CNBC’s Jim Cramer talks to JPMorgan CEO Jamie Dimon, who says he’s “confident” lending will increase.
In this compilation of clips from live CNBC interviews today, Sen. Elizabeth Warren tells why she’s introduced a bill to break up big banks and JPMorgan CEO Jamie Dimon responds to the idea
CNBC’s Jim Cramer speaks with JPMorgan’s CEO Jamie Dimon after the bank reports earnings for Q2. Jamie Dimon says “rates going higher is a good thing.” He feels “small business will recover with the economy” and “the United States is the best economy the world’s ever seen
In an exclusive interview with CNBC’s Jim Cramer, JPMorgan’s chairman & CEO says he’s confident the U.S. economy will survive any move by the Federal Reserve to slow its stimulus efforts.
Jamie Dimon video interview and full transcript below
is it too risky? is the government going to say we don’t want you to make them? no, small loans are $18 billion. credit card, another $5 billion or $6 billion. small business is not a huge number. so we’re one of the biggest small business lenders out there. our origination is kind of flat. i do think it’s a little bit harder. small business is not completely recovered like large companies have. i think spa small business will recover with the economy. when the economy starts to grow, you’re going to see small business take off, and their credit needs grow. but if it hasn’t taken off yet, the federal reserve chairman has done everything he can. has he not done enough? no, i think they’ve done a lot. i think we just have a moderate recovery, but i personally think — our view at jpmorgan is that it’s strengthening, it’s broad based, there’s almost no sector, large company, small business, consumers, housing, there’s nothing that’s not going to look better. if we’re a little lucky and got backwind on the fiscal side, you may see stronger growth in america. but your cfo talked about if we have a continuation of these mortgage rate increases, refis go down big, obviously what’s the level where housing just goes down? i hope she’s watching because i want you to know, marian, you did an outstanding job today. what she was talking about is that all things being equal, if rates — mortgage rates now 4.5%, refi is going to drop. but that’s okay as long as the economy is doing well. that’s just one little part of the business. okay. now, a big part of the business that seems to be working is this trading that i mentioned. what does the volcker rule ultimately mean? what does regulation ultimately mean for long-term profitability, for return on equity? yeah. so the volcker rule is not written yet, and we don’t do real prop trading. most of our business is client-driven trading. and we are hoping when the volcker rule is finished, that we continue to do all the things we do. we deal with 16,000 clients around the world. they come to us, great prices, research, execution, and that’s good for the investor and the issuer. i want to point out, since i’m on the new york stock exchange floor, that the united states has one of the best economies the world has ever seen and the widest, deepest, most transparent capital markets which were part of the engine that made this country great. so let’s make sure we’re all done with these rules, that we’ve still got this. this is outstanding. we have the united states senate, okay? senate, 100 of them, one of them very important, elizabeth warren, comes out and says, listen. enough with this. banking should be boring. it’s dangerous, high-risk practices. you need to take steps to keep glam blers out of your banks. are you a gambler? no. you’d be surprised at how risk averse we are. banks are loans. the riskiest thing we do is loans. banks historically always trade a little bit, did m& advice. what are you coming at this as a man of peace? elizabeth warren wants to break up your bank. no, but the proof is in the pudding. people come to a company because you do something for the client. okay. so if your customer stats are going up, if people are giving you business, presumably it’s because they like what you do for them. this company, we never lost money in the cries. we helped a lot of people, cities, schools, hospitals, not-for-profits and part of it was our diversification. we were a port in the storm. we’ll be a port in the next storm. and our clients are hopefully happy with us. that’s why we’re here. you don’t buy the rap that these banks, your banks, wells fargo, too big to fail, too difficult to manage, to difficult to jail, too hard to regulate. i would say that we all have an interest in a sound and safe financial system. okay. there’s no one that doesn’t wanthat. and i think a lot of rules and regulations will make it a lot safer and sounder and we all have an interest in getting too big to fail. it’s not right in america that anyone feels like a jpmorgan is too big to fail. so the rules in place, we think are going toish that over time. and eliminate some of these issues. and if a company does badly, fire the management. fire the board. claw back comp. bury the company. and let the system take care of it. and it doesn’t hurt the taxpayer and the economy. and i think the tools were given to regulators in dodd/frank, it could accomplish that. you believe the regulation floor will not repress lending and will bring about good things in the united states. look, listen, when you say regulators, there are so many. we have hundreds. some of them will maybe do a little bit of suppression on lending. and i think over time, you’re going to see products — the cost of credit go up. you’re not going to see it overnight. but you are going to see the cost of credit, revolvers and certain things go up. 14 months ago you said you were barely a democrat because you felt that the democrats could be too usiness. i’m not hearing that today. i’m not hearing there’s anything to the party. i haven’t changed that. i am very pro-business. i think business — i think big institutions are great institutions. they treat their people well. they’ve been at the forefront of social things like, you know, benefits for gay and lesbians and helping veterans and we pay our people well and medical benefits. apple pie. so these companies do fabulous things. i’m not talking about jpmorgan. i’m talking about all these great companies out there. we make mistakes. we have bad apples now and then. let’s take i a break. this is jim cramer with jamie dimon. stay with us. rest… while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improvedaily physical function so moving is easier. celebrex can be taken with or without food. and it’s not a narcotic. you and your doctorshould balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increasesif you have heart disease or risk factorssuch as high blood pressure or when nsaids are taken for long periods. nsaids, like celebrex, increase the chance of seriousskin or allergic reactions, or stomach and intestine problems, such as bleeding and ulcers, which