you well good morning everyone thank you all for being here I hope everyone's enjoying the art the NGA winter conference so far I want to first of all begin by introducing my my co-moderator and friend and colleague the 75th governor of Rhode Island and the very first female governor in state history governor Gina Raimondo thank you good morning everybody and we're really excited about the the session we're gonna have here this morning and we're very pleased to have our very special guest with us today in 2006 he became the chairman of the board of JPMorgan Chase he served the CEO and president since 2005 formerly served as president chief operating officer following JPMorgan Chase's merger with bank one corporation 2004 at bank one he was chairman and chief executive officer previously held numerous executive roles at a Citigroup travelers group commercial Credit Company and American Express he's on the board of directors of Harvard Business School chairman of the Business Roundtable a member of the Business Council and also serves on the board of trustees of the New York University School of Medicine so please join me in giving a warm nga welcome to Jamie Dimon well thank you so much for joining us for this discussion let's go ahead and get started first of all so you you let JPMorgan since 2004 including successfully leading the bank through the 2008 financial crisis and the recession that followed and you've had you know an unparalleled perspective on the global economy so I guess I just like I think everybody would love to hear your overall assessment of the state of the US economy okay and how industries and workers are weathering disruptions and the rapidly changing technology and globalization okay thank you so thrilled to be here thank you for inviting me and I'm gonna speak frankly and openly about some of the issues that face this country I want to give you a short-term and a long-term view about the economy okay the short term is we've grown at 20 percent the last ten years okay which is anemic it's 20 percent over ten years it should have been 40 and so I think one of the question of this is why did it get has it been so slow and in a normal recovery but we still are growing around 2% you know you had this little scare in December but the fact is household spending is still going up wage is still going up housing is in short supply there's plenty of cap on the markets consumer confidence is kind of come down at the top because of the shutdown and trade and all these various things business confidence is still high capital markets are wide open the America is still chugging along a lot of sentiment moves all over the place but the fact they're still chugging along but I also give a long-term perspective this is the most prosperous economy the world has ever seen and it will probably true in the next 50 years too because people get too focused on the short run and and if you look at America most Americans don't fully appreciate it we have all the food war an energy we need okay we have the Atlantic and Pacific and we have wonderful neighbors in Mexico and Canada and wonderful neighbors in Mexico encounter we have not had a war since 1848 I want to compare that respectfully with China you know which people think has as as is unders untrammeled road to just get ahead they don't have the food Warren energy okay they don't have their neighbors or Philippines Japan North Korea South Korea Afghanistan Pakistan India Russia Vietnam it's a tough part of the world okay and they've had battle skirmishes with four or five those nations since World War two they also don't have our universities they don't have our democracy they don't have a rule of law they don't huge amount of corruption and their stay on enterprise and efficiencies well yeah we have it pretty good and you know my biggest frustration is the things that we're not doing to make it better for average Americans and so and most of the things we're not doing better I'm just gonna list him real quick is we're doing it to ourselves not technology it's not immigration yeah it's none of that it's we can't we used to be put them in the moon in eight years President Kennedy says men in the moon eight years later with men in the moon now most of you the government is here you want to build a bridge 10 to 12 years to get the permits to build a bridge okay the highway bill took 29 pages and nine years later they the first one the Eisenhower one there are 21,000 highway miles built now it's almost in Pine over you're doing a great job at it but with the the pitfalls we put in front of you our inner city school my wife is here is working in the South Bronx and this our schools are filling into city school kids okay half them don't graduate it's a national emergency term a loss of opportunity you know the men among those kids that might be governor's may people who could have been governor's mayors presidents Albert Einstein's because we fail these kids and the lot is because we do actually get through high school are not able to have a job because they're not job ready and our regulation system I don't to my banks forget banks okay anyone who has to deal with it like he'd like and you all deal with it it could be crippling George McGovern became a small businessman after he was a government most whoever president most liberal guy who ever ran and he wrote an art bed get it so it was in The Wall Street Journal like 1989 about he didn't realize how all these things crippled small businesses so small business formation is lower than it's ever been in a major American recovery okay it's and it's corruption by the way it's local it's licenses to become a barber is people slowing things down and I also think a lot of it's our own selfishness you know businesses are very selfish I know that you they spoke with the salt tax here recently you know I'm with a lot of real estate people and they're complaining about the salt tax 80% of the benefit of state local taxes goes to five states and people making over five hundred thousand dollars a year so the real estate people complain to me because they about that one thinks that hurts real estate values a little bit they got to keep carried interest they got to keep interest deductibility they got to keep capital gains transfers to tax-free and they've lost one little thing to complain about it and you know and this is all of us you know governments of people too they we just don't get her own way and do what's right the United States of America we spend far too much time being Pro kill and I I can blame businesses I complain politicians etc we're holding ourselves back and we've some of these things which by some of you have done I mean so you're doing it you're building an infrastructure and creating schools and we will art this kind of a boom and help a lot more people yeah thank you so there's a lot there to respond to but one of the issues that we deal with as governors all the time is how do we make sure that the people who live in our state have the skills that are required to get a good job and I know that's something you've thought a lot about every business executive does think about it we've worked together on the new skills for youth program we've used a lot of that to start apprenticeship programs and internship programs but as you think about your workforce needs now 10 years 20 years and a changing economy you know how do you think about it how do you think about meeting that challenge for your company and also you know more broadly yeah so I think there's about our own company it's actually rather easy we can hire the best schools we can pay we need to pay we spent two hundred fifty million dollars you're directly training apparently half ability or indirectly trained just you work with the company always being trained and you technology and your devices people ways being promoted from a teller to a branch manager and that's just kind of training the bigger issue to me is is if you go around the world okay set 30 percent of our students go to college 70 percent don't that's true fundamentally in Switzerland in Germany the unemployment rate Switzerland Germany for kids 17 to 24 is like 3 percent they start apprenticeships you're in tenth grade or something like that one day at work paid two days the next year three days the next year the business so locally you need acts and you need Y and we need Z it's got to be done locally with mayors and cities about what do you need we have to go help train the people my wife separate program trained tellers they were trained tellers in community colleges and when they get out they have jobs $35,000 a year with medical okay these are good jobs their starter jobs and stuff like that so we actually know it works France the unemployment rate with youth is 20% so what we have what we're trying to do and we're spending hundreds million dollars around the world looking at this is to just disseminate the best ideas that you already do because it really does work but it's got to be local this is not a huge federal program this is your committee your colleges your community colleges your businesses working with you and the business should say I don't want to do I'm gonna hire those hundred kids I'm gonna help train them you got to certify them so like a Community College of New York you know if you can't get kids with college core and they don't have to they can go to college afterwards having a job doesn't mean you can't go to college later and and we know it works in New York City there's a school called the aviation high school kids travel two or three hours to go there the parents wanting to go there most of the kids are minority from poor neighborhoods they graduate get a high school education $60,000 a year maintain small aircraft almost all of them that's all we got and we know what to do we just we just don't seem to get out of our own underwear sometimes there you have it we don't get so you have many of the nation's governor's here with us this morning what would you say are the three public policy changes that you'd advocate for or recommend to us to help us grow the economy and better prepare our states for the future yeah so I think one of the things that governors and mayors and my expense they get that job it's no longer about democrat or republican which I personally give a damn about okay it's about jobs schools roads hospitals ambulance times lice bean truck it's about helping Americans all of them and and and I think business has to play a much more ambitious part of this I don't think it's gonna be done just by government and you need government the Civic Society people working together but the most important ones we got a 50 40 % of Americans make $15 an hour or less okay 15 percent make minimum wage a lot yeah so so one of the things that we got to get more income to these kids a lot of Americans can't afford a four or five hundred dollar event you know if they have a health care event they can't afford it then have a rainy day fund so we have to get we have to get income with those things I would like expand the Earned Income Tax Credit cetera so you know one of the questions Jamie to this point and we were talking a little bit about that earlier is I think you've done a terrific job as a leader suggesting that business has a role to play yeah you know how do we because we all try to partner with business to say come to the table help us solve these problems invest in job training you know I know in a lot of you do you know it's more the federal government is just crippling I mean and you look at we where we can't get it done and so but I'm the trim the Business Roundtable is 200 larger companies it it actually does policy and advocacy around tax trade immigration work skills diversity innovation corporate governance to get people think a little bit more long term and we try to try to be a non parochial and a lot of businesses get involved but it's know some don't and I think some businesses are short term focus some have to be I mean you know if you could afford to do these things that's great my number one job I have to make Jaipur a healthy and vibrant for my communities my employees the people wait for the answer stuff like that if I don't do a good job day before I fail but in the mean time and I think I see Peter Shearer there you know some of the people at JP more we've done these work skills programs we do them in cities mayor Duggan of Detroit came with this idea about you know I can't fund my small minority businesses can't get the same kind of funding that wipe is a gap if they don't have the same mortgage value house values or family to fall back on and we formed this entrepreneur color fund and we started small in Detroit and now we tripled them on in Detroit we're doing it New Orlean San Francisco South Bronx States programs work I think businesses have to do it I think you know anyone in government you know business government and civic society working together it works you see it in your state you see it but you guys both done is accept you know and you know at the local level it works better than the federal level I don't know how to get the federal level working right it just it just we are we are between Jerome and rain politics what we're doing to ourselves is a disgrace I've already mentioned the Y Drive areas that your education infrastructure regulation you name it you know companies want do a good job most cookies want to participate and sometimes they don't know they need and they don't know how they can help you so you should be under bad but asking but but I both have found that when we work together it works when when we don't work together even J board does not want to get involved I mean I think when you saw happen you know you know businesses 160 million people work in America 140 million work for business and and the thought that somebody can have a great society without being for stirring good business is not a good idea and some cities and states they don't they treat it so badly that you didn't lose because people leave in this not because they're not virtuous immoral but they just can't afford it so you know a small business and entrepreneurship it provides a critical path to economic mobility and yet evidence would suggest that it's becoming more and more difficult to start and maintain a small business so what are the biggest headwinds facing entrepreneurs today and small business owners and and what do you think they need to succeed and in particular you know wonder if you could talk a little bit about some of the work that you've done to to on inclusive entrepreneurship and and including we talked a little bit earlier about entrepreneurs you're entrepreneurs of color fund which I know is expanding in our region in the DC Maryland market which we appreciate very much yeah so you know small business twenty eight businesses twenty eight million business in America the biggest two thousand do maybe handful cap expenditure so they're important this country will not be worse off that Boeing okay we need these various six of large companies their twenty million which are one-person think of nail shops and pizza shops and and there's eight million of all various sizes I think when we survey a lot of small business people I urge all of you take ten small business people lunch and ask them the question and with that what they will tell you is the ownerís excessive licensing regulations at the federal state and local level so you want to be a barber in New York City I think it takes three licenses there are three different jurisdictions you have to pay and you have to be trained and this training is six months so you know even there's open jobs you know people can't afford to move to take the job because it takes too long at the Train even though we're doing another state so it is a form of secure I mean so I know a lot of the governor's here and I know mayor to look at all the rules and regulations just are killing the ones which are stifling bureaucracy that are not protecting people obviously we've got to protect people and companies be held you know held to be liable if they do bad wrong things or pay for their for their mistakes but it's mostly that it is we and we've hurt entrepreneurship I'd add the litigation system okay and the health care system our health care system cost eighteen and a half percent of GDP we have among the best ever pharma medical you name it hospitals people get it right away emergency rooms but we fail on wellness we have too much obesity we don't drugs overused and underused a end-of-life is 15% it should be half of that our medical costs are are twice the average develop nation and that is you know Warren Buffett calls a tapeworm of American business it will be a tapeworm and for lower paid individuals they can't afford it deductible they have a problem so we're like JP Morgan we actually reduced deductibles on lower paid employees just lower paid employees such that if they do their wellness program there's no deductible so they don't get this crippling you know $1,000 bill or something like that in a month so so small businesses we got to make it easier for them to get medical insurance for the people and reduce the burden it's not by the way bank it's a little bit they say access to capital but that's very really the case I do think for some community banks who are under a lot of pressure from regulators they have cut back a small business lending because of it so I do think we can open that spigot a little bit to make it easier and then special programs the entrepreneur color fund we it's not traditional bank financing we go an extra mile and take a little extra risk and we make it may not get the same returns but it works and we're doing it for entrepreneurs of color but doing it for women entrepreneurs we're gonna seek out now and we're doing it in Baltimore and we're doing in Rhode Island and Providence we're seeking out how can we do something different we never done before and maybe we're earning some market return for helping society and I think again I think businesses should be trying to do that because this won't age well if we don't fix them these issues I think we ought to turn we have a handful we want to open it up to our fellow governors to have a anybody got some comments or questions or input don't be shy governor Herbert I'm never shy not anything see you again good to see you Jamie and spin cycle says hi great so here's the here's the question that's kind of an accusation though we hear a lot the economy is doing well I think most of the states feel like their economy is recovered and we're doing better certainly feel that way in Utah but the accusation I hear all the time is the rich are getting richer the poor stay in poor middle class is shrinking and has a disproportionate amount of the tax burden I'd like your observation yeah so whenever I hear people say something I try to look at where they're right so even some of these very left Social Democrats et cetera whether that is some of us actually right lower paid folks do not own a living wage anymore and it used to be that if you were on you were unskilled you can get a job in a factory or something or construction and eventually during the leaving wage that may not be true anymore that's why I would expand the Ergun tax credit some middle-class wages are going up a little bit not quite we've seen parsa's exceed anemic growth so if I was a politician I want a growth agenda because nothing paid for anything like growth growth pays for roads at pays for education it pays for a better social outcomes etc but I think we have to acknowledge that the lower paid aren't gay enough minded living the living wage as bad for society we have a better outcomes in society if people have a job job and the other thing is the left side denigrates certain jobs they denigrate the burger flipper job they denigrate the starting job and we jobs are dignity most people like working a lot of if you go to the average pass-through place that that may have been a start a job that was the first rung and a lot of on the ladder for that person most of the people who run these restaurants now star that way they're proud of themselves and we've got to give dignity back to work and of course we if we have more people working you'll have less crime less corruption less opioid more household formation so I think we have to acknowledge it and the issue is getting growth sharing the wealth of it better I think that Richard made a lot of money so if I was a if I was a Democrat I think the Democrats should acknowledge a lot of things that government did did not work okay they have failed and we spent trillions of dollars on it and that the American public including Democrats want to know that you take more money mostly at the state level or the federal level what are you going to do with it as opposed to just goes to your friends and family and so there's this notion that somehow that the money goes to watch it's a great sucking sound it's not being properly used but and so Democrats acknowledge that Republicans have to acknowledge we need proper safety nets for the poor the sick the old we're failing to educate our kids and then come together call the program's actually work and you know and if you're gonna tax more which I think would end up doing by was a nation I think it's unavoidable let's attack some the problems and let's make sure that we have things that work as opposed to just more taxation more slightly bureaucracy more finger-pointing and things like that sticking with that point for a minute I think we all agree work work provides dignity more than just a paycheck but the reality is the changes in our economy are faster than we've ever seen in the last recession most of the jobs lost and people lost their jobs those jobs just required a high school degree and since that time almost all the jobs created and I'm sure this is true your company in order to get a decent job you need to have something more than a high school degree maybe not a four-year degree maybe not four-year college but a credential like is something so but yet the majority of Americans don't have that so what do we say to people who just have that high school degree who want a good-paying job who can't feed their family on $12 an hour how do we you know deal with yeah so I think it's true and we some further technology is the best thing that probably mankind the notion that technology is a bad thing is a bad idea it's why we live longer it's why we have we have with this wealthy prosperous nation of ours it's why the health is best why everything is better if you don't believe me go back 100 years my grandparents were Greek immigrants they came here with a with the shirt in their back and dirt there was they didn't Herot any wealth and if you live - if you live to want if you've got - one you might live to fifty okay so everything is much better and we should acknowledge that but it is true that that we are leaving behind the segment's aside don't have the education and my wife was working and now she's got I think 100 interns and kids going into various schools and internships where they're going to get well-paying jobs and companies do it we train people all the time at the started job you're doing it at University of Rhode Island University of Maryland and again it's gonna have to be local and then in my other view is that company so we are we people worry about this so we have 8 million car and truck taxi and truck drivers in America if somehow AI is able to get self-driving boom people making sixty five thousand dollars you're out of work that's not gonna work really well and therefore we have to have a retraining relocation income assistance if it happened too fast remember this has been happening our whole lives but it's possible to be too fast so JP Morgan for example we're looking today that we know that AI were reduced to people who call centers not brain centers so we're gonna be really prepared so that use attrition let it come down a little bit retrain them to do other jobs there tons all the jobs we need them to be done and even retrain them to get jobs at other companies so we know that in Phoenix or you know in this city they want coding in this city they need phlebitis and this city they need welding and this they need we're gonna pay our people to get trained to get another job and an equal to paying job it's not it's not gonna work if you know you have a family making sixty five thousand dollars a year and there's an available job at twenty five thousand that is that's just not going to work so again I think all of these things go back to training skills trends of ships internships lifelong education that would work for for Americans yeah anything that was gonna weigh in on that particularly on workforce job training or or some other topic come yeah well first off I'm so sorry I can't speak for all the governors but sorry about that outburst here that was uncalled for we appreciate you coming and sharing your thoughts with us so regarding the getting capital so as far as uh as far as encouraging capital getting to our small businesses or minority businesses what you did a very good job of explaining how our economies move them with the small entrepreneurs is there anything we can do from a state banking regulatory environment or a federal regulatory environment to Lee's ease the burden on large banks and our community banks whether its tier 1 capital ratios or where do you think the balance is they're protecting the taxpayers and the insurance versus encouraging you know access to capital in our in our small small businesses so one thing that we should mention about America strains and if you get to go around the world you see these kind of things we have the best wide as deep as most transparent financial markets ever better than anybody and it's part of the economic strength it's kind of flywheel this thing I'm not my big banks I'm throwing a big ones small ones that we Bank you know certain country companies in 20 countries we move six trillion dollars a day but part of that mosaic is venture capital private equity small business small banks and it is true and I'm very sympathetic that a lot of the small banks when I move them all the time we're the largest banks of small banks they would tell you it's the cost of regulation you know they have more compliance offices and loan officers it's the fear of pissing off the local examiner so it's not even dodd-frank it's just they're told you know we don't want any more of these types of loans or something like that it's the litigation cost if you're wrong so a lot of banks have you served it they stay away from anything which might create a litigation cost because it's so capricious and arbitrary and you know I think it's by the Achilles heel of America too it's just it's ruining self responsibility and the punishment doesn't fit the crime etc and then local regulations and again we should applaud entrepreneurs we should applaud small business people we should applaud job creators you know and so we're thinking things that Jake where we have 5,000 branches and we're gonna put you know these big screens and all these branches you know to have people like general ray or diono or some great small businessperson or or governor talk to if we get you know fifty small business people in every branch that's that's twenty five thousand people and to talked about what works and what doesn't work the other thing by the way is when we part with a lot of people so we're doing this great work in Detroit but we have people on the ground at a not for profit who's working with the entrepreneur about what they need to learn to get more traditional bank financing budgets leases how you sign to deal with the federal government hiring people when you place the branch when you place their next business to maximize traffic how do you do various things so a lot of things to do to foster entrepreneurship at a local level and then change them as regulations and you'll get a little bit easier in these community banks so in your response to Governor Hogan's question at the outset you mentioned that we're failing inner-city kids and you referenced your wife's great work in New York City have you learned anything with it's a problem in every small town city large city across the country have you learned anything through your work there that you can help us with with respect to our efforts for educating inner-city kids yeah so we should send you some information but what we know already is that internships apprenticeships work the businesses have to have it certified it's got to count for college credit high school credit and to the extent I don't believe in unpaid internships I think if you can afford it it's unfair to have kids work for free I did that I was just um bothers me about that it's got to be the local level and and you got to get help from the Community College so when one of these play towns you know the Community College they like the idea but they won't certify the position so if you go to Germany or Switzerland these kids get no what they do in that thing about machine tooling coding they get college credit for it so that so it opens up all these horizons for them and so it really is at the local level working with the schools high schools community colleges we have to convert high schools back to not just learning about life but leaving with a livelihood and we used to be very good at that remember we had these vocational schools and you know it all over the country and they they might teach teach welding or or construction or electrical not engineering but electrical work how does that be wired there's seven million jobs open America today most were well-paying and they're not being filled and the these things have to we got to get cracking at that because it would do a great thing to do and so Bullock Jimmy it's heartening as you talk about what JP Morgan's doing as relates to AI and changes and actually making sure that workers are retrained even if they're not at your own company not enough companies necessarily are looking at Sur that long term social contract how do we either at the state or federal level incentivize businesses to be investing in worker training and even more so than they're investing in business equipment or robots and also how do we Dean sent avise the growth of independent contractors yeah a good question so one of the things that I do think is it somewhat legitimate issue about long term thinking so for JP Morgan we don't do any never worried about quarterly profits ever ever ever I worry about people systems off technology product services costs and of course we make huge amount of mistakes but we built for the long term and I do think there's a little bit overly focused we've urged companies and I think the BRT recommended this don't forecast quarterly earnings have quarterly numbers be transparent but earnings is kind of a tip of the iceberg you know prices are changing the weather changes it's almost impossible to forecast and companies get their back up against the wall at this point disappoint people I think part of that is also again class-action suits and litigation people are so courses and stuff but but I think I think businesses wanted to the right they flan well I think businesses attract the shows they deserve by the way so I think if you're overreacting it's a short-term bring a Warren Buffett talks about the earnings thing as being a very important thing he never worries about it but that Commission focus and of course you have shareholders now including your your pension plans stuff like that so here's another one here's an inconsistency in hypocrisy in America a lot of state-owned pension plans will come up to me and they want to know exactly what we're doing for the long run from my employees for this this community we tell them and they you know they they want know about compensation which I think it's all legitimate they then turn around and invest in hedge funds and things like that that gate to get paid twenty percent of the profits of that year so very often they're incenting exactly the behavior they say they don't want themselves so you know if she all is doing that then company's gonna react and so you feel that you in America this is a major thing we've gone from eight thousand public companies to four thousand public companies we are driving them private because of all these issues I mentioned regulations litigation short-term incentives it makes it hard for companies to think long term so we just got to bring back the notion of thinking long term explain it you know Larry Fink at Blackrock Blackstone Blackrock wrote a thing about that we should describe to you were doing we're opening now we've done a permission to for two new branches that's four thousand people directly let's go be another eight thousand people indirectly when we go into Anacostia Baltimore Prince George's County Ward seven Ward 8 over here we go in with all at JPMorgan we opened a branch on for a color philanthropy education for for people need for the answer education charity we do the whole thing and so like the the big ship at Amazon it wasn't the 20th the 25,000 jobs amaz going to do is probably a hundred thousand jobs supporting it and they would have gone from low skilled to high sculpt consultants and lawyers to you know restaurants and barbers and construction workers and that's the shame that's what they lost the whole ecosystem that creates jobs and and furthers interest and and you know cities cities and states that act that way they will be long-term losers I was in New York City in 1974 and we had our financial crisis and crime and all these terrible things ten fortune 50 companies left the city in five year period Exxon which went to Dallas JCPenney went to Texas American Airlines left but it was amazing companies was just leaving and so you know cities and states can foster an attractive environment and then help you guys do the other parts I think business is not to blame for all these bad outcomes I think business could do more to help fix the bed outcomes what about dia did the incentive I seen or discouraging independent contractors I think that's a valid point okay so our hold Detroit effort started when Lee Saunders who runs asked me and I was talking about a corporate governance issue with JP Morgan he said I don't care about that but I care about is in Detroit which hadn't gone bankrupt yet my workers are gonna retire and they've they're gonna lose their pension plans and he said the average pension plan for someone's work for 35 years is $20,000 and they don't get Social Security I didn't know that I said that's terrible we're a huge bank in Detroit I said I'm gonna help you Sony I become friends and we help try to help get the city through it which is why we made this huge effort Detroit you know it's one of our home towns where we came from and but they also the SEIU came to see me one point and complained they would outsource certain janitorial jobs and guards and we did and I lives and Eastern people that don't meet with it I don't meet anybody I'm not afraid to talk to anybody about anything and he said you did it and the only and the guard is the same guard who shows up they get the same pay you pay the independent firm you know two or three or four thousand dollars the reason is profitable for them in you is they took away their medical and I took back all those guards all of them JP Morgan does not need to make his profit off the backs of the medical stuff for our guards now some companies by the way not in that position they can't afford medical so I'm very sympathetic you know I I tell all these people do I would do all the do gooders yeah we'll go run us deal during the tough times it's much tougher and that you know there your survival and when you're trying to fight for as I was different but in the meantime companies can try to be really good corporate citizens train our own people you know don't outsource something but the only way you gonna save money is because you don't give a medical treatise pect JP Morgan ourselves we subsidize ninety percent of people make under sixty thousand dollars medical we sub it free year but health accounts etc I went out and I found out one day that that our 401k we gave these huge matches and all the money is going to our wealthy paid people so I limited the match to the higher pay people I asked the question one day why don't people put money in there we give him free money we match it to three two one forty thousand people weren't putting money in and I did an analysis why they're all people make another forty thousand dollars a year they needed the money it wasn't that they were dumb and so we started that we automatically gave them 750 dollars in their account you make under $60,000 a year we opened a 401k for 750 dollars for you and then if you put more money and we match it to to try and help help take care of the lower paid folks who were critical to the success of JPMorgan and so there are things that people can do and some companies do and you know jawboning sharing I best ideas those are the best ideas I can I can have so you mentioned all those companies leaving New York and you mentioned Amazon which we're working hard to try to stay all over to Maryland question is what do we have to do to get JPMorgan well you did a good thing right from this dark and you elected Larry Hogan because because when you're a company well of course you want to go to places where you're welcome they listen to you you to you you have an open conversation to make it better and we have a great relationship with most the states here you know Texas Texas jobs are growing like this you know Delaware Utah you name I mean I think a lot of here so it literally is to be a welcoming place and consistent you know it's consistent because we have the other around the world if governments are hugely inconsistent you kind of tend to stay away and so think of parts of Europe we talked a little bit about this backstage and I think you and I both feel passionately about it I think a lot of our audience would like to hear about this yeah the American public today is deeply divided along political lines and you have to navigate you know both through the court of public opinion you have 250,000 employees I think and in a private enterprise I mean how do you approach a collaboration and cooperation with the government in such a whole Erised time yeah so it's may surprise a little bit but I you know I obviously family is the most important thing to me my wife and my children now I have three daughters and four granddaughters I don't know how that happened but but but the next most important thing is the United States of America it is still the shining city on the hill if you don't believe me you spend a couple weeks on the road with me in other parts of the world it's it's not even close so I'm a huge patriot that way and I think that is what we need to do is focus on what is good for United States and not always with parochial and I'm but I fight your specific question what you talking about the polarization oh we talked about some of the facts you thought where the problem I try well we've just it's just it's more federal government than most and I always try to listen to both sides and try to understand where they may be right so I hear about lower paid to right when I hear about what not to enjoy about the right but I hear about NSA schools the right but but slogans are not policy we have to get much more about policy that gets done and give good governor's on that right away you can get elected saying anything you want about the rich the poor our taxes but if you don't get the roads fix and you don't get the hospitals working you don't get you know kids jobs and you'll fail as a governor or a mayor and so I try to listen like I said I meet I met with union leaders I'm responsive when they complain about something like that on the other hand we write extends from the public policy so you see J board chase we educate the world about it about economy we go to Mexico and Argentina and about how do you develop capital markets how do you go up entrepreneurship how do you get your universities so we want to foster a very healthy economic environment and it is part of my job I have never been conflicted ever I don't buy this thing about that companies only care about shareholder value that's that's just not true okay I cared most the CEOs I know would agree with me is that you got to do a great job for employees to do a good job for customers if I don't serve my customers right they don't come back and right is better faster quicker cheaper and more next year than this year and my communities if we're not good in communities you don't want us there you know and I don't look at JP Morgan like 2,000 little cities the cities and little see around the world but I treat it exactly the same as if you owned the corner bakery store that corner bakery store is a community citizen they hire kid in the summer they get the ice off the front so some of those who break their leg they participate in the local Little League or a church or a mosque or or a synagogue or something like that because that's our community that's how you teach people and I think just because you're big doesn't mean you should stop doing that so so I've never been conflicted between the two if I remind people I don't build a healthy vibrant company then then it's just all talk I have to have a healthy vibrant company for and then I can do all these other good things our people love it by the way so all the things we talk about we're doing skills around the world automotive colour funds we're doing really special thing to advance black leaders inside our company our people love it they just feel my god we're not only doing a good job for our customers but doing it for our communities they get to do volunteer hours and so I think it lifts up everybody Jamie let me ask you a question what do you think could be done better to enhance financial literacy in our schools I mean we we've lost a generation they don't understand the cost of credit budgeting process so forth and so on and then we throw them in the world without any foundation so I think when I was a young CEO of Bank one they asked me to go talk to kids like third or fourth grade and I read them a little book and said this isn't gonna work you know like they don't understand I'm talking about I don't understand where they're coming from you got to teach it in schools so if I were all you I would take in every high school maybe start earlier basic financial education what is a rainy day fund when do you need life insurance what is a bank account how can you avoid payday lenders and I do another thing nutrition and health like make what couple miles a day like just because those two things would be critical for the future society we are good we do it extensively but you can't like rely on just I think it needs to be done churches schools we actually been now on our app so if you are a chase client we give you you can buy and sell stock for free and we give you eat for free tools that you can use to look at retirements and things like that but you know it's become really popular you get for free your FICO score your credit score so you open it up look at your credit score and we're trying to educate how can you improve it you can improve it by having four nadal a day training fund you're gonna prove it by paying this next bill coming up on time 10 million people signed up for like that we haven't marketed it so people are dying to have it and I've asked the people run a retail system when we go to Ward seven Ward 8 and Anacostia try something different you know have a I have wine and cheese for single mothers who can bring their kids in and then educate them about a rainy day fund just a rainy day fund you know just how you start investment what's a 401k and so I think we have to we've done a bad job and we're gonna try everything we're gonna test everything but I really think I should start in the schools some of it I find is that companies are still searching for people that have the four-year college degree when they don't actually need the four-year college degree to do that job so how do we deal with that totally true again I always listen when people say that something like that to me I don't know what I go study it and I did it's true companies became lazy so they said ecology required it was just an easy scale it's just easy scream scream and so think of tellers it's not required and so we went back at JP Morgan took the college we required off of tens of thousands of jobs worse than that a lot of college kids if they go become a teller do you think they want to be a teller probably not so there's turnover attrition by making you bet the kids that graduate high school or Community College and they get that $35,000 a year job with medical pension 401k you know they are thrilled and they move up the ladder you know the guy my wife was in the room and a guy stood a moment stood up with all the drooling and stuff and said those are just started jobs they're dead-end jobs and he stood up here's a tract of black man he said ma'am I started as a teller at JP Morgan Chase I'm now a managing director I'm response for hiring 40,000 people a year I am so proud of what I've accomplished when this Cubby's done for me and so things like that we got to tell the story and tell the story then last question but the BRT stood looking at - by the way - take take it out words not necessary and also we went to the FDIC Jelena McWilliams Gelineau and we told her we can't hire felons who didn't do you know it's serious crimes we can't hire phones a lot of jobs our industry by regulatory statute effectively she changed it we're hiring fellows now in fact Peter Shearer who I know we both love was in Detroit yesterday there was a picture him with the fellows now working for us to say thank you they're people a chance if you paid your time in society you have a second chance and so there are all these things we can do yeah good for you governor little housing affordability there's lots of state programs and federal programs governor Bullock has a first-time homeowners savings account where you can save money tax-free now obviously if you're in a state without income tax it's not helpful if the federal government would do it it would be more helpful what what do you think the solution is to the housing affordability issue yeah so one of our economists did a study which showed that affordable housing is least affordable and least available in the place that have the most land use restrictions okay so our regulations have made it very hard to build affordable housing we do billion dollars of affordable housing equity debt and stuff like that the other thing is and I like to that is we acted a study in a showed that you had a rainy day fund your the chance of a mortgage default is like 20% if you don't if you have the exact same credit stuff so teaching people education is important but we messed up the mortgage business so after the crisis you know we massively overreacted there are 3,000 federal state and local origination and servicing requirements are we send you a bill 3,000 the cost of that we think they had a 30 basis points two mortgages because of that where is the less available less affordable and more expensive and then litigation on top of that most banks have gotten out of FHA lending because the litigation behind it but the people being hurt and we think it's a trillion dollars of net new mortgages or self-employed immigrant prior default younger and poorer and these are not subprime these are just not giving a chance those people because those things so fix the mortgage market look at your your local zoning rules you know education those we will get more people living at homes so we are just about out of time I want to thank you so much for joining us this has been a fantastic panel and I appreciate the way you've been so open with us and covering a range of topics I will again thank you for your partnership on the new skills for youth program it's been fantastic those governors who don't know about it I'd encourage you to learn about it we've started internships apprenticeships Career and Technical Education I can't thank you enough for your partnership but with that I'd like to give you you know a couple of minutes to offer any closing remarks so I only closure marks is we could fix all this okay I don't know exactly how to fix the federal system but we can fix all this if we roll up our sleeves we get in the room we listen to each other we analyze it we come up with really good policy and then you all you know you're politic invert that pause into educating and moving the population with you it doesn't work when they don't so that's not obviously not my expertise but that's the kind of stuff works and that's the last thought I'll just leave it I appreciate the fact that I mean I've no allowed to govern this room you know those who've done a great job your communities and mayor's it's great you're doing this because I hope when you get together privately you kind of shed the democrat-republican thing just worry about what works for America because we can make it a better country for everybody thank you thank you very much [Applause]
