WHEN: TODAY, FRIDAY, JULY 12TH
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with JPMorgan Chase Chairman & CEO Jamie Dimon today on CNBC's "Squawk on the Street." Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?play=1&video=3000182560.
All references must be sourced to CNBC.
JIM CRAMER: LET'S GET TO JAMIE DIMON, CHAIRMAN AND CEO OF JPMORGAN, FRESH FROM YOUR CONFERENCE CALL. A COUPLE TAKEAWAYS THAT I SEE. FABULOUS QUARTER. HIGH-QUALITY PROBLEM FOR JPMORGAN. PERHAPS TOO MUCH CAPITAL AND NOT ENOUGH LENDING.
JAMIE DIMON: YEAH. SO THANKS FOR HAVING ME HERE. THANKS FOR BEING IN THIS BEAUTIFUL NEW YORK STOCK EXCHANGE FLOOR. THE BASTION OF AMERICAN CAPITALISM. YEAH, YOU KNOW, LOOK.THE AMERICAN ECONOMY IS GETTING -- SLOWLY GETTING STRONGER. SO THE LENDING WILL COME BACK WHEN PEOPLE HAVE A LITTLE MORE CONFIDENCE. THEY START TO DO MORE CAPITAL INVESTING. SO WE'RE KIND OF CONFIDENT THAT YOU'LL SEE GROWTH OVER THE YEARS AS AMERICA RECOVERS.
CRAMER: NOW,IT'S PRETTY CLEAR FROM THE CONFERENCE CALL, EMPHASIZED REPEATEDLY, THAT WHEN RATES GO UP, YOU WILL MAKE A TON OF MONEY, EVEN AT THESE LEVELS OF ORIGINATIONS.
DIMON: I THINK YOU'VE GOT TO SEPARATE WHEN RATES GO UP, ALL THINGS BEING EQUAL, IT MAY KNOCK DOWN MORTGAGE ORIGINATIONS.
CRAMER: RIGHT.
DIMON: BUT IF YOU HAVE A HEALTHY ECONOMY, THAT WILL FILTER THROUGH ALL BOOKS OF BUSINESS.ALL THINGS EQUAL, RATES GOING UP IS A GOOD THING AS LONG AS THE ECONOMY IS GROWING.
CRAMER: LETS TALK ABOUT ALL THINGS BEING EQUAL, BECAUSE THIS WAS A QUARTER WHERE I DID NOT SEE YOU VIEWED AS MUCH AS A CONSUMER BANK EVEN THOUGH YOU HAVE A TREMENDOUS AMOUNT OF CAPITAL. THE BIG MONEY WAS MADE IN TRADING, IN FIXED INCOME, INEQUITIES. THIS IS SOMETHING I DIDN'T EXPECT, THE STREET DIDN'T EXPECT.
DIMON: NO. OUR FOLKS ON THE TRADING FLOORS DID AN OUTSTANDING JOB – OF COURSE, ALL PRODUCTS, FX, RATES, COMMODITIES, SECURITIZED PRODUCTS -- PARTICULARLY EMERGING MARKETS BECAUSE THEY'RE MORE VOLATILE THAN MOST, THAT WE BUILT A HUGE FLOW BUSINESS. WE DEAL WITH A LOT OF CLIENTS AROUND THE WORLD. SO YOU'RE RIGHT. TELL ME MORE. WE'RE PROUD.
CRAMER: OK, MORTGAGES. 7% ORIGINATION DECLINE. I'M ON THE WELLS CALL. WELLS IS NOT SEEING THOSE NUMBERS. I KNOW YOU'RE FRIENDS WITH JOHN STUMPF, HE'S THE CEO. IS HE JUST OUTMORTGAGING YOU?
DIMON: YES, HE IS.
CRAMER: HE IS?
DIMON: I LOVE JOHN STUMPF. THEY DO A BETTER JOB IN THE MORTGAGE BUSINESS THAN US. BUT WE'RE GOING TO BUILD --
CRAMER: YOU'LL ADMIT THAT SOMEONE'S DOING BETTER THAN YOU?
DIMON: ABSOLUTELY. THEY'VE BEEN DOING BETTER FOR A LONG TIME. REMEMBER WE HAD THE OLD BEAR STEARNS WAMU. OUR SYSTEMS WEREN'T GREAT. WE'VE GOT A NEW MANAGEMENT TEAM IN PLACE. AT THE END OF THE DAY, WE'RE GOING TO HAVE A GREAT MORTGAGE BUSINESS.WE BELIEVE, THE WAY JOHN DOES, IT'S AN IMPORTANT PRODUCT. WE'RE GOING TO BE REALLY GOOD AT PRODUCTION, REALLY GOOD AT SERVICING. WE'VE JUST GOT A LITTLE MORE WOOD TO CHOP THAN HE DOES.
CRAMER: IT DOES SEEMS THAT HE WANTS TO MAKE THE LOAN AND YOU DON'T.
DIMON: NO,OUR SHARES HAVE GONE UP. OK, WE'VE GONE FROM LIKE 9% TO 10% TO 11%. I THINK YOU'LL SEE OUR SHARE GO UP OVER TIME. REMEMBER, THEY'RE THE LARGEST. THEY ARE CLOSE TO 30%.
CRAMER: HOW MUCH OF YOUR DECISION TO LEND/NOT LEND HAS DIRECTLY TO DO WITH THE FACT THAT I DON'T KNOW IF THE GOVERNMENT WANTS YOU TO LEND OR THEY WANT YOU TO HOARD.
DIMON: YOU ARE TALKING ABOUT ON THE BALANCE SHEET NOW?
CRAMER: YEAH.
DIMON: COMMERCIAL LOANS. YEAH. WELL, LOOK, WE HAVE TO ADJUST -- WE HAVE A NEW REGULATORY ENVIRONMENT. SO ALL BANKS HAVE TO ADJUST TO IT. AND THAT DOESN'T MEAN YOU HAVE TO WITHHOLD MORE FOR LIQUIDITY, MORE FOR CAPITAL. BUILD UP THE CAPITAL RATIOS. EVENTUALLY YOU'LL BE BACK TO BUSINESS AS USUAL. THAT MAY TAKE ANOTHER YEAR OR TWO. BUT YOU KNOW, WE HAVE TO MOVE THROUGH – AND THESE ARE GLOBAL REQUIREMENTS. SO WE HAVE TO MEET THE REQUIREMENTS, YOU KNOW, IN 60 COUNTRIES AROUND THE WORLD, NOT JUST THE UNITED STATES.
CRAMER: OK,SO THE EVENTUALLY MEANS THAT YOU'LL HAVE ENOUGH CAPITAL OR EVENTUALLY MEANS YOU THINK THAT THINGS ARE GOING TO SOFTEN AND THE REGULATORS ARE NOT GOING TO BE SO ANTI-BANK WHICH I KNOW YOU FEEL THEY ARE.
DIMON: I THINK WHAT'S HAPPENING NOW, WE'RE GETTING NEAR THE TAIL END OF BASEL III,LEVERAGE RATIOS, CAPITAL RATIOS AND MAYBE BY THE END OF THIS YEAR WE'LL ACTUALLY KNOW WHAT THEY ARE. THEY HAVE THESE NEW CONSERVATION BUFFERS WHICH WILL TELL BANKS WHAT THEY CAN DO. THE C-CARD IS NEW. IT'S A COUPLE YEARS OLD.ALL THOSE WILL DETERMINE EVENTUALLY HOW AGGRESSIVELY BANKS CAN GROW, HOW AGGRESSIVELY THEY CAN PAY DIVIDENDS, RETURN CAPITAL. BUT WHAT'S THE MOST IMPORTANT THING IS WE'RE BUILDING CLIENT BUSINESSES WITH GREAT FRANCHISES. OF COURSE, ALL OF OUR BUSINESSES, THAT'S WHAT WE'RE IN BUSINESS FOR.
CRAMER: RIGHT. BUT, I LOOK AT THE BIG CAP. $294 BILLION IN LARGE CAP. WHAT THE HECK? $9 BILLION IN SMALL BUSINESS. I KNOW YOU WANT TO LEND TO SMALL BUSINESS. IS IT TOO RISKY? IS THE GOVERNMENT GOING TO SAY LISTEN, THOSE LOANS ARE THE SPEC LOANS,WE DON'T WANT YOU TO MAKE THEM?
DIMON: NO,OUR SMALL BUSINESS LOANS ARE $18 BILLION. AND THEN IF YOU TAKE CREDIT CARD,ANOTHER $5 OR $6 BILLION. SMALL BUSINESS IS NOT A HUGE NUMBER. SO WE'RE ONE OF THE BIGGEST SMALL BUSINESS LENDERS OUT THERE. OUR ORIGINATION IS KIND OF FLAT.I DO THINK IT'S A LITTLE BIT HARDER. YOU KNOW, SMALL BUSINESS IS NOT COMPLETELY RECOVERED LIKE LARGE COMPANIES HAVE. I THINK SMALL BUSINESS WILL RECOVER WITH THE ECONOMY. WHEN THE ECONOMY STARTS TO GROW, YOU'RE GOING TO SEE SMALL BUSINESS TAKE OFF, AND THEIR CREDIT NEEDS GROW.
CRAMER: BUT IF IT HASN'T TAKEN OFF YET, I MEAN, THE FEDERAL RESERVE CHAIRMAN HAS DONE EVERYTHING HE CAN. HAS HE NOT DONE ENOUGH?
DIMON: NO, I THINK THEY'VE DONE A LOT. I THINK WE JUST HAVE A MODERATE RECOVERY, BUT I PERSONALLY -- OUR VIEW AT JPMORGAN IS THAT IT'S ACTUALLY STRENGTHENING, IT'S VERY BROAD BASED, THERE'S ALMOST NO SECTOR, LARGE COMPANY, MIDDLE-MARKET COMPANY, SMALL BUSINESS, CONSUMERS, HOUSING, THERE'S NOTHING THAT'S NOT GOING TO LOOK BETTER. SO IF WE'RE A LITTLE LUCKY AND WE GOT A LITTLE BACKWIND NEXT YEAR FROM THE FISCAL SIDE, YOU MAY SEE STRONGER GROWTH IN AMERICA.
CRAMER: BUT YOUR CFO TALKED ABOUT IF WE HAVE A CONTINUATION OF THESE MORTGAGE RATE INCREASES, REFIS GO DOWN BIG, OBVIOUSLY WHAT'S THE LEVEL WHERE HOUSING JUST GOES DOWN?
DIMON: I HOPE SHE'S WATCHING BECAUSE I WANT YOU TO KNOW, MARIAN, YOU DID AN OUTSTANDING JOB TODAY. SO, WHAT SHE WAS TALKING ABOUT IS THAT ALL THINGS BEING EQUAL, IF RATES -- MORTGAGE RATES NOW 4.5%, REFI IS GOING TO DROP. BUT THAT'S OKAY AS LONG AS THE ECONOMY IS DOING WELL. THAT'S JUST ONE LITTLE PART OF THE BUSINESS.
CRAMER: OKAY. NOW, A BIG PART OF THE BUSINESS THAT SEEMS TO BE WORKING IS THIS TRADING THAT I MENTIONED. WHAT DOES THE VOLCKER RULE ULTIMATELY MEAN? WHAT DOES REGULATION ULTIMATELY MEAN FOR LONG-TERM PROFITABILITY, FOR RETURN ON EQUITY?
DIMON: YEAH.SO THE VOLCKER RULE IS NOT WRITTEN YET, AND WE DON'T DO REAL PROP TRADING. MOST OF OUR BUSINESS IS CLIENT-DRIVEN TRADING. AND OUR HOPING WHEN THE VOLCKER RULE IS FINISHED, THAT WE CONTINUE TO DO ALL THE THINGS WE DO FOR CLIENTS. WE DEAL WITH 16,000 CLIENTS AROUND THE WORLD. THEY COME TO US, BECAUSE WE HAVE THE GREAT PRICES, RESEARCH, EXECUTION, AND THAT'S GOOD FOR THE INVESTOR AND THE ISSUER. SO I WANT TO POINT OUT, SINCE I'M ON THE NEW YORK STOCK EXCHANGE FLOOR,THAT THE UNITED STATES HAS ONE OF THE BEST ECONOMIES THE WORLD HAS EVER SEEN AND THE WIDEST, DEEPEST, MOST TRANSPARENT CAPITAL MARKETS WHICH WERE PART OF THE ENGINE THAT MADE THIS COUNTRY GREAT. SO LET'S MAKE SURE WE'RE ALL SAID AND DONE WITH THESE RULES, THAT WE'VE STILL GOT THIS. THIS IS OUTSTANDING.
CRAMER: WE HAVE THE UNITED STATES SENATE, OKAY? SENATE, 100 OF THEM, ONE OF THEM VERY IMPORTANT, ELIZABETH WARREN, COMES OUT AND SAYS, LISTEN. ENOUGH WITH THIS.BANKING SHOULD BE BORING. IT'S DANGEROUS, HIGH-RISK PRACTICES. YOU NEED TO TAKE STEPS TO KEEP GAMBLERS OUT OF OUR BANKS. YOU A GAMBLER?
DIMON: NO. YOU'D BE SURPRISED AT HOW RISK AVERSE WE ARE. I THINK, FIRST OF ALL, THE THINGS THAT SINK BANKS ARE LOANS. THE RISKIEST THING WE DO IS LOANS. BANKS, IF YOU GO HISTORICALLY, ALWAYS TRADE A LITTLE BIT, DID M&A ADVICE, DID INTEREST RATE SWAPS. YOU CAN DESIGN A FINANCIAL SYSTEM ANY WAY YOU WANT, LET'S JUST END UP WITH A REALLY GOOD ONE.
CRAMER: WHAT ARE YOU COMING AT THIS AS A MAN OF PEACE? I MEAN, ELIZABETH WARREN SAID SHE WANTS TO BREAK UP YOUR BANK.
DIMON: I THINK JPMORGAN IS A GREAT INSTITUTION, OK?
CRAMER: IT'S THE STATES. I LOVE THE STATES, BUT –
DIMON: NO, BUT THE PROOF IS IN THE PUDDING. PEOPLE COME TO A COMPANY BECAUSE YOU DO SOMETHING FOR THE CLIENT.
CRAMER: OKAY.
DIMON: SO IF YOUR CUSTOMER STATS ARE GOING UP, IF PEOPLE ARE GIVING YOU BUSINESS, PRESUMABLY IT'S BECAUSE THEY LIKE WHAT YOU DO FOR THEM. THIS COMPANY WAS A PORT OF SAFETY IN THE STORM, WE NEVER LOST MONEY IN THE CRISIS. WE HELPED A LOT OF PEOPLE,CITIES, SCHOOLS, STATES. HOSPITALS, NOT-FOR-PROFITS AND PART OF IT WAS OUR DIVERSIFICATION. WE WERE A PORT IN THE STORM.BEFORE WE'LL BE A PORT IN THE NEXT STORM. AND OUR CLIENTS ARE HOPEFULLY HAPPY WITH US. THAT'S WHY WE'RE HERE.
CRAMER: YOU DON'T BUY THE RAP THAT THESE BANKS, YOUR BANKS, WELLS FARGO, TOO BIG TO FAIL,TOO DIFFICULT TO MANAGE, TOO DIFFICULT TO JAIL, TOO HARD TO REGULATE.
DIMON: I WOULD SAY THAT WE ALL HAVE AN INTEREST IN A SOUND AND SAFE FINANCIAL SYSTEM.
CRAMER: OKAY.
DIMON: THERE'S NO ONE THAT DOESN'T WANT THAT. AND I THINK A LOT OF RULES AND REGULATIONS ARE GOING TO MAKE A LOT SAFER AND SOUNDER AND WE ALL HAVE AN INTEREST IN GETTING RID OF TOO BIG TO FAIL. IT'S NOT RIGHT IN AMERICA THAT ANYONE FEELS LIKE A JPMORGAN IS TOO BIG TO FAIL. SO THE RULES IN PLACE, WE THINK ARE GOING TO ACCOMPLISH THAT OVER TIME. AND ELIMINATE SOME OF THESEISSUES. AND IF A COMPANY DOES BADLY, FIRE THE MANAGEMENT. FIRE THE BOARD. CLAWBACK COMP. BURY THE COMPANY. AND LET THE SYSTEM TAKE CARE OF IT. AND WHERE IT DOESN'T HURT THE TAXPAYER AND IT DOESN'T HURT THE ECONOMY. AND I THINK THE TOOLS WERE GIVEN TO REGULATORS IN DODD/FRANK, WHICH COULD PROBABLY ACCOMPLISH THAT.
CRAMER: YOU ACTUALLY BELIEVE THAT THE REGULATION FLOOR WILL NOT REPRESS LENDING AND WILL ACTUALLY BRING ABOUT GOOD THINGS IN THE UNITED STATES.
DIMON: LOOK,LISTEN, WHEN YOU SAY REGULATORS, THERE ARE SO MANY. WE HAVE HUNDREDS. SOME OF THEM WILL MAYBE DO A LITTLE BIT OF SUPPRESSION ON LENDING. AND I THINK OVERTIME, YOU'RE GOING TO SEE PRODUCTS – THE COST OF CREDIT GO UP. YOU'RE NOT GOING TO SEE IT OVERNIGHT. BUT YOU ARE GOING TO SEE THE COST OF CREDIT, REVOLVERS AND CERTAIN THINGS GO UP.
CRAMER: WELL 14 MONTHS AGO YOU SAID YOU WERE BARELY A DEMOCRAT BECAUSE YOU FELT THAT THE DEMOCRATS COULD BE TOO ANTI-BUSINESS. I'M NOT HEARING THAT TODAY.I'M NOT HEARING THERE'S ANY PARTICULAR PARTY.
DIMON: I HAVEN'T CHANGED THAT. I AM VERY PRO-BUSINESS. I THINK BUSINESS -- I THINK BIG INSTITUTIONS ARE GREAT INSTITUTIONS. THEY TREAT THEIR PEOPLE WELL. THEY'VE BEEN AT THE FOREFRONT OF SOCIAL THINGS LIKE, YOU KNOW, BENEFITS FOR GAY AND LESBIANS AND HELPING VETERANS AND WE PAY OUR PEOPLE WELL AND MEDICAL BENEFITS.
CRAMER: APPLE PIE.
DIMON: SO THESE COMPANIES DO FABULOUS THINGS. I'M NOT TALKING ABOUT JPMORGAN. I'M TALKING ABOUT ALL THESE GREAT COMPANIES OUT THERE. WE MAKE MISTAKES. WE HAVE BAD APPLES EVERY NOW AND THEN.
CRAMER:LET'S TAKE A BREAK WE ACTUALLY MIGHT GO OVER SOME OF THE MISTAKES AND GO OVER SOME OF THE TRIUMPHS. THIS IS JIM CRAMER WITH JAMIE DIMON.
CRAMER: WE'RE BACK NOW. MORE FROM JPMORGAN'S CHAIRMAN AND CEO, JAMIE DIMON. CONTROLS WERE AN ISSUE, OKAY? AND YOU ADMITTED IT. YOU'VE ACTUALLY TALKED WITH ME AND SAID,LISTEN, WE LET YOU DOWN. HOW DO WE KNOW THEY'RE IN PLACE? HOW DO WE KNOW IT'SNOT IMPOSSIBLE JUST TO DISCERN WHAT'S REALLY GOING ON IN A BIG BANK?
DIMON: REMEMBER, THIS COMPANY DID RATE THROUGH THE CRISIS, A REAL CRISIS. WE TRADE AROUND THE WORLD. WE MAKE LOANS. WE MOVE TRILLIONS OF DOLLARS A DAY. WE'RE A GOOD COMPANY. WE HAD THESE FLAWS. AND THE ANTI-MONEY LAUNDERING –
CRAMER: HAD,YOU'RE USING PAST TENSE.
DIMON: NO NO WE HAVE, WE'VE GOT TO FIX THEM. WE'VE PUT ANTI-MONEY LAUNDERING. SOME COMPLIANCE, SOME MORTGAGE, SOME WERE INDUSTRY WIDE, SOME WERE UNIQUE TO US. AND WHEN I LOOKED AT IT THE FACT IS THEY WERE ACCURATE COMPLIANT. SO WE SAID CONTROL AGENDA NUMBER ONE. WE'VE TAKEN OUR BEST PEOPLE, ENORMOUS RESOURCES. I'M TALKING THOUSANDS OF PEOPLE. SO IT'S NOT JUST RESOURCES. WE'RE GETTING RID OF ALL THE BACKLOG, BUILDING NEW SYSTEMS, WE'RE PUTTING BETTER FRONT-END/BACK END IN PLACE AND IT WILL MAKE US A BETTER COMPANY. AND THEN OBVIOUSLY WE HAD THE LONDON WHALE PROBLEM WHICH WE'VE ALSO FIXED. BUT LISTEN COMPANIES SHOULD ACKNOWLEDGE-- IF YOU ACKNOWLEDGE YOUR FAULTS, YOU CAN YOU FIX THEM. IF YOU DENY THEM, YOU DON'T FIX THEM, SO WE'RE GOING TO FIX THEM AND I THINK WE'LL MAKE REGULATORS HAPPY WITH WHAT WE'RE DOING.
CRAMER: BUT PART OF THE PROBLEM WITH THE NEW REGULATORY REGIME, WHY IT GOT STEPPED UP, WHY YOU CAN'T PICK UP THE PAPER WITHOUT SEEING IT, IT'S BECAUSE OF WHAT WENT WRONG WITH JPMORGAN.
DIMON: YEAH. IT WAS VERY UNFORTUNATE.
CRAMER: AND A LOT OF PEOPLE HAVE LEFT THE BANK WHO WERE PEOPLE WHO YOU PUT IN WHO WERE YOUR FRIENDS. HOW DO YOU DEAL WITH THAT?
DIMON: FIRST OF ALL, I THINK THE MANAGEMENT TEAM IS AS GOOD AS I'VE EVER SEEN. AND YOU ALL SAW TODAY MARIAN LAKE, EXCELLENT. LOOK AT THE RESULTS OF THE INVESTMENT BANK,OUTSTANDING GORDON SMITH IN COMMERCIAL, OUTSTANDING. DOUG PETNO, COMMERCIAL BANK, OUTSTANDING. MARY ERDOES, A LOT OF YOU MAY KNOW. WE'VE GOT FABULOUS PEOPLE.THEY'RE NOT NEW. THEY WERE ALL THERE. VERY SEASONED. VERY EXPERIENCED WHO GOT BUMPED UP. SO WE HAD TOO MUCH TURNOVER.
CRAMER: OKAY.
DIMON: THE LONDON WHALE, A LITTLE BIT SUCCESSION, GETTING PEOPLE IN PLACE WHO COULD SUCCEED ME ONE DAY. AND A LITTLE BIT BECAUSE WE REORGED. AND THE REORG WE HAD TO DO. IT WAS UNFORTUNATE, BUT COMPANIES MOVE ON.
CRAMER:HERE'S SOMETHING THAT MYSTIFIES ME. I'M A PRIVATE CLIENT OF THE BANK. MICHAEL CEMBALEST, I THINK THE SINGLE BEST STRATEGIST ON WALL STREET, HE WAS RECOMMENDING EXACTLY THE OPPOSITE OF WHAT THE WHALE DID. WHY NOT JUST SAY,LISTEN, WHAT THE HECK? WE'VE GOT THE BEST STRATEGISTS ON THE STREET. WHY DON'T YOU GET WITH THE PROGRAM?
DIMON: FIRST OF ALL, I AGREE WITH YOU ON MICHAEL CEMBALEST. THAT'S NUMBER ONE. THE IRONY WAS THE WHALE WAS MEANT TO BE A RISK-REDUCING THING. IT MORPHED INTO SOMETHING WHICH I DON'T EVEN KNOW WHAT IT WAS. AND WE ALREADY SAID IT WAS BAD STRATEGY,BADLY VETTED, BADLY DONE, UNJUSTIFIABLE, WE ADMITTED IT, WE CONFESSED TO THE WHOLE WORLD. WE'VE GOTTEN RID OF MOST OF THE RISK. WE CHANGED IT. WE DON'T DO IT ANYMORE. THAT'S LIFE.
CRAMER:WOULD YOU HAVE QUIT IF THEY SEPARATED THE CHAIRMANSHIP FROM THE CEO?
DIMON: NO. I WAS VERY CLEAR, I WOULD NEVER LEAVE MY COMPANY HIGH AND DRY. I WOULDN'T HAVE LIKED IT, BUT I WOULD NEVER WOULD HAVE LEFT THE COMPANY HIGH AND DRY. THAT DECISION ABOUT THE CHAIRMAN AND CEO IS THE BOARD'S DECISION.
CRAMER: BUT YOU CARE ABOUT THE STOCK. THE STOCK WOULD GO DOWN IF THAT HAPPENED.
DIMON: IF THEY SEPARATED THE ROLE? YEAH. I THINK IT MIGHT HAVE GONE DOWN BECAUSE THAT CREATES SO MUCH UNCERTAINTY INSIDE A COMPANY. YOU KNOW, WHY DID A CEO LEAVE? IS THERE DISSENSION AT THE BOARD LEVEL? MY BOARD -- THE POINT MY BOARD MADE IS THAT THIS SHOULD BE A BOARD DECISION BASED UPON THEIR KNOWLEDGE OF THE COMPANY,THE PEOPLE, SUCCESSION. IT SHOULDN'T BE ROGUE. THERE'S NO EVIDENCE TO SEPARATE IT WORKS AT ALL. BUT AGAIN, FOR THE AUDIENCE OUT THERE, IF YOU'RE A SHAREHOLDER, HERE'S WHAT'S REALLY IMPORTANT. THE BOARD MEETS EVERY SINGLE TIME WITHOUT ME. THE BOARD SETS THE WHOLE AGENDA. THE BOARD HIRES AND FIRES ME. THE BOARD IS DEEPLY ENGAGED IN SUCCESSION. THEY KNOW ALL THE SENIOR PEOPLE. WE'VE GOT THESE WONDERFUL PRACTICES. THAT'S WHAT'S IMPORTANT. NOT SEPARATING CHAIRMAN AND CEO. REMEMBER, ENRON AND WORLDCOM HAD SEPARATE CHAIRMAN AND CEO.
CRAMER: RIGHT, DIDN'T WORK.
DIMON: DIDN'T WORK.
CRAMER: NOW,TAPERING, ALL RIGHT? WHAT I'M HEARING FROM YOU IS THAT THIS COUNTRY IS VERY STRONG. SO IT OBVIOUSLY CAN WITHSTAND TAPERING, IF NOT ENDING. EXODUS OF THE FED, WHAT DOES IT DO TO THE BANK? WHAT DOES IT DO TO THE COUNTRY?
DIMON: LET ME PUT THIS ONE IN PERSPECTIVE A LITTLE BIT. WE ALL WANT NORMALIZED RATES..RATES HAVE BEEN SUPPRESSED KIND OF AROUND THE WORLD FOR A LONG TIME. I BELIEVE IN THE PROCESS OF NORMALIZATION. YOU'RE GOING TO HAVE SOME VOLATILITY.YOU'RE GOING TO HAVE RATES GO UP. I DON'T KNOW WHY ANYONE SHOULD BE SURPRISED ABOUT THAT. I'M NOT TALKING ABOUT NEXT MONTH. I'M TALKING ABOUT OVER THE NEXT COUPLE YEARS. BUT LOOK PAST THE VOLATILITY. REMEMBER, 6 BILLION PEOPLE ON THE PLANET DON'T CARE ABOUT THAT. WHAT THEY'RE GOING TO CARE ABOUT IS JOBS, GROWTH.AS LONG AS THE ECONOMY IS STRONG, THEN I THINK IT WOULD BE FINE.
CRAMER: WELL, THEN WHERE IS THE JOB GROWTH? IN THIS COUNTRY?
DIMON: YOU'VE HAD 200,000 JOBS I THINK MONTH IN THE LAST SIX OR SEVEN MONTHS. I THINK THE COUNTRY COULD BE DOING 300,000, 400,000 YOU MAY SEE THAT SO TO ME THAT'S THE IMPORTANT THING. THE OTHER THING YOU MENTIONED I JUST WANT TO MENTION ABOUT AMERICA, I GET THE BENEFIT TO TRAVEL THE WHOLE WORLD. THIS COUNTRY, NOT ONLY DOES IT HAVE THE BEST MILITARY ON THE PLANET, IT'S GOT THE BEST UNIVERSITIES, THE BEST BUSINESSES. IT'S GOT LOW CORRUPTION. THE WISEST AND DEEPEST CAPITAL MARKETS. IT'S HUGELY INNOVATIVE FROM STEVE JOBS TO THE FACTORY FLOOR. IT'S GOT A WONDERFUL WORK ETHIC. WE'VE GOT A ROYAL STRAIGHT FLUSH. WE DON'T HAVE A DIVINE RIGHT TO SUCCESS, BUT WE'VE GOT AN UNBELIEVABLE HAND. IF WE PLAY IT WELLAND NOW WE'VE GOT NATURAL GAS, SHALE OIL.
CRAMER: YOU KNOW I LIKE THAT.
DIMON: WE HAVE A GIFT FROM GOD HERE. AMERICA IS GOING TO COME BACK AND IT'S GOING TO BLOW PEOPLE'S SOCKS OFF WHEN IT DOES.
CRAMER: BEN BERNANKE IS GOING TO RETIRE. WHY NOT, IF ASKED, TAKE THE FEDERAL RESERVE JOB?
DIMON: YOU TALKING ABOUT ME?
CRAMER: YEAH.
DIMON: OH GOD NO PLEASE. NO, I DO NOT.
CRAMER: YOU'RE NOT QUALIFIED? JAMIE DIMON NOT QUALIFIED FOR THE FED CHAIRMAN?
DIMON: EVERY SINGLE PERSON I KNOW WOULD SAY JAMIE SHOULD NEVER BE FED CHAIR.
CRAMER: ALL RIGHT. SURPRISED THERE HAVE BEEN NO INDICTMENTS OF SOME OF THE PEOPLE WHO DID WRONG? I KNOW YOU WERE ANTI THE PEOPLE THAT DID WRONG. PREET BHARARA SPEAKING TO HIM NEXT WEEK, SHOULDN'T THEY HAVE INDICTED SOMEBODY WHO ACTUALLY DID BAD THINGS IN BANKING?
DIMON: I THINK IF SOMEONE DID SOMETHING WRONG, THEY SHOULD GO TO JAIL.
CRAMER: WELL WHO DID?
DIMON: ONE OF THE GREAT THINGS ABOUT AMERICA, FAILURE IS NOT ILLEGAL OR WRONG. YOU CAN'T JUST SAY IT FAILED. BUT I DO THINK AMERICA LOOKED AT THE CRISIS -- AND THIS IS TOO BAD, AND THERE WAS NO -- ANYWHERE OLD TESTAMENT JUSTICE. WHAT THEY SAW IS PEOPLE GOT OVERPAID AND SOME OF THESE PEOPLE LOST ALL THEIR MONEY, THEIR REPUTATION, ALL THAT. IF SOMEONE DID SOMETHING WRONG, THEY SHOULD PAY. YOU'VE GOT TO BE SPECIFIC. DID THEY DO SOMETHING WRONG OR YOU LIKE THE FACT THAT THEY FAILED. YOU MAKE INVESTMENTS. THEY DON'T ALWAYS PAY OFF. IT DOESN'T MEAN YOU'RE A CRIMINAL.
CRAMER: LAST QUESTION. AMERICA NEXT YEAR AT THIS TIME. WHERE'S UNEMPLOYMENT? WHERE'S GDP?
DIMON: I'M NOT -- YOU'RE BETTER AT THIS THAN I AM. MY GUESS IS GDP WILL BE STRONGER AND UNEMPLOYMENT WILL BE 6.5%.
CRAMER: 6.5%? THANK YOU SO MUCH. THAT'S JAMIE DIMON, CHAIRMAN AND CEO OF JPMORGAN. BACK TO YOU.
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