CNBC Unique: CNBC Transcript: JPMorgan Chairman And CEO Jamie Dimon Speaks With CNBC’s Wilfred Frost Right now
Picture supply: CNBC Video Screenshot
WHEN: Right now, Tuesday, November 5
WHERE: CNBC’s “Closing Bell”
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with JPMorgan Chairman and CEO Jamie Dimon, which aired on CNBC’s “Closing Bell” right this moment. Following is a hyperlink to video of the interview:
Further portion of interview ran on CNBC’s “Squawk on the Street” right this moment.
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JPMorgan Chairman And CEO Dimon says Sen. Elizabeth Warren ‘vilifies successful people’
Morgan Brennan: wilfred frost sat down with JPMorgan ceo jamie dimon right this moment and joins us now with half ii of his unique interview.
Wilfred Frost: hey, Morgan sure, certainly. So partially ii, I began by asking Jamie Dimon about that change that the enterprise roundtable made to their total assertion again in august the place they dropped the primacy of shareholder first and as a substitute shareholders grew to become now one in all 5 totally different stakeholders, alongside prospects, staff, suppliers, and communities and I requested jamie dimon why make the change now.
JPMorgan Chairman And CEO Dimon: a reporter truly identified that your assertion from 1997 continues to be major shareholder worth. Ie all you care about is income and shareholders. And we went and browse it and the board learn it and the enterprise roundtable and the governance committee ran by Alex Gorsky and all of us mentioned, this doesn’t signify in any respect how we run an organization I imply, in the beginning we speak about prospects.
We higher do a superb job or we lose we higher handle our staff or we lose and all of us need to be nice group residents so it was an evolution to acknowledge actuality. Consider it like a staff. It’s quite simple to say, present the worth and also you need a easy reply, however you possibly can’t win with an excellent quarterback when you don’t have a operating again and a receiver the staff wins.
And you must do every nicely to achieve success. And that’s what it acknowledges. It’s nonetheless, shareholder worth nevertheless it’s way more long-term the brt additionally took off you don’t need to do earnings steerage, which most of you was assume is a posh, pointless factor to do, which causes some short-term stress. And you’ll put your greatest foot ahead.
What will we for shoppers, staff, communities one final thing about communities, lifting up a group, it’s in all probability somewhat bit extra eliminated than the remainder of it however when you go around the globe and you’ve got wholesome economies, that are primarily based on good coverage, you’ve gotten wholesome companies and far more healthy residents.
And when you go to different economies that aren’t rising in any respect, their companies are horrible their residents are horrible thre’s nothing’s fallacious with individuals saying, I’m going to make use of a few of my abilities and abilities to carry up society. And that will be higher for everyone together with your online business
Frost: senator warren embraced the brt assertion and he or she went additional and he or she wrote a letter to you saying that she anticipated you to endorse and wholeheartedly assist the reforms specified by her accountable capitalism act to fulfill the rules that you simply endorse what’s your response to that.
JPMorgan Chairman And CEO Dimon: I feel that’s sloppy logic that I feel that’s proper as a result of we modified our statements and I feel that individuals have the proper to take a look at corporations and say, what are you doing in your prospects and your staff are you serving to out the group and stuff like that. And there’s a whole lot of stuff that I could not undergo now however to me, that we should always do however altering the whole nature of the way you run an organization completely not
Frost: you’ve handled senator warren loads of occasions whether or not just lately or in hearings or when she was head of the cfpb do you assume the characterization of her within the press that she’s anti-business, anti-capitalism is truthful?
JPMorgan Chairman And CEO Dimon: look, I don’t know. You actually need to ask her what she actually means she makes use of some fairly harsh phrases. Some would say vilifies profitable individuals I don’t like vilifying anyone I feel we should always applaud profitable individuals.
Lots of people come to this firm for alternative and selection and success we wish that for everyone that’s somewhat bit totally different than paying your justifiable share and the way the taxation system ought to work that I fully perceive however I feel we should always look that America was based on free enterprise freedom and free enterprise they’re interchangeable.
You may’t separate them from one another profitable corporations have lifted up society it doesn’t imply they will’t do extra or didn’t make errors I feel we should always applaud that and if individuals are very particular issues that we should always do totally different, we should always take into consideration doing them totally different
Frost: if the vilification half was we eliminated, any of the overall facets that she talks about that you simply agree with when it comes to rich individuals paying extra I heard you converse just lately at an occasion with tim adams and james gorman you talked about having a destructive revenue tax.
JPMorgan Chairman And CEO Dimon: yeah. I feel it’s necessary that pe individuals acknowledge the issues that haven’t labored in society. Inside metropolis youngsters aren’t graduating, infrastructure doesn’t work. It’s very — you already know, I feel 15% of america makes $10 an hour or much less, which is clearly not a residing wage.
I feel it’s in all of our pursuits to have correct security nets, repair these issues and ship individuals to work. And I’d be in favor of a destructive revenue tax to get individuals to work we’ve one type of within the earned revenue tax credit score which is supported by republicans and democrats. However restricted principally to single ladies with youngsters. I feel it ought to be expanded. Jobs create dignity.
So I feel acknowledging individuals with issues and fixing it doesn’t imply their coverage is at all times proper the street to hell is paved with good intentions on the subject of coverage and you ought to be very cautious about what you’re making an attempt to perform there are a whole lot of examples around the globe about insurance policies that work and insurance policies that didn’t work. Loads of wealthier individuals I do know wouldn’t thoughts paying extra taxes, nevertheless it’s essential for my democratic buddies to additionally take a look at the next they need to justify how they spend cash.
Each division in washington, each one, ought to say, I took your cash, mr. And mrs. Citizen, and right here’s what I did with it. Not how a lot I took however what number of jobs, what number of roads and repair these items. And put somewhat stress on your self earlier than you simply ask for extra I don’t assume even democrats consider that throwing tons of cash at washington, d.C. Goes to make the nation that significantly better off.
I feel individuals are very cautious about feeding the beast an excessive amount of and for good purpose. Loads of authorities packages have been abysmal failures and we should always acknowledge them each issues must be fastened. These options didn’t work. Let’s attempt one thing totally different.
Frost: if the race was warren versus trump, do you assume for the primary time there could be a real alternative for an impartial candidate?
JPMorgan Chairman And CEO Dimon: I don’t assume so. I imply, there could also be a chance someday for an impartial get together, however I don’t assume. Folks that know way more about coverage have studied that and have give you the reply, no
Frost: to deliver all of it collectively, jamie, you mentioned that when your new headquarters is completed that you simply wouldn’t be transferring again in at that time if the constructing works on time, you’ve obtained three or three or 4 years left in your place
JPMorgan Chairman And CEO Dimon: nicely, I at all times say 5
Frost: nicely, you mentioned 5 a years in the past. It’s undoubtedly not — I’m at all times going to say 5 wherever you ask me, I’m going to say 5. That’s as much as the board and hopefully we’ll have an excellent transition
Frost: however what — nonetheless a few years it’s, you’re clearly extremely enthusiastic about your nation.
Dimon: yeah.
Frost: and really concerned and considerate in regards to the insurance policies that may make the nation stronger so after banking, is a few type of public service an possibility for you?
JPMorgan Chairman And CEO Dimon: in all probability not. However I’d by no means rule something out. And by no means say by no means, however I do — I feel that enterprise, civic society you assume hospitals, faculties, non for income, working for presidency can repair our issues yelling at one another isn’t going to repair our issues. Collaboration woxks and you may go to sure cities internationally. That works like, how will we get youngsters’ jobs on the internal metropolis faculties.
That’s in all probability going to take enterprise and group leaders and lecturers to agree we want this type of coaching are you able to assist us practice the trainers so I need to repair these issues I feel we’ve actually held America again I’ve talked about many occasions we’ve grown 20% during the last 10, 11 years. It ought to have been 40% individuals don’t ask that query. 40% when you had one other 20% development and even 15% development, that will have been one other $three trillion of gdp, one other $1.5 trillion within the pockets of our residents that will have sucked up $1 trillion or extra of capital.
As an alternative of shopping for again inventory, perhaps they’d have wanted that capital to spend money on their companies wages would have gone much more. Inflation could be greater. It might be extra regular. I feel we did this new – you already know, this secular stagnation, this new regular, I feel we did it to ourselves by way of unhealthy coverage, infrastructure, sure taxation, internal metropolis faculties, an excessive amount of regulation, you already know, a capricious and gradual litigation well being care which prices an excessive amount of I feel these are the issues which might be holding us again and we should always share the extra privileged on this nation with the much less privileged.
Frost: in all probability not, however I’d by no means rule something out, his reply there as as to whether a public service position might observe his time in finance, adopted by one other minute of coverage so make of that what you’ll. Both means, he’s clearly not going anyplace quickly. Whether or not it’s 5 years or three years, clear that he’s staying on the helm of JPMorgan for a short while longer, at the very least but. Guys, again to you.
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