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FIRST ON CNBC: CNBC TRANSCRIPT: CNBC'S ERIN BURNETT INTERVIEWS JP MORGAN CHASE CEO JAMIE DIMON TODAY ON CNBC'S "POWER LUNCH"

Jamie Dimon testifying before House Financial Services Committee
CNBC.com
Jamie Dimon testifying before House Financial Services Committee

WHEN: TODAY, FRIDAY, MARCH 27TH

WHERE: CNBC'S "POWER LUNCH"

Following is the unofficial transcript of a FIRST ON CNBC interview with JP Morgan Chase CEO Jamie Dimon today on CNBC's "Power Lunch."

All references must source CNBC.

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BURNETT: ALL RIGHT EVERYONE I AM ERIN BURNETT AND I AM JOINED HERE NOW BY JP MORGAN CHASE CEO JAMIE DIMON HE JOINS US FIRST HERE ON CNBC. MR DIMON THANK YOU FOR BEING HERE.

DIMON: YOU ARE VERY WELCOME

BURNETT: WHAT HAPPENED

DIMON: WE SPENT WELL OVER AN HOUR WITH THE PRESIDENT OF THE UNITED STATES A LOT OF CEOS FROM BANKS WERE IN THE ROOM AND WE WENT AROUND THE ROOM AS HE NORMALLY DOES HE ASKED A LOT OF QUESTIONS INTERESTING WHAT PEOPLE THINK NOT EVERYONE AGREES WITH EVERYTHING BUT I THINK IT IS FABULOUS THAT HE AND HIS TEAM WILL SPEND THE TIME TO DO THAT

BURNETT: DID HE ASK A LOT OF QUESTIONS OR DID HE DO MOST OF THE TALKING

DIMON: NO.HE SET THE TONE EARLY ABOUT THE ISSUES FACING THE COUNTRY.THAT HE EXPECTS EVERYONE TO HELP IN EVERY WAY THEY CAN, TO BE VERY RESPONSIVE TO THE NEEDS OF THIS COUNTRY. HE WENT AROUND THE ROOM AND ASKSPEOPLE'S OPINIONS ABOUT VARIOUS SUBJECTS. ANYTHING THEY WANTED TO SPEAK ABOUT.

BURNETT: WHAT WERE THE MAIN TOPICS? WE HAVE BEEN TALKING QUITE A BIT.THEY'RE GOING TO TALK ABOUT THE T.A.R.P. AND WHETHER IT'S A SCARLET LETTER OR PEOPLE GIVING IT BACK ABOUT COMPENSATION. WERE THOSE BIG SUBJECTS, SOMETHING ELSE?

DIMON: T.A.R.P. CAME UP MANY TIMES. IT HAS BECOME A LITTLE BIT OF A SCARLET LETTER. BUT I THINK EVERYONE IN THE ROOM -- SOME NEEDED IT AND SOME DIDN'T. EVERYONE IN THE ROOM IS COMING FROM THE STANDPOINT, THEY'RE GOING TO DO WHAT'S RIGHT FOR THE UNITED STATES OF AMERICA AND NOT JUST THEIR INSTITUTION. SOME OF THE T.A.R.P. MONEY IS BEING USED TO FINANCE BUSINESSES AND WHAT WE'RE ASKED TO DO WITH IT. SO THE ONLY QUESTION IS HOW DO YOU GO ABOUT CHANGING IT OVER TIME AND CAN IT BE REUSED IN A BETTER WAY? BUT I THINK MOST PEOPLE WERE CALM AND THE POINT OF THE TARP WAS TO USE IT FOR THE COUNTRY A LOT OF CRITICISM ABOUT IT SHOULDN'T STOP YOU FROM DOING THE RIGHT THING FOR THE COUNTRY

BURNETT: DID HE ASK PEOPLE TO STOP THREATENING OR TALKING ABOUT RETURNING THE T.A.R.P. EARLY?

DIMON: HE DID NOT. I THINK HE UNDERSTANDS THAT, YOU KNOW, HE WANTS TO MAKE SURE -- AND I THINK THAT THE COUNTRY COULD BE COMPLETELY COMFORTABLE AND THE FINANCIAL INSTITUTIONS AS ONE PILLAR TO GET THIS COUNTRY MOVING AGAIN. I THINK EVERYONE IN THE ROOM WANTS TO DO THAT. THE T.A.R.P. IS REALLY A PIECE OF THAT. YOU KNOW, WE HAVE UPCOMING, THE STRESS TEST.I THINK IT'S A WAY TO BE DEFINITIVE ABOUT THE STRENGTH OF FINANCIAL COMPANIES. AND OBVIOUSLY HOW AT THIS TIME T.A.R.P. GETS REPAID. IT'S JUST ANOTHER QUESTION.

BURNETT: YOU AT JPMORGAN HAVE BEEN VOCAL.I'VE SPOKEN TO YOU AND MY COLLEAGUES HAVE, THAT YOU DIDN'T NEED IT WHEN TREASURY SECRETARY PAULSON ASKED YOU TO TAKE IT .YOU STILL HAVE IT.DO YOU INTEND TO GO AHEAD AS SOON AS THE STRESS TEST IS DONE AND PAY IT BACK IMMEDIATELY?

DIMON: NO. WHAT WE'VE ASKED THE SECRETARY OF TREASURY IN THIS PARTICULAR CASE IS THAT WE WANT TO DO WHAT IS RIGHT FOR JPMORGAN AND THE COUNTRY. WE'LL TAKE A LOT OF GUIDANCE FROM THEM. WE HAVE OUR OWN DESIRES BUT WE'RE HERE TO SUPPORT THEM IN EVERY WAY POSSIBLE. THE SECRETARY OF TREASURY WILL FIGURE OUT WHAT HE THINKS MAKES STRESS FROM THE STRESS TEST AND THE T.A.R.P. I AM SURE WE WILL HAVE OUR DISCUSSIONS AND DEBATES ABOUT IT BUT IT WON'T AT ONE POINT, WE'LL FIGURE OUT A WAY TO PAY IT BACK.

BURNETT: YOU DON'T HAVE A TIMETABLE YET ON RETURNING IT?

DIMON: NO. I THINK WHAT IS IMPORTANT IS NOT NECESSARILY THE TIMETABLE BUT MAYBE THAT YOU KNOW WHAT IS GOING TO HAPPEN TO IT OVERTIME.

BURNETT: THEY MENTIONED THEY WOULD TALK ABOUT COMMERCIAL REAL ESTATE. THAT'S AN AREA WHERE JPMORGAN HAS HUGE EXPOSURE. YOU'VE AVOIDED A LOT OF HITS SO FAR. BUT THAT MIGHT BE WHERE YOU MIGHT BE HIT.

DIMON: RIGHT I HEARD YOU SAY THAT THIS MORNING. WE DON'T HAVE HUGE EXPOSURE TO COMMERCIAL REAL ESTATE.

BURNETT: YOU WANT TO TAKE THAT ONE OFF THE TABLE

DIMON: RIGHT BUT IN A RECESSION EVERY SINGLE CATEGORIES OF LOANS IN THE BANK, IF YOU DO A GOOD JOB, THEY'LL GET WORSE. IF YOU'RE REAL ESTATE, CREDIT CARD MORTGAGES, INDUSTRIAL, THEY'LL ALL GET WORSE.WE DON'T HAVE A LOT. WE'RE NOT PARTICULARLY WORRIED ABOUT IT. WE'RE VERY COMFORTABLE WITH OUR OWN EXPOSURE TO REAL ESTATE IT'S JUST ONE CLASS, IT'S NOT ANOTHER SHOE TO DROP.IT'S WHAT YOU SHOULD EXPECT IN A RECESSION.

BURNETT: IN TERMS OF COMPENSATION, WHAT BROUGHT IT UP?

DIMON: FROM THE START, THE PRESIDENT THINKS THAT WE SHOULD BE VERY COGNICANT OF THE NEEDS AND DESIRES AND ANGER AROUND THE COUNTRY ON COMPENSATION. LOOK, I MEAN, I SHOULD BE CLEAR. A LOT OF MISTAKES WERE MADE AROUND COMPENSATION. I THINK A LOT OF PEOPLE IN THE ROOM WOULD AGREE WITH ME, THAT WE KNOW MISTAKES WERE MADE. A LOT OF COMPANIES HAVE GOOD STANDARDS.AT JPMORGAN CHASE, WE NEVER HAD PARACHUTES. WE NEVER HAD CHANGE IN CONTROL WE ALREADY MADE THE EXECUTIVES DO A LOT IN STOCK AND HAD TO INVEST OVER TIME AND WE LOOK AT LONGTERM SUSTAINED PERFORMANCE. YES BUT SOME WENT TOO FAR.OBVIOUSLY THAT'S BEEN BROUGHT IN A LOT I THINK PEOPLE WANT TO BE SENSITIVE TO COMP.

BURNETT: DID HE SAY HE IS AGAINST THE BILL THAT PASSED THEHOUSE LAST WEEK THAT WOULD TAX T.A.R.P. RECIPIENT BONUSES AT THE 90%?

DIMON: I THINK HE IS PRETTY CLEAR, HE IS NOT AGAINST WEALTH BUT PROBABLY -- I'M PUTTING WORDS IN HIS MOUTH -- AGAINST WEALTH THAT DIDN'T END UP THAT YOU CREATED SOMETHING FOR IT. AND I THINK THEY ARE CLEAR THEY WANT TO TREAT PEOPLE DIFFERENT RETROSPECTTIVELY AND PROSPECTIVELY.THAT'S STILL TO BE WORKED OUT. AND WE HAVEN'T HEARD ALL THE FINAL THINGS IN THAT AND I AM SURE THAT WILL BE ANOTHER CONVERSATION TOO.

BURNETT: I THINK GOVERNOR LACKER SAID YESTERDAY, THERE IS NO WAY TO GET FRESH CAPITAL FROMTHE BANKS UNTIL GOVERNMENT INTERVENTION IS NIL. SOUNDS LIKE HE HASN'T TAKEN IT OFTEN THE TABLE IN TERMS OF FURTHER GOVERNMENT RESTRICTIONS ON COMPENSATION.

DIMON: I THINK HE WOULD LIKE TO SEE AN AWFUL LOT OF SELF RESTRAINT. I READ THE PAPER ALL THE TIME AND THERE ARE COMMENTS THAT BANKS DON'T UNDERSTAND THEY MADE MISTAKES. ALL BANKS ARE DIFFERENT SOME MADE MORE AND SOME MADE LESS BUT THERE IS A PRETTY BIG MEA CULPA ON THE PART OF THE BANKS. WE MADE AN AWFUL LOT OF MISTAKES AND PEOPLE SHOULD RECOGNIZE THAT.

BURNETT: ARE YOU GOING TO BE MAKING ANY ANNOUNCEMENT ABOUT CHANGES AT JPMORGAN IN COMPENSATION, ARE YOU GOING TO ASK FOR BONUSES BACK OR INCREASING CASH AMOUNT IN THEIR SALARIES SO YOU DON'T HAVE TO DEAL WITH FUTURE BONUS RESTRICTIONS OR ARE YOU NOT DOING ANYTHING RIGHT NOW?

DIMON: WE DO COMP EVERY YEAR SO I'M NOT GOING TO DO ANYTHING TODAY CAUSE IT'S REALLY NEXT YEAR. WE ALREADY MADE PEOPLE TAKE A SUBSTANTIAL MORE OF THEIR COMP IN STOCK. I THINK THERE IS A STRONG PREFERENCE -- AND I HEARD IT FROM THE ADMINISTRATION, RESTRICT THE STOCK AND PAYS OFF THE COMPANY DOES WELL, IT'S FAR PREFERENTIAL TO CASH. A LOT OF MANAGEMENT AGREE WITH THAT.

BURNETT: YOU, ALONG WITH OTHER BANKS, AND SAID YOU'RE PROFITABLE FOR THE QUARTER THUS FAR NET OF PROVISIONS.AND A LOT OF PEOPLE SAY -- SOME PEOPLE HAVE SAID THAT'S IRRESPONSIBLE FOR BANK CEOs TO BE TALKING THAT WAY GIVEN THE ENVIRONMENT AND THERE COULD BE TRILLION DOLLARS AND MORE LOSSES YET TO BE HEAD. DO YOU THINK THAT'S IRRESPONSIBLE YOU'RE PROFITABLE THINGS HAVE IMPROVED OVER THE PAST FEW WEEKS OR NOT?

DIMIN: NO WE DIDN'T COME OUT AT THE SAME TIME. WE CAME OUT EARLIER WHEN WE CUT OUR DIVIDENDS AND SAID SIMPLY TRADING RESULTS WERE GOOD. AS OF I THINK IT WAS LATE FEBRUARY, AS OF THAT DAY AND BEFORE, THAT WE THOUGHT WE WERE GOING TO CLOSE TO ANALYST EXPECTATIONS. THE ONLY REASON WE DID THAT WAS SO THERE WASN'T FEAR IN THE MARKETPLACE ABOUT THE DIVIDEND.WE DIDN'T THINK IT WOULD BE A BIG HUGE SHOE TO DROP THAT'S THE ONLY REASON WE DID IT. WE WOULDN'T NORMALLY DISCLOSE --

BURNETT: NOTHING CHANGED SINCE THEN.

DIMON: MARCH WAS A LITTLE TOUGHER.BUT WE DON'T NORMALLY DISCLOSE MONTHLY RESULTS.

BURNETT: FINAL QUESTION ARE YOU GOING TO RAISE EQUITY?

DIMON: I DON'T THINK WE NEED EQUITY, SO I DOUBT IT.





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