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CNBC EXCLUSIVE: CNBC TRANSCRIPT: CNBC’S MARY THOMPSON SITS DOWN WITH JAMIE DIMON, CHAIRMAN & CEO, JPMORGAN CHASE & CO., TODAY

WHEN: TODAY, WEDNESDAY, JUNE 13TH

WHERE: CNBC’S “FAST MONEY HALFTIME REPORT

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Jamie Dimon, Chairman & CEO, JPMorgan Chase & Co., in the wake of his testimony today. Following is a link to the video of the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000095998.

All references must be sourced to CNBC.

THOMPSON: THANKS SO MUCH AND WE WANT TO THANK JAMIE DIMON FOR JOINING US AFTER HIS TESTIMONY TODAY. THANK YOU FOR JOINING US. FIRST QUESTION I HAVE TO ASK YOU IS YOU'RE THE MOST RESPECTED BANKING CEO IN THIS COUNTRY. HOW COULD YOU LET THIS HAPPEN?

DIMON: I WOULD SAY WAS. LISTEN, NO EXCUSES BUT PEOPLE MAKE MISTAKES. WE'RE GOING TO MAKE MISTAKES. THIS OBVIOUSLY WAS FAR BIGGER THAN A MISTAKE WE WANT TO MAKE. IT CAME OUT AT EXACTLY THE WRONG TIME IN EXACTLY THE WRONG WAY. THAT'S WHAT HAPPENS SOMETIMES. MISTAKES DON'T WAIT FOR THE PERFECT TIMING. HOPEFULLY THE COMPANY WILL LEARN FROM IT, WRESTLE IT DOWN, IMPROVE OURSELVES AND CONTINUE TO DO WHAT WE ARE SUPPOSED TO DO, SERVE CLIENTS AROUND THE WORLD.

THOMPSON: YOU SAID THE BANK HAD BECOME TOO COMPLACENT.

DIMON: IN THIS AREA.

THOMPSON: IN THIS AREA WHY HAD YOU BECOME TOO COMPLACENT. DID YOU PLACE TOO MUCH TRUST IN THE WOMAN INA DREW WHO WAS RUNNING THE BUSINESS?

DIMON: INA DREW EARNED THE TRUST SHE HAD. SO I THINK IT IS THE WRONG WAY TO SAY IT I THINK THE BETTER LESSON IS IT DOESN’T MATTER HOW MUCH YOU TRUST, ITS KIND OF LIKE TRUST AND VERIFY. WHEN YOU'RE PLAYING WITH FIRE, YOU HAVE BELTS AND SUSPENDERS. SHE HAD DONE AN EXCEPTIONAL JOB FOR A LONG PERIOD OF TIME. BUT THIS ONE PORTFOLIO, SYNTHETIC CREDIT IT NEEDED A DIFFERENT RISK METRICS AND DIFFERENT CONTROLS AROUND IT AND IT WASN’T JUST MY TRUST THIS KIND OF A SYSTEM DIDN'T DO THAT. OBVIOUSLY WE SHOULD HAVE DONE THAT.

THOMPSON: SO WHEN YOU PLACE YOUR TRUST IN HER, DID YOU BECOME COMPLACENT BECAUSE THE GROUP WAS MAKING SO MUCH MONEY, WERE THEY GIVEN GREATER REIGN?

DIMON: NO THAT WASN’T IT THEY HAD DONE SO WELL FOR SO LONG. INA IS CAPABLE AND COMPETENT. SHE MANAGED THIS COMPANY THROUGH MULTIPLE STORMS A FORMER CHAIRMAN SENT A LETTER SAYING SHE SAVED THE COMPANY SOMETIME IN THE PAST. IT WAS EARNED. SHE WAS SO CAREFUL IN EVERYTHING SHE DID. THERE WAS A RISK COMMITTEE, THERE WERE PEOPLE INVOLVED. SHE ASKED FOR HELP SOMETIMES ON A BUNCH OF DIFFERENT THINGS. IT DOESN’T MATTER. EVEN IF YOU TRUST ME. IT DOESN'T MEAN IF I'M DOING SOMETHING COMPLEX AND YOU SOPHISTICATED, YOU SHOULD SAY YOU KNOW WHAT, LET'S RUN IT UP AND DOWN THE FLAGPOLE HERE. IT’S NOT REALLY AN ISSUE OF TRUST. WE GOT COMPLACENT AROUND THE DISCIPLINES WE SHOULD HAVE DONE AROUND THIS REGARDLESS OF TRUST.

THOMPSON: SO ON APRIL 13th DURING THE CONFERENCE CALL WHEN YOU CALLED THIS A TEMPEST IN A TEAPOT SOME PEOPLE LOOKED AT THIS AND SAID ONE OF TWO THINGS, EITHER YOU WEREN'T TELLING THE TRUTH OR YOU DIDN'T KNOW. WHICH ONE WAS IT.

DIMON: I DIDN'T KNOW. DO YOU THINK I'D BE CRAZY ENOUGH TO GO OUT THERE AND SAY SOMETHING I KNEW TO BE A LIE? I HAD SPOKEN TO PEOPLE. THEY HAD DONE A REPORT. THEY HAD COME BACK. ALMOST EVERYONE UP AND DOWN THE LINE THOUGHT IT WAS TEMPORARY, IT WAS A SMALL THING, IT WAS BLOWN WAY OUT OF PROPORTION. I OBVIOUSLY BELIEVED IT. I OBVIOUSLY WAS WRONG.

THOMPSON: WHEN DID YOU KNOW? IF IT WASN'T APRIL 13th – WHEN EXACTLY WAS IT

DIMON: LATE IN APRIL.THE LOSSES WERE MOUNTING REMMEMBER WE STILL WERE REVIEWING IT. SO WE HAD A SMALL PROBLEM AND PEOPLE WERE STILL REVIEWING IT. BUT LATE IN APRIL THE LOSSES BECAME MORE CONSISTENT. WE CALLED IN SOME TOP TEAMS FROM THE INVESTMENT BANKS, WHO WERE EXPERTS IN SYNTHETIC CREDIT. IT TOOK THEM DAYS. BUT WHEN THEY STARTED REALLY COMING BACK, THIS WAS A BIGGER, MORE COMPLEX, MORE SOPHISTICATED, FAR MORE POTENTIAL RISK EXPOSURE THAN WHAT WE THOUGHT ON APRIL 13th.

THOMPSON: WHAT WAS YOUR FIRST REACTION WHEN YOU WERE TOLD THIS WAS A MUCH GREATER PROBLEM THAN WE FIRST THOUGHT? WHAT DID YOU SAY?

DIMON: I REMEMBER AT ONE POINT BEING A LITTLE BREATHLESS. I REMEMBER TELLING EVERYONE, YOU KNOW WHAT, IT'S GOING TO BE REALLY TOUGH. WE'VE EMBARRASSED OURSELVES. THERE'S GOING TO BE INVESTIGATIONS. WE'RE GOING TO HAVE TO DO THIS RIGHT. IT'S GOING TO GET EVERYONE UPSET. YOU CAN WRITE THE PRESS, DO ALL THIS STUFF, IT'S GOING TO BE REALLY BAD. WE NEED PEOPLE TO PUT ON THEIR JERSEYS, FIGURE IT OUT. HELP WE'RE GOING TO WRESTLE IT DOWN, CONFESS OUR SINS, MOVE ON AND HOPEFULLY NOT TAKE OUR EYE OFF THE BALL, WHICH IS RUNNING THE BUSINESS. THAT'S WHAT I WORRY ABOUT NOW. WE'VE GOT TO RUN A BUSINESS. EVERY DAY PEOPLE BUYING AND SELLING AND MAKING LOANS AND TRADING. WE'RE WORRIED ABOUT EUROPE? I AM SPENDING MUCH MORE ON THIS THAN EUROPE I SHOULD BE SPENDING MORE TIME IN EUROPE. TO ME WE HAVE TO MAKE SURE WE'RE SPENDING TIME WHERE WE NEED TO.

THOMPSON: TELL US HOW BAD IT CAN GET. SOME ESITMATES SAY THE LOSS COULD TOTAL $5 BILLION. CAN IT GET ANY BIGGER

DIMON: I'VE CONSISTENTLY TOLD YOU I'M NOT GOING TO TELL YOU. ON JULY 13th WE'LL TELL THE SHAREHOLDERS WHAT IT WAS IN THE QUARTER. I THINK IN THE TESTIMONY WE MADE TODAY WE SAID THAT THE RISK HAS BEEN REDUCED SUCH THAT IT COULD STILL LOSE MONEY FROM TODAY FORWARD BUT THE PROBABILITY IS LESS AND MAGNITUDE IS LESS. HERE IS A WAY TO SAY IT. WE SAID WE WILL BE SOLIDLY PROFITABLE THIS QUARTER. I THINK OBVIOUSLY WE WILL BE SOLIDLY PROFITABLE IN THIRD AND FOURTH QUARTER UNLESS SOMETHING ELSE GOES WRONG. BUT IT WON'T BE BECAUSE OF THIS WE WON'T BE SOLIDLY PROFITABLE.

THOMPSON: SO THE LOSS COULD BE ANYWHERE FROM BETWEEN $2 AND $5 BILLION --

DIMON: YOU CAN ASK 100 TIMES AND I TOLD YOU I WON'T TELL YOU.

THOMPSON: ALRIGHT LETS TALK ABOUT THE UNIT AGAIN. YOU TOOK A NUMBER OF QUESTIONS ON VAR OR HOW IT MEASURES RISK.

DIMON: JULY 13th WE ARE GOING TO GIVE OUR SHAREHOLDERS MORE DISCLOSURES ON WHAT THE RISK IS AND WHAT RISK REMAINS.

THOMPSON: AT THAT POINT WILL YOU PUT PARAMETERS AROUND THE SIZE OF THE LOST.

DIMON: PROBABLY. YEAH PROBABLY

THOMSPON: LET'S GO BACK TO SOME OF THE QUESTIONS YOU TOOK. SOME OF THEM WERE ON VAR. COUPLE OF THINGS. FIRST OF ALL, DID YOU SIGN OFF ON THE CHANGE TO THE VAR THAT WAS USED IN THIS SCENARIO?

DIMON: NO. FIRST OF ALL IT WAS AN INDEPENDENT MODEL REVIEW GROUP THAT SIGNS OFF. WE HAVE LOTS OF MODELS. I ALSO CAUTION PEOPLE. WE DON'T RUN THE BUSINESS OF MODELS. VAR IS ONE THING, SPECIFIC LIMITS AND GRANULARITY, STRESS TESTS THERE JUST GOOD OLD PLAIN COMMON SENSE, HOW BAD COULD THINGS GET. IS THIS HELPING A CLIENT OR SOMETHING YOU'RE DOING FOR THE HOUSE. THE VAR MODEL, I WAS COPIED ON A MEMO THAT SAID THERE WAS A CHANGE IN THE VAR MODEL. SO THAT IS GOING TO COME OUT. I PAID VIRTUALLY NO ATTENTION TO IT. I DIDN'T THINK IT WAS SIGNIFICANT AT THE TIME. HONESTLY, VAR IS NOT MY FAVORITE METHOD OF LOOKING AT RISK.

THOMPSON: THE BOTTOM LINE WAS IS THIS GROUP WAS ALLOWED TO CHANGE A WAY THAT IT MEASURES RISK --

DIMON: NO NO EVERY GROUP RUNS BY MODELS. THERE ARE MODELS IN EVERY GROUP. THOSE MODELS HAVE AN INDEPENDENT REVIEW PROCESS, INDEPENDENT OF THEM. RISK IS INDEPENDENT OF THEM. MODEL REVIEW REPORTS TO THE HEAD OF RISKS THEY ARE INDEPENDENT. THE THOUGHT AND MODEL CHANGES MORE ACCURATELY REFLECT WHAT'S GOING ON SO YOU COULD MORE ACCURATELY MANAGE YOUR EXPOSURES. WE DO NOT BELIEVE. SO FAR WE FOUND NO REASON TO BELIEVE DIFFERENT THAT THIS WAS DONE NAFARIOUSLY SO THEY COULD TAKE MORE RISK. REMEMBER AT THE POINT WE THOUGHT THEY WERE REDUCING RISK. ON APRIL 13TH THE THOUGHT WAS THIS WASN'T AS BIG A DEAL. IT WAS GOING TO BE MANAGEABLE AND THAT THAT MODEL WASN'T THE FLAW. WHEN WE FILED THE 10Q ON MAY 10th, WE SAID WHOOPS, NOW WE HAVE A MAJOR PROBLEM HERE. BUT THE MODEL ITSELF WASN'T VERY GOOD AND WE WENT BACK TO THE OLD MODEL.

THOMSON: SO THE OLD MODEL IS IN PLACE RIGHT NOW?

DIMON: I THINK THIS WHOLE MODEL THING IS JUST NOT THAT BIG A DEAL. IF THE OLD MODEL WAS IN PLACE THIS PROBABLY WOULD HAVE HAPPENED ANYWAY. MAYBE WE WOULD HAVE CAUGHT IT A LITTLE BIT EARLIER AND WE ARE STILL LOOKING AT EXACTLY WHAT HAPPENED.

THOMPSON: WANT TO TALK ABOUT CLAWBACKS, YOU SAY THEY ARE A POSSIBILITY PENDING A BOARD REVIEW. DO YOU KNOW WHO WILL BE ASKED TO GIVE BACK PAY?

DIMON: I'M NOT SURE WE'LL EVER TELL YOU ALL WHO, BECAUSE I'M NOT SURE THAT'S APPROPRIATE. FIRST OF ALL, IT'S APPROPRIATE WE FINISH THE REVIEW. BE KIND OF PECULIAR TO SAY WE'RE GOING TO MAKE THESE DECISIONS BEFORE WE FINISHED IT. OBVIOUSLY THERE ARE PEOPLE DIRECTLY INVOLVED, SOME PEOPLE INDIRECTLY INVOLVED. WE'LL THINK THAT THROUGH. IT WILL SET PRECEDENCE FOR THE COMPANY, THERE’S A RIGHT THING AND A WRONG THING TO DO. WE'RE GOING TO DO THE RIGHT THING WHEN WE FIGURE WHAT IT IS. WE'RE NOT GOING TO DO THE BLOODTHIRSTY THING, NOT GOING TO DOTHE THING THAT MAKES THE PRESS FEEL GREAT, WE’RE GOING TO DO THE RIGHT THING FOR THE COMPANY AND THE PEOPLE ALL THINGS CONSIDERED. A LOT OF PEOPLE HAVE BEEN WITH THIS COMPANY FOR A LONG TIME. WE'LL BE VERYTHOUGHTFUL ABOUT THIS PROCESS AND IT HAS TO GET BOARD REVIEW.

THOMPSON: WILL YOU GIVE BACK PAY? YOU SAID THE BUCK STOPS WITH YOU. YOU ACKNOWLEDGED COMPLACENCY WILL YOU BE GIVING BACK ANY OF YOUR COMPENSATION.

DIMON: MY COMP IS COMPLETELY SET BY THE BOARD OF DIRECTORS. 100% IS SET I ASSUME THEY WILL INCORPORATE THIS IN HOW THEY EVALUATE ME. BUT I'LL LEAVE THAT TO THEM. I THINK IT WOULD BE INAPPROPRIATE FOR ME TO TELL YOU WHAT THE BOARD WILL DO.

THOMPSON: YOU NOW RUN A BANK THAT'S BECOME A POSTER CHILD FOR VOLCKER. HOW DOES THAT MAKE YOU FEEL?

DIMON: I DON'T THINK THIS ACTUALLY INFORMS VOLCKER VERY MUCH, IN MY OWN PERSONAL OPINION. WE'VE BEEN PUBLIC THAT VOLCKER, HEDGING, MACROHEDGING PORTFOLIO, WE THINK IT'S ALLOWED, SHOULD BE ALLOWED. DOESN'T MEAN IT'S ALWAYS GOING TO WORK. SO I THINK THERE'S THIS IRRATIONAL THOUGHT THAT IT'S ALWAYS HAS TO WORK. NO ACTUALLY THINGS DON'T ALWAYS GO THE WAY YOU EXPECT. LIKE I SAID IN TESTIMONY THE FAR MORE IMPORTANT THING ABOUT VOLCKER, IS AROUND MARKET MAKING. WE HAVE THE BEST, WIDEST AND DEEPEST CAPITAL MARKETS IN THE WORLD. MARKET MAKERS REDUCE THE SPREADS ON SECURITIES – BECAUSE THE SPREADS ARE LOW AND THERE’S LIQUIDITY PEOPLE CAN BUY AND SELL AT GOOD PRICES, COMPANIES CAN ISSUE AND THE SECONDARY MARKET, THE PRIMARY DIRECT RELATIONSHIP, ALL I’VE SAID IS WHATEVER WE DO IN VOLCKER, LET'S NOT THROW OUT THE BABY WITH THE BATH WATER. IT'S GOING TO BE COMPLICATED. IT CAN BE DONE WELL. IT CAN BE DONE BADLY. WE SHOULD STOP TALKING LIKE IT'S BINARY. ARE YOU FOR OR AGAINST VOLCKER. IT'S NOT BINARY.

THOMPSON: LET ME ASK YOU ONE PART OF IT. BECAUSE DURING YOUR TESTIMONY YOU SAID IT'S HARD FOR YOU TO DRAW A BRIGHT LINE IN DISTINGUISHING BETWEEN PROP TRADING AND HEDGING. HOWEVER, YOU HAVE SAID REPEATEDLY THE TRADES PUT ON BY CIO WERE HEDGING. HOW CAN YOU DRAW A BRIGHT LINE THERE

DIMON: I WASN'T REFERRING TO THAT HEDGING THING. I BELIEVE THE ORIGINAL INTENT OF THOSE TRADES WERE TO HEDGE. AND THEY SHOULD BE ALLOWED. AND I THINK YOU DRAW A BRIGHT LINE AGAINST WHAT PEOPLE USED TO CALL PROP IF I HIRE YOU, I PUT YOU IN A CORNER, YOU DON'T DO CUSTOMER BUSINESS, USE A BALANCE SHEET, AND JUST TRY TO ARBITRAGE, I CAN PUT A BRIGHT LINE BEHIND THAT. WHAT I CAN'T PUT A BRIGHT LINE BEHIND IS WHEN YOU SAY PROPRIETARY, SO I GET ASKED ALL THE TIME, IF YOU MADE OR LOSE MONEY ON THIS THAT’S YOUR…THAT'S TRUE FOR EVERY LOAN YOU MAKE, THAT’S TRUE FOR EVERY SECURITY YOU BUY. WHEN YOU GET INTO SOME OF THIS, IT'S HARD TO SAY I THINK THE REALLY IMPORTANT THING ABOUT VOLCKER, IS THAT WE FINISH RULES, WE HAVE THE WIDEST, DEEPEST AND MOST TRANSPARENT CAPITAL MARKETS IN THE WORLD. THEY ARE THAT TODAY. IF YOU TRAVEL AROUND THE WORLD, YOU KNOW EXACTLY WHAT I'M TALKING ABOUT. I WANT THEM TOMORROW. THOSE CAPITAL MARKETS ARE ONE OF THE ENGINES THAT HELPED BUILT THIS WONDERFUL COUNTRY OF OURS. LET'S BE A LITTLE THOUGHTFUL ABOUT VOLCKER. THAT’S ALL I’M, SAYING.

THOMPSON: YOU HAVE SPENT YEARS, 30 PLUS YEARS BUILDING A REPUTATION THAT IS NOW DAMAGED. HOW DO YOU INTEND TO REBUILD THAT REPUTATION? HOW LONG DO YOU THINK IT WILL TAKE TO GET IT BACK?

DIMON: I'M GOING TO DO THE SAME I DID BEFORE IT WAS DAMAGED.I AM GOING TO DO THE BEST I CAN EVERY DAY. TELL THE PEOPLE THE TRUTH, WE WORK HARD WE ADMIT OUR FLAWS AND WE MOVE ON. I'M GOING TO BE FINE. I'M NOT WORRIED ABOUT ME, OKAY.

THOMPSON: LET'S TALK ABOUT WHAT YOU'VE DONE AT THE BANK IN THE WAKE OF THESE TRADING LOSSES. YOU HAVE REASSIGNED A NUMBER OF PEOPLE, SOME PEOPLE ARE LEAVING. WILL MORE PEOPLE BE ASKED TO LEAVE THE FIRM? I.E WILL THEY BE FIRED

DIMON: I WOULD NEVER TELL YOU THAT BEFORE I TELL THEM. OKAY. WE'RE DOING A REAL REVIEW. A LOT OF PEOPLE WHAT ARE NOT IN THEIR CURRENT JOBS ARE REALLY BEING COOPERATIVE, I THINK IT'S SMART FOR THE COMPANY THAT WE NEED THAT, IT’S GOOD FOR THEM. A LOT OF PEOPLE SAY I KNOW I MADE MISTAKES. SO LET ME BE HELPFUL IN GETTING OUT OF THIS MISTAKE. THAT'S THE RIGHT WAY TO DO IT. WE WILL TAKE THE RIGHT ACTION AT THE RIGHT TIME.

THOMPSON: WHAT'S THE NUMBER ONE LESSON YOU'VE TAKEN FROM THIS.

DIMON: I DON'T HAVE ANY ONE LESSON. IF I SAID ONE THING. WELL, TWO THINGS. ALWAYS, ALWAYS, WHEN SOMETHING HAS RISK IN IT, MAKE SURE THERE'S A SECOND SET OF EYES THAT’S RIGOROUS AND STUDIOUS AND DISCIPLINED. I THINK WE JUST DROPPED THE BALL ON THAT A LITTLE BIT. THE OTHER ONE I SAY ACTIVITY SHOULD ALWAYS HAVE GRANULAR LIMITS. BECAUSE ONCE THEY DON'T, YOU COULD END UP TAKING A LOT OF RISK OVER HERE BECAUSE IT'S USING SOMEONE'S LIMIT BUT YOU DIDN'T REALIZE THAT IT WAS DIFFERENT. THOSE ARE TWO BIG THINGS.

THOMPSON: BEFORE WE GO, I HAVE TO ASK YOU ABOUT EUROPE. YOU SAID YOU CONSIDER THIS A GREAT RISK AND YOU'RE SPENDING TOO MUCH TIME ON THIS.

DIMON: YEAH.

THOMPSON: EVEN DESPITE THE AID GIVEN TO SPANISH BANKS, WHAT DO YOU SEE EVOLVING FROM HERE ON IN? AND WHAT ARE YOUR GREATEST CONCERNS.

DIMON: FIRST OF ALL, IF YOU LOOK AT THE BIG PICTURE, THERE’S GOOD POLITICAL REASON FOR UNION AND GOOD ECONOMIC. POLITICAL, CAUSE THEY HAD WARS FOR CENTURIES, AND ECONOMIC BECAUSE THEY LOOK AT THE MARKET OF AMERICA,AND SAY IF WE COULD HAVE A BIG OPEN MARKET LIKE THAT. THOSE ARE STILL TRUE. I THINK THE POLITICIANS HAVE THE WILL. THEY REALLY SAY WE WANT TO FIX THIS. WE'RE NOT GOING TO LET IT GO DOWN. IT'S JUST SO COMPLICATED. SO WHAT YOU'RE SEEING IS A SERIES OF FIXES, THEY ARE MOSTLY SHORT-TERM. GET THROUGH THIS CRISIS, GET THROUGH THAT CRISIS. THEY ARE GOING TO NEED THAT. THEY ARE GOING TO STOP AND MAKE SURE BANKS DON'T HAVE RUN,MAKE SURE THAT SOVEREIGNS CAN SELL DEBT, BUT THEY ALSO NEED TO FIX THE FUNDAMENTAL PROBLEM THE UNDERLYING UNION, WHICH IS THE FISCAL DISCIPLINES AROUND THE UNIONS, THE DEFICITS. THAT ALSO CALLS FOR COMMON SOCIAL POLICY. COMMON MAY BE COMMON RETIREMENT PLANS. SO IT’S GOING TO BE HARD THERE'S TO BE NO AHA MOMENT. I THINK YOU'LL BE LIVING THROUGH THIS ROLLER COASTER, SOMETIMES YOU FEEL LIKE THEY'RE DOING IT, SOMETIMES THEY’RE NOT DOING IT, SOMETIMES THEY’RE A DAY LATE AND DOLLAR SHORT, SOMETIMES THEY COME OUT WITH SOMETHING LIKE THE LTRO WHICH IS SO BIG AND BALD, WE ALL SAID OH THANK GOD, WE ALL GOT RELAXED. IT'S GOING TO BE A WHILE BEFORE WE KNOW.

THOMSPON: HAVE YOU CHANGES HOW YOU ARE MANAGING YOUR RISK EXPOSURE THERE AT ALL IN THE LAST COUPLE OF MONTHS? BECAUSE I KNOW OVER THE LAST TWO YEARS YOU HAVE BROUGHT IT DOWN

DIMON: IT'S DOWN A LITTLE BIT, BUT AGAIN, I WOULDN'T BE – IT BOUNCES AROUND FOR A WHOLE BUNCH OF DIFFERENT REASONS AND WE NOW HAVE -- YOU KNOW, WE HAVE SOMEONE RUNNING A EURO COMMAND CENTER. WEEKLY MAYBE MONTHLY MEETING WE KNOW WHAT WE'RE GOING TO DO IF PROBLEMS START. WHAT YOU REALLY WANT TO DO IS WHEN PROBLEMS START, WHO'S RESPONSIBLE FOR WHAT? A LOT OF PEOPLE ARE BEING TOLD THIS IS YOUR MAIN JOB. IF THAT HAPPENS, YOU HAVE A NEW JOB AND IT’S ONLY THAT JOB. WE ALREADY HAVE A KIND OF ON YELLOW ALERT. THIS IS WOULD BE GOING TO MORE OF A RED STATE OF CONCERN SO WE'RE NOT THERE YET. WE ARE JUST STARTING TO TRACK IT.

THOMPSON: WHO'S RUNNING THIS FOR YOU?

DIMON: I DON'T WANT TO GIVE SPECIFIC NAMES. YOU SHOULD IMAGINE THAT THE WHOLE OPERATING COMMITTEE AND THEN ALL THE PEOPLE INVOLVED IN THE BUSINESSES, EVERYONE IN THE INVESTMENT BANK, EVERYONE GLOBAL CASH MANAGEMENT AND CUSTODY, EVERYONE IN GLOBAL MONEY MANAGEMENT, THEY'RE ALL PART OF THE PROCESS TO BE READY IN CASE IT GOES IN THE WAY WE CAN'T PREDICT. THAT’S THE OTHER THING FOR US I'M NOT PREDICTING IT BUT WE HAVE TO BE PREPARED FOR IT. THOSE ARE TWO DIFFERENT THINGS.

THOMPSON: ONE LAST QUESTION. HOW'S BUSINESS HERE IN THE U.S.? HOW'S IT SHAPING UP?

DIMON: YOU KNOW, ALL I CAN REPEAT IS WE HAVE SAID ALL OF OUR BUSINESS IS OKAY. AMERICAN BUSINESS STILL SEEMS TO BE CHUGGING ALONG. SO IT IS NOT STRONG BUT IT’S NOT WEAK. YOU HAVE SEEN SOME DATA. I DIDN'T SEE THE DATA TODAY I KNOW SOME CAME OUT ON RETAIL SALES TODAY. BUT THE UNDERLINE IS ACTUALLY PRETTY GOOD. BUSINESSES HAVE A LOT OF CAPITAL, THEY HAVE EARNINGS, MIDDLE MARKET COMPANIES ARE IN BETTER SHAPE. CREDIT IS BACK TO WHERE IT WAS LIKE IN 2006. MIDDLE MARKET LOANS ARE GROWING. SMALL BUSINESSES SEEM TO HAVE BETTER CREDIT. HOUSING IS GETTING A LITTLE BETTER. IT IS ON THE BOTTOM AND MAYBE REVERSING. CONSUMER DEBT RISK RATIO BACK TO WHERE THEY WERE 20 YEARS AGO. THE CONSUMER IS STILL SPENDING MONEY AND WHAT WE NEED IS JOBS. I MEAN, JOBS WILL DRIVE EVERYTHING ELSE, INCLUDING HOUSING RECOVERY, BUSINESS BECOMING MORE CONFIDENT. I THINK TO GET JOBS CONFIDENCE, CERTAINTY, FISCAL POLICY, ALL THOSE THINGS CREATE A SECRET SAUCE OF CONFIDENCE FOR CONSUMERS AND BUSINESS.

THOMPSON: OKAY. WE'LL SEE YOU AGAIN ON THE 19th WHEN YOU TESTIFY BEFORE THE HOUSE.

DIMON: OH YES I FORGOT ABOUT THAT

THOMPSON: NOT HERE BUT CAPITOL HILL.

DIMON: I’M NOT COMING BACK HERE

THOMPSON: THAT’S RIGHT WE HAVE BEEN SPEAKING TO JAMIE DIMON, OF COURSE, THE CEO OF JPMORGAN.

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