Well-known and much-admired banker and CEO of JPMorgan (JPM) was on CNBC to discuss and share his views on multiple topics ranging from JPMorgan's business, London whale, his pay cut, the U.S. economy, improving housing market, and his outlook for equities.
-- Paycut: Board did the right thing.
-- Have changed CIO and made changes that this kind of mistake do not happen again.
-- Had record earnings in the recent quarter, JPMorgan is underestimated in public in terms of how we manage risk and we overall do a good job.
-- JPMorgan is in great shape, we are growing by opening branches, targeting small businesses and expanding internationally.
-- On housing: It has totally bottomed and improving fast and getting better, there are markets where supply is constrained and affordability is at an all time high with interest rates so low.
-- JPMorgan investors can expect increasing dividends going forward.
-- Bank is in best shape from capital and liquidity perspective.
-- On Fed and making money in such low environment: Squeeze because of low net income margin is around $500 million a year (that is peanuts for JPMorgan) and interest rates will go up one day and that will come back we operate and make investments as we are operating in normal environment.
-- Resolution of fiscal cliff was a good example of that we have issues but we will make right decisions and move forward.
-- On U.S. stocks: He is comfortable owning stocks right now and suggests investors can buy great American and global companies at attractive and bargain prices.
Credit and source: www.cnbc.com, CNBC
Here is the video:
- CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
- Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
- Double Buys:: Companies that both Gurus and Insiders are buying
- Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.