The Equality Lounge @ Davos 2018: A Conversation with Jamie Dimon

[Music] since we're in the Equality lounge I thought I'd start with with hopefully a great way to get the conversation going which is you really do lead by example on the issue of equality and Judy and I have both been great to benefit from that but the operating committee who run all of your major businesses are 50 percent women including the CEO of asset management the chief technology officer and then even when you go down a level to the CEO the credit card business or the CEO the consumer bank which are both twenty billion dollar businesses are both led by women one a woman of color so what do you think has actually worked what have you done that's difference so on so forth it's great to have 50 percent of women they're not it's not 50 percent of quota or anything like that they earned it every step of the way and in fact 20 percent of my direct reports LGBT and they're not there because LGBT either I person and I like diversity programs and programs and mentoring and all these things you guys have created some great ones I had nothing to do with the woman in the move program which I think helps women but I think the door to diversity is always that accompany someone should ask them to like stop doing this snow out there the door to diversity is a you run a company where people are treated respect and decency all the time at all different levels and all different ways and you know I'll just give you one little example it was just it's small but it's real I've seen your banker once said to me we were in the party's room you'll get lunch that's a buffet lunch he said watch this very senior guy who comes the room and he walks in the room and he walks up to all the guys over here hey buddy how was the weekend was that golf score how was the football and he doesn't do it to the whim in the room or the minorities and it's and it's not right if you're a leader for companies I've actually told me you can't do that you should sit at the table the younger people the women the black people the disabled appeal because you're the leader of the company and I think it is constant trust and respect people will surface of all different types Jaime you're um you're the father of three daughters who are in the work now what do you tell them in terms of being successful as women in the workforce and also starting out kind of in like younger ranks and working their way up as a woman right so one of my daughters worked at a big public coming I understand and when she started is like she's 32 now she was like 23 or 24 and every week they had these diversity probably every week there one of the things she said he used to say me dad I can't stand it I mean I don't care it's a waste of time as I said and of course she was young so she didn't necessarily problem she was going to have down the road so now she's got two children she says to me you guys shouldn't have dinners at night when you have a lunch instead for the client which i think is I said you can get rid of it by law because of the Constitution says you can't tell people to do get dinner but but but it's a very good point by the way and so so it's a little different advice I want them to succeed they do different things once kind of in one's a talent company one is strategic planning for hospital and one is a reporter for The Daily News I want them to succeed I want to do well I'm gonna be the best they can be I don't care that the women are not women and if they ran into certain types of problems women I tell them leave the company don't sit there and worry about you know I've got this terrible person if the companies pollute or your boss is terrible you know move on in life and and you know make sure you do what you think is the right thing to do so they've all they're all good strong successful what they're doing and so I'm happy about that it's the number one thing you look for in a leader male or female god well no I'm gonna give you a list of things are important I'm gonna put aside work ethic and kind of no not you know something's not smart as much as EQ I get done follow-up and stuff like that but you want people who who were very affect there's a lot of leaders are highly ineffective like you all go to meetings and the results of the meeting is that was a great mean let's pick it up again next week bad meeting you all go to meetings and people show up afterwards that he wants this in front of everybody bad meeting and they're all these bad traits so but character and culture and is the most important and what I mean by that is that person greeting people that person saying you know what do you have to add what can you offer that they don't look at anyone differently it again they're going to get the best out of everybody so you always hear about leadership is you know and I think it's right admin analysis fax get it done detail follow-up but the other more important part I'm gonna call humility and love you know which is that people know you give a you're gonna do the right thing you're gonna do the doors open to everybody you listen to everybody and you have no problem saying I didn't know I made a mistake boy how could I have been so stupid I listened to the wrong people so you're getting the most appeal it converse if your boss is always saying you know they're if they're blaming you well you're not gonna be open with them you could be very protective they beat you up when you if I've seen this too if four to five times you go see them but one time they kind of punch you in the face and they're a bad mood you're gonna be much more heads in to walk in there and say something and so all these other attributes are very important for how people feeling to be treated outside of company but I do think that everyone inside JPMorgan Mike doors open everybody and and you know I'm a people I like more than others absolutely I've got not a damn thing to do with how to run the company and I do and I think leaders make that mistake all the time so sticking with diversity and diversity at JPMorgan and the kind of benefit of differing reviews and differing kind of people around the table what do you think is the business benefit of having having women in the workforce and having just diversity in general around a table around I've always believed in it simply for moral purposes that was good enough for me I didn't need other purposes I also simply believed it a hundred percent because it's better business so you take any company we have gays in the company we have Chinese in the company if you go to JPMorgan branch in Chinatown you have Chinese people they're serving Chinese and it's different then and of course same with african-american and same with all different things so it's a better business thing and then third I presented also a hundred percent either they stand alone there already is if I pick a team and I could pick from anyone and you pick a team middle-aged white men I'm gonna pick the better team and so I'm just looking to pick the best team at the end of the day so I think those are all the good reasons you should do it but yet there's another part of your question to which I women in particular what do they bring to to the workforce what kind of special qualities or we were talking with Jenny Anderson before women potentially paying as a whole more empathetic I'm gonna answer the question I'm not sure what matters that much I did tell us - Jenny - if you ask me do I believe that women are more empathetic than men on average I say yes is it possible in this new world that women are more socially connected and less about themselves than men on average yes - average is really matter you do the individual the answer's no okay so I know a lot of women who are not empathetic and they're just a selfish and narcissistic men I know so so but but I do I think it a bridge is true yeah so I want to talk about business because there was a we made a big announcement yesterday about expanding and are out of footprint retail branches into new markets and we talked wage increases can you talk a little bit about that and the president tweeted about it this morning yeah so we you know the tax reform came I think is very good for America for all Americans is not what people doing one day it's what it actually accomplishes over a long period of time I actually am stupefied that anyone could say that having a competitive tax system is bad for the country I just don't get it we've been driving capital and brains overseas now for twenty years it's done huge damage to this country Parvez permanent and it's gonna be reversed it's and but the poor part as it takes place over time so we knew it was coming you know came quicker I mean known I see if you said a year ago would be done this year no one would've said yes including me so we actually took a very thoughtful approach and went out to everybody and said what can we do to to accelerate we're already doing enhanced we're doing help America more so here the like five or six - the big ones philanthropy we do 250 million a year raising to 350 it's mostly around Community Development it's not around arts because I think a lot of the museum's people support that's for the rich this is for the poor the disabled entrepreneurs startup companies affordable housing community development so we're gonna add that go to 350 billion doing 20 other ten billion of elam island is mortgages to lower middle income people we already do it we're just gonna hire five or more people to open that we're going to do more affordable house that's financing commercial rental buildings for for folks we do an awful lot of that but most of my most excited is opening for no more branches so we're not in major cities the press release mentions Washington Boston Philadelphia not necessarily those but for example and when JP Morgan comes in we do a tremendous job in those towns now in doing your banks we do auto mortgages we bring philanthropy elamite lending all the things we do and so we're gonna be opening branches and as Kristen knows it's a huge thing for generating business for us and helping those communities and I'm sure there's a couple of things in there I miss but wages in the big cities $18 an hour that's $37 thousand dollars a year that's a starter job at a call center or teller they also get pension and medical you know it's worth another twelve or thirteen thousand dollars and it's worth twenty thousand if they're a family and those started job you know somehow America but rates starter jobs so you know even McDonald's there's a sideshow but McDonald's has an average I love saying your best first job they did people make fun of Burger flippers and but people learn to show up in time to get it done to deal with customers to earn a paycheck beep our society if you go to most McDonald's today like 80 or 90 percent the person who runs the restaurant as the assistant manager star is a burger flipper and we downgrade that which i think is disgraceful so we also did another really neat thing deductibles hard for lower paid people to afford so it's $700 made it a thousand dollars and if also if you if you agree not to smoke and you take care of yourself we also make it almost down a zero so we really took the borough lena people making under sixty thousand dollars so we're like Robin Hood we really help in medical the lower paid people on both benefits and salaries that's great just as someone who's involved with the press release you were very hands-on well I just wanted to I wanted everyone to give the best they could you know this happens a big company Jamie wants to do X they write it great great great great great I like it but it's not really that good because and I know it's not that good because when it's never the people join them and I'm pushing them no no what are you doing and then all these good ideas came out of that you know honestly so and then small business we're going to finance 4 billion more small businesses we have an entrepreneur of color fund this is a great thing we did it in Detroit as they start a thing but the point was that a lot of mantras of color don't have the backup you all have the white people because you have families and probably more net worth and always that they don't have it so these were people couldn't get bank loans and stuff and we did 43 loans we've been paid back on 42 of them which is good by the way and we're gonna triple in Detroit and we're gonna add it in South Bronx San Francisco that this works you can see it in 50 cities around America Jamie can you talk a bit about Detroit as its come up and as many of the meetings I've been in exactly what we were able to do with the size of the company you know the amazing that we were I was actually with the guy who runs the SEIU a union where a lot of people don't think I should ever go see but I he and I are bonded we're buddies and he had said to me at one point they're going through a bankruptcy how bad it could be for their their his workers municipal workers which I didn't understand remember who's gonna get the money the bond or the pension plans legally the money belongs to the general obligation bond holders okay and so these pension plans were for people he said to me the average pension plan for the average worker think of sanitation etc $19,000 a year and they don't get Social Security I didn't know that you probably know that and I said if that's true I'm gonna defend them getting paid before the bondholders even though that's not what the law says and and so anyway because then the mayor a white guy in a city 80% black he went he was a write-in candidate door-to-door won the vote because he talked about helping the people trading what he what he speak about roads sanitation lights being turned out that sixty thousand lights thirty thousand worked affordable housing I need job and whoever helps me and we heard him we sent the team up so it wasn't me a whole team went up there at one point fifty people and we asked the people there what do you need what could make it accelerate so for example they don't know what they had said these thousand abandoned homes ok Detroit is a hundred and twenty square miles I mean it is one of the largest and all single homes pretty much and so we have someone came up to take your phone so it cost a million dollars to build the code take your phone geolocate they know where the 70,000 homes are they can plan knocking him down playing parks development cetera we've given that code by way to Cleveland Cincinnati and a bunch of other people but so we did affordable housing we did mortgages for LMI we did we're helping finance there's a Wayne State University and downtown Detroit or like three miles apart but they don't have a rail we helped finance that a lot of people doing we're not the only ones but it's one hundred fifty million dollars over five six or seven years it's been unbelievable the city's turn anyone here from Detroit you can walk in downtown Detroit now you can sit outside and have dinner and you would not have walked there ten years ago the lights weren't on there were no people there were no police and it was a dangerous town so you know this is and we said my god this effort works but I it only works because the mayor and the government the governor were involved certain mayors and governors I won't go close with my money or time because they're incompetent learning some some lessons around collaboration what happened in Detroit what are the other what are the other big public policy issues that you're focused on at JPMorgan and in your role as chairman of the Business Roundtable which is a group of the largest 200 CEOs across the country so the you know you've heard this thing in America for years about 2% and you know it's dead wrong productivity I'll never be back dead wrong the reason we're going to 2% and not faster so think of the growth of this recovery the best way to go eight years 15 percent a normal recovery would've been five years thirty percent literally so it's been very slow and very and of course that has effects on jobs wages sentiment confidence those various things but think of the stupid things we've done as a nation okay competitive taxes we've gone from being competitive to UM compare over twenty years our inner-city schools half the kids don't graduate they're not prepared for jobs I want to get into Troy's all these work skills initiative infrastructure this should embarrass you if you're an American 12 years to build the average bridge you need 50 permits and it's not it's kind of sequential 12 years 50 permits I mean if you if you we should throw out every politician doesn't fix that Canada Germany two years okay we haven't built a major airport in America in 25 years we can't build railroads we can't build tunnels we can't build bridges we can't fix the FAA you all love co2 you want to take care of co2 this fa the new software in fa which most countries have we reduce your flight time by the average flight by 20 minutes and the average co2 by 20% on an airplane we can't get it done I don't know it's something stuck between whoever it is and so these things are holding back America you know regulations I mean you could say whatever you want but regulations were stifling a lot of businesses and and you can go around America talk these businesses they're their little set free and it's not that because they're polluting water and so I gave one in mortgage alone because I've heard or regulators and we've never held back lending not true okay we believe that mortgages have been held back substantially because they're much higher cost because of rules and regulations which you pay for and they're also not available to whole groups of people think of lower income an already immigrant self-employed because no one's gonna take the legal risk that that was laid on the banks of the making mortgages if you fixed that we think it could be three hundred to five hundred billion more a year okay over five years 1.5 trillion are you at one point five to my fans five hundred thousand new homes that would have been two million new jobs that's what we did to ourselves didn't have to be done so I there's a long and there's I can give you more but I can't remember offhand you talk about when you're on an airplane you root for the pilot what are some of the key points of legislation the president to get done and what do you think is likely to get done if I would think of policy policy policy pause I'm not interested in personalities okay and I don't pay any attention to tweets I mission policy so competitive attacks before me needed I would have done the individual side different I wouldn't have necessarily do is my tax about a couple percent I would have done X I tax carried interest and all that which goes to a very few handful of people I think it's wrong yeah and and so I would have done these things but that's one regulatory form of doing but the infrastructure there too I think the policy I personally believe very important on immigration so think of immigration is proper border control no one can argue against that if you were an American citizen when we had amnesty years ago we said I'll never again and now we have ten million undocumented again that's a legitimate thing for the American post say that's not right proper border control well that's walls or drones I'm not expert in that so it's but assuming you have that darkest days the ten million who were who were been good law-abiding people here they've been paying taxes not breaking the law some path to legal status and citizenship okay there's a bill Schumer McCain in that's passed the Senate takes 15 years but give him some path and obviously if criminals send them back to where they came from so and and if you are getting a degree in America college or advanced you get to stay at the green card okay we make I think it's 300 thousand people go home every year it's out ready they're going to Canada they're going to the building in Vancouver and Toronto and Singapore it should stay here it was just a in America and so but my point is I'm hoping the Trump will be the Nixon of immigration very tough on immigration but can you know when I've been with him when he speaks about he wants the doctor to study he likes the green cards for people have advanced degrees I've heard him say in his own mouth but anything but they're gonna have to this is a comprehensive deal it's gotta get done that's why you've seen all the fighting I'm hoping that maybe somehow the stupid things we've just been through a shutdowns gets us to that and the other one is Ted trade trade is again the administration has pointed out serious problems about trade it's not so much NAFTA I think those are minor problems and I we love the Mexicans a great country we want NAFTA done we've given them a something that but when you say trade with miracle that's the world particularly China IP absolutely it's been unfair lack of reciprocity and being able to own companies absolutely unfair WTO the way the amount of tariffs absolutely unfair to the United States non-tariff barriers out of Japan China absolutely unfair the United States totally true not honestly now I don't want have a trade war China I think the Chinese no I think the I think they've been smart strategic and long-term and we've been short term and discombobulated and stupid you know and I I think a deal could be done but this one will take a lot of detailed you know negotiation between the parties III and I PI was dating TPP the fact that these 11 nations about to sign it kind of legally makes it a binary choice for America and now the choice could be or you're better off in or out it also been a strategic thing with China so I think it could be done and this is the one that could disrupt the global economy other than your political stuff well if we can fix some of those policy issues what does that mean for us growth what could it mean we you I've heard you talk about the great hand that we have and yes we have all of these issues that you just talked about but if we can collaborate and get past some of the issues what does that mean you're not all Americans I'm let me tell you what the great hand is okay and again Americans don't appreciate this we have the Atlantic in the Pacific and Canada and Mexico we've had no war in the North American continent since 1848 we have all the food and water and energy we'll ever need okay and we're protected China and I say it respectfully it does not have a food war and energy and his neighbors of Russia Vietnam Pakistan India Indonesia North Korea South Korea Japan it's a tough part of the world and since World War two they've had more than skirmishes with multiple those countries okay so we have that so I call that the natural bless the United States then we have the one this wasn't natural was earned by you know people over time all the immigrants and stuff like that you know which is entrepreneur freedom capital the culture of the United States which has given us the best capital marks in the world so the best universities in the world the lowest corruption in the world there are I think are law legal systems becoming polluted unfortunately but if we had this amazing hand hampered by all those things I mentioned and so you know to me just unleash that including like immigration good immigration reform 0.2 percent of your growth does mortgage thing 0.2 percent of your growth competitive taxes the mostly Kasich abrasion old attack their numbers oh I bet I wasn't really for it but 0.3 percent a year those things 2 million jobs 3 million jobs a year I mean we just we were unable to be intelligent in the United States of America and you know have comprehensive thoughtful policies is that the question but but then what would you predict the the growth rate could be it's gonna you know it was looks like it was three percent the last two quarters it looks like either be three percent this quarter I would not be shocked to his four percent at one point this year not for the full year you know and of course people no never yeah watch just like inflation may be higher than you think next year those things happen there was caught you have caught people I said to me are you surprised except I'm not surprised I read history like oh wait we all surprised the oil went from like 100 to 30 or yeah now most people were surprised I wasn't why it's gone down 40 50 60 percent five times in my business life time like as have all commodities so you know things tend to catch people off-guard when they change a lot I'm gonna talk about JPMorgan Chase for a minute so an analyst who covers a stick buffet who's not exactly a pushover just came out with a report and he said that JPMorgan Chase is probably the finest company he's had to he's covered over five decades of covering companies what do you think not to ask you big fat softball question but what do you think you've done right because it was not that case when you showed up before yeah and you need a bank wonder Jamie what I would call performing companies and you know I call it bootcamp and it kind of saw a part of it Judy saw part of it I mean I just start reviewing every business every month going through all the facts all the HR policies it's work but it's really detailed and everything's gotta follow plus she has a fob list she you know she is respond for a budget of like three billion dollars I'm like that more than that for thing but somewhere in the multiple billions but but detailed analysis facts follow-up all the time constantly upgrading the people hard to do by the way cuz I would say the bull should have been bullshitting for so long that they're really good at it so even when you think you're good at management it's hard to find but we've had nothing but improvements we are honest as the day is long about our own performance with other people products services no one walks in the room and everyone speaks up now there's no one you know you speak people look around the room no Jamie you're wrong about that but now people to say no or bankers do the better Goldman's doing that better or this fintechs doing it better every now and we sent a bunch of you overseas to go to Australia Austria or China to look at WeChat or paid TM or anything that's competitive and just you drive it all the time at the end of the day it's the people you know it's so Kristin believe it or not went from running PR for the company which I would tell her she was that she was her own boss like they're calling the middle nights I make quick decisions it takes a lot even intuition and knowledge and relationships and all of a sudden you're running what I called a machine on army she's got tanks you know Scouts airplanes which is so mark animals generals mark marketing marketing is not guessing it's huge analytics and detail and facts and coordinating with sales and branches and and you even cross products which is it's probably even more complicated this point using big data a I eventually machine learns that are and so it's just that absolute discipline but the end the day it's the people and that's what makes it sustainable it's like like I'm very public I have several people reports you can run this company today ok and the board feels that way that's an unbelievable thing to say and of course I don't intend to leave right away but but the board has a choice and in five years some of those people still be here and there will be others that's an unbelievable thing and not one person on my management team not one do I do I not think is really good do I not trust totally and that wasn't always true in my life you know he's constantly doing with really complicated people people pairing their chests demanding compensation threatening you you know all that kind of stuff there's one guy this was not at JP more use ago I took over a huge sales force at one of the brokerage firms and he ran and said he was always threatening like all the time anybody reported to my boss and eventually my boss said he reports to you I so it forced to me I mean this a fire I'm not playing so my first meeting with my said I I have one thing I want to say and one thing I want to ask I said let me do the ass first I want you rate all your people for me a B C or D and he rated them and they're all C or D I said okay we have the same problem that that's that's a problem and thank you and thank you for being honest because I I thought is terrible I said the second thing is you could say anything you want to me for any reason in any way but if it ends by if you don't I'll quit I'm gonna fire you the first time you say it it's got to end by saying so I think it's the right thing for the company the clients etc we got along after that amazingly talked to us a little bit about how you view technology what a positive force for good it is as well as as well as disruption and the fintechs sir there's another thing the people this narrative that you all are going through with a young girl it's over AI the world technology's been changing the world since mankind was there it was fire it was wheels it was agriculture it was printing it was institutions police courts churches which you know you know all these things that mankind did and in that eventually it steam electrical computers and this been changing everything the whole time everything's been changed the whole thing because of technology so any business it's not that different when I started working you know computers were slow you wouldn't have mutual funds without computers you couldn't do it by hand and literally that's what they were doing the 40s and so computers allowed amazing amount of things all the time and you have to you and so technology has been doing this my whole life and in fact you look at financial serves the cost of our products been coming down every year for 30 years that's called capitalism so I hear businesses complain about margins I'm like what are you complaining about competitors are gonna do stir prices that's because you got to give the client more better faster or you lose and technology the primary you do it now it's digital and and all online all this stuff we do it's also that just the offers the speed the knowledge the with the risk underwriting Center but it's faster than it used to be it is faster so you could do things today that would have take we can do things in a split second that would have taken us literally hours to do not split second it might have taken us half a day to do literally so you know it's like marking in all days you would buy the time-life subscription you know when you knew that was $125,000 a year now you know marking you look at multiple databases split seconds and making decisions about underwriting and stuff like that so you have to use it to do it it's the best they never have the mankind like look at Davos look at every community look at every building look at any city it wouldn't be there but for technology mankind's been doing better and better and better and that's gonna be true in the next twenty thirty years with all the tooling and froing about AI and jobs and robotics it's gonna get better mankind's gone from working seven days a week and being scared for the life everyday if they made it past one year old now your kids gonna live 200 years old probably a hundred twenty they won't go through the pain and suffering went through it like I can't wait til I get rid of cavities you know like the drilling of the cavity when I was a kid they drill for cabbage without novocaine I mean no seriously like so it's great it is disruptive it has left people behind and so society we haven't done a particularly good job helping those left behind and then think of the rush towns Rust Belt towns and people losing a job and going making $75,000 it's not enough to go from 75 to 25 it's all about work skills and retrain relocation income assistance but do a thought exercise I think give you a little comfort going forward there eight million taxi and commercial drivers the United States 150 million people work if you could tomorrow push the button get rid of all it made million with autonomous that would be a problem you're destroying a lot of people's lives because those people aren't anywhere from you know fifty-five $225,000 zero they're not the best jobs so obviously they're you if you could do that society government should have a solution which as I said we'll wait on we're going to over five years we're gonna retire probably by then two million of them there's six million and we'll give them training income assistance and relocation to two hundred thousand a month work out plans to support that whether they can equal paying jobs and probably better jobs you know there are a lot of better jobs out there right now there are five million jobs in America open nursing welding electrical aviation automotive that takes six months of skills and so we need to fix it but but let's not fight it I mean it is the and by my guess is mankind when someone sitting here in 30 years you'll be working on Europe you already work three days a week but but in America not but my point it won't be it probably will be three now it probably will be three and half days a week and that'd be fine you know more time for detainment more time for leisure you know life will be better and yeah you'll people spread around a little bit by reducing the workload each individual I think Judy and are gonna ask maybe a couple last questions and we're gonna open it up for the audience for a few quick questions if we could but going to anticipate don't give a speech or we'll have the music come play over you so I'm gonna anticipate one because I've heard this asked maybe the first or second question almost every time that you're interviewed which is do you ever see yourself running for office you know I I made the mistake of saying I'd love to be president I think I'd be good at it but no I'm not gonna run and I think you know Trump is an anomaly is the first person ever not a famous general think eisenhower or Ulysses Grant or not a political figure who got to the presidency I think in 50 years it'll still be an anomaly okay and so I I think it's you you have to grow up and that thing is not my cup of tea so the answer's no I get could help my country plenty by doing some of the stuff we spoke about I am a patriot I guess last question is I get to see you in action running the company and around the world and guess I just wonder how you would describe your leadership style both like the discipline you bring to it and the Judy went through her own boot camp with me every every tell me you met it was like you know in the morning Monday morning I'm like rat a tat tat tat rat a tat tat if things and she'd be so you're not writing it down write it down and I know write it down and like and also like I wanted today not like in a month you know the copy had a page that was very different so but no I know but but I I am very disciplined that way if tablo's get it done I know they're vise low stuff down the whole company slows down I'm quite good at delegating when I have to and I can drill down when I have to I don't I now I have the whole different management seems I don't do a lot of stuff I used to do and just so it functions there's a like a fall place for every business for every staff unit for every group it's a short person every person that's wrote but but but it's coordinated you know her list is no different than mine or you know Gordon Smith who runs the whole consumer bank or it's the same kind of list because you need the technology people to do it you need big data to do it if you don't have really coordinated blocks up so I try to be very disciplined I try to enjoy it I scheduled exercise when I'm on the road I did a little in my room this morning it was really hot in there but I think I tell Bo you gotta take care and I think I'll tell employees this take care you own your mind your body spirit you saw your friends and your families your job Cubby's can help I tell Pitts we give you health care we give you maternity rooms we give you mother mentors we give you Pilates we give you massages but you got to really take care of yourself particularly when you have children and that's patru for both men and women and and I try to do that myself and I'm usually successful all right so we're gonna open it up for a couple quick questions I think they've got roving mics but if they can't get to you just yell and I'll repeat it so everyone can hear it yes I didn't change my opinion that was gonna be the other question I didn't change my opinion I still be said I regretted having said what I said I regret it because I don't care I'm not worried about crypto Bitcoin at all okay I think it's got huge issues about it I don't want to be a spokesman that you all do what you want it's a specular vehicle and you know JPMorgan moves six trillion dollars of money around the world a day every day at a very low cost very low risk and we will be using those like blockchain to do it even better and quicker so the blockchain is real but that's different than currencies currencies I don't want to go through fiat currencies and central banks and all you yeah you got to do that at another time your succession plan question is about sponsorship or and specifically around women and people yeah so this is a really interesting question so I am in favor of mama call mentoring and sponsorship it doesn't really work I mean some in favor of it but the fact is you need to reach out and get to know people you need to get feedback a lot of people I've never had a traditional mentor and one of the problems I have with mentoring and sponsorship is like they're promoting you and pushing you forward maybe even when you don't deserve it they should be giving you a kick in the ass and they're misleading you and she have to be very careful about how this gets used so with women is I think it's a whole different issue in the car you are kind of doing great they've taken charge of that that I do whatever they ask me to do no no no I mean in a good way that just like the LGBT I've offered do stuff for them and they say no we're doing great here I don't we don't need special help and we ask you to go to a function somebody I always do that but we noticed that we weren't in that grey with African Americans and of course I should say blacks because I travelled to London they say Jimmy it's true here too no it's not an African American problem it's a black problem we're not doing as well so we set up a special group to vote adjust to that I'm actually meet with them a Friday that I come back I want to be their agenda and then we try to attack it a very specific thing I do think one of the problems is you need on his feedback and that with that particularly black Americans and white Americans that honest feedback isn't as good both going both ways and it makes it harder to you know to constantly keep up with a changing you know with your career over time that a lot of black will get a little more disenfranchised with the company because of that so there are very specific things you should do I deeply believe in it we're gonna we're and we're by it it's amazing we're doing already with our black black folks around the world so um but I am and we support Mentors I just think you'll be careful about what that means because people expect them to promote them and stay sometimes they shouldn't we do make sure that that women minorities are involved in pay committees promotion committees so that there's someone saying is this fair is this fair is this person getting a fair hearing and they've got the right to question that after the fact she says his full trust in China so trust at the United States to imagine how people fill out that form in China I don't trust my government all right don't even compare don't even compare the two question is around the trust deficit and the how it can be improved okay Kristen shows me this thing the reputation that we do we look at influences and policymakers and Trust and how you grow trust up first I don't think you and I really I think you to grow trust you advertise you know people want to banks come out and talk about the good stuff people aren't gonna give a damn you you weren't trust day to day meeting by meeting in person I hope I'm trusted by the people JP Morgan I know I'm trusted by our clients and customers I know I'm trusted by every community operator and that knows me personally I know the companies because I know the bankers and they tell me I mean the clients - they trust the people I can't make up for these these trust deficit it's true for the press is true for the Congress is true for doctors it's true it's true for everybody pretty much but firemen okay and part of his legitimate and part of its not part is that people are brainwashed like for example people say do you how many of you trust lawyers how many of you trust your lawyer exactly part of it's a big lie I don't know how to get through it all I can do is every day do the right thing as best you can explain it to people when you're wrong and MIT you're wrong and move on and fix it which happens to us all the time by the way and I think you know parsley the press when people make mistakes it's okay to make mistakes did you acknowledge did you fix it what did you do about it was this systemic or as an isolated event and those things matter but one day something's gonna break through and change this trust thing I'm convinced of that that would be looking the same chart and be going the other way for some reason can I just build on that question for a second and take people through the moment before we announced the whale trade and how you reacted to that because I think it's a great example so we we had this London whale problem we were wheel Altima we lost six billion dollars we didn't know that at the time and when I was on I was on vacation on the road and I knew about the positions I had called in I asked a bunch of questions I said this is not a big Gillen I was at an analyst meeting I'm gonna say it was in March and they asked me it was March 15th if somebody asked me there April 15th they said Jamie is this a problem is it just a tempest in a teapot I said yes it's just a tempest in a teapot I was right about the tempest pot I was wrong about it being contained by a teapot of course of course the world Jamie lied or of course I didn't you know I mean I probably don't get better they get worse I thought because I asked a question how many days would would take to get out of these positions I was told 10 ok there's just a basic risk question by the way as it turned out the answer was hundred to 500 okay the data was wrong people are on but the second we figured it out so by Martin may 4th but I got all these folks yeah I got all the marketing people together I said to him we have a problem we're gonna lose two billion dollars we're probably lose seven billion dollars more this is gonna kill our confidence in the company I'm gonna be crucified here are the headlines diamonds do break diamond in the rough diamond of his high holy horse you know they're gonna attack you're like and the press but something goes wrong the press on its I be embarrassing to be the president they're like you like the barking in a kicking the person down the same person they put in the pedestal I was like please don't put me the pedestal I know right now there's a mistake taking place at JPMorgan somewhere so I was telling them relax our job is to fix the problem and keep the company functioning morale and stuff like that cause it could tear apart a company and so that's what I was focused on the most and then but we went to the press and this is what I said quote quote we lost two billion dollars so we're gonna lose more okay I'm it's not life-threatening we'll get through it I'm the CEO of the company it's obviously my mistake I'm sorry to my shareholders I'm sorry it shouldn't have happened it was a bad strategy badly vetted badly monitored okay and there were bunch of flaws why this all happened but true for every accident and you know I was fine with that I just knew this could be a terrible six months in the press and stuff like that and so and it was you know now it's all just gonna be my it's gonna be my tombstone there's John John Stewart my daughter's showed me is people who think show do thing you know John Stewart is right but you know one bank that was great through the crisis never had a problem bla bla only one Bank shaped more chase not anymore and then he has and then he has me he's saying JP Morgan to lose two billion dollars on this trading thing and buy we had a we had a record profit that year but JP war until the two billion dollars is trading for two billion dollars and he has me in the background saying we don't take very much risk and we don't relative to what we do we are very risk conscious about what we do and and then it and then he says it could be as high as seven billion he says to billions trying to look pretty good I called him up had a nice lunch with them so as soon as what is the next crash yeah okay nobody knows I don't think it's imminent because I and it's not like Wars before they're not the leverage in the system like it was before there isn't government but government leverage is very different than household leverage or a corporate leverage or prime broker leverage or hedge fund leverage er CDO type leverage and it was astronomical no seven I mean I'll give you one number syndicated leveraged lending today I don't know the exact number today okay is about total bridge commitments etc that are visible to us about 50 billion okay in order was in so seven four hundred billion huh JP we're alone can take the 50 billion even if we got kelabra and lost five billion on it okay so let me look at my wrist and not don't put it in size and I don't think it's there but there we and put geopolitics aside there are cycles there are going to be cycles your whole life get over it and as a person don't spend too much time guessing about it Warren Buffett doesn't guess about recessions I build the company and in every day every week every month everything nothing ever changes what we do because it's gonna orange is gonna go down we invested and hurt her cards and her products new branches over session would it make no difference to me you know why I know what's coming one day I don't care was 2018 2019 2020 21 when it does our profits go down 30 40 percent so what profits are a number you know but I also know that sales people products services that's what drives a company for 10 or 20 years and so we've never gotten focused on corley numbers you've never heard me make promises about numbers ever ever ever we have the best woman with the best CFO in the business I think happens to be a woman and at one point she said to the analyst community you know we're gonna spend about fifty eight billion dollars this year and about two quarters later someone's on the phone well you're gonna meet that commitment she said yes meaning it's about 58 billion for the year I said AB I just want to make one correction it's not a commitment we didn't commit to 58 but I don't commit anything like that if she could find on the foreign it million to spend that's gonna be good and she kind of did by the way we're gonna spend it I don't keep it about the profits that quarter except 40 million an investment isn't investments could earn hundreds of you know hundreds of hundreds more over four five or six veneers we make economic decisions but you have to run your business and your personal life to prepare for a bad downturn and if you ask me what's gonna cause it I don't know trade could always go if something goes terribly south on trade that could cause a problem that's hyper cyber is the is the worst single thing other than nuclear that I think is facing anyone and that could cause it and I boy we got and we're barely geared up properly to deal with that we are we spent 800 million dollars here in cyber and then there's this issue about if rate if inflation is next year I'm gonna make a little bit of prediction in inflation we higher than people expect I think the eyes we're going to pie or more than people expect and if it does it's gonna scare a lot of people and if it does interest rates go up faster than people expect so it's been lower for longer it might be faster and quicker and that's fine as long as we have growth but if you actually in 2019 have slowing growth inflation bond rates going to 4% or higher which they could easily do and they could do it just like that okay and then Mart you know money mark market makers can't make marks like we did before the people there's there's frigidity in the system is built in a little bit into ECE ETFs and passives who if they sell they're gonna have to sell and then the market base can't buy in size okay did before which is unfortunate and that you could have much rakia markets what I hope is that in oh nine you saw something that had not happened in I don't think it really happened since the Great Depression which is that financial markets cause the real world to go down okay think of jobs the financial markets you reflection the real world and this sometimes it but it's very rare but if you get so scared that you start pulling it out pulling my other markets which is happening oh nine people stop investing people won't do stuff and that's that could be a problem I don't think that's gonna happen but J and if it does Jake more it's fine I do worry about that I'm fine no matter what I did I prepare for the worst whether or not I think is gonna happen I think we have time for one more okay all the way in the back there's a hand can you yell you can see him later all right go for it performance diversity here we're a very high achieving crowd so I would love for you to talk about a failure a significant failure in your career or maybe an aspect of your management that you've improved this year know about diversity so we had a big real estate conference in New York City with a wealthy real estate folks from around the world almost all men almost all white men by the way and when I got up I said to him I hope you know we have two people who run our globe are us real estate business I got up and said I hope you know that I was introduced by a Hispanic woman and a black man you all should be ashamed of yourselves and I mean it I mean they're all I know how they laughed at those fun but they it's terrible it's terrible I bite it's terrible and venture funds is terrible and hedge funds is quite good in somebody's own shoes so my biggest mistake there's biggest mistakes and yeah so I'll tell you what the biggest mistakes I me of you I heard I got fired and then will lap Judy answered the same question so people when they go do my biography they say you know he found this he ran that I worked at one company for 17 years and was fired and then I worked at one company for 17 years I'm not a hired gun I wear and breathe this company's Jersey people know it I mean it when I got the bank one I put a lot of my money into it I didn't care about the stock price I cared about everyone to know I'm here I'm here for good that's what I'm doing I still feel that way and so but the biggest missed and I after City I had to point out my boss he fired me I was the president chief opposite II I'd been the present Charlotte travels before then Psalm is by his all one company of changing names and it was it was it was I was I was surprised you know yeah thank you thank you yeah Smith Barney says yeah and the stock went down 12 billion dollars that day and so the investors knew better and of course sandy made the wrong mistake and he made a mistake and look what happened and so but biggest mistakes not having the right people in the room and I don't make that anymore like honestly sorts of people sometimes they they people think ah he makes quick decisions and deliberate and clean no sometimes if it's a certain type of decision I may can go over it and over like I do this health care thing I got a quick answer from HR said how's that gonna work for a person making thirty thousand I can work for is make sixty time I took it home I read I had a whole pun I was willing to change the last second so but if you have the right people in the room all that stuff comes up temper is a bad bad bad bad thing always I don't you've heard me yell maybe how many times five five I'm usually at for a good reason by the way not but but but never never deliberately and never internally pretty much you know one was at a c2 word CEOs by the way one who lied to me was a senator and what was the senator I thought internal yeah internal but the point is anything you do I they gave me a carbon as younger says my name is Jamie Dimon I had you was fill a date I like to apologize in advance my behavior in the night over a cloud your judgment it makes you stupid it makes you not talk to other people if you and now at least I don't actually get that mad but if I ever do I take a deep breath I leave the room I go talk to other people you know these guys hear me I'll bet you're moan about something I've been on TV I'm not that in a moment like that because I've kind of emoted already I got it out of my system but temper not having their bright people in the room making some decisions you can is chicken or steak it doesn't matter so she does certain things just try it just try three or just do them quickly try three or four to every things other things it's a kind of a one-way door you know you better be very careful but that think of people decisions and people sometimes make a mistake in the to and the whole colleague is constipated on decision making when something just don't matter and you know I like she's doing some great stuff but I believe spend five hundred million dollars on tomorrow we need to and so those are the mistakes and so I've kind of changed a little it that way but yeah I know you've been dying to say something question Joe well this was fun we are trying to infuse Davos with as much fun as possible make America fun again [Applause] [Music]

Channel: The Female Quotient

Views: 14,043

Rating: 4.5254235 out of 5

Keywords: the female quotient, the equality, davos switzerland, world economic forum 2018, jamie dimon, jpmorgan chase, kristin lemkau, cmo, ceo, judy miller, equality, gender equality, diversity, leadership

Id: VmPQcG3bQ00

Length: 51min 58sec (3118 seconds)

Published: Fri Feb 09 2018