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CNBC Exclusive: CNBC Transcript: JPMorgan Chase Chairman & CEO Jamie Dimon Speaks with CNBC from the World Economic Forum in Davos Today

WHEN: Today, Wednesday, January 18th

WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a CNBC interview with JPMorgan Chase Chairman and CEO Jamie Dimon live from the World Economic Forum in Davos, Switzerland. For a roundup of all the CNBC interviews from Davos, go to davos.cnbc.com. Following are links to the video on CNBC.com:http://video.cnbc.com/gallery/?video=3000585269, http://video.cnbc.com/gallery/?video=3000585280, http://video.cnbc.com/gallery/?video=3000585275 and http://video.cnbc.com/gallery/?video=3000585276.

All references must be sourced to CNBC.

BECKY QUICK: KAYLA, THANK YOU VERY MUCH. AND, JAMIE, THANK YOU FOR JOINING US HERE TODAY. IT'S GREAT TO SEE YOU.

JAMIE DIMON: PLEASURE TO BE HERE.

QUICK: THIS IS YOUR FIRST INTERVIEW SINCE YOUR EARNINGS REPORT LAST WEEK.

DIMON: RIGHT.

QUICK: AND IT WAS A VERY STRONG REPORT. GOT KUDOS ALL ACROSS WALL STREET FOR THOSE NUMBERS THAT WERE IN. BUT YOU ALSO SAID THAT THE ECONOMY IS BUILDING MOMENTUM, THAT THINGS ARE REALLY GETTING STARTED. SO WHERE CAN WE EXPECT THINGS TO GO FROM HERE? WHAT ARE YOU SEEING RIGHT NOW?

DIMON: SO WE DO SEE A – FIRST OF ALL, THRILLED TO BE HERE WITH ALL OF YOU AND THRILLED TO HAVE YOU BACK, BECKY.

QUICK: THANK YOU. IT'S GREAT TO BE BACK.

DIMON: AFTER THAT LONG BREAK AND CONGRATULATIONS ON YOUR CHILD. SO, THE ECONOMY – IF YOU LOOK AT THE ECONOMY, WE HAVE 15 MILLION MORE PEOPLE WORKING, WAGES ARE GOING UP, HOME FORMATIONS ARE GOING UP, COMPANIES ARE FLUSH WITH CASH, CAPITAL MARKETS ARE WIDE OPEN, SALES ARE GOING UP. EVERYTHING LOOKS TO BE PRETTY GOOD. THE BALANCE SHEET OF THE AVERAGE CONSUMER IS IN PRETTY GOOD SHAPE. THE BALANCE SHEET OF THE COMPANIES ARE IN PRETTY GOOD SHAPE. CREDIT IS VERY GOOD. SO YOU KNOW, MY VIEW IT COULD ACTUALLY BE STRENGTHENING. AND I'M HOPING, BY THE WAY, IF YOU GET A LITTLE BIT OF TAX REFORM AND REGULATORY REFORM THAT YOU WILL ACTUALLY HAVE AN ACCELERATING ECONOMY.

QUICK: LOOK, PEOPLE ARE ALREADY EXPECTING THAT. IT'S KIND OF WHY WE'VE SEEN YOUR STOCK, THE FINANCIALS RUN UP SO SHARPLY ON THE EXPECTATION NOT ONLY OF HIGHER INTEREST RATES, BUT ALSO, OF THINGS REALLY CHANGING IN THE REGULATORY ENVIRONMENT.

DIMON:RIGHT.

QUICK: WHERE WE SEE THE STOCK RIGHT NOW, IS THAT ALREADY BAKED IN FOR THE FINANCIALS IN GENERAL?

DIMON: YOU KNOW, I THINK FOR BANKS AND FOR GENERAL, THE INTEREST RATES OBVIOUSLY WE BENEFIT BY THAT, WE'VE ALWAYS DISCLOSED THAT. I THINK A STRONGER ECONOMY, BANKS BENEFIT FROM THAT. AND THE THIRD IS THERE IS SOME REDUCED REGULATORY ENVIRONMENT. YOU KNOW, BANKS MAY BENEFIT FROM THAT. NOW, REMAINS TO BE SEEN. I THINK THE MARKET PRETTY MUCH ANTICIPATES SOME OF IT, NOT ALL OF IT, BECAUSE IT HASN'T HAPPENED YET. SO, SOME OF THE THINGS YOU'RE GOING TO SEE ARE GOING TO TAKE SIX MONTHS TO A YEAR.

JOE KERNEN: THAT MEANS THAT IF IT IS ONLY SOME OF IT, THERE COULD BE MORE. THAT'S THE OPPOSITE OF WHAT WE NORMAL HEAR IS THAT WE'VE ALREADY GOTTEN TOO MUCH BECAUSE WE DON'T KNOW WHAT IT'S GOING TO BE. I WAS GOING TO DRILL DOWN ON THAT WITH YOU BECAUSE HOW MUCH OF THE APPRECIATION IN EITHER JPMORGAN – YOU SAW GOLDMAN SACHS SINCE NOVEMBER 9th, I MEAN, I KNOW THE ECONOMY'S GETTING BETTER, BUT THERE'S SOMETHING ELSE THAT HAPPENED THERE.

DIMON: RIGHT.

KERNEN: NOW, HOW MUCH OF THAT CAN BE DONE WITH A PEN, DAY ONE THAT WILL HELP YOU? HOW MUCH OF IT IS ASSUMING THE ECONOMY GETS STRONGER? HOW MUCH IS ASSUMING RATES GO UP? AND HOW MUCH IS ASSUMING DODD/FRANK TOTALLY GETS REDONE?

DIMON: IT'S HARD TO SEPARATE THEM. SO WE NEED TAX REFORM. AND WE'VE BEEN TALKING ABOUT THIS FOR A LONG TIME. WE'VE BEEN DRIVING CAPITAL AND BRAINS OVERSEAS FOR EIGHT YEARS. YOU KNOW, AMERICAN COMPANIES ARE AT A DISADVANTAGE. TAX REFORM, REPATRIATION WOULD BRING CAPITAL BACK HERE AND PLANTS BACK HERE. IT IS POSSIBLE THERE ARE SOME PEOPLE STARTING TO SPEND IN ANTICIPATION OF THAT. SO I'VE HEARD SOME CEOS HERE SAY I'M GOING TO INVEST FASTER NOW.

KERNEN: ALREADY.

DIMON: ALREADY IN ANTICIPATION.

ANDREW ROSS SORKIN: IN ADVANCE OF.

DIMON: IN ADVANCE OF. I THINK IF YOU LOOK AT THE REGULATORY SIDE THERE ARE THINGS WHICH ARE LEGISLATIVE – SO DODD/FRANK IS LEGISLATIVE – AND THERE ARE THINGS WITH JUST REGULATIONS WHICH CAN BE REDUCED. YOU LOOK AT COMPLIANCE COST OR BSA, AML, KYC, CERTAIN LIQUIDITY REQUIREMENTS I THINK ARE ACTUALLY MAKING IT HARDER FOR BANKS TO LEND. SO THERE ARE THINGS WHEN YOU LOOK AT THEM THE REGULATORS WILL LOOK AT AND MAKE A BUNCH OF CHANGES, WHICH COULD ALSO BE GOOD FOR THE ECONOMY. AND THE IMPORTANT PART IS IT'S GOING TO BE GOOD FOR THE ECONOMY. FORGET ABOUT JUST BANKS, IT'S GOOD FOR THE WHOLE ECONOMY WHICH MEANS ALL WORKING AMERICANS.

SORKIN: DOES IT HELP THE BIGGER BANKS, THOUGH, OR THE SMALLER BANK BANKS? BECAUSE ONE OF THE THINGS IS ALL THE STOCKS HAVE MOVED.

DIMON: YEAH.

SORKIN: DO YOU THINK THEY MOVE DISPROPORTIONATELY?

DIMON: NO, I THINK IT'S GOING TO HELP THE SMALLER BANKS. I WANT TO HELP THE SMALLER BANKS. I THINK MAYBE SOME OF THESE COSTS HAVE HURT THEM DISPROPORTIONATELY, SO MAY ACTUALLY BENEFIT THEM A LITTLE BIT MORE THIS TIME. BUT IF YOU GO AND TALK TO ANY SMALL BANK, THEY ARE CLAMBERING FOR REFORM, REDUCED COSTS, THE ABILITY TO BE A LITTLE MORE AGGRESSIVE LENDING. I MEAN, I CAN'T PROVE – I THINK THESE THINGS HAVE HELD BACK LENDING. AND LENDING IS A CRITICAL PART TO GROWTH OF THE U.S. ECONOMY.

SORKIN: JUST TO PUT A FINE POINT ON IT, SO YOU DON'T THINK EVERYTHING IS BAKED INTO THE CAKE ALREADY?

DIMON: NO.

SORKIN: MEANING WE ARE PRICED FOR PERFECTION.

DIMON: NO.

KERNEN: THAT'S WHAT I WAS TRYING TO GET AT, TOO. SO, NOT ONLY IS IT –

DIMON: I'M NOT TALKING ABOUT BANKS, I'M JUST TALKING ABOUT GENERAL ECONOMY. I BELIEVE THE ECONOMY COULD GROW AT 3% OR 4% WITH PROPER POLICY. TAX, IMMIGRATION, TRADE, TAX, TAX, REGULATORY. I BELIEVE THAT.

QUICK: YOU THINK THIS YEAR IT COULD GROWTH AT 3 OR 4%?

DIMON: YEAH, I THINK IT COULD BE THIS YEAR.

QUICK: YEAH.

DIMON: YOU KNOW WHEN ECONOMISTS TALK THEY ALWAYS TALK ABOUT SOMEHOW WE ARE RELEGATED TO LOW GROWTH AND I JUST DON'T BELIEVE THAT. I THINK WE'VE HAD – YOU KNOW, WE'VE HAD WARS. WE'VE HAD GOVERNMENT SHUTDOWNS. WE'VE HAD CEILINGS, WE'VE HAD CRISES. A LOT OF THE BAD THINGS THAT HAVE HAPPENED WE SHOT OURSELVES IN THE FOOT. AND SO, IF WE REDUCE SOME OF THESE THINGS I THINK WE CAN GROW FASTER.

KERNEN: SO THIS IS JUST A GOOD START FOR JPMORGAN STOCK AND MAYBE THE STOCK MARKET IN GENERAL. IT'S A GOOD START AND IT DOESN'T NECESSARILY ASSUME EVERYTHING GOES PERFECTLY. THIS IS JUST ASSUMING THAT, YOU KNOW, THAT SOMETHING HAPPENS AT THIS POINT. AND IF SOMETHING GOOD DOES HAPPEN, WE CAN GO FURTHER, RIGHT?

DIMON: I TOTALLY AGREE WITH THAT.

KERNEN: GOOD.

DIMON: BUT I JUST WANT TO MAKE THIS POINT. WE BUILD THE COMPANY NOT FOR QUARTER OR YEAR, WE WOULD DO THE SAME THINGS NEXT YEAR IF IT'S GOING TO BE 2% GROWTH OR 4% GROWTH. SO, THE RESULTS OF THIS QUARTER ARE BASED UPON THINGS WE'VE BEEN DOING FOR TEN YEARS. AND AS YOU POINT OUT, THE LAST THREE YEARS WERE RECORD YEARS, NOT JUST THIS YEAR. AND SO, OBVIOUSLY, THIS QUARTER WAS BETTER THAN SOME OF THE QUARTERS EARLIER THIS YEAR. BUT WE BUILD BRANCHES, WE HIRE PEOPLE, WE SPEND A HUGE AMOUNT ON TECHNOLOGY. WE HAVE A LOT OF GREAT TECHNOLOGICAL STUFF COMING THIS YEAR. AND 57% OF OUR NEW ACCOUNTS ARE MILLENNIALS. THEY ALWAYS SAY MILLENNIALS DON'T LIKE BANKS. I SAY YEAH, UNTIL THEY GET THAT FIRST PAYCHECK AND THEN THEY LIKE BANKS.

KERNEN: WELL, WHO KNOWS WHEN THAT'S GOING TO BE FOR MOST OF THESE MILLENNIALS.

DIMON: EXACTLY. YEAH.

KERNEN: THAT'S NOT CONSENSUS, JAMIE, RIGHT NOW. I DON'T KNOW WHAT CONSENSUS IS, BUT LET'S SAY 50/50. I HEAR SUGAR HIGH. I HEAR THAT IT'S ASSUMING PERFECTION FOR ALL THESE THINGS THAT MAY NOT GO WELL ONCE WE GET STARTED AND THE DEVIL'S IN THE DETAILS. AND TAX REFORM. YOU KNOW, THIS BORDER ADJUSTMENT THING MIGHT NOT GO SMOOTHLY. SO THERE IS A WHOLE GROUP OF PEOPLE THAT THINK WE'VE GONE WAY TOO FAR AND WE'RE NOT REALLY GAUGING THE RISKS TO THIS SCENARIO. YOU THINK THAT THIS IS –

DIMON: I THINK THE MARKET'S SMARTER THAN THAT.

KERNEN: YEAH, I DO TOO.

DIMON: THEY KNOW THE SAUSAGE IS GOING TO BE MADE IN TAXES. IT'S GOING TO TAKE NINE MONTHS, 12 MONTHS. THE REAL DETAIL WORK HAS TO GET DONE. IT'S ONE THING TO SAY TAX REFORM, IT'S ANOTHER THING TO DO IT. I'M HOPING THAT WE HAVE REAL REFORM. I THINK AT A MINIMUM WE WILL HAVE SOME LOWER TAX RATES, MAYBE REPATRIATION, SOMETHING TO HELP INFRASTRUCTURE. BUT THERE ARE THINGS THAT CAN BE DONE RIGHT AWAY. AROUND REGULATORY THINGS. AROUND, YOU KNOW, GETTING PEOPLE TO INVEST A LITTLE BIT MORE.

SORKIN: HAS THIS SITUATION, TRUMP'S ELECTION, MADE YOU RETHINK SOME OF YOUR OWN POLITICAL VIEWS? THE REASON I ASK IS YOU WERE NOT A FAN OF DONALD TRUMP EARLIER ON.

KERNEN: BUT HE WAS ALSO JUST BARELY A DEMOCRAT AT THE BEGINNING OF THIS SECOND ADMINISTRATION.

QUICK: BARELY A DEMOCRAT A COUPLE YEARS AGO.

DIMON: I AM – I WANT – I THINK EVERYONE SHOULD BE INDEPENDENT OF MIND. I THINK THAT ONCE YOU LABEL YOURSELF SOMETHING, YOU COME OUT LOOKING LIKE A KNEE JERK SUPPORTER OF CERTAIN POINTS OF VIEW. SO I'VE ALWAYS TRIED TO THINK ABOUT THINGS INDEPENDENTLY. I DO THINK MISTAKES WERE MADE AND I THINK THINGS HAD TO BE CHANGED. PEOPLE TALK ABOUT REFORM, WELL, ANY RATIONAL PERSON WOULD LOOK AT WHAT WAS DONE – I MEAN, I'M NOT TALKING ABOUT JUST BANKS, BUT ALL OF THEM, AND SAY IT CAN'T ALL BE CONSISTENT, COORDINATED, GOOD FOR GROWTH, GOOD FOR SAFETY AND SOUNDNESS. SO IT MAKES PERFECT SENSE TO OPEN THESE THINGS UP AND RELOOK AT THEM. SO TO ME, THAT IS A RATIONAL THING TO DO. IT'S GOT NOTHING TO DO WITH DEMOCRATS OR REPUBLICANS.

QUICK: LET'S LOOK AT THIS ADMINISTRATION, THOUGH. I THINK YOU HAD SOME CONCERNS EARLY ON.

DIMON: BUT WHAT I THINK IS VERY IMPORTANT WHETHER YOU'RE A DEMOCRAT OR REPUBLICAN, THE GROWTH AGENDA. YOU KNOW, WE ALL KNOW THAT PEOPLE NEED MORE INCOME. WE ALL KNOW ABOUT THE WAGE INEQUALITY. WE ALL KNOW ABOUT LOWER SKILLS, WE ALL KNOW ABOUT SOME OF THESE PROBLEMS. AND THE FIRST THINGS TO ATTACK IT IS NOT JUST TO HANDOUTS, BUT GROWTH, JOBS, SKILLS, TRAINING, GROWTH, INVESTMENT, CAPITAL. AND SO, EITHER PARTY SHOULD HAVE THAT KIND OF AGENDA.

QUICK: BUT BOTH PARTIES DISAGREE ON HOW TO GET TO THAT GROWTH IS WHERE YOU REALLY WANT TO –

DIMON: I'M NOT SURE YOU'VE HEARD A DEMOCRATIC GROWTH AGENDA.

KERNEN: DID YOU HAVE CONVERSATIONS WITH TRUMP ABOUT BEING TREASURY SECRETARY?

DIMON: I'M NOT GOING TO TELL YOU, BUT I WAS NOT OFFERED THE JOB AND I DIDN'T WANT THE JOB.

KERNEN: YOU WERE NOT OFFERED? YOU DIDN'T WANT IT AND YOU WEREN'T OFFERED.

DIMON: I WAS NOT – I DIDN'T WANT IT AND I WAS NOT OFFERED IT.

KERNEN: BUT YOU HAD DISCUSSIONS.

DIMON: BUT THE FIRST THING I DID WAS TO ALSO OFFER TO HELP. SO, I CALLED UP – I MEAN, I WAS CALLED BY STEVE SCHWARZMAN AND THE SECOND THEY ASKED ME TO BE PART OF THAT ADVISORY GROUP, SAID ABSOLUTELY. I'M CHAIRMAN OF THE BUSINESS ROUNDTABLE. PART OF THE REASON I'M DOING THAT IS I THINK IT WILL BE HELPFUL TO A GROWTH AGENDA.

SORKIN: BUT THERE WERE LOTS OF DIFFERENT REPORTS WHICH I'M SURE YOU READ.

DIMON: YEAH. A LOT OF THEM WERE WRONG.

SORKIN: THAT SUGGESTED YOU WANTED THE JOB AND THAT YOU WENT BACK AND FORTH –

DIMON: WHOEVER SAID THAT WAS EITHER MAKING IT UP OR LYING.

KERNEN: FAKE NEWS. THERE'S BEEN NONE OF THAT.

DIMON: BUT I DON'T WORRY ABOUT THAT.

SORKIN: LET ME ASK A DIFFERENT QUESTION. WE'RE HERE IN DAVOS, PEOPLE TALK ABOUT GLOBALIZATION. YOU REPRESENT – HAVE A LOT OF CLIENTS THAT ARE MULTINATIONAL BUSINESSES THAT ARE THINKING AND ARE WORRIED AND CONCERNED THEY TALK ABOUT IT HERE ABOUT MORE NATIONALISTIC APPROACH IN THE UNITED STATES. WHAT DO YOU THINK?

DIMON: FIRST OF ALL, BIG COMPANIES ARE HUGE DRIVERS OF GROWTH. THAT HELPS ALL AMERICANS. OKAY. SOMETHING LIKE 50% OF ALL CAPITAL EXPENDITURES DONE BY THE LARGEST 1,000 COMPANIES IN THE AMERICA, CAPITAL EXPENDITURES IS ULTIMATELY A DRIVER OF JOBS AND PRODUCTIVITY AND INCOMES AND GROWTH. SO YOU NEED THAT. SO GLOBALIZATION, I DON'T THINK IT HAS TO BE REVERSED. I THINK PEOPLE POINTING OUT THAT THERE WERE FLAWS AND MAYBE SOME UNFAIR TRADING PRACTICES. AND THEY'RE POINTING OUT PEOPLE WERE HURT BY IT. SO YOU GO TO SOME TOWNS IN AMERICA AND PEOPLE LOST THEIR JOBS. AND IF THEY DIDN'T LOSE THEM, THEY WENT FROM EARNING $40 AN HOUR TO $10 AN HOUR. AND THEN WE NEED TO RECOGNIZE THAT AND DO SOMETHING ABOUT IT. THEY CALL IT TRADE ADJUSTMENT ASSISTANCE. BUT THINK OF RETRAINING, RELOCATION, BUSINESS REDEVELOPMENT, ALL THESE THINGS WHICH YOU KNOW CAN WORK IF THEY'RE PROPERLY DONE.

QUICK: YOU KNOW, I THINK IT HAS EXPRESSED SOME CONCERNS –

DIMON: GET THE BENEFITS OF TRADE AND ELIMINATE THE NEGATIVES AS OPPOSED TO KILL THE GOLDEN GOOSE. BECAUSE IT HAS BEEN A GOLDEN GOOSE. IT'S LIFTED 2 BILLION PEOPLE OUT OF POVERTY. IF YOU WERE A BLEEDING HEART, 2 BILLION PEOPLE OUT OF POVERTY. OKAY. IT'S PROBABLY GOING TO LIFT ANOTHER 2 BILLION PEOPLE OUT OF POVERTY IN THE NEXT 20 YEARS.

KERNEN: ONE THING WE CAN TALK ABOUT TOO, I THINK THE UNITED STATES HAS KIND OF LED THE WAY WITH GLOBALIZATION. AND AT TIMES, WE'VE BEEN TAKEN ADVANTAGE OF. YESTERDAY IN A VEILED REFERENCE TO DONALD TRUMP, THE PRESIDENT OF CHINA WAS TALKING ABOUT DON'T BE TOO NATION CENTRIC ABOUT THINGS. DON'T JUST BE THINKING ABOUT YOUR OWN COUNTRY SO MUCH. TO ME, THAT RANG A LITTLE BIT HOLLOW BECAUSE IF ANYBODY HAS BEEN SINGLE MINDED ABOUT PUTTING THEIR COUNTRY'S INTERESTS FIRST OVER THE LAST 20 YEARS, I THINK IT'S BEEN CHINA. I MEAN, DID YOU HAVE THAT FEELING?

DIMON: I DON'T WANT TO PUT IT THAT WAY. I THINK, LOOK, THEY HAVE SERIOUS ISSUES, OKAY. SO WHEN YOU HAVE 500 MILLION PEOPLE IN POVERTY –

KERNEN: OKAY, I FEEL FOR THEM, BUT THEY LOOK OUT FOR NUMBER ONE PRETTY WELL OVER THERE.

DIMON: THEY'VE DONE A GOOD JOB TRYING TO BUILD THEIR NATION. AND THAT IS THEIR JOB. SO I DON'T HOLD THAT AGAINST THEM WITH SOMETHING LIKE THAT.

KERNEN: ALRIGHT. HE'S QUOTING ABRAHAM LINCOLN.

DIMON: I DO THINK IT'S LEGITIMATE TO SAY IN ANY TRADE DEAL, WHAT PARTS WEREN'T FAIR. AND THERE ARE PARTS THAT AREN'T FAIR. I DON'T WANT TO GO THROUGH THE SPECIFICS, BUT YOU CAN LOOK AT ALMOST ANY TRADE AND SAY THIS WASN'T FAIR TO THAT GROUP. THIS DIDN'T TURN OUT THE WAY IT SHOULD –

QUICK: AND A LOT OF TIMES AMERICA WOUND UP ON THE WRONG SIDE OF IT.

KERNEN: AND SOMETIMES – WE'RE PATSIES. YEAH, WE'RE PATSIES SOMETIMES. WE'RE SO RICH AND SO NICE AND SO GLOBAL THAT PEOPLE TAKE ADVANTAGE OF US.

DIMON: I THINK THAT'S AN EXAGGERATION, BUT YEAH. I CAN'T IMAGINE ANY AMERICAN COMPANY OUT THERE SAYING I'M BEING TAKEN ADVANTAGE OF.

KERNEN: IN CHINA?

DIMON: WELL, ACTUALLY, THERE ARE A FEW THAT HAVE CALLED ME UP AND SAID YES, THIS IS UNFAIR TO ME.

KERNEN: IN CHINA? MY GOD.

SORKIN: I HAVE A VERY DOMESTIC QUESTION. FANNIE AND FREDDIE. STEVE MNUCHIN HAS SUGGESTED WE'RE FINALLY GOING TO GET TO A PRIVATIZATION OF THAT. DO YOU THINK THAT'S IN THE CARDS AND WHAT DO YOU THINK THAT SHOULD LOOK LIKE?

DIMON: I WILL LEAVE IT TO STEVE. WHAT I DO WANT TO SAY ABOUT IT IS THE PEOPLE I KNOW WHO HAVE PICKED BY TRUMP – STEVE MNUCHIN, GARY COHN, WILBUR ROSS, REX TILLERSON – EXPERIENCED, SUCCESSFUL PEOPLE WHO ARE GOING TO GO TO WORK TO TRY TO FIX ANY PROBLEM THAT AMERICA HAS. AND THAT'S ONE OF THEM. THERE ARE MULTIPLE FIXES THAT WORK, BUT I THINK IT'S GOOD TO FIX IT.

KERNEN: YEAH. EXECUTIVE EXPERIENCE.

QUICK: HE LIKES BUSINESS PEOPLE.

DIMON: AND EXECUTIVE EXPERIENCE. GLOBAL EXPERIENCE.

KERNEN: WHAT A CONCEPT. LET'S TRY IT JUST FOR THE HECK OF IT. SEE WHAT HAPPENS.

QUICK: JAMIE, YOU TALKED A LITTLE BIT ABOUT WHERE YOU SEE THINGS HEADED IN THE UNITED STATES. CAN WE DRILL DOWN A LITTLE BIT JUST ON WHAT YOU SEE HAPPENING IN THE U.S. HOUSING MARKET AT THIS POINT RIGHT NOW, TOO?

DIMON: YEAH. IT LOOKS PRETTY – SO HOMES FOR SALE – THE INVENTORY OF HOMES ARE WAY DOWN. OKAY. AND HOUSEHOLD FORMATION IS GOING UP. IT'S NOT QUITE UP TO WHERE IT WAS BEFORE THE GREAT RECESSION, BUT IT IS MOVING UP. KIDS ARE MOVING OUT OF THE BASEMENTS. KIDS ARE GETTING OUT OF COLLEGE. MILLENNIALS ARE GOING BACK TO WORK. SO, JUST LOOK AT ROUGH THINGS WITH INCOMES GOING UP, HOUSEHOLD FORMATION GOING UP, HOUSING IN SHORT SUPPLY, WE'RE GOING TO HAVE TO START BUILDING MORE HOMES. RIGHT NOW IT'S IN APARTMENTS. SO IF YOU LOOK AT THE BALANCE BETWEEN RENTALS, APARTMENTS AND HOMES, THAT MAY SHIFT A LITTLE BIT, BUT THAT'S STILL FINE. WE NEED MORE HOUSING.

QUICK: WE'VE SEEN STATISTICS ON CONSUMER CONFIDENCE AND ON BUSINESS CONFIDENCE THAT HAVE BOTH BEEN VERY STRONG SINCE THE ELECTION. DO YOU SEE THAT SORT OF OPTIMISM IN YOUR BUSINESS LINES ALREADY? OR IS IT JUST SOMETHING YOU KIND OF HEAR AT THIS POINT?

DIMON: NO, I'M ACTUALLY THE EXACT SAME THINGS YOU DO, WHICH I THINK IS GOOD. I THINK IT'S KIND OF A SECRET SAUCE. YOU KNOW, WHEN YOU MEASURE THOSE THINGS, WHAT DOES IT MEAN? BUT IT DOES MEAN SOMETHING WHEN PEOPLE – AN INDIVIDUAL WANTS TO BUY A HOME, OR BUY A CAR, OR DO AN ADDITION, OR A CORPORATION IS GOING TO BUILD A NEW PLANT. SO I THINK THOSE THINGS ARE IMPORTANT.

SORKIN: ARE YOU ANTICIPATING A WAVE OF M&A, MERGER AND ACQUISITION ACTIVITY, IF AND WHEN WE GET THIS REPATRIATION TO HAPPEN?

DIMON: I THINK THERE WILL BE – IF THAT HAPPENS, THERE PROBABLY WILL BE MORE. BUT IT WON'T BE A WAVE. IT WILL PROBABLY BE MORE THAN LAST YEAR, BUT IT'S HARD TO PREDICT THOSE THINGS.

QUICK: JAMIE, I WANT TO THANK YOU VERY MUCH FOR YOUR TIME. IT'S ALWAYS A PLEASURE TO SEE YOU. WE REALLY APPRECIATE IT.

DIMON: PLEASURE TO BE HERE. THANK YOU.

SORKIN: THANK YOU.

KERNEN: THANKS FOR THAT GREAT CREDIT CARD ANDREW LIKES.

SORKIN: OH, WE GOT TO ASK – HOLD ON, HOLD ON. WAS THAT A GOOD DEAL FOR YOU? YOU'VE LOST $200 TO $300 MILLION ON WHAT I THINK IS A GREAT CREDIT CARD CALLED THE RESERVE CARD.

KERNEN: WHY DID I DO THAT?

DIMON: FIRST, I WANT TO TELL THE PUBLIC BECAUSE YOU ALL HEARD THAT WILF COULDN'T GET HIS CARD. WHEN I HEARD THAT, I E-MAILED MY FRIEND ANDREW ROSS SORKIN AND SAID TELL WILF WE WILL GET HIM HIS CARD AND THEN NOW HE SAYS HE DOESN'T REALLY WANT IT.

SORKIN: NO, NO. BUT, THAT WAS A VERY – THIS IS A VERY SUCCESSFUL CARD, BUT IT'S COSTING YOU MONEY.

DIMON: YEAH.

SORKIN: SO DO YOU LOOK AT THAT AS SUCCESS?

DIMON: YOU KNOW, THE ACCOUNTING IS FICTION. OKAY. SO ONE OF THE FICTIONS HERE IS THAT THE MARKETING COST – EFFECTIVELY YOU CALL IT THE MARKETING COST – GETS BOOKED OVER 12 MONTHS. THE BENEFIT OF THE CARD GET BOOKED OVER SEVEN YEARS. SO ALL THAT WAS – THE CARD WAS SO SUCCESSFUL IT COST US ABOUT $200 MILLION, BUT WE EXPECT THAT TO HAVE A GOOD RETURN ON IT.

KERNEN: MORE FAKE NEWS.

DIMON: I WISH IT WAS A $400 MILLION LOSS.

SORKIN: JAMIE DIMON, THANK YOU.

QUICK: JAMIE, THANK YOU.

DIMON: THANK YOU.

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