JP Morgan at Goldman Sachs Conference Notes

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Jamie Dimon – Chairman and Chief Executive Officer

Hopefully the hope will be true

“obviously, the stock has done unbelievably well since the election and I think it’s based upon the hope. The hope is accurate that the Trump administration will be very good for kind of unleashed business per se and maybe improve the GDP and allow banks to do their lending and the banks will benefit a little bit both from higher rates and higher economic activity and possibly some reduced regulation. So, hopefully that will turn out to be true.”

Dodd-Frank didn’t have bi-partisan support so we’re relegislating it until it’s done bipartisanWe have needed corporate tax reform for a long time

“We have needed corporate tax reform for a long time, okay. We have the highest both statutory rate and effective rate of all the developed nations in the planet. We are driving capital overseas. And I have always said I have been consistent we are going to drive capital overseas and the only question is when we can stop the damage. And some of that damage is permanent. People have bought companies overseas. They built plants overseas. They have built research centers overseas. Corporate America is at a disadvantage. And I think we have to come, make that – bring the rates down and make it a competitive thing. That competitive thing, by the way, most studies show that will help wages, okay, that will help wages. So, it’s not just helping corporations, I think it’s helping wages. And obviously, the trade that needs to be done. Also we need to help the citizens of America, not just the corporations of America. So, it’s hard to accomplish, but I believe I am begging that it gets done.”

Consumer is healthy

“We see a fairly healthy consumer. And so if you look at macroeconomic data, home prices, the consumer balance sheet, debt service ratios, the number of people working, wages going up, etcetera, we see that pretty healthy. We see a mirror of that inside JPMorgan. So we have reporting quarter-after-quarter, credit card sales, deposits, new household accounts, all those types things are doing quite well and we expect that to continue.”

Commercial real estate late cycle

” The one area where you look at and you might say, oh my god, there is a little bit of issue, there is commercial real estate…We are cautious. It’s probably getting later in the cycle for some of that. And we don’t do what I would consider we don’t do now and we have never done the riskiest type of lending. So we have always been cautious in real estate.”

Sapphire Reserve card going to reduce earnings because of accounting treatments

“So the card is being doing great. So one negative, which I think is very good thing and I think we have told to the analysts, it’s going to reduce our earnings by $200 million or $300 million this quarter because how you have to account for acquisition costs in that business, because you have to get the revenues over 5 years, 6 years, 7 years, but your acquisition costs expense over 12 months, so doing great’

Cut waste, not expenses

we are always looking for, I always call, waste cutting. It’s not expense cutting, because companies are wasteful. There is bureaucracy. There is stupidity. There are vendors that are overcharging. I think it’s the way you are. So, we are always looking at ways to be more efficient, but always investing in what we should be investing.”

Buyback isn’t returning capital to my shareholder

“I personally don’t believe that buying back stock is giving cash to my shareholders. I think buying back stock is giving cash to my leaving shareholders. I care much more about the remaining shareholders. And so I want that to be a bargain. ”