CNBC Unique: CNBC Transcript: JP Morgan CEO and Chairman Jamie Dimon Speaks with CNBC’s Jim Cramer on “Mad Money with Jim Cramer” At this time
WHEN: In the present day, Monday, September 24, 2018
WHERE: CNBC’s “Mad Money w/ Jim Cramer”
The next is the unofficial transcript of a CNBC EXCLUSIVE interview with JPMorgan CEO And Chairman Jamie Dimon and CNBC’s Jim Cramer on CNBC’s “Mad Money w/ Jim Cramer” (M-F 6PM – 7PM) immediately, Monday, September 24th, as JPMorgan opens its first retail location in Philadelphia. The next is a hyperlink to video from the “Mad Money w/ Jim Cramer” interview on CNBC.com:
‘I don’t assume I might be good at’ being president: Dimon
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Jim Cramer: When President Trump signed the huge tax reform invoice into regulation, firm after firm advised us they have been paying staff one time bonuses or boosting their dividends and stepping up their buybacks. Nothing fallacious with something, you understand I like that, nevertheless it’s not precisely splendid for the financial system. Nevertheless a number of corporations determined to go in a unique path. Take JPMorgan, the world’s largest financial institution. Positive, they continued to purchase again inventory. However you already know what else they did with that additional money? They introduced a plan to take a position $20 billion over 5 years with a purpose to increase wages and increase their companies, together with new financial institution branches and extra lending. At present we discovered some concrete particulars when JPMorgan introduced a serious enlargement of its presence within the Larger Philadelphia Metro Space. The financial institution is opening 50 new branches, committing to greater than $three billion in house and small enterprise loans. As a local Philadelphian, that is the sort of factor I can’t ignore. So earlier in the present day we checked in with Jamie Dimon, the CEO And Chairman Jamie Dimon Chase and the longest serving chief of the main banks. In the event you have been watching “Squawk Alley” this morning you noticed a part of this dialog, however we had much more to speak about, so have a look.
Cramer: Jamie, you’re chasing – you actually are – you’re chasing an image. And I’m wanting round this space the place banks can nonetheless make a distinction. I’m so used to the Squares and I’m used to the fintech and I’m used to considering bricks and mortar are lifeless. It’s clearly not lifeless.
Jamie Dimon: No. One million individuals go to our branches every single day. Even the – even like the typical millennial visits three time 1 / 4. And so – after which we’re — however the branches change in measurement, they morph. They get smaller, they’re extra dynamic, ATMs do extra. And then if you stroll in there could also be much less individuals, extra advisors: monetary advisors, small enterprise, mortgage advisors. And we’re including all of the digital, P2P, real-time. You Make investments. You should purchase — in case you are an excellent shopper, which you’re –
Dimon: you should purchase and promote shares at no cost now. We’re going to offer you self-directed investing, extra monetary schooling round FICO scores and how one can get monetary savings. And so, you already know, we’re doing all of it.
Cramer: However I need to speak about — look, I’ve a picture of JPMorgan from the historical past books, okay. I’ve a picture of it that it’s the wealthy individual’s financial institution. You’re speaking about millennials, you’re speaking about neighborhoods like this. You’re standing on its head what JPMorgan is.
Dimon: Yeah, yeah. Properly “JPMorgan” identify is actually getting used for a worldwide funding banking, personal banking. Chase and the previous Financial institution One, these retail branches are nationwide they usually do 60 million households throughout the complete spectrum. We do lower-middle revenue households as much as — we now have Chase personal shopper. You might not keep in mind we began that like eight years in the past, there was one department. Chase personal shopper which provides monetary recommendation is in virtually four,000 branches as we speak. And it’s going fairly nicely, thanks. Yeah.
Cramer: Okay, so why might Citi not make it right here? They spent $50 million all through this city of Philadelphia they usually closed. And the time period they used, Jamie, was as a result of it was, “unprofitable.” Why ought to it’s worthwhile for you?
Dimon: Yep, once more, I don’t know their points. However we’re very cautious. We opened 50 branches. Clearly they may lose cash within the brief run however we hope — not hope, I’m fairly positive, the one query is how lengthy, that you already know after 5, six years they’re making one million greenback a yr revenue. Okay? It takes some time. It isn’t like a McDonalds which might be making that sort of revenue on day one. However that — after which once we come to city keep in mind, we’ve bank cards, mortgages, auto, retail. These banks will serve area people organizations. They may serve personal financial institution shoppers, small enterprise shoppers. Actually, our common department, one thing like 25% of the enterprise. Is the native small enterprise man who wants a department down the road, to drop off foreign money, cash and do contracts, enroll service provider processing, and etcetera.
Cramer: Nicely these are issues that I feel are integral to the comeback of a city. However on the similar time I keep in mind Tony West, Affiliate Lawyer Common, saying about your settlement: “…we wanted to make sure that those who were responsible for conduct that contributed to the worst crisis since the Great Depression accounted for their actions. We wanted to be able to secure an acknowledgment of what happened by JPMorgan through a factual statement… For us, that statement of fact is important as money…” And they held you accountable for Bear and for Washington Mutual.
Cramer: The place’s the due course of?
Dimon: There wasn’t.
Cramer: Did they ever present you the $13 billion? A billion right here, 2 billion there?
Dimon: We had requested — my board had requested me “Can we show it?” And they didn’t. I actually don’t know what occurred. So I feel the federal government someday ought to actually take a look at that and — you already know, on the time individuals have been so indignant, legitimately. And we didn’t trigger the disaster and we didn’t want the TARP, however they have been mad. However I simply favor to look ahead now. I imply, we grew proper via that. We took care of our shoppers proper by way of that. I don’t agree with a number of issues Mr. West. However that’s, you understand, life – I’ll write my guide about that stuff. Okay?
Cramer: You’re writing a e-book?
Dimon: I’m going to put in writing one at some point. I’m.
Cramer: I’m gonna ask you — I’m making an attempt to determine who your successor shall be, however I don’t see a Jamie Dimon slowing down in any respect.
Dimon: No I really like what I do. And I simply received again —
Cramer: You’re the longest serving of those – of the key bankers. You’re —
Dimon: I’m going to overlook – you recognize, Lloyd and I are good associates and I’m going to overlook Lloyd. I’ll nonetheless be — he’ll nonetheless be a good friend, and I’ll nonetheless see him. However, the board and I introduced — clearly it’s as much as the board — that I’ll keep for 5 extra years. However personally, and I’m talking for the board, we consider that there are a number of individuals on the administration group who might do my job as we speak. So I feel they’re going to have a selection that is excellent they usually can change it at will, that we have now loads of good individuals within the pipeline who might do that job. They’ll do it in another way. However hopefully we’ll depart behind an ideal firm they usually can take it the place they should take it within the subsequent 5 to 20 years.
Cramer: There are a selection of CEOs who’ve been considering – properly clearly President Trump is a CEO. Bloomberg, considering as soon as once more, hat within the ring. Howard Schultz, going forwards and backwards. Isn’t it time for a CEO to run, say – I’m unsure what celebration affiliation you might have, perhaps it’s none – however a CEO from the banking group to run for President, or is it too quickly after what occurred?
Dimon: Properly, you understand, look – I’ve been incorrect as a result of I didn’t – I assumed a billionaire from New York couldn’t grow to be President and President Trump did. I feel it’s in all probability too quickly for a banker. Mike Bloomberg is just not a banker. Mike Bloomberg was mayor of a metropolis for twelve years, did an incredible job. He’s very sensible, and he’s very educated. He’d get the most effective and the brightest. He has to make his personal analysis, whether or not it is sensible for him to do it. However – and CEOs may need the talents to do it, nevertheless it doesn’t imply they’ve all the talents to do it. I feel political expertise are actual, they usually develop it over time. And, you understand, I feel good coverage, good administration, logic, details, evaluation, value profit stuff, that’s not Democrat or Republican. I do assume expertise from a CEO might be very useful in Washington. And I feel good coverage must be in Washington.
Cramer: Jamie, it sounds such as you actually did genuinely consider whether or not it is best to run, and whether or not it is best to – in case you wind up your time period after which say, “Hey, listen, I’ll explore it.” Have you ever explored it?
Dimon: I’ve not explored it.
Cramer: You haven’t considered it – with pals, with –, with anybody —
Dimon: Good associates have talked about it to me. And I considered it – I haven’t considered it with any actual official investigation —
Cramer: How about an unofficial?
Dimon: No. I imply it was on my thoughts as a result of individuals talked about it. However it’s not what I need to do. I don’t assume I might be good at it. I’m not a political individual, per say. So— and I really like what do I.
Cramer: However you’re “tougher and smarter” than a few of our legislators.
Dimon: I shouldn’t have stated that.
Cramer: You’re — that’s sort of unequivocal.
Dimon: What I ought to have stated – I used to be joking round. What I ought to – I ought to concentrate on coverage that issues. We have now critical coverage – we’ve got the best nation on the planet, however we now have critical coverage points round infrastructure. We fastened company taxation. Correct regulation. Internal metropolis faculties. Improvement in neighborhoods. Reasonably priced housing. The opioid disaster. Getting individuals again to work. Revenue inequality must be fastened.
Cramer: Yeah, however the politicians appear to have — in your view, politicians have allow us to down – or let these individuals down. And bankers need to take up the slack as a result of we’re in a brand new nation and a brand new financial system the place the capitalists – and that is one thing our good friend Ken Langone would say – that the capitalists need to step up as a result of the politicians failed us.
Dimon: I feel enterprise has to step up as a result of enterprise has – keep in mind, 85% of individuals work for enterprise. If we don’t have the strongest financial system on the planet, we gained’t have the strongest army on the planet. If we don’t have the strongest financial system, we gained’t have jobs, wages or any of that, or innovation. That we’d like. You then’ve received to determine how one can clear up the issues.
Dimon: So a number of the issues it’s a must to do in authorities are simply – set the freeway sidelines in order that it really works properly. And you then nonetheless might have issues that should be fastened after that, like – like, revenue inequality. So I do assume we have to work extra on earned revenue taxed credit. Perhaps a unfavourable revenue tax to assist decrease paid have a dwelling wage. So these are coverage points that ultimately Washington should face. And that’s why CEOs are well-liked immediately, too – as a result of individuals are saying, “Well – it worked for the big companies, but it didn’t work for us.” And there’s some fact to that. There are segments it didn’t work for. And I feel enterprise, working with authorities, and civic society since you want individuals on the bottom – native not-for-profits, can repair these points that authorities can’t alone do and enterprise alone can’t do.
Cramer: Alright. Final query. The Metropolis Of Brotherly Love welcomes you. What do you assume goes to be proper – simply in these, simply say 50 blocks, what is going to it appear to be, or what would you like it to seem like, if you come again 5 years from now?
Dimon: So we’ll – you’ll – hopefully extra reasonably priced housing. Hopefully a Chase department or two down right here. Extra small companies. A few faculties graduating youngsters who’re going to be getting jobs. That’s what we would like. And, gentrification is all the time a risk. However should you do reasonably priced housing proper and jobs proper, you possibly can keep away from a number of the gentrification.
Cramer: Properly, thanks a lot, Jamie Dimon. Chairman and CEO, JPMorgan.