jamie dimon photo ceo of jp morgan

JPMorgan Chase CEO Jamie Dimon weighs in on regulation and what he hopes to
accomplish in Davos.

Full video and transcript below:

Watch the latest video at video.foxbusiness.com

OX Business Network (FBN) Senior Correspondent Charlie Gasparino spoke exclusively with JPMorgan (JPM) CEO Jamie Dimon from the JPMorgan’s New York headquarters about the health of the company, financial regulation, and the United States economy. Dimon said he hopes to continue to run JPMorgan for “three, five years or more.” Dimon said he “was in favor of the Financial Services Oversight Committee” because prior to the establishment of that organization there has been “no one person in charge.” Dimon went on to say that “Financial Oversight Committee wasn’t given enough teeth” and he is in favor of regulation because if “you want a recovery in the global economy, the regulatory policy and government policy have to work together.”

Excerpts from the report are below.

On how long he plans to run JPMorgan:
“Hopefully many years. I serve at the pleasure of the board who can fire me tomorrow, but my intent would be to be here for three, five years or more.”

On what he plans to do after JPMorgan:

“I’ve been running big companies for a long time. I’m not going to run another big company. So it will probably be a bunch of stuff between teaching and investing and doing deals with friends and getting involved in maybe some boards.”

On who is spearheading the financial regulatory overhaul:

“There’s been no one in charge. There’s no one person in charge. One of the regulations I was in favor of is the Financial Services Oversight Committee, because one of the problems that we had is that we didn’t have one place, so we’ve got a lot of things unregulated or improperly regulated; gaps in the system. But the Financial Oversight Committee wasn’t given enough teeth. So here I’m complaining that that particular role should be given more teeth, not less teeth. Put someone in charge and say, no, we’re not going to do A, B and C, because that’s bad for the system. We have 10 or 20 major regulators now. A lot of these regulations, all they’re looking at is what protects their own entity. They’re not looking across the whole system anymore.”

On his criticism of government regulation:

“I haven’t been that critical on regulation. I have agreed with a lot of it. If you want a recovery in the global economy, the regulatory policy and government policy have to work together. A lot of my comments about Basel III and Dodd Frank are not because they are going to damage JPMorgan, it’s because they are not rational policy, they are not coordinated, making things so complex it’s worse for the system. It will cause unintended consequences down the road. What I worry about is someone is going to write the book 20 years from now about all the things we did during the crisis to make it worse, not better.”

On why Treasury Secretary Timothy Geithner did not consider his opposition to regulation:

“I don’t know. Tim knows exactly what I think. But if you speak to a lot of people, they don’t necessarily disagree. There are people putting their favorite pet peeve in there that it just became very convoluted. Hopefully, some of this will be fixed. And again, I’m saying, JPMorgan will be fine. I think this action could hurt medium sized and smaller banks more, which I’m not in favor of.”

On his prediction for the GDP growth in 2012:
“It could be 3 or 4 [percent].”

On the validity of the Volcker Rule:
“Proprietary trading had very little to do with the financial crisis or the root cause, yet the Volcker Rule, if you interpret it, you can’t even make markets for your clients. Part of the Volcker Rule I agreed with, which is no prop trading. But market making is an essential function. And the public should recognize that we have the widest, the deepest, the most transparent capital markets in the world. And part of that is because we have enormous market making. If the rules were written as they originally came out; I suspect they’ll be changed, it would really make it hard to be a market maker in the United States.”

On his statement that some of the global regulations are “un-American”:
“Some of the rules in Basel III are directly aimed at just American banks. They don’t have those kind of assets overseas. So that’s number one. Number two, how they do risk rate assets, it’s quite clear that in certain parts of the world, they’re much more aggressive in that. So that is clearly against American banks. Some of the things that were done weren’t done by European regulators, they were done by us. We can — we don’t — we can’t use preferred stock. That was taken out of the rules here for capital. They can use preferred stock overseas, which is a cheap form of capital. Volcker, when that was originally done, I remember Paul Volcker saying everyone is going to do it. Well, you know what? The rest of the world said no way. So that applies just to us. American companies, wherever they do business, have to do it under different requirements than overseas. Then that business will simply move to Deutsche Bank.”

On the overall health of the United States economy:
“I think America has a mild recovery, but it is broad-based and it could be strengthening as we speak. Once household formation goes up, which I think will follow jobs, we’re going to have to start building more homes. We go back to building 1.3 million a year, which our economists think we’re going to have to start building soon. It could be six months, nine months, 12 months, 18 months. That alone adds two or three million jobs. So that is what I would call the beginning of a self-sustaining recovery. More jobs, more incomes, more jobs, more homes, more people employed, more kids moving out of their parents’ homes.”

On President Obama:

“It’s fair to say that he entered probably one of the most complex economies ever. And for a while, I think people did a very good job. I’m not going to talk about President Obama. I think for the last 18 months, between Congress, Democrats, Republicans, regulators, overseas regulators, it hasn’t been coordinated in a way that’s going to lead to recovery. Now, you can blame that on the president. You can blame it on the Democrats. You can blame it on the Republicans. I personally don’t care. This has got nothing to do with Democrats and Republicans to me. I believe there are policy solutions and we don’t have all the people in the room working on what those solutions are. What we have is a lot of people just yelling at each other.”

On his access to President Obama and whether his relationship with the president has “cooled off” at all:

“First of all, whoever was in the White House, a Republican or a Democrat, I would work with them, take their calls and try to help. There

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