Jamie Dimon, JPMorgan Chase & Co. (NYSE:JPM) CEO spoke with FOX Business Network’s (FBN) Melissa Francis during an exclusive interview while on a bus tour of Chase branches throughout Texas. Jamie Dimon discussed the separation of the chairman and CEO roles at big banks, saying, “I don’t think it’s that significant an issue so I’m not going to spend any time worrying about it.” When asked how he would react if JPMorgan’s Board of Directors decided to separate the roles, Jamie Dimon said, “I will probably take their advice.” He also spoke about the sequestration issue, saying it is “almost an unfortunate side issue” and that he thinks it “will just be a small negative in the short run.”
Excerpts from the report as well as the video can be found below:
Jamie Dimon on too Big to Fail:
Jamie Dimon on shift in consumer sentiment:
Jamie Dimon on Sequester:
Jamie Dimon on splitting role of CEO and Chairman:
On what Jamie Dimon would do if JPMorgan Chase & Co. (NYSE:JPM)’s Board of Directors decided to separate the Chairman and CEO roles:
“The board will decide what’s appropriate for our company. If they decide it should be separate, you know, I will probably take their advice.”
Jamie Dimon on whether it hurts his feelings that people are pushing to separate the roles:
“No, because this is what I told you. A lot of savvy investors think you should have the flexibility. This becomes a political issue. As you know, most of the people asking for this are unions. Now, it is perfectly legitimate. They’re shareholders, too. But you know, they shouldn’t dominate the scene. Let the people decide. If you owned a company, you’d want to decide. You wouldn’t want it predetermined for your Board. So, let’s have the debate and we’ll see how it goes and that’s life. I don’t think it’s that significant an issue so I’m not going to spend any time worrying about it.”
Jamie Dimon on whether sequester is critical to long-term growth:
“The big deal is critical to long-term growth. This, I think, will just be a small negative in the short run.”
Jamie Dimon on whether he thinks Americans are worried about sequester:
“I don’t think they are focused as much as the media in Washington and New York.”
Jamie Dimon on whether the media is hyping the sequester issue:
“No, I’m not blaming anyone. I’m just saying I think there’s more in the media than in America. I don’t think the average – if you go to Montana they’re not talking about sequester. And I think they’re hoping that our government collaborates and does the right thing. And this is a small thing. We need a big thing. We need a big bargain. We need to do fiscal reform, entitlement reform, tax reform. So this, to me, is almost an unfortunate side issue.”
On where they’ve been making investments:
“We’ve been making huge investments in small business commercial banking branches technology. We had Investor Day the other day and you know 3 years of record profits, we been non-stop investing, we still have our battleship company and what did the press write about? Job layoffs. Of course all companies are always morphing but we are making huge investments to grow in almost every community we are in.”
On the housing market:
“Housing has clearly turned. The mortgage market, legitimately you hear people complain about, it’s still too tight, appraisals too tight, income demands are too tight, we still haven’t opened up the securitization market so here’s another area where the government and the banks all want to get this done. If we opened the securitization market it will make mortgages cheaper and make homes more affordable. It’s four years after the crisis and we still haven’t done that.”
On the movement by some shareholders to separate the chairman and CEO role:
“That’s not exclusive to JPMorgan Chase & Co. (NYSE:JPM). Here’s my advice, I think of the investors, boards should have the flexibility to decide what’s appropriate for that company with its own circumstances at the time. There are perfectly reasons to separate it and there are perfectly reasons to put it together. There is one academic study that came out today on separating it, the stock did worse. Enron and World Com had separate Chairman and CEO and their directors said we have a chairman and CEO and the separate people, they dominate the rest of the board. Like my board wants everyone equal so the lead director we call the presiding director so they’re not above. At any point in time, my board, there are 11 members, 6 can fire me. They can change the Chairman, they can change the CEO, they can change the presiding director, that’s the way it should be. If they thought it was inappropriate, they should decide. But I think when you start dictating management of human situations, you’re just limiting the ability to do something. I think companies would find it harder to hire somebody who could run a company, I mean I wouldn’t have gone to Bank One if I had a separate chairman, I mean life is too short. I mean, it would be too hard if I had to like sit there and worry about someone looking over my shoulder, maybe wanting my job. So, you know what? If it happens it happens, but I personally don’t think it should be legislated.”
On Senator Elizabeth Warren (D. MA) and her reference to an International Monetary Fund study that showed large banks benefit more from lower borrowing costs than smaller banks:
“I have a fine relationship with her. This is one study which I think is quite unfactual. And you know, if you look at the American business enterprise, big companies or small companies. You know, JPMorgan Chase does things that small banks can’t do. We kept cities, schools, states, philanthropies alive when no one else did. We actually checked this number. The small banks and big banks do more lending in the crisis than big banks did, per dollar of capital. So, look, I’m perfectly willing to get involved in this kind of debate. But it should be factual and not one thing taken out of context. And, you know, Elizabeth and I have a great relationship. I want her to come on a bus trip with me and see what we do for America. For the last five years we’ve lent $7.5 trillion to consumers and companies, $7.5 trillion. And we’ve helped – if you come through Texas here, we’ve helped those companies go around the world, expand their plans here. That’s what we do and we’re damn proud of it.”
Jamie Dimon on eliminating “too big to fail”:
“Look, we have a common interest in eliminating too big to fail. So I don’t think anyone thinks we should have the too big to fail concept. It really should look like a bankruptcy. We’re in favor of that. So we and the regulators and everyone are working toward that purpose. We need the American public to believe it. We need our senators and congressman to believe it. But they haven’t finished all the work yet. So for now we’ll let them finish. At the end of all that, if people believe it is true, then break up the big banks. And then one day you’ll all be sitting here trying to figure out why Chinese banks dominate American finance. America has the best, widest, deepest, financial capital markets anywhere in the world. I’m talking– I’m not talking about Wall Street. I’m talking about venture, investing, individuals, corporations. It is part of the engine that made this country great. Before we really mess up with that, let’s have a real thoughtful dialogue about it and not just sound bites.”
