Jamie Dimon: America is Undergoing a Mild Recovery

FOX Business Network spoke exclusively with JPMorgan (NYSE:JPM) CEO Jamie Dimon from the JPMorgan’s New York headquarters about the health of the company, financial regulation, and the United States economy. Dimon said he hopes to continue to run JPMorgan for “three, five years or more.” Dimon said he “was in favor of the Financial Services Oversight Committee” because prior to the establishment of that organization there has been “no one person in charge.” Dimon went on to say that “Financial Oversight Committee wasn’t given enough teeth” and he is in favor of regulation because if  “you want a recovery in the global economy, the regulatory policy and government policy have to work together.”

On how long he plans to run JPMorgan:
“Hopefully many years. I serve at the pleasure of the board who can fire me tomorrow, but my intent would be to be here for three, five years or more.”

On what he plans to do after JPMorgan:

“I’ve been running big companies for a long time. I’m not going to run another big company. So it will probably be a bunch of stuff between teaching and investing and doing deals with friends and getting involved in maybe some boards.”

On who is spearheading the financial regulatory overhaul:

“There’s been no one in charge. There’s no one person in charge. One of the regulations I was in favor of is the Financial Services Oversight Committee, because one of the problems that we had is that we didn’t have one place, so we’ve got a lot of things unregulated or improperly regulated; gaps in the system. But the Financial Oversight Committee wasn’t given enough teeth. So here I’m complaining that that particular role should be given more teeth, not less teeth. Put someone in charge and say, no, we’re not going to do A, B and C, because that’s bad for the system. We have 10 or 20 major regulators now. A lot of these regulations, all they’re looking at is what protects their own entity. They’re not looking across the whole system anymore.”

On his criticism of government regulation:

“I haven’t been that critical on regulation. I have agreed with a lot of it. If you want a recovery in the global economy, the regulatory policy and government policy have to work together. A lot of my comments about Basel III and Dodd Frank are not because they are going to damage JPMorgan, it’s because they are not rational policy, they are not coordinated, making things so complex it’s worse for the system. It will cause unintended consequences down the road. What I worry about is someone is going to write the book 20 years from now about all the things we did during the crisis to make it worse, not better.”

On why Treasury Secretary Timothy Geithner did not consider his opposition to regulation:

“I don’t know. Tim knows exactly what I think. But if you speak to a lot of people, they don’t necessarily disagree. There are people putting their favorite pet peeve in there that it just became very convoluted. Hopefully, some of this will be fixed. And again, I’m saying, JPMorgan will be fine. I think this action could hurt medium sized and smaller banks more, which I’m not in favor of.”

On his prediction for the GDP growth in 2012:
“It could be 3 or 4 [percent].”

On the validity of the Volcker Rule:
“Proprietary trading  had very little to do with the financial crisis or the root cause, yet the Volcker Rule, if you interpret it, you can’t even make markets for your clients. Part of the Volcker Rule I agreed with, which is no prop trading. But market making is an essential function. And the public should recognize that we have the widest, the deepest, the most transparent capital markets in the world.  And part of that is because we have enormous market making. If the rules were written as they originally came out; I suspect they’ll be changed, it would really make it hard to be a market maker in the United States.”