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CNBC EXCLUSIVE: CNBC TRANSCRIPT: CNBC'S MELISSA FRANCIS SITS DOWN WITH JES STALEY, JPMORGAN INVESTMENT BANK CEO, TODAY ON CNBC'S "THE CALL"

WHEN: TODAY, THURSDAY, NOVEMBER 18TH
WHERE: CNBC'S "THE CALL"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with JPMorgan Investment Bank CEO Jes Staley today on CNBC's "The Call." All references must be sourced to CNBC.

FRANCIS: LARRY, I'M JOINED BY JES STALEY, WHO IS THE CEO OF JPMORGAN'S INVESTMENT BANK.YOU ARE THE LEAD UNDERWRITERS ONTHE GM IPO TODAY.WERE YOU SURPRISED BY DEMAND? WHAT DOES IT TELL YOU ABOUT THE IPO MARKET NOW?

STALEY: WELL, FIRST, I THINK WE ALL NEED TO RECOGNIZE THE COURAGE OF THE OBAMA ADMINISTRATION AND THE U.S. GOVERNMENT AND SUPPORTING SUCH AN ICONIC COMPANY AS GENERAL MOTORS. I THINK THIS HAS TO BE A DEMONSTRATION OF A LOT OF SUCCESS OF THE EFFORTS THAT THEY MADE. I THINK YOU HAVE TO RECOGNIZE THE U.S.TREASURY DID A VERY IMPORTANT THING IN STRUCTURING GM AS APRIVATELY-RUN COMPANY, WITH AN INDEPENDENT BOARD, GREAT MANAGEMENT TEAM, AND SO A LOT OFEFFORT HAS GONE INTO GETTING GM TO WHERE IT IS TODAY. IT'S A GREAT COMPANY. IT'S GOT GREAT MANAGEMENT. I THINK THEY ARTICULATED A TREMENDOUS VISION FOR THE BUSINESS OF THE MARKET GOING FORWARD AND WE'VE SEEN THAT IN THE AMOUNT OF DEMAND THAT WE HAD. ONE OTHER, I THINK, IMPORTANT POINT IS WE HAD OVER 3.5 BILLION OF STOCK PLACED WITH U.S. RETAIL INVESTORS, AND I THINK IT'S A GREAT THING TO GET THE PUBLIC BACK IN AS A SHAREHOLDER OF THE COMPANY OF THE QUALITY OF GENERAL MOTORS.

FRANCIS: OBVIOUSLY ADDRESSING RIGHT OFF THE OUTRAGE OUT THERE ABOUT HOW MUCH THE RETAIL INVESTOR WAS ABLE OR NOT ABLE TO GET IN ON THE IPO. WHAT DID YOU THINK OF THE BACKLASH?

STALEY: YOU NEED TO HAVE AN OFFERING WITH A LOT OF INSTITUTIONAL SUPPORT AND A LOT OF RETAIL SUPPORT, AND MOST SUCCESSFUL IPOs HAVE THIS CUT BETWEEN THE INSTITUTIONAL MARKET. REMEMBER, THE INSTITUTIONAL INVESTOR IS MANAGING MONEY FOR THE SAME INDIVIDUALS THAT ARE BUYING AS RETAIL. AND I THINK THAT AMOUNT OF INSTITUTIONAL DEMAND SUPPORTS THE OVERALL VALUATION PROPOSITION THAT WAS PUT FORTH IN THE -- I THINK IT'S A GOOD BALANCE.

FRANCIS: THE BIG APPETITE. OBVIOUSLY A LOT MORE STOCK OUT THERE THAN ORIGINALLY ANTICIPATED, THE PRICE IS HIGHER. DO YOU THINK IT'S SUSTAINABLE? OR ARE PEOPLE GOING TO GET IN AND GET OUT?

STALEY: YOU KNOW WE'RE NOT HERE TO PREDICT THEFUTURE WHERE GM'S STOCK GO. I THINK TODAY'S OPENING IS AN ENCOURAGEING SIGN HOWEVER. I THINK THAT UPTICK FROM THE IPO PRICE IS THE SORT OF THING YOU'RE SHOOTING FOR. BOTH THE U.S. TAXPAYER LOOKS LIKE THEY'VE GOT A PRETTY GOOD PRICE AND IT STARTED QUITE WELL THIS MORNING.

FRANCIS: YOU TALKED ABOUT THE HELP IT TOOK TO GET THE COMPANY TO THIS POINT. DOES THAT MEAN IT'S A UNIQUE IPOOR DOES IT OPEN THE DOOR FOR OTHER IPOs AND IS M&A BACK?

STALEY: I THINK AS YOU TALK YOU KNOW LPL FINANCIALS ALSO A NICE SUCCESS STORY. WE DID A LARGE NUMBER OF TRANSACTIONS INTERNATIONALLY IN THE IPO MARKET FOR COMPANIES LIKE PANDORA IN DENMARK AND SR IN INDIA. I THINK THE IPO MARKET IS STARTING TO COME BACK AND WE'RE SEEING SIGNS OF THAT. THERE IS A SHIFT TO RISK ASSET BY INVESTORS AND THAT SHOULD BENEFIT THE IPO MARKET. I DO THINK ONE OF THE THINGS WE'RE LOOKING FOR IS THE LARGE M&A MARKET GOING TO COME BACK AS WELL? WHEN WE SEE CORPORATIONS THAT HAVE A LOT OF CASH ON THE BALANCE SHEET, MAKING STRATEGIC TRANSFORMATIONAL M&A DEALS I THINK THAT'S WHEN YOU CAN PUT A CHECK BY THE BOX THAT CORPORATE AMERICA WANTS TO START INVESTING AGAIN.

FRANCIS: WHAT'S THE ANSWER TO THAT QUESTION? IS THE LARGE M&A MARKET COMING BACK?

STALEY: THE VOLUME OF TRANSACTIONS BELOW $10 BILLION IS PRETTY ENCOURAGING.THE VOLUME OF TRANSACTIONS ABOVE$10 BILLION SAYS NOT YET.

FRANCIS: LET ME TAKE YOU TO WHAT'S CHANGED SINCE THE FINANCIAL CRISIS. JPMORGAN, YOU'RE ON THE EXECUTIVE AND THE OPERATING COMMITTEE, JPMORGAN IS ONE OF THE PLACES THAT JETTISONED THE PROP DESK IN ANTICIPATION OF THE CHANGE IN RULES BUT THE RULES HAVE COME IN FITS AND STARTS. DID YOU ACT TOO EARLY?

STALEY: WE HAVEN'T JETTISONED OUR PROPRIETY BUSINESS. WHAT WE'VE DONE IS WE HAVE MOVED IT TO OUR ASSET MANAGEMENT BUSINESS.THE LAW ALLOWS US TO HAVE A TWO, THREE-YEAR TRANSITION PERIOD WE CAN MOVE A PROP DESK INTO OUR ASSET MANAGEMENT BUSINESS AND OVER TIME TAKE OUT THE BANK'S CAPITAL TO THE EXTENT THAT THEY HAVE THE PERFORMANCE THAT MERITS IT BRING IN A THIRD PARTY CLIENT CAPITAL. WE WANT TO KEEP THE INTELLECTUAL TALENT THAT WE HAVE BUILT UP IN OUR FIRM BUT SUBSTITUTE BANK CAPITAL FOR CLIENT MONEY AND THAT'S WHAT WE'RE DOING. THERE'S NO JETTISONING.

FRANCIS: LET ME ASK YOU ABOUT THE TALENT QUESTION, SUCCESSION, EVERYBODY'S FAVORITE TOPIC WHEN THEY'RE TALKING ABOUT JPMORGAN WHO IS GOING TO REPLACE JAMIE DIMON WHEN THAT DAY COMES. YOUR NAME IS ALWAYS OUT THERE IN THE HORSE RACE AS ONE OF THE POSSIBLE PEOPLE. ONE OF THE BIGGEST PROBLEMS, YOUAND JAMIE ARE THE SAME AGE.IT DOESN'T SEEM LIKE HE'S GOING ANYWHERE ANYTIME SOON. HOW DO YOU REACT TO THAT CONVERSATION?

STALEY: I LOVE THE INVESTMENT BANK I'VE BEEN RUNNING IT FOR A YEAR. I SPENT 20 YEARS EARLY ON IN MY CAREER. WE HAVE A LOT TO DO. THAT'S WHAT I'M FOCUSED ON. JAMIE IS A PHENOMENAL CEO. HE'S DONE TERRIFIC THINGS, STEWARTING JPMORGAN THROUGH THE FINANCIAL CRISIS. HE'S GOING TO BE AROUND FOR A VERY LONG TIME. THERE ARE A LOT OF TALENTED PEOPLE THAT I GET TO WORK WITH AT JPMORGAN. WE'LL LEAVE IT TO YOU GUYS TO TALK ABOUT THE SPECULATION. BUT WE'RE HAPPY WHERE WE ARE RIGHT NOW.

FRANCIS: WE'RE AT THE WOMEN AND PUBLIC FINANCE FORUM. YOU'RE THE KEYNOTE SPEAKER. MARY ERDOS IS SOMEONE WHO'S MENTIONED IN THAT RACE ALL THE TIME TO REPLACE JAMIE ANOTHER FEMALE OUT THERE, SHE'S SOMEONE THAT YOU GROOMED AND BROUGHT ALONG, WHY IS BRINGING ALONG FEMALE TALENT IMPORTANT?

STALEY: YOU KNOW, I THINK IF WE -- IFWE WIN THE GAME OF DIVERSITY ANDEMBRACE WOMEN AND PEOPLE OF COLOR AND PEOPLE OF DIFFERENT NATIONALITIES AND BACKGROUNDS THAT'S A WAY TO WIN THE WAR FOR TALENT. EMBRACING SOMEONE LIKE MARY, WHO IS A PHENOMENAL EXECUTIVE HAS A FUTURE IN FRONT OF HER, THE MOTHER OF THREE YOUNG KIDS THAT SHE CAN BRING, HER MOTHER HERD AND THREE YOUNG KIDS INTO THE BANK AND EXCEL AS AN EXECUTIVE, IF WE CAN MAKE HER DO THAT THEN IT'S VERY GOOD FOR THE BANK AND HER.

FRANCIS: AND YOU TOLD ME BEFORE IT MAKES PEOPLE LOYAL EMPLOYEES.

STALEY: THAT'S RIGHT

FRANCIS: THEY FEEL EMBRACED

STALEY: IF YOU WHO ARE OUTSIDE THE BANK YOU CAN BRING INTO THE BANK AND FEEL LIKE IT'S RESPECTED AND HONORED AND TREATED WELL THAT'S A VALUABLE COMMODITY AND WE THINK THAT PEOPLE SHOW LOYALTY BECAUSE OF IT.

FRANCIS: JES STALEY, THANKS FOR JOINING US TODAY. APPRECIATE IT. CONGRATULATIONS ON THE IPO.

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