Jamie Dimon, chairman and chief executive of JPMorgan Chase, said the firm has put in a program to monitor the work being given to junior bankers, as there is concern about the issue in the industry.

Dimon was interviewed at the Georgetown Psaros Center for Financial Markets and Policy’s annual Financial Markets Quality (FMQ) Conference in Washington D.C on 17 September.

His advice for the younger generations who will be the next leaders in the financial services industry? Read the opinions of people from different political parties than you, crack open the history books, be flexible, and visit different countries (and get off TikTok).

“You only… pic.twitter.com/hRnvGp3Yo9

— GU Psaros Center for Financial Markets and Policy (@GUFinPolicy) September 18, 2024

Dimon said the bank has just put in a new program and new rules to monitor the work given to juniors.

“Some kids are saying they work more hours than they do and some are saying they work less as they want to get more work,” he added. “We just want to treat the kids with respect.”

For example, investment bankers travel during the week and give our four assignments when they return, so junior staff have to work all weekend. Dimon said assignments now need to handed out by Wednesday, not on Friday nights. The bank has hired someone who will help manage the analysts and junior bankers, so they can track their workload and report back, banker by banker.

“If you are violating the rules, you have to stop,” added Dimon. “It will be in your bonus, so people know we actually really mean it.”

Technology

Dimon described artificial intelligence as “amazing” and said he would put AI technology in the same category as the internet, electricity and the steam engine. The bank has thousands of people using AI and has already found hundreds of use cases in risk, fraud and marketing and Dimon said this is just the beginning.

“We’re in it. We’re doing it. We’re using it,” he added.

The firm is also heavily investing in data power, data centers and data scientists.

“AI is real and you should always use technology to do a better job for the client, see the world from the point of view of the client, and make it better for them,” said Dimon.

He continued that the bank is also probably one of the bigger users of blockchain, which he described as “just a database.” Dimon said: “We believe it’s a great way to share data.”

Although Dimon does not personally invest in cryptocurrencies, he said the bank’s role is to provide access to crypto markets if there is client demand.

“We won’t lend against crypto and we have all the warnings out there,” he added. “I believe in a free country so do what you want.”

Risks

Dimon said his number one concern is the  fundamental attack on the rule of law that was set up after World War II, which will affect the world for decades. He added that geopolitics may affect the economy and conflicts are ratcheting as demonstrated by the war in Ukraine, Israel and the Middle East, and the relation between the US and China.

“It it really goes south it will affect markets like you have never seen, so it is a major risk that you should be prepared for,” added Dimon. “We spend a lot of time thinking about the worst case outcomes.”

His advice to students was to separate raw data from invented data and to be thoughtful about what it means.

“We run models like you wouldn’t believe, and we look at flows like you wouldn’t believe,” he said. “ The fact is you have to be open minded and be willing to change your mind when the data changes.”

In May 2023 JPMorgan Chase acquired the substantial majority of assets and assumed the deposits and certain other liabilities of collapsed First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).  JPMorgan Chase said in a statement at the time that in carrying out this transaction, it was supporting the U.S. financial system through its significant strength and execution capabilities and assuming all insured and uninsured deposits.

Dimon said JPMorgan Chase had previously called the US government in order to help with First Republic.

“We had the ability, the capability and the people,” he added. “In order to do what we did, we had 10,000 people working around the clock for six months as we knew that was going to happen.”