"You'd take your business to UBS over that?" Dimon asked. Mayo clarified that it is what other people are contending.
"That's why I am richer than you," Dimon responded.
On Black Swans
Dimon thinks there are three things that investors should worry about.One, Europe's debt problem is not going away. "It is going to be a rollercoaster," he said. " Some days you will feel good, some days you will be sick to your stomach." Two, the uncertainty over tax policy is holding back growth. The economic choice would be to strike a grand bargain, he said, but unfortunately this is all political. And three, the end of QE3 is still a threat. Dimon believes that investors should prepare for a sudden rise in interest rates. "Is it possible for rates to go up in a recession? It can and that's the worst thing that can happen." He added that JPMorgan was positioned for a rise in interest rates even though it was currently expensive to do so. On JPMorgan's Management Turnover Dimon sought to allay investor concerns about changes in management in the wake of the debacle, noting that all of the new business heads were insiders and that many of them had prior experience in their respective businesses. He also spoke at length about the bank's culture which he said allowed employees to make mistakes. "No one at JPMorgan ever, ever worries about losing their job because they made a mistake," he said. While other places had a culture of firing people for losing money, this only creates a bad incentive for employees to take risks and make as much money while they can because they will get "shot" later anyway, he said. "We will not pay people on performance metrics alone," he said, while adding that no one has special compensation agreements or multi-year contracts at the firm. Separation of Chairman and CEO Roles Dimon dismissed recent shareholder demands that the CEO and Chairman roles be separated at the bank, calling the whole thing a "sideshow."