Jamie Dimon, Chairman, President, and CEO of JPMorgan Chase

So Jamie, welcome and thank you very much for coming here today. It is a pleasure to be here. Thank you all. Note that there are many other people who did not expect to be here, so welcome friends from other places. This is the third time they have done it. come talk to us and I have to ask you if we are very lucky to have you or if maybe there is some latent regret in choosing our competitor on the east coast if you are in business school then why did my wife go to the Harvard Business School?

I was a tough business target, my daughter went to Bisco hard and two summer laws didn't go to Harvard Business School, but we love Stanford and we like to come here all the time and when I walk in here I realized why You don't work like that. Here now, talking about Business School, we have many people in the room who are trying to decide between entrepreneurship and more traditional paths. Leave. Would you mind talking about the decision you made to leave Harvard and whether you do the same? Nowadays, when I was working at a small, second-rate consulting company before business came back, they had to go to MIT, so I admitted that I had to work for two years and I thought about it and you know.

I did the consulting work, you learn a lot. I also learned that I even want to be a consultant and, well, I saw a lot of different companies and industries, including mismanaged policies, all these things, so it was actually a very good experience. but I got it when I got to Harvard Business School. I actually worked at Goldman Sachs in the summer of '81 and was headed back to Goldman Morgan Lehman as add-ons. Goldman and at the last minute Sandy Weill offered me this job to be his assistant. Shearson, which is a brokerage firm with a couple thousand brokers for American Express and it seemed like it was too good not to see a big corporation from the inside, how's it going.

My goal in life was, you know, to be poor. for an organization it wasn't necessary to be an investment banker or a trader or something, so I made the decision. I thought worst case scenario I can go back to Wall Street, so I didn't feel like it was, you know, they lose. anything but time, yes, well, yes, I would make the same decision again maybe not for the same guy again, but the same decision now Sunny Oil obviously saw something in you the moment you meet men and women of our age at JPMorgan today what leadership characteristics What do you look for in them and how do you identify and present those people as the next generation?

Well, when you're young, it's hard to say leadership characteristics, but I mean there are some basic things that you know, they are people who know. You know a lot, so some people come into your office and say, yeah, I'd like to know about the company's strategy, and they didn't bother to read the

president

's letter that I wrote, which is like 30 or 40 pages. He comes in and says you know you should really think about offering better digital services, but you didn't look at the ones we do. They're the other people who come in and know everything, so they have a conversation about what they're really improving on. your life instead of the other way around so you know that the character is a stage wonton and by character I also mean that they tell the whole truth, nothing but the truth, they don't shave the truth and they tell you the same thing that they tell you because in the second that I see people doing something different than that you just go on a list for me I have no interest I don't have time for that and I don't have any saying and people who are good to you know that they relate well, they are people, so, a variety of things and I think when we look at finance ears, often people focus on the competitive leadership characteristics that they see being in the GSB, we have a real focus on the collaborative way.

Do you see the balance between competitive and collaborative creativity within a company? Look, I think the things that destroy companies, people or bureaucracy and politics, and you know, and you know, we had an external site this summer, I was asking. many times I can, you know we have to make this simpler, we have to do it better, you know we have to kill our meetings are too long and we support the regulations, sometimes they are regular than they are going to do it, but I said no, let's go To do it. Let's reimagine all these things as they should be, not as they are today, and let's try to do away with some of those bureaucracies that grew up recently and we write a memo and we all do pre-reading and in my meetings it's not skimmed once. graphic, are the three readings.

I hope you do your homework, get the analysis, and separate yourself from people beforehand so you don't come in and say why I want to do a B and C if I haven't talked to this person yet. I would say why are you talking to this person, the media is off, do that first and then come back with a joint recommendation or you don't agree and then we'll talk specifically about why you don't agree anyway. I would ask about bureaucracy before The reading began by saying that bureaucracy is a necessary condition, a result of complex businesses operating in compatible environments, it is simply not true, okay, Braco C kills bureaucracy, drives out good people, it drives an innovation, it turns the person in the next office into a competitor and not a collaborator, and that's it. a very bad idea within a company, you know it's okay to compete with ideas, but it's a very bad idea to compete with the person next to you, that creates politics and if you look at the companies rated over the years , it was bureaucracy and If you look at fortune, you know five hundred and you looked 1950 1960 97 98 at the companies that failed, it was because they were stupid, bureaucratic, backwards and political, and the CEO should never allow those things and yet they do.

I mean, it's normal. Of course, they allow it and you've seen a lot of public companies and boards of directors allow boards to create it by the way, so yes, absolute collaboration, but collaboration doesn't mean that everyone has to agree. Collaboration doesn't mean you get along because that's He's a very thoughtful person, people mean it and he's a good guy and basically, you know, if you walk up to me and say, I'm going to be loyal to you , I would wonder what that means because you have to be loyal to the institution you have to be.

Going down to clients you might be loyal to the principles I hold, but being loyal to me usually means defending my decision, whether you agree or not, and I think that's a mistake, you are well known for having a very sincere and open attitude. frank communication style as appreciated by Warren Buffett, he says he received many letters from the

president

and we obviously appreciate it here, what led you to develop this communication style from the beginning? Well, I'm one of those that I don't think I've changed much since I was eight years old and you know when I got to Harvard The business girls left me one piece of advice that I got when I graduated was whatever you do Jamie, don't go into business.

Americans, you won't survive and obviously, and there was some truth in that, you know, he was too blunt and, you know, for some corporations, etc., and you know part of that was Warren Buffett, so I read when I was in high school or college, I actually read. the partnership letters from him and they were and he said: I'll talk to you like you're my smart sister who doesn't know everything I know, so I have to do my best to explain it to you and you already know about business. It's not complicated, we should explain it, so I always felt exactly the same way I always felt as a matter of principle within a company.

If I let the public spin it, you'll tell me and think about the profit numbers and how great we are. we are doing, we are not, so I tell them the same thing that I tell my board of directors, they tell my shareholders, I tell my employee, they tell my client, there is no difference. You might phrase it differently than talking to difficult people. people and trying to explain themselves, but there is no difference and that clarity I think helps a company know that it was trying to achieve it all along and you know that when I read the annual letters it was sold in the lottery, my respect, that can be will drop a little bit, you know, and then you'll have to be very specific because we can all say, well, the customer is the most important thing and the customer, the customer, nobody, you know what it should mean, it should mean something specific, like you . actually read customer complaints and then do something about it instead of putting the customer first, a lot of people say that and they don't mean it in any way, they don't take any action, I would actually back up the statement so this one.

I'm afraid I'm going to try to sneak in some old pro advice. I think everyone here is aware that technology is extremely sexy right now. What do you think is a little less? So today, what I said today, what do you think? It's the opportunity in a career in finance that someone in the audience may be seeing, so first of all, you know the one thing that technology has driven. I don't think it's any different than it was before it drove change throughout history. you know and it's all the various forms of technology, from today, from chips to the Internet, but you also know printing, you know, energy institutions, schools, churches, the spread of morality and that's what's always changing. society and you know, and it's always in the The root is that the root of changes in companies is the root of changes and you know what companies do well and companies do not do well, so It is absolutely fundamental.

I personally in Silicon Valley had a free trip with Obama and the White House. You know they, they, they pleased you, you gasped for him and he pleased you and now you're seeing the other side of the coin, so the big companies, the successful ones, will find out which ones I've known for a long time, how big you are. Furthermore, the government is going to get inside you what you do and want to impose and establish rules and standards and sometimes for the better sometimes not for the better, but also financial services, so I think that technology is something absolutely wonderful, but the financial services first we are a big user.

In technology we spend nine billion dollars a year, so you know we're not at the forefront, but we're very close in terms of what we spend, money on what we do or our data centers, our capabilities are mobile. digital movement and we move six trillion dollars around the world every day digitally, not crypto currency, but close to it because, since it is digital, you know, we have 50 million people banked in our homes and soon we will have a construction in line, no. I mean online investment and Robo investment, all these various things to link to our accounts, so we are big users of that type of thing, obviously we also use Facebook advertising and Google Chat or not, but financial services always They will be an interesting business because it is not the most important piece, but the nexus of how a capital company works is part of the spinning wheel and when I say financial service I mean everything, you know, venture capital activists private.

Whether you like it or not, banks, non-banks, individual investors and many companies that do things individually that help change the world a little, but there will always be the feeling that where money is invested, ideas come together, things get executed. , the capital is executed. globally, so it's always fascinating, it's always going to be well paid, whatever some of these people in DC say, it has to be well paid, but you can't do it, you know, with dumb people making dumb decisions if Do you think that Actually, if I had a good economy or something, I would always be a high-tech user and it would always be complex and global in nature, you know, and that's why it's a fascinating business when you get up in the morning, but I want to say, read the newspaper there is very little in the newspaper that I am not reading it affects our customers it affects our companies it affects our risk it affects our exposure we should do something about it like any article because we do business and you I know more than 100 countries and with help from almost every country and every sun, it's a lot of fun, so it's a fascinating field.

I mean, when you get into it, there are different parts and you have to decide how you want if you want an answer. How do you want to get into that? One of the things that we established that I really like is that we hire top-notch people for investment banking, sales and trading, so we go to the best schools in the world, we hire some of the best people. Now we do the same thing for general management, about eight, nine or ten a year because we need people who can run the damn joint, and I want the same quality and we move around the company, we keep an eye on them and you know. but the point is they want to be global, they want to move and they want to learn how to manage and run something, so the same kind of compensation is for top bankers, the same openness to senior people so we can do that and not that if your Bain investment, you can't go into management or know sales and trading, but this is really thePeople want to do more management financial services, so you mentioned cryptocurrency.

I know you said you weren't going to talk about Bitcoin anymore, but at Stanford, some of us put all our student loan money into it and I still have to ask you why you think governments and regulators can't allow existence of a global currency becomes a spokesperson against Bitcoin. I don't believe it. I don't care about Bitcoin. I could give us yet to tell you the truth and I promised myself I wouldn't talk about it the next day. I did it. There are four things very quickly. Blockchain is real. Its technology. It could be public or private. it could be for five people it could be for 5 million it will work when you already use it in a lot of test cases and things like that, so we support it.

I'm a little concerned about security because, like I said, we move six trillion dollars a day in real time quite efficiently and effectively. and sure before you replace it, you need to make sure that you can, you can do it right, there are three cryptocurrencies, okay, three types, three separate types, one is because I see, oh, and I haven't studied these things, but you're paying for a token which allows you to use a service that is very different than a currency, but that's what people call cryptocurrencies and maybe Jim maybe you've studied some of his eyes.

I have no idea that you know anyone is providing you with cloud services or anything you're investing in. in services, that's one type, the second type, you can use crypto currency for fiat currency, that works because it just uses a different technology to move the money, basically we don't store your money digitally anyway and if you just store different files on a different place. way and distributed Ledger that would work fine, but I have always thought of Bitcoin as a currency and a store value and a payment in ISM is that governments and this is my belief and I may be wrong.

I'm not saying you can't go to $100,000 that governments will crush it one day for three reasons okay one is when it's used for terrorist activities okay it will happen it's time to go back to Bitcoin and then suddenly , the Department of Justice, the United States government. these people in Washington profess to love technology and you know, the new thing is Bitcoin, they're going to change their mind number two and a lot of little old ladies lose their money, you know, because the United States government allowed the speculative vehicle to exist, you know. . and they're going to lose their money and they're going to be hitting, you should have done something about it and number three is the most important government every time a government is formed and you go to any country in the world, you take out the currency, look at the date on that fiat currency was formed by that government with the central bank because governments like to control their currency, they like to know who has it, where it goes, why it goes, when it was, etc. and right now bitcoins are a novelty, they are one hundred billion dollars.

I know and a billion dollars a quote raise your hand obviously mostly speculation okay and obviously there is a real use case I won't make it a joke Venezuela Cuba North Korea criminal drug money that will always be true so always have a use case that is valuable to someone because it is better in those countries to do something that you know how to have that then ask for that coin or carats or money in a bank because the government also takes that and if you go to Argentina you would have to be affected by the government savings accounts just came in and took it they just took it and you know of course everyone took the money out of a bank or after that and the country basically collapsed but that's the reason it's going to be done more and more big and the government will control it. and it's not the same as a fiat currency, a fiat currency, the government says you should take this as legal tender and at par, effectively cash at par, you know, and it's always worth par and I don't know why a crypto dollar would ever be something you know the value of a store is worse than a Bitcoin cryptocurrency so you know it's my point of view and I could be wrong and I doubt I was wrong before that and if I'm wrong I'm not wrong either. of great importance. it will never affect my life, it's not because they write or the bankers are defending their absolutely false things, you know, if Bitcoin works and we have to do something, Bitcoin will do that to you, kind of a win-win, JP Morgan is a big technology investor blockchain unlike Bitcoin, what do you think will be the most interesting applications of blockchain in the final blockchain?

They think about it's not like a faster chip or you know NVIDIA GPUs and things like that because when you have certain technologies that just filter through the whole system and allow you to do different things everywhere, like just more database and you know more read different natural language processing. Basically, you have to write code to have a use case for Bitcoin, so think about it. It will be implemented use case by use case, so we will use it to move money within the bank. Something like 30 or 40 percent of the secret Orion dollars that we move is just between JPMorgan Chase accounts.

Well, I saw Mary here, do you know about General Motors? to one of their providers and we have both accounts, we just move them between our own accounts, you know, basically, with loans like a loan, you know the loan document, man, an exchange, all the paperwork, all the details, no limitations , all the, you know the covenants and all that could be kept in one place where everyone has the same files, all up to date, you know who the owner is, you know who is not the owner now, so it will be a stock trade. I don't know, Bitcoin takes 10 Minutes to finish, you know we do thousands and thousands of split second trades on stocks, so it may be too late to use them on the stock train.

It may be fine for end of day settlement issues, so I'll just use it on a case by use case basis that you can discuss. one by one and say: I work here, I may not work there, but again you have to write the code, we are effectively rewriting the code to move from one hot topic to another, you, part of President Trump's business advisory council, should have dissolved and where the dialogue with the administration is taking place, so I joined the council. Just keep in mind that when I joined the board, the president asked Steve Schwarzman to call me, so the president likes you to join his board.

I'm a patriot, I love the United States of America, okay, and it's very important that you love your country and I'm still going to help my country, so help me God, that's what I'm going to do whether anyone likes it or not. all the president. Trump and remember that we help presidents and prime ministers around the world. I see them, we advise them, we give them this and we want to help the people of that country and that is part of their job, as a bank and as an individual to try to help make the world a better place.

I joined the council. I got a very long, well-written, fancy, nasty letter from my daughter, like basically, basically, how could you, Dad? and my other two daughters got right to the point, the same thing and My wife told me how many of her friends she had explained it to, but remember that they are all effete liberal New Yorkers, in my opinion. I said that I am a patriot does not mean that I agree with everything the man says or with the way he is. he himself is about trying to help the United States of America the council met twice so think about these councils the truth is that they are not particularly effective you know there I was in one I don't know if Mary was in the second meeting and I I think the second one was very similar to the first one or you know you talked about the infrastructure, you talk about this and the president says it's ridiculous, we improved, all this is true, but at some point it's worth doing it in detail in the agencies, OK? by a group of CEOs sitting around the table, you know, telling you that you know it takes too long to build a bridge and that this regulation hurts and we need this in the capital markets so that the effectiveness decreases over time and then after knowing that Charlottesville was the last straw, but the negatives were increasing, you know, most of us really believe in diversity.

The LGBT daca programs were pro-immigrant, and we certainly wouldn't justify them in any way, you know, Nazism or white supremacy and things like that. So, by the way, we had to explain to our own people because the press always came asking if you said something. I don't remember the press calling me and telling me that I had to go public every time I didn't agree with something. Obama did it, the press really is extremely biased and they're going to have to do something about it, not quite, I'm the old biased guy in his own way, but I haven't constantly explained it over and over again, it was just a negative thing.

We had a conference called Steve Schwarzman was the president and he led it. We went alphabetically. Everyone on the conference call said, let's just dissolve it. There were two that said not having to see the table is a good thing, etc., and we disbanded it, of course, Schwartzman. I told the president and what came out was the president agreed to dissolve it, you know, that wasn't exactly the case, but everyone in that room is still working with the people they should be working with to help the United States. State governments do things properly, they need help if they somehow think that the decisions will be a property in Washington without the help of companies, they won't be, and that's why we all do it our own way and, obviously, I do a lot with Minuchin and Cohn and you know other people who deal with others, their other agencies, etc., but it's in the future, but you try to help and you know that just because you don't like a president it's a very bad idea.

I think we've become too knee-jerk. - idiot in our politics and you know you should be willing to help, you will appoint yourself, yes your name was mentioned a lot as a possible Secretary of the Treasury, that did not happen, but say that you will wake up tomorrow as secretary. What is tax reform or economic policy like? Undersecretary Diamond Yeah, so I don't want to be Secretary of the Treasury, but we have, you know, I tell people this is important, this country has the best hand I've ever dealt with of any country in the world. planet and most people don't fully understand it, they never make the list, so I guess you have a problem, make a list and go over what really matters and I'll do it quickly, we have all the food, water and energy we need. we have the Atlantic in the Pacific, and you know, our founding fathers realized how powerful it was to defend this country from wars and wars in Asia, in Europe we have the best military the world has ever seen, that's true for a long period of time, and you know.

You could say this in comparison to China, but do so respectfully. China does not have enough energy from food. Okay, and their neighbors happen to be the Philippines, Japan, North Korea, South Korea, Indonesia, Vietnam, Pakistan, Afghanistan, India, and Russia, and they have had border skirmishes or wars with similar countries. five or six of them in the last 40 years are in a difficult part of the world, so those leaders say: God, we need food, we need access to certain basic products, we need each other, but we have to have an army just to protect. ourselves from the billions of people around them who don't have Nestlé who are happy with them so America has it too and I have a business go throw away my Japan Japan Japan Japan Japan and now they were BRICS Brazil Russia India China and it was Mexico in the fog Mexico Indonesia South Africa Turkey but none of them have what I am going to say universities we do the rule of law as we do low corruption as we do the widest, deepest and most transparent financial markets that have ever been existed in the world seen public and private again, I'm not talking about my banks here, okay, and hugely vibrant businesses, small and large, and innovation like the world has never seen, and I'm not just talking about Silicon Valley, I'm talking about going to any company in the United States. and believe me, we will increase productivity by two percent somewhere, okay, and you know, we know if Brazil has that India, China, okay, most European countries have that whole list, does Mexico have it?

I mean, people don't, that's the best hand, but Someone went wrong and I think we left a large segment of society behind. 10 million people left the workforce, but I think they're starting to come back. 20 million people are criminals, a large number of whom should not be found. I tell people that they know that if they were caught doing anything they did, they would be criminals and they won't be able to get a job after that or at least they know that in most companies they won't get the job j1 by law for most . Of the jobs that we do under the rules and regulatory requirements, we have the opioid crisis that we had, there are some, I think we blame trade and immigration technology, but that's not really theright, but we have the sum of these Rust Belt cities that we left behind. our kids from inner city schools, 50% don't graduate well and most didn't go to inner city school, but 50% don't graduate, they're mostly poor, mostly minorities, In this land of opportunity there are six million open jobs.

Nowadays, good jobs you can get out of high school Welding, construction, electrical coding, automotive, its automotive everywhere, aviation and we are not training the kids, and you know that, that's why I also took over the president of the Business Roundtable, so the question I always have is how do you fix those things and I actually think the solution is already known. I think the difficult part is getting approval from Congress, but you know that you have to make a competitive tax reform. We and I were surprised that my Democratic friends are nice and say: we are going to change wages on the first day of the corporate tax reform tour that is your measure what happened last time that is your measure the measure you should have is the counterfactual if you had a competitive tax system ten years ago there probably would have been three trillion dollars withheld here companies and capital 5,000 companies have been bought by foreign companies because it is advantageous for them to own an American company now, so while our government entertained with these investments 5,000 attendees required by net foreign companies, the study arose from E and why would that have been retained here, let me think about the corporate headquarters and you know, we harm ourselves and it is permanent and those four billion in abroad and it's four billion, someone has been reinvested a lot, you know, hard equipment, plants and companies, but they are still two and a half billion for cash, that's why it's there, not because they come here immorally, but because it's a lot more advantageous to do things there.

Microsoft built a research center in Vancouver because they can't hire the same kids in Seattle because of our immigration laws and so, you know, these things have held America back and I'm absolutely convinced and it's hard to prove it. We maintained a model that we are going at 2% despite the stupid things that the government has done for 10 years and we have done the right thing in competitive taxes infrastructure education we would be growing at 3 percent or more this recovery growth is half of a normal recovery a small business formation is we are damn net of millions of small businesses that normally would have been formed and the reason is lack of access to credit regulations and again I can't prove it.

I'm trying. I'm not using big data from time to time to try to get some things looking back and that's what the Trump administrators part of the agenda the right infrastructure education competitive tax reform adequate regulation adequate and I'm just saying adequate instead of less or But you know that they were greatly exaggerated. You've heard people say that it didn't stop the lending, okay? we did some, this was a really real analysis and it was done by economists, not me just mortgages, we believe that between one and two trillion dollars was held back because of the cost, the lack of securitization, the lack of servicing requirements and because the litigation in around this that people are mostly, the mortgages that the eyes are not willing to make mortgages are for first-time buyers, young people, immigrants, previous defaults and self-employed, do not go back to the subprime mortgages of old age, just open a little bit the credit box, okay, two billion dollars. in mortgages they would have tried 5% growth in GDP, that thing and yet they say it didn't stop lending and purchasing, that wouldn't have changed any risk at all for the banks that we for the most part don't hold. those things and it wouldn't have changed the risk for the government or them I actually think the risk is lower when the economy is stronger and so that's what they should be doing.

I think they are going to do many things, I hope that under His management of JP Morgan it has gone from strength to strength, but one case stands out as negative during his tenure, which is that in 2012 a London-based trader lost more than six billion of dollars for the bank. Is there a lesson for all of us and how you handled it? that incident and do you wish you had done something differently? You know, here's an example. I mean, this is what our countries come to. Well, we had a record profit that year. We are a great company.

It is very shameful. I'll tell you about that. mistake in a second there were no customers involved, okay, it was originally put in as a hedge that obviously didn't work well and yet we were severely punished in Congress with two billion dollars in fines. I mean, it's outrageous, it's just outrageous that a company would make a mistake. my shirt got hurt with six billion I hurt my shows I apologize for my shows and the government finds me two billion on top of that because they can because they said it's another example of a poorly managed bank etc. it doesn't happen and it was like that it was it was We had put in a hedge that was supposed to make a lot of money in a recession and basically cover the expenses of a normal thing and lose money in a booming environment.

Think about it, the thing is that we had short high returns and a lot of time researching like that and it was It's not about complex derivatives, what matters because the fact is that that was not the mistake, the mistake was when we, when we put this in, I thought and I repeat, I blame myself and made it public immediately. A big mistake, two billion could be. much worse, bad strategy Bailey investigated Billy monitored as soon as I did it because of me Sorry, let's fix it, you know, and you know, the details somehow didn't matter, but by the way, G Liquid fits the trade.

When I asked them to halve the positions, I asked them to look at some very simple risk-weighted asset numbers. I should have asked a couple more questions, they couldn't do it, so instead of cutting it in half and saying We have a problem, but if at that time they said we had lost half a billion, you probably won't even know it, but instead of So they doubled down, tried to resort to these crazy old ways to reduce the risk. but they just added more illiquid positions on top of other liquid positions and when you try to untangle that thing, that's how they kill you, but the lesson, there's no lesson for me, I knew it the moment it happened, I've seen it before.

I got the entire management team back, all the public relations people. I said, guys, they're coming for us. We'll say Jamie was like everyone else. You know, the big banks are too big to manage. Jamie. The diamonds of failure, just like these other guys he left behind. their highly sacred diamonds break diamonds in the rough I wrote all the headlines I said I said Forget all that stuff We're here to serve businesses Serve customers We're going to do our job and hopefully the attack of the and when that's something like that. that happens and many of you have been through this which is a letter to Evie AG to every newspaper tabby senator to every congressman and they will literally attack like a pack of barking hyenas and yet we all look at it like it's like that.

Okay, it's not okay, it's not the way professionals should act when companies have problems and things like that, so you know, the fact is that there was no big lesson learned except for all of you when you have a problem and I would say. now Zuckerberg has one, that's what he's going to deal with. I'm not sure he fully understands that every attorney general, every senator, every congressman will immediately turn around and attack, take advantage of it. I mean, I'm surprised you don't. We talk about finding them for billions of dollars still, so you know that and that's what partnerships do, you just have to learn to deal with those things, so, and the biggest risk of the entire risk committee, for which we obviously assume the risk everywhere.

In the world, that Risk Committee that was meeting as a senior risk officer when I asked them what's up with this trade, they said oh no, that trade was pretty much done among the group of traders that are doing it and I knew that Drew He was our CIO. who I respect, did not and did not want to share the risk committee, that should never happen, never, ever, ever, the tree committee sees everything, my general counsel sees everything, my compliance header is everything, once someone It says well that we. what you're going to do here, then you have a problem and that tends to create a problem, they will come back and want you to explore leadership in difficult situations a little more.

The Harvey Weinstein story is very much on people's minds right now as a leader, what you think is your role to play in creating a work culture that is very respectful of women, well, I think it's your paper to do that and you know it, and something said to me in that heart of mine that says "oh, that's how well you know Wall Street." It has been like that Wall Street is not like that today people don't like those things. I mean, I'm sure there may be bullying somewhere at JPMorgan, but if you think anyone tolerates it to get into a high-level position, that's not okay at all, and we've got you.

I know strict processes in place to look at what people do and how they do it and review it and if I got involved in any way I would go straight to a separate board, it wouldn't be like me, you know, me. I can negotiate to sell mine or something, so the first thing with diversity and I think it's more important than anything else is that everyone in the company is treated with trust and respect in any meeting you walk into, you will feel welcome. I can talk, they are not boys and you see, you know, you see the subtlety of boys.

I have seen this. I have seen your banker once he told me. Jamie looks at this man who leads a large part of entering the partners' room and me. I approach you at a friends house like that football game you are a man why would you score in golf and he doesn't even talk to the women in that room you know if you are managing a group of people and I saw you do that you would get a reprimand from me , you have to talk to everyone, some people you may like more than others, we have to talk to everyone and you have to do everything you can to get the quiet person, the reserved person, the person you know not I don't want to be embarrassed into talking , feel comfortable and when you have an environment of trust and respect, people can shine.

Well, now you should have specialized programs and all that. I'm in favor of that, but they don't work if you don't create that environment, it doesn't matter and you know it and I know it, you would still advise my three. I have three daughters, if they were in a bathtub environment, I will leave and find a place that appreciates your skills that you know, so ultimately it will hurt a company because you know if I can choose my team out of all the people, not just white men, I would choose a much better team. I should point out that JPMorgan Chase.

I am again, not the press. Don't write this half of my direct reports or women, did you hear what I just said? Every article, even in the Wall Street Journal, always says that it will be 30 years before women make up 30% of the executive suite on Wall Street, including 50%. the head of technology, you know, Laurie Beer, who's been doing a great job, didn't do it for a couple of months and 20% of my direct reports are LGBT because they're cool, you know, and 30% of the Top 200 people in the world. The company is women and they run most of the company.

Credit cards Private banking. Global capital markets. An Indian woman is ahead of us. MA. And that was the most macho man in a belt and suspenders smoking a cigarette in the back room of every job you know. and her father didn't even want her to go to college and she's actually from India, she's not Indian, so yeah, I think if you do it right you'll have a great environment for everyone and you'll have to have your eyes open. , you know what always worries me is not that we have 5,000 branches and you know, I always know that in that branch that guy is a woman, but mostly the guy who could be a bully and get away with it because we can't see him and we can't No matter what we say, the people at that branch filled the gap.

They need their work and they put up with it like any other. You shouldn't allow likes and if you've been, I've shown you. It better be easy. You should never allow it. And I realized that You weren't allowed to have a golf event and invite the men in the division and not the women. It's not allowed. I mean, my first inclination would be to go to Firestone on the spot if I heard. about that, just what and not make golf do something different, no, and you know, do everything you can to make everyone feel accepted and you will build a great company.

A question we often ask female CEOs here is how to manage work-life balance. We rarely ask male CEOs, but I heard a story that you want to start leaving your first job because a partner forced you to. to work during the weekendneedlessly. We are not suggesting that JPMorgan invest in banking. Analysts stop doing it. same thing, but do you have any advice for us on how to structure our time balance demands that were made anyway when I was an analyst for this consulting company, this consultant told me I had to do this job. I need him Monday morning at 9 o'clock, he gave me the Friday assignment that all the people on Wall Street would complain about that the kids are right, the MDS come in partners and since they are not thinking about the fry and then on Fridays, I need this.

I need a Monday, which means you have to work all weekend. and most of the time you could have done the task on Tuesday, so we tried to institute some policies where you can't assign tasks to people anymore and on Fridays, basically, unless someone high up approves it, but He worked all weekend and then I arrived at nine o'clock and there were a lot of things. He was at the library, you know, doing research and stuff like that, and he wasn't there and he called at 12 o'clock or one o'clock, Robin said, I worked it all out. weekend you said nine o'clock was critical he said he said I didn't really need it until tomorrow I just want to make sure you did it, to which I told him and told him I'll never work for you again.

No, but there's no advice, my advice would be that temperament is not a good thing, but me and they said, well, if you can't tell the consulting firm we're going to work for, I suggest I can because they might fire me. Pretty serious, I never worked for that person again and I think that was some bullying, you know, and that was my instinct that he was just bullying me and it was completely unnecessary now and he knew me well enough to know he was leaving. to do what I told him I would finish and things like that you couldn't have a balance between work and personal life.

I tell people. Jamie Moore Chase, it's your job to tell your mind, your body, your spirit, dress your friends, your family, your health, your work. It's not our job, so I think there's a bit of a misunderstanding that some of us companies should now do everything we can to help you. I tell people that we give Pilates massages to psychiatrists. I mean, we really try to take care of our people. but I can't make up for you not doing those other things and you really have to do it yourself. Most people don't work very smart, so first of all, work smart and deal with emails and phone calls in general, once I'm okay, I have three. types of reading very fast fast very slow so you know it's me and they're very slow it's too complex I really need to think about the very fast it could be a magazine that once you're done you'll be interested in or something like that and you know you don't manage your lives from efficiently and I'm sure you've seen it even at school here, you know, people are frantic, they're always frantic, they're late, they can't come back, I'm sorry and I'll come back to you.

I could I don't I have my cases I couldn't do this if you're frantic it's you it's not school it's not work it's you because many of us are not frantic I no I'm never late I'm almost never late I'm not frantic I have a good list of failures I know exactly the people who do it I schedule time you know for me to exercise and to you know make my phone calls and if I didn't do it this morning it would be a little, I would feel harassed if I wasn't completely caught up, you know, so work like that. very smart, learn to work smart and then in some parts you lie.

I think it's really hard when you have kids who burn the candle at both ends. One piece of advice for men is that you better stop watching all the football games and playing golf on both Saturday and Sunday, you know, do some of your kids, that's fine, if you don't, it's negligence, it's Well, call it what you want, but I have a lot to complain about Reggie. They couldn't get enough family time, but they're going to play golf on Saturday, which I'm playing golf and Saturday means you wake up at 7 or 8, go play golf for three hours, have lunch, use your Bloody Mary. , you go home and take a nap, okay, and you go to dinner with friends, you know you should have done something with your family, so you can do it if you're a woman.

I think it's even harder, you know? And I think there are some jobs that are really conducive. to help you and some you don't know and you have to think that through a moment and one of the best women that Tyra gets is that you have it all, you just can't have it all at the same time and just think a little bit about how you manage your life , that could be a guy who has to stay home to take care of the kids or his sick parents or something, so it's a long career and you can pretty much do it all, but you have to do it.

Make sure you save time to do those things and even the hardest work you can do. Jamie in 2014, you continued to actively leave JPMorgan despite battling and overcoming throat cancer. Many people were incredibly impressed by your decision to stay in charge with a company during that time, which continues to motivate you in those circumstances, well, yeah, it's not up to me to stay home with the company and you never end up with cancer either, so you know I had to make it public first. It wasn't my preference, but you know, they couldn't see me going in and out of Sloane Caterine and, of course, I was going to lose weight and I didn't lose my hair, but I could have and all that, so I just totally did it. clean I went to work like almost every day but that doesn't mean I work every day I mean I was taking four or five naps I lost like 40 pounds me and I didn't want to get close to anyone because their immune system has practically disappeared, so do you want even catch a cold at that time?

But you know, I said why not, so I was sitting at home and I'm going to get my treatment every morning. Radiation and I go. At home I tried to exercise. I went from running five miles to walking five and literally walking for a minute, going to the ground. I was going to pass out and walk in a minute, but it made me feel better, but the same air in the gym. then I leave but if I stayed at home you know what I was doing I couldn't read it I just thought I could read eight hours a day I just couldn't do it but I stayed at home I was watching Isis and Ebola and when I go to the office I'm surrounded by friends and interesting things and you realize, oh, I had some meetings, you know, so it was just better for me and you know the board was fully briefed on all the time and I have an amazing team of men and they were great and my family is great. and just so you know, it was a moving experience in a way, apart from the fact that it's terrifying, Jimmy, thank you very much, thinking I'll turn it around.

To the audience for questions and answers. Thank you very much for being here Mr. Diamond, what level do you think Bitcoin needs to get to before JPMorgan adopts it and what level of demand did you say there is a level and I wonder what it would be if we look at the price of $7,000 today, I doubt ? we'll take it at any price so what I'm trying to say is that I'm worried about getting caught up in this maelstrom of people losing money and stuff like that, there's no reason for us to do anything now if I know if you're a customer and want to negotiate by seeing me or something like that.

I advise you not to do it, but we should do it and make exchanges for the client who asked us to do it, it is sophisticated and obviously not brilliant. but sophisticated maybe I don't know I am, I mean, I told the team senior team I don't tell them what to do, I told them because I sent a note to Daniel Pinto run, I said Daniel, I know you heard what I said. It's your job to figure out what to do, you know, and if you don't agree with me, that's completely fine, I'll probably do what he wants despite what I said.

Hello, hello, thank you for coming. I am Puneet. a second-year MBA, a couple of things you said that were pretty interesting were that there's no lesson to be learned and I don't care if I'm wrong, and I guess in a lot of senior leaders I've noticed that self-awareness and learning from mistakes are characteristics key, do you agree? If so, do you have an example of a time when you actually tried to build them? Yeah, so I said I didn't mention the mistakes I made. I should have asked a few more questions. I bite, there is a question that only one would have known, it was the one in which I said it was a tempest in a teapot.

They had tied me to a pile. The wrong answer was how liquid the positions are, how many dates they can. Sal, I said ten, yeah, it was like hundreds and the moment I heard that I was like, oh we have a real problem, so you learned and I actually wrote about my president's lover. I said lessons learned or relearned. I knew you know. It's all you learn sometimes you learn the same lessons about no, it's like being the boxing ring, they say doctor, you know, put your hands up, yeah, well, that's harder to do than you think, but, yeah If you learn, you improve. as you get older, management, people and decision making, but I'll tell you what the biggest mistakes I've made, they're not specific like the London whale, but rather the patterns around temperaments, it's a bad idea. decision mana temperament even treating people temperament you know always be careful why you walk in what Moody is and things like that you don't get the best in people and sometimes just my life people said well you know it's a shot of anger Well placed, no it wasn't, it was just a burst of anger and it generally clouded your judgment, so I knew I had matured well when about ten years ago someone said in front of me talking. about something that was about compensation for investment bankers and I was getting really angry and said, "you know what." I'm going to leave the room you guys, stay here for ten minutes.

I'm coming back. I left. I thought about what made me angry. I went back and told him very politely how offensive what they were saying was to me, etc., etc., but other mistakes when you don't involve the right people, plain and simple, a lot of answers, sometimes the answer is waiting to be found. I have to get the people who work, it can consume you, you're tired, make a decision on Friday, not 30 people, the biggest mistakes you make, people's mistakes. I would make a lot of people's mistakes. It really slows down the organization because it takes a long time.

It's time to figure it out and a lot of damage is done, then you have to replace it, so it's like a year and a half of one person making a mistake, a year and a half of setting the company back, and in the meantime you might lose good people because when you give one person that job they often lead HUD to other good people by the time you realize you made a mistake and you can avoid it because I don't know your name but I can get the whole book and you and never know you.

You're okay, I can find out how smart you are, how you treat people, how you treat your friends, bosses, colleagues, subordinates, if you show up on time, show up with people, trust yourself, if you shave the truth, I have that file about you. Now we're pretty good at making sure we give people these important jobs that we know are pretty good. We can still make a mistake, but you'd be surprised if the error rate is dramatically lower than ever before. Hello hello. I am a Sloan Scholar between 20 and 18 years old. I worked for JPMorgan in London until March this year and I'm wondering where you see the future of European financial services and in particular JPMorgan in the context of Brexit, yes Briggs I mean.

The fact is that they are going to serve us, we must be prepared for a hard Brexit, not because we are predicting it, although I think it is okay, I think it is quite likely at the moment, I think it is a very complex thing, it is not good for Gran Britain, but the fact is that to be prepared, all we have to do is for our European subsidiaries to get more capital, certain licenses, certain approvals that we are going to get, so if you know hard Brexit well, the next day it will happen default to the existing EU.

Under current EU law, we simply have to do certain things contractually on a sovereign basis and in an entity that is in the EU and we have, you know, licenses in appropriate subseries and in Germany, Ireland, Brussels, it's about four or five. hundred jobs, so it's not a big deal, but in reality, 12,000 people are served in Europe from London even after a hard Brexit and the real problem is what will happen to those 12,000 in the ten years after that, because I know that It will happen. regulators and politicians and they walk around and say we're uncomfortable, we know you got the license and registered trading in this subsidiary, but then you back that up with those subsidiaries to manage the risk or you have the bank or you do the ECM deal here. but the investigation risk compliance audit trade was done in London and that is not enough, we don't want to pretend that Villa's type of business has to move here.

I think there will be a lot of pressure to move those 12,000 people over time to the UE and you know my goal is to make sure that we can serve our customers non-stop, it will cost usmore money, it's a real headache, but that's not the point that doesn't worry me. I want to build to serve those Europeans. clients us and we bank in all European countries, almost all the big European institutions, all the big European investors, that's what I have to worry about being prepared to do it the next day. Thanks, this is a continuation of what you are talking about, but in what areas? of the bank, do you see it more exposed to technological disruption?

You mentioned sales and commerce before, yes, so first of all I said that technology has been changing the world forever and it's not like it's completely different. I think it's faster now that more money is allocated. FinTech, you know, agile technology can do things that couldn't be done before and I think it's incumbent on any company to use technology to improve the client's workforce. Better could be better, faster, cheaper, straight-through processing, obviously, doing digital mobile things like that. banks have been doing that for years and now you can buy and sell currency on your mobile phone and when some traders made a 40 million dollar trade and I said oh God you know 40 million dollars on a mobile phone I said I have than putting breathalyzers on those phones.

I just imagined, you know a male trader, you know, having two martinis and saying, I'm going to do this invitation, you know what they mention about the risk, people said we do have that and we can actually put that is like that so that You can't do a deal without a breathalyzer or something, so I guess I kind of always look at a business from the customers' point of view, so forget about JPMorgan, so a lot of the things that customers need are In fact, we will still need those that need to grow over time. Well, ECM will still be there.

Decent would still be there. Currency hedging and hedging interest rates will still be there. M&A advice will still be there, but we have to use technology to do things better, faster. like everyone else and directly and all that kind of stuff, but if you ask me, the thing that may be most disrupted will be payments, you know there are payment systems that are outdated, all of them are the ACH system, it's terrible. but we just launched a p2p y'all use venmo we just launched p2p ezel it's real time bank to bank it's safer it's better it's real time it's not social yet so I don't know Stan why you would want to make him see all those things with your friends, but it could be that it could be in wholesale payments, but no, but you can go to the screens, now you move money around the world, you convert it to different currencies and that's how we're doing it, but if you ask me, that's where most of the problems will occur and where we have invested in a hundred fintech companies and we are going to compete in anything and just as an example, we will have online trading and Robo investment for our clients. in beta today, well I'm not sure if I'll implement it, we'll implement it and we'll test it and we'll test the price and all that, but we can't allow those things for free if we wanted to, so I know we're not dead in the water, You know, when the time comes you will see us being very aggressive to win business like we have always done and we implement it, it is not commercialized, we just launched a mobile phone. bank in st.

Luis recently and We're going to test that more for Millennials, anyone else, but when you open the account, the movie money is just the debit card and we'll see how that works, then we'll try to modify that and then do it on everyone. 50 states are moving forward, they're going to get it eventually, don't stop it, John Jonathan Wallen, second year PhD student, third year, now and I have a question about how you mentioned bureaucracy and politicization and the harm that does to business. , and my concern is how do you evaluate the bureaucratization within JP Morgan and compare it to that of your peers?

How does the agency compensate the individual portfolio manager with compliance oversight? Yeah, well, we're pretty rigorous in how we run the business so you know we come together. all the time and we go through everything from top to bottom and raise these issues and things like that, so if you know what your authorities are, if you are a traitor, if you are a bank, you know exactly, they also know that he is not supposed to should do it and also when you go to a compliance committee or risk committee and under Ryan creating a credit committee there is no mystery in any of that and it happens every day, we hardly make mistakes, the problem and we will not We will support the regulatory things and we have thousands and their regular rules and requirements and that creates some bureaucracy, but it's not an excuse for us to say this is a better way to do it, we listen to customers all the time and you know. the management team is open to all issues, the gene is always set by them, so it's like you walk into the room and say the agenda, if you work for me, I expect you to raise everything important, everything and anything, including bureaucracies, which slow down competitors with poor services.

I have something better than us, that's your job, not mine, and that's what I do with you. I hope you will. Your management team, so that you are always airing all these problems. We travel by bus. Let's go to the call center. to go to the operations centers, we have customer reviews, we have advisory groups and all those things circulate, all of them, you know, and all the complaints, we are always trying to deal with that and be better and faster, you know, I think a difficult thing about management is that you have to get rid of the bad people you know so you can say whatever you want, but if I have a bunch of fools or they're not as good or their friends Jamie, that's what causes the problem. and very often there are people who were not willing to get rid of bad people, bad people could do it because their cultures are bad, they could also do it because they are not good, you know, they are not good enough, you know, in a people of meritocracy.

Say you know Joe deserves the job or good old Joe and hangs around here for a long time and that doesn't mean they deserve the job and you know, in sports, you know, if you're not hitting 250 and I could be playing in Second base, you know? and it's very easy to take out pitchers who don't do a good job in business, they left those jobs for too long. I'm not saying treat them disrespectfully now, if you treat people disrespectfully you know you're going to lose their hearts and minds too, so it has to be very respectful, we'll make a change for the following reasons, but if you're really going to run a real meritocracy, you have to make sure you really do it and the people you know, God must filter through the whole company: loyalty is such a lack, sometimes they generally mean he asked me that there was a young CEO in a room like This one, we just made a big deal, how can we be loyal to you when you weren't Laurel to Joe, he's been around? you trained a lot of people in the room and you just degraded it.

I couldn't answer the question and I called the person the next day and by the way I finally answered all the questions but I called the next day and told him I had thought about it. and you got it backwards if I was loyal to Joe and kept his job and most people thought he wasn't doing a good job anymore. Who am I being disloyal to everyone else and to the client and that's why it's a difficult thing to do, but? that and that's the hardest thing to do, but in management, a lot of you won't do it because you're the other thing that happens in management by the staff down the hall, you know, and everyone takes care of it, I don't know. worry about taking care of it, basically, that becomes a club and they don't take care of it for the company, the clients usually take care of it for themselves, so I would be very, very careful in the management, but why are you doing what you're doing and who can talk and who's in the room and things like that?

You have time for one more question, so I work for JPMorgan Chase in the other twelve parts of the team that I really designed the choice calmly, so I don't know if Chase is always more towards the technically advanced company and this question is more towards the side technological. It's like what is the stance of supporting the community in a I like artificial intelligence, like AI takes our automation. things and what the banking community thinks about it, well I don't care, thanks for thinking, so try thinking about big data and machine learning, chat boxes, robots, they're all real, you know, we have thousands of data scientists and doctorates and not. we just code and we spend nine billion dollars on technology, seven hundred million dollars on cyber, probably a billion dollars a year now and some of the things are exclusively dedicated to that and it's real, it's an incredible thing that you can do, what you can do today. in a split second, so we liked you right when you swipe that credit card, you know, it goes through hundreds, maybe a thousand algorithms to prove fraud, where you did it, how you did it, over time we do the same thing for large payments , so if you run a small company or a large company, like what happened to the Federal Reserve never happened to us, you know, payments at the wrong time, different type, different entry, we are actually monitoring your systems all time and we see something wrong, we are calling it out. and things like that, so it's real, the hardest part is not understanding it or knowing the technology, but getting the people in the company to understand its power, so when we first started with Big Data we put in a big data machine and We put it in the central for standards and you know we used to do that, but to make sure that you don't end up with 84 different platforms and things like that out of control and machine learning there has to be another problem with the regulations there.

It will not be approved, but we put ourselves on top and we had to tell him: hey, you do prospecting, how do you do it, why do you do it. We made prospecting 10 times more efficient, the commercial bank 10 times you don't do it and you don't do it. I don't think it's right, the cost is lower now instead of $30,000 from 3,000, it also means we could put in two more bankers and grand rapids. I mean, it's a huge benefit to the company and to be immediately productive instead of taking three years to build it and then once we did it, now we have it in every division, so every division has a machine learning function. of big data artificial intelligence and every time we ask each manager to come back and give us the use case that you think is best for you, then we You are trying to buy, the demand is increasing like this, but in one of the areas where you want demand, you know you want to spend more money and obviously once you've done it wisely, but we drive people's own technology.

I would do that, you'll never be able to tell. to me you didn't do it because of the budget or you couldn't afford it, it's not allowed, you have to put it in your budget, so in a reflection of a 12 month plan I tell you that you have to put it in that plan. all you need to do to increase sales for us, go to enterprise is go to technology and don't be mean because pills, why didn't we do it, we couldn't afford it this year, who said we could afford it, anything What would we like?

I want us to spend fifty-eight billion dollars a year we make 35 billion before taxes have you guys been at two billion dollars to get big data right? We will do it so it's more, but it's more about the Guinean executors than the money everyone, please join me in thanking Jimmy Dean, thank you very much.