Jamie Dimon, Chairman, President, and CEO of JPMorgan Chase

Introduction

• Jamie Dimon is the Chairman, President, and CEO of JPMorgan Chase.
• He has a connection to Harvard Business School but loves coming to Stanford.
• He jokes about not working so hard in California.

Leaving Harvard Business School

• Jamie Dimon worked at a consulting company before attending Harvard Business School.
• He had a job opportunity at Goldman-Sachs, but Sandy Weill offered him a job to be his assistant, which he took.
• Dimon wanted to be part of an organization rather than pursue a specific career path.

Leadership characteristics

• Dimon looks for people who have knowledge, tell the whole truth, and relate well to others.
• Character and honesty are important qualities in leaders.

Competitive and collaborative leadership

• Bureaucracy and politics are the enemies of companies.
• Collaboration is essential, but it doesn't mean everyone has to agree.
• Competing with ideas is acceptable, but competing with colleagues is counterproductive.
• Boards can contribute to bureaucracy and politics.

Communication style

• Dimon's candid and open communication style is appreciated by others, including Warren Buffett.
• He believes business should be explained in a clear and straightforward manner.
• Clarity in communication helps a company stay focused on its goals.
• Specific actions, rather than vague statements, demonstrate a commitment to customers.

Career in finance (00:07:42)

• Tech is currently very popular, but finance offers unique opportunities for career growth and impact on society.
• Financial services are heavily reliant on technology and constantly evolving.
• Financial services are critical to the functioning of a capitalist society.
• The industry is complex and global, making it a fascinating field to work in.

Crypto (00:11:42)

• Blockchain technology is real and has various applications.
• Cryptocurrencies have different types, including ICOs, which are tokens that allow for the use of services.
• Bitcoin as a currency may be crushed by governments for several reasons, including its use for illicit activities.
• Governments prefer to control their own currencies and will likely want to control cryptocurrencies as well.

Blockchain (00:15:39)

• JP Morgan is a big investor in blockchain technology.
• Interesting applications of blockchain in finance include moving money within the bank, storing and managing loan documents, and potentially end-of-day settlement in equity trading.
• Use cases for blockchain need to be identified and developed on a case-by-case basis.

Trump Business Council (00:17:10)

• Jamie Dimon joined President Trump's business advisory council to try to help the United States and make the world a better place.
• The council meetings were not particularly effective and did not make much progress on issues such as infrastructure.
• After the events in Charlottesville, the council decided to disband due to negative public perception and because most members believed in diversity and were against white supremacy.
• However, the individuals from the council are still working with the government to help make proper decisions and assist with the United States' needs.

Treasury Secretary (00:20:35)

• Jamie Dimon explains that he does not want to be the Secretary of Treasury.
• He believes that the United States has many advantages, such as abundant food, water, energy, a strong military, universities, the rule of law, and low corruption.
• However, he acknowledges that there are issues in society, such as people who have left the workforce, individuals with criminal records, the opioid crisis, and neglected rustbelt towns and inner-city schools.
• Dimon believes that competitive tax reform, infrastructure investment, education reform, and proper regulation are needed to address these issues and help the United States grow at a faster rate.
• He also mentions that government policies, particularly in the mortgage industry, have held back lending and economic growth, and that changes in these policies could have positive effects on the economy.

JP Morgans loss (00:27:01)

• In 2012, JP Morgan experienced a loss of over $6 billion due to a failed hedge.
• No customers were involved in the loss.
• The company was punished severely in Congress, with $2 billion in fines.
• The mistake was putting on a poorly vetted and monitored hedge.
• The risk committee failed to share necessary information.
• JP Morgan was attacked in the media and faced criticism from politicians.
• The CEO took responsibility for the mistake and apologized to shareholders.

Creating a work culture (00:31:13)

• JP Morgan has strict processes in place to address harassment and misconduct.
• Diversity and inclusion are important values at the company.
• Everyone at JP Morgan is treated with trust and respect.
• It is important to create an environment where all employees feel welcome and can speak up.
• Specialized programs for diversity are beneficial, but a supportive work culture is essential.
• Half of the CEO's direct reports are women, and 30% of the top 200 people at the company are women.
• JP Morgan aims to have a great working environment for everybody and values diversity.

Managing worklife balance (00:35:02)

• Jamie Dimon shares a story about a past job where he was given unnecessary weekend work, which led him to quit working for that person.
• He emphasizes the importance of work-life balance and taking care of oneself, stating that it is the individual's responsibility and not the company's.
• He suggests working smart and efficiently, such as handling emails and phone calls once, and categorizing reading materials into different levels of priority.
• Dimon advises men to prioritize spending time with their families instead of hobbies like watching football or playing golf.
• He acknowledges that achieving work-life balance can be more challenging for women, and recommends considering job options that support this balance.

Battling throat cancer (00:39:22)

• Dimon discusses his experience battling throat cancer while continuing to lead JP Morgan.
• He explains that he continued going to work, even though he wasn't able to work every day due to his health condition.
• Dimon attributes his decision to go to the office to being surrounded by friends and interesting things, which helped keep his mind occupied.
• He also praises his management team and family for their support during this difficult time.

Lessons Learned (00:42:23)

• Dimon admits to making mistakes in his career, sharing an example of a time when he trusted the wrong information regarding a financial issue.
• He emphasizes the importance of self-awareness and learning from mistakes.
• Dimon notes that managing temper and making decisions out of anger is a common mistake he made earlier in his career.
• He emphasizes the significance of involving the right people in decision-making processes and thoroughly vetting individuals for key roles.
• Dimon highlights the damaging effects of people mistakes and the time it takes to recover and replace those individuals.

Note: The summary does not include the last section about Bitcoin as it is not related to the main topics of managing work-life balance, battling throat cancer, and lessons learned.

Future of European Financial Services (00:45:31)

• Jamie Dimon believes that a hard Brexit is likely, and JP Morgan is prepared for this outcome.
• The bank has subsidiaries in Europe that can obtain the necessary licenses and approvals to continue servicing European clients.
• There may be pressure in the future to move the 12,000 employees currently in London to the EU.
• JP Morgan's goal is to continue serving European clients and is willing to invest more money to do so.

Technology Disruption (00:47:32)

• Technology has been changing the world continuously, and more money is being invested in fintech.
• JP Morgan aims to use technology to better serve its clients, such as through faster and more efficient processes.
• Payments systems are expected to be the most disrupted area in the bank.
• JP Morgan has invested in 100 fintech companies and intends to compete, build, or buy to stay ahead.
• The bank is testing online trading and mobile investing for clients and has rolled out a mobile-only bank in St. Louis.

bureaucratization (00:50:22)

• JP Morgan has a rigorous approach to running the company with regular meetings, committees, and compliance oversight.
• The management team is open to discussing and addressing issues, including bureaucracy and slow service.
• Getting rid of underperforming employees is necessary for maintaining a meritocratic culture.
• Loyalty to individuals should not come at the expense of the company and customers.
• Management must be careful to prioritize the best interest of the company and the client, not personal relationships within the organization.