes like that's not fair so you got to make a fair and level playing field and I think regulations when they don't run too far are very very good and and very important and by the way it's really important the United States of America gets it right we have the deepest capital markets in the world we provide capital to the rest of the world it's not to say that the rest of the world can't function if the United States of America is there but it will be very thin trading very thin lending very thin everything the money flows from the United States we got to get it right and we are getting it right and the financial services industry is better for it by the way it was better like three weeks after the Lehman crisis cuz a whole lot of stuff changed right after that a lot of laws went into place and so a lot of the stuff was better all this rest of the stuff is kind of like a long hangover of like a really long hangover and but it'll be it'll be it'll be a better place to work it'll be a it'll be safer for the world and if you're a regulator you you need good firms to show you how it should work so you need to work with some of the firm's and kind of terrorize them and getting very strong regulations so that they can then be the stars that they can take and have the other firms follow so for the record you're not willing to criticize any parts of regulation tons of times of criticism but it's like anything else if you ran an oil company and they gave you 20 regulations and you realize that when you added all 20 of them up you couldn't even pump the oil then you'd say like some of this is really stupid so some of it is really stupid they tell you you can't as an investment bank hold capital for very long periods of time well the only reason you want a bank to be able to hold capital during some long periods of time is when there's stress so if banks can't actually step in and buy things when there's a stressed out time period so imagine the stock market goes down 20% tomorrow it'll go down another 20% the next day unless someone steps in to buy some stuff and hold it well who's gonna do that if the banks are regulated that they can't hold stuff overnight with their own capital they can only do it with client capital that's what banks were found it for you're supposed to be there to provide stability to hold things over stressed-out periods of time if there's paper that shouldn't be sold then just hold it like don't puke it out of the market and make all the prices go down even further and so that's where regulation really think they're gonna cause another crisis if they're not careful so they've got to work on making sure that they didn't accidentally so a bunch of really good ideas together and cause another problem accidentally here's just a question from one of our students Brian Scholl Campos is sitting over there our AAS a president and be a president so we've started easing the quantitative easing program and the government has some more assets that it's holding which will presumably unload at some point how are you telling your clients that this easy process is going to impact the market so like all of you the traditional economic courses that you take in the world they say that you pump money print money put it in the system that can have good consequences eventually that has terrible consequences it causes inflation and then it causes all sorts of interest rates to rise and then it becomes more expensive for companies to borrow money which then becomes more expensive blah blah blah the whole thing well none of that is true right now everything that you read everything we were all taught about is completely false because we keep pumping money printing money let's just get more money in the system let's have easy money not only United States of America but well that wasn't enough Europe's gonna do it so they're pumping money so now we have two countries at the same time we're continents at the same time pumping money okay now they're pumping money printing money Japan joins in like they want to jump on now they got three major areas of the world at the same time completely unprecedented all printing money and guess what they've no inflation none as a matter of fact we're worried about deflation in places like Europe oh my god what's happening I like none of the textbooks throw them away they don't work they don't work because the mechanism of getting money in the system is that people will then spend it but no one wants to spend the money cuz they're all still nervous about like will the world ever recover from 2008 because what we don't realize in this nice little world that we live and we had a tech bubble crisis in 2000 and it lasted for you know a year and a half we had the 1998 debt crisis and that lasted for sort of 2 years 2008 crisis was like the Great Depression in terms of a financial crisis it didn't have the consequences of a Great Depression why because we thought money so thank God we got smarter about not sending the entire world through some catastrophic not being able to feed their children situation but it hasn't yet gotten people over the psychological barrier of like am I sure I want to go buy it and build a hundred million dollar plan aside from Tesla who by the way announced this mind they might build one in California would you'll be really exciting but so all of this stuff means that it goes to confidence so so we need to stop worrying about printing money you know what all that means and we've got to go figure out like how did the world get the CEOs of the world confident to invest money and aside from really California which is the only place that's like investing money and starting new things and having disruptive technology and all these great thing the rest of the world is like I don't know I'll wait I'll hold all the cash so the Meccan the transfer mechanism I'm getting in into the people to spend a gap and McDonald's is not working so I tell people that if you look back on the years 2008 to 2008 tene you're gonna have said it was a really good time to put money to work in the stock market and you should do that and it's just gonna be a lot of bumps along the road from now until when we get confidence back but we will eventually get confidence back the difficult thing will be the opposite which is the bond market which is eventually you can't have three continents of the world printing money and not have inflation goes up which means interest rates are gonna go up and when they do one day we're gonna turn around and it's gonna be really ugly because they're gonna go up really fast and for those of you who don't study the bond market a lot when it goes up really fast prices go down really fast and all of these retirees of the world who own these little bonds they just want to hold until maturity to get their coupon well the bond was worth a hundred dollars yesterday and now it's worth $75 today how does that happen it's a bond it's gonna happen and we'll have a whole other education crisis about how to teach people that they shouldn't have relied on their fixed income for a constant fixed income over their life you talked about the fact that confidence hasn't been restored but but there is a sense that there hasn't been a permanent learning to we're starting to see very high valuations of tech companies you know 13 people multiple billions no earnings no II sometimes we're seeing some lending practices now occurring in the real estate markets that are reminiscent of pre 2007 the question also from Brian and Basle where's basil basil Beco anyhow so it almost seems like it's deja vu in a couple of areas that you would think they would have been more learning yeah so what happens is that there's two different memory banks investors who lost money have memory banks that are really long they felt really bad it's scary not sure I ever want to buy a stock again if I do I wanted to have a dividend with it I'm never gonna buy like a crazy whatever and then there's people that make investment products and they have very short memories and some of them work at you know big institutions on Wall Street they have such short memories that you look at them and you say do you realize that the thing that you are just came to present to me is the thing that like nearly took down the financial services industry five and a half years ago what's wrong with you read the history books but Aaron's got a clever idea for how to make something that of course if it looks too good to be true it usually is and so that's what's happening people are saying we'll just borrow to buy this thing or just you know we'll lend you this money or we have these securities that only go up trust me they only go up until they go down and and so you just you have to have people that are seasoned that's why old people of the world are good you know I'm now in the old people camp right but exactly and and so because you have to have a memory of this kind of stuff works and that kind of stuff doesn't and you need to and so you need to tend so for all of you when you're starting your new tech startup company that you're gonna do someday like get a seasoned person to join your board or you be in your company because you want someone with sage learnings from the past they don't even have to be directly in what you were in they just have to be in something where they can point out all the stuff that could go wrong because some of it eventually will go wrong but doesn't that why are you because it introduces so much more volatility and risk into equity markets and I mean your clients are in there how do you manage it Dez but equity markets by virtue of what they are risky I mean you could put your money in and it can go double or it can go to zero and if you love a JIT it can go negative and you can owe more money and then you ever even put it that's just the way the world works and that's okay it's when the leverage and the system takes it too far one way to quickly which means that the reverse happens and it takes it too far down too quickly and so it's those wild gyrations that you worry about which is why all the electronic trading that people are talking about well one of the reasons that that is so by the way electronic trading like so if you read Michael Lewis's book electronic trading is really good for you and me to buy stocks you and me used to buy stocks where somebody charged a commission of you know one day they used to charge a commission of 20 cents then it went down to 15 cents then I went down to 10 cents then oh my god we were finally treated like institutional people that we went to five cents and now if you go to Schwab it looks like it's three cents but actually if you buy through a mutual fund you're buying it like almost zero cents so everything is much better because of electronic trading now yes there are still people making money around the edges but that's okay that part's okay someone should make money they spent a lot of money on technology and they made it a lot cheaper for all of us the problem is if they're doing things that cause us to have so much volatility then we don't actually know where the true market is because they put these fake bids in the market and then you get these swoons and that's where you have this bad behavior that's what regulation has to prevent yeah I was going to ask you whether these high-frequency traders I mean there's a sense that they're at the margin rigging the market but but your feeling is at JPMorgan you you're just bigger than that it's not gonna worry you know we use all of them and we think we use the best ones when we want them and we pull out of them when they're not doing things we want and we don't get fast enough execution and but they're all trying to make a living and they're all trying to do their thing and I'm sure there are some bad actors out there that are doing stuff that maybe wasn't the way the rules are written and they'll be cleaned up and that will be a good outcome of a sort of highlighting this kind of stuff but there's always bad actors in the world like don't kid yourself because I think Goldman pulled out of it Stackpole yes that doesn't mean they were about actor which made jobs just meant they were exposed to too many of these things so let's let's just go back to the financial sector and and banks and when you look at the financial institutions they now account for a lower percentage of the GDP of the country lower employment rates they've obviously divested themselves and some of the proper trading vehicles and then they're a target for both the public and the government ire do you see this is a temporary phenomenon of a law or a bit of a downturn where they'll come roaring back or do you see this as a temporary as a permanent downturn that we're going to not have so much concentration in this sector so they have these sit-ins these won't like whatever The Wall Street sit hands and the there's people that sit outside of our building holding up signs saying you mean evil people there's I live down in Battery Park City in New York which is a great place to live if you move to New York it's out on the water it's gorgeous but but like there'd be protesters who would walk down the street they'd find the addresses of some of us and know where we live and I'm thinking like okay first of all yes I work in a bank but like I I meant I'm not even I don't whatever I wake up every morning thinking like I am doing I'm doing a great job for my clients and by the way if I was just a banker like a investment I'm trying to lend money to clients so they can have money so they can start a company so they can invest more money so they can have money to buy up a truck to you know get the stuff out of the ground faster new technology but like that's what banks are for they're there they provide capital right and they're also supposed to innovate so we can do it at a cheaper rate they're supposed to be able to do it globally so that when you have a company in the US and you want to figure out how do you go into China you need a company that'll take you there so you need a global firm to take you there so you can make sure your money is safe you can make sure you understand all of those things like we don't wake up in the morning thinking like I can't wait to go like rip somebody off I can't wait to go like lend someone money so they fail and go bankrupt I mean it's just like not how and you probably wouldn't have a two trillion dollar business if you did people wouldn't give us money if they didn't trust that we were doing the right thing we have really really really smart clients and give us money every day right so so but it is this weird thing and I have an employee of mine who's 80 years old and he's used to be the former president of Bear Stearns and he tells me he has a long sense of longevity he still comes to the firm every single morning at 7:30 in the morning and works incredibly hard he's so proud to be part of the Newt of his new heritage firm celebrated his 60th anniversary of the combination of being at Bear Stearns and JP Morgan it's a really great moment and he says this too shall pass this the all industries go through periods of time where they're evil you know they they do things that get the rest of the world in trouble and maybe they did it purposefully maybe they did it accidentally they will make themselves better for it and things will move on so I'm incredibly proud to work at JP Morgan and we do incredible things by the way in addition to the fact that we helped finance lots of things we give two hundred million dollars away of our own money every single year to the communities that we're in and the 35 different countries that I'm in we spend money making sure that we're part of the community that we try and help it's not because we're guilty of something and we're doing it to make you know cleanse our soul we're doing it because we know we're gonna be there in a hundred years from now and we want to be there as part of the community that educated the young people that took care of you know helping do different work skills programs and all that stuff and by the way when we took the WaMu branches you know we really thought we should help in some of the cities that the wamu branches where they were in a lot of the poorer cities especially in California we spent a lot of time thinking about what were the education programs we could do in those branches to try and educate the people that walk into the branch and constantly are borrowing money like that's the borrowing you don't want to do we're borrowing money so that they can go buy dumb things and come back in with their last paycheck which will only just pay off their borrowing and then they can't get to the next month and of course there are banks that love that make tons of money off that you got to do just the opposite I'm not gonna lend to you you shouldn't be doing this this is bad for you I think all those things are what really good and healthy banks should do in the world and what we've seen here at Anderson as powerful as our finance franchise is is that there's actually been a bit of a downturn in enrollments in finance electives in finance majors and of course here we are in silicon Beach you know the hub of innovation and entrepreneurship of the world so there is so so there may be a sectoral reason for this but if you were advising people to would you say fly back into finance you are a math major so okay I'm biased right because my dad says has has gotten me to where I am and and I'm good at it and I love it but but tech is really exciting you spent the day yesterday look going and visiting some of these companies and these CEOs so I was it's just like on the record or off the record you can edit okay I was with the CFO of a really fabulous exciting not yet public company in the valley will take bets afterwards okay and this guy they had just put him in as CFO and so he was spending time with me about what that helped me with it and so he has a finance background but he's working in this really cool company they're about to go public I explained all the things about like how painful it is to sign a 10-q because you're basically signing your life away and everything that's in there every word that's in there and you have to make sure you read trust but verify don't take that someone just gave you the number like there's a lot of stressful stuff by the way you are the face to the market you're gonna have to learn how to talk to the public about the stuff that's working the stuff that's not and most importantly these are all really cool companies but if they're not institutionalized and have serious sort of stuff around them they're gonna be fly-by-night tech companies that will go away very quickly so it is critical to have really smart financial skills inside of each of every one of these companies so I I personally think and and it's hard to just get that by starting in a company like that and getting those financial skills I think wherever you can get training programs and places and banks are great places for that there's other great places and I'm not here to promote working for JP Morgan although it is a really fabulous place to work and you can move around to all sorts of places in the globe but we can do lots of great things but that's not the point the point is I just think finance is at the heart of whether you want to be a CFO CEO you know you know you need all those financial skills and so somewhere along the way you got to get them I'm going to ask two more quick questions of Mary and then it's it's it's you guys so prepare and there are two microphones here what advice do you give to dual career professional couples that many of our students will become members of with kids you're such a family how to manage their lives does anyone have kids in this audience yeah oh yay this is a mature audience this is a mature audience so I would just say a couple things first of all like the stage in life where you all are it's exciting you're trying to go up the whatever Cove it is really fast so the more you put into it the higher you get in a shorter period of time because otherwise if it's like this it takes a longer period of time on the if time is your bottom scale and so you want to do things as fast as you can you want to work really hard you want to play really hard you want have a social life you still want to go out at night you want to keep your friends you want to do your yoga or you're running or your tennis or your golf or whatever you want to do it all and and you can you just can't do it all every day at the same time and it's serious you can you can I can be out here in California I can work from 5:00 in the morning because New York needs me and I start my day until last night I finally went to sleep at like 11 o'clock I had a totally full day I had three different cities I gave it my all I didn't work out I never even talked to my family whatever this morning I had a little bit of me I got to work out this morning I called my kids before they went to school I'll see them tonight when I get home like you there's just it's give and take and by the way that then that you can transform that to weeks or months or whatever you can do it all and I think that if I were lucky enough to be in your shoes starting off technology has completely and fundamentally changed everything that has ever come before you because you can do your work from wherever you are you couldn't do that even ten years ago yes there was email ten years ago but there wasn't there wasn't the sort of the ability to tie into a meeting live on your same time or your whatever we call it something else different inside of our company because it's all encrypted but like I can dial in and meeting on my iPad and they can see me and I can see them like I bet I don't care if I'm on a kids soccer field or if I'm you know getting my feet painted or something or you know whatever I don't have to see that part I can just sit there like this that's that that's the way of the world today that makes everything doable everything you can have special needs children and deal with them you can have aging parents and deal with them or you can just like want to have better date nights and go home and get ready earlier and still be able to do all your work I just think it's gonna change everything about all these consternation about work-life balance and integration and I don't want to work at a crazy company cuz I'm not going to be able to like be a normal person you you can and you can and you can get so much out of life the more you do the earlier you do it and you there's those crunch times where you don't sleep and you're but you're too young you don't need to sleep right now trust me you will much faster from things we always say sleep is overrated yeah and and and and you don't have you have enough energy to share across the room so we'll take some of that so the last question I'll ask you know we say we think in the next here at Anderson and the three essential qualities are about sharing success thinking fearlessly and driving change how do those qualities matter that jpmorgan those are a lot of great qualities this is a great family this is what we stand for here at Anderson sherry I need to take those back because the way you said it are you writing okay I'll give the UCLA global what about open sharing success Thank You fearless leader iving cheese yeah no I mean all of them so sharing success anybody who you work with in life or who works for you because you'll all be great leaders of companies and things if they are solo you know like I did it all myself there's nothing you can do in the world where you do it all yourself anymore everything is team based everything that you want to do that's great takes more than one single human being you need collaboration you need people that share you need to and so if you don't see in the people that you have the quality that they're gonna share success that they're gonna give the credit to somebody else that they're they're not the kind of people you want and it is just it is so important and that is actually why the culture of JP Morgan is everyone always says it it's just slightly different than some of the other firms because everything's team-based no one is commissioned paid you know commissions just pay you for what you do team-based means there's discretion over how you pay your people I would advise you all when you setup your company's team-based discretionary pay they will get you a lot further in good culture fearless means you're going to have to make big and bold decisions even in big companies where you just have a little job you do if you want to make great change you have to be fearless and you have to say I and we need you by the way to do that cuz we're all like we've been managing our companies the way we've been managing and we need new people to come in with new thought processes new energy new ideas and say hey by the way why don't you just do it this way because you're wired differently you think differently you've been in a tech generation that some of us haven't and so use know how to do things faster better like why on earth do you read newspapers and paper you probably all look at us like why would you do that kills trees and like it's so big because we can't see the thing and and the third one was driving change which is about results and driving change is every single morning you wake up and your company or in your school or in your where you just have to say like I am going to I'm going to give it my all and it comes from having energy and it comes from having like wanting to make the world a better place and by the way not every job makes the world a better place but hopefully the results of the job will give people money to make the world a better place or give you know something else that will spill on to something to make the world so you don't have to go work for a non-for-profit and save people's lives and we're gonna make the world a better place you can do for-profit things that will cascade and make the world a better place but it is very lonely when you want to make big change it can be very lonely you can be the only person who wants to do things people will make fun of you people will say it's not possible that way and you have to just keep driving and pushing and knowing that in your gut you see something that they don't see and you just got to keep going for it and all of these people represent those ideals and they'd be a perfect fit for JP Morgan okay questions you got to go to the mic and introduce yourself and folks if you want to line up behind the microphones and remember to introduce yourself hi Mary my name is Audrey I'm a first year full-time MBA student so as a private banker when you face clients from different countries grew up in different areas being experts in different industries interested in different tastes like music or painting and you you provide services like Trent wealth transfer succession planning trust administration and do you see education being a big part of your job and how do you balance what they want versus what they need it might have the client yeah for the client needs and they might not know something that's really beneficial to them or they want to do something that's risky and how do you educate them and how do you balance their yeah once thanks thank you that's an excellent question you could take me an hour to answer so I would just tell you first of all I think private banking in and of itself for being a financial adviser when it is one of the most rewarding things because yeah I'm the negative side though what you deal with all these rich people I'm like all you're trying to do is get them richer or whatever no actually you're trying to help them to think about sustained wealth you're trying to help them keep them wealthy after they were successful and not do something stupid with all their money which many many many people do especially people in the sports world and in the entertainment world and you live in the middle of that very very few of them sustain their wealth they spent it on cars and planes and things and then they don't realize that the little time period they have to be successful is not gonna last forever and they can't do the math of like it won't compound out and blah blah blah you have to educate them you get to talk to them about stuff and and by the way you sit in front of some of the smartest people on the planet it's really cool right some of the richest people some of the smartest people they aren't always the same and and you get to say like well here's a couple of thoughts that you might not have and by the way you might not want to do that with your children or you might not want to do that with your foundation or you might not want to put too much of this in one thing and you have to be really confident about doing that because you're up against these people who think they are masters of the universe like they and there's nobody telling them anything and you have to go tell them and if you do you are in their trust you are in their confidence and they come right back at you for more advice it's a really it's a really special thing thank you today my name is Allison Farris and I'm a first year full time MBA student and first I want to say I'm going to be in Chicago for a week so offline I'd love any recommendations but my question is more about those of us that are here looking for a career transition or that next big step I want to know what advice you had for yourself or for others in their in that interview process when you're asked questions where you may not have that experience how do you frame it correctly wait right right that you can convince people of your abilities and we talked about this question a lot even JPMorgan because people will do a job and then the great thing about working at JPMorgan is you can do another job in a totally different line of business or a different country or different whatever so just had this conversation yesterday morning with about a hundred people in a room who were asking about some career stuff and and here's the here's the drill and I may separate out men and women for one second here when you're asked about how you could do some job actually most of the men in the world will say well yeah I can do it like no I mean I can do it I haven't done it before but I can yeah I can do that and by the way that's exactly what you should say because you've learned skills a B and C and of course you don't know de and F you like you haven't done that job if you knew that you would have already done that job right so you don't know D en F but let me tell you how a B and C are gonna be helpful to me when I do learn d en F and I'm gonna be fabulous at D en F and this is why because this is the kind of person I am this is the dedicated hard worker I am this and so you do not answer the question that you can't answer you answer the question now women just to point it out so you understand when you go into your interview you will obsess about not knowing D you know oh my god I don't know D yet should I tell them I don't know Deana should I not even go to the interview because I don't know da enough like I should I file you shouldn't even get any other job in my hole because I don't know and it's just like just get over it you don't know da F now sit up tall be confident and tell them you're gonna be the best at de and F whatever those are thank you yay Robert Kang's second year full-time given the changes that we've seen in asset management with the recent flow funds into ETFs the promotion of indexing index investing and arguably a brain drain to things like hedge funds what are your predictions for asset management going forward and how are you strategically thinking about dealing with that yes great question thank you so in asset management we do manage hedge funds and private equity and all that stuff so asset management isn't like the it used to be the sort of old-fashioned way to manage money and all the sexy cool stuff was in the hedge fund well good asset management firms have figured out how to put those inside so that you can go long and short and you can you know do all of all that great stuff so I think that that's that's really important but you know one of the things and if anyone's thinking about the asset management or money management side of the world I just have one question about ETFs for them for the world and then this is why people do continue to go in asset management what makes anybody in the world think that the largest 500 companies of the world ie the S&P 500 are gonna be the best performing 500 companies tomorrow and anyone who lives in California knows that's exactly not the case it's the smallest it's the ones that aren't on the radar screen it's the ones that are gonna disrupt the 500 and so the thought of like just plopping your money in an index fund because it's an index of the largest 500 companies or the largest 1,000 small cap companies is so backwards to me it means that you believe that there's no one that can pick a good company from a bad company that there's nobody that can say no I like the way the coca-cola does this and I don't like the way the Pepsi does this and I'm gonna make a trade off or that for a short period of time I'm gonna go wrong one in short another we all have human brains that's like what we're here to do and so that's why asset management business will be here forever and ETS will play a part for people to get liquidity and exposure to markets but they're never gonna take over the asset management business because we're our brains will still always be smarter than computer brains hi there my name's Nathan Otto I snuck in here from public policy actually I'm a second year so thanks for doing this and sharing your thoughts with us I can't decide if I want to ask you what you think about Thomas Piketty or this week's news about Stanford's divestment movement I'm interested in socially responsible investing and I'm just curious are you do you see that trend continuing to increase in what are you guys doing there yeah the social investment one may be easier to answer the here's the really sad part about social investment everybody says oh I want to be socially aware and I want to invest responsibly and I want to do all that so I'm only gonna invest with people that do socially responsible things and the sad thing is is that not a lot of money goes into it people pay lip service to it they put one half of 1% of their portfolio in it they put 99 and a half for some another portfolio and a sort of regular things and the fact of the matter is it's a very challenging environment because the naysayers will say hang on a second I want to do good in the world but that doesn't mean I have to do good in the world through how I pick my securities actually pick my securities because some are gonna go up and some are gonna go down and then I stake the profits of that and do good in the world so let's not combine the two things and make it too complicated so that's what the naysayers of the world will say the flipside is true and this is where we're spending a lot of time and energy which is you need capital to put in places of the world better aren't they don't have sophisticated capital markets they don't have people who want to put their money in and we're okay having a little bit of a lower return if it feels like it's a little philanthropy and a little chance to make money and it's somewhere in between the trick is where you bucket it do you bucket it in your philanthropy side of your brain or do you bucket it and I want to make money side of my brain and it JP Morgan we have the ability to do both and to put it right there in the middle so we spend a lot of time doing that but unfortunately I'm just not sure it's a place in the world that's gonna sort of catch fire and be as big as it ever will need to be because I think people will go back to the first part which is I just need to separate out those two pieces of my life okay the last question hi my name is Kunal good time for sure I miss Yulan I know JPMorgan is a great organization to work for I worked before I came to Anderson but my question is since you've spent such a long time was there ever a reason internal where you felt you should quit and what kept you going no matter what company you work in you will always find moments where you want to quit shoot somebody never show up to work again grass is greener I mean all of those things that's like natural right so you do look at people like me and you say why on earth would you work at the same company for eighteen years like why wasn't there something better out there and and so there's there's this thing that you have to figure out in your life which is what's most important change change is really important to me if I did the same thing for the last 18 years I'd shoot myself right I mean it really like that's awful every day I need something new and something exciting like I don't thrive unless I have that so if I'm not in a company that does that I do need to change I've been fortunate enough to be in a company where I've had new jobs kind of every couple of years that's really exciting second thing is I get to work with a lot of really fabulous people so a lot of what I do I can get frustrated and what I do I can get really annoyed at some of the things that happen I can hate regulations I can hate the way the industry is viewed I can hate all that stuff but I owe it to 20,000 people to wake up in the morning and figure out how to have a path forward that is gonna help them and their families and the clients that we help and I know for I don't know but I'm confident that I'm as well-suited as anyone I know to be able to have that job and I'm gonna do the best I can until I can't do it anymore there's someone better to do it for me and so I would never set out saying I'm gonna be somewhere for 20 years it's like five years is an eternity to all of you in your braids and it should be you should take things in two or five-year chunks don't don't think beyond that but find a place you want to go that has a great culture the culture is much more important than whether the starting paycheck is X or you know 1.5 X it's it'll it'll pay you back in spades in spades I'm going to ask the last question because I know people have classes I look at the role of CEOs and major leaders today in this era of first of all incredible scrutiny especially in the financial industry from government and regulators in the public and this era of social where the the answer forgiveness is measured in seconds as opposed to minutes or days when it used to how do you cope with that aspect of your public role and how do you think Jamie Dimon copes with that because he's been the poster child yeah a lot of people who've been throwing stuff at him and yeah he's revered by many yes so I mean I get enough of my fair share of bad articles written about me or things internally where people say like she doesn't do this right or she should have done this better or she well it doesn't really matter and I think like oh that's all for imagine if you woke up every morning with three newspapers at least writing about you every day with your picture plastered if not on the front cover like on a second page to imagine that anywhere in the world probably that's what 2013 was like for my loss every day evil bad me vital all the words and yet like what happened to the articles that were written in 2008 like fortress balance sheet saved the financial system did great things stepped forward when the government needed us to by the way what happened and you know there's just there's so many things that you go with it and so what I've watched and I've learned personally I feel really really privileged to be able to sit on the same floor with Jamie to be part of his operating committee to watch every day sort of how the company works and just to take my own life lessons anything in life it's whether you have an illness it's whether you're in a job it's under high scrutiny it's whether you you just have to compartmentalize those things in your life and I've watched him do this like an unbelievable strength of being able to say like I get it and that's what they're saying and I read everything every article from front to back now I'm throwing it away and I'm gonna go back to the fact that I run one of the world's most important financial services companies I do great things for this country by lending money I do great things for the military by hiring people when they come back we provide capital markets to people around the world we hire people across the world and treat them with equality in countries where there isn't equality we believe in diversity we believe in helping companies large and small we help in crisis we want to lend during crisis not just in good times we want to be there for for people in poor areas of the United States of America that are doing the wrong thing with their finances and help them and I'm just gonna wake up in the morning around and do that and that's just a great life lesson and if you can do that through life because you're gonna be hit with all sorts of stuff you're not gonna know where it comes from you're not gonna know why it hit you and you're gonna think it's unfair that it did you just remember that and you plow forward and you and you'll be super in whatever you do well you are inspiring Mary thank you or you're inspiring you have you have really taught us a lot here in this short time but you speak so fast that we got double the way I'm here with you so thank you so much for being

Channel: UCLAAnderson

Views: 10,069

Rating: 4.9139786 out of 5

Keywords: Mary E. Erdoes, UCLA Anderson (College/University), MBA (Degree), Dean (Job Title)

Id: mYW1WNCQT-8

Length: 60min 33sec (3633 seconds)

Published: Sat Jan 17 2015