WEBVTT 00:00:04.360 --> 00:00:07.700 J.P. Morgan is right now the biggest bank in the United States. 00:00:07.740 --> 00:00:09.046 Probably in the history of the United States. 00:00:09.080 --> 00:00:09.620 J.P. Morgan 00:00:09.660 --> 00:00:10.396 J.P. Morgan 00:00:10.420 --> 00:00:11.140 J.P. Morgan 00:00:11.140 --> 00:00:15.799 Over the last century of the notable bank mergers that have taken place, 00:00:15.799 --> 00:00:20.964 J.P. Morgan and its predecessors have been involved in almost one fourth. 00:00:21.095 --> 00:00:23.814 It's the largest bank in America. 00:00:23.860 --> 00:00:26.966 More than $2 trillion dollars in assets. 00:00:27.070 --> 00:00:31.592 Right now, they're also the biggest bank in the world by market capitalization. 00:00:31.697 --> 00:00:37.745 From the panic of 1907 to 2007, 00:00:37.745 --> 00:00:38.745 the subprime mortgage crisis and the financial collapse thereafter, 00:00:38.745 --> 00:00:44.189 J.P. Morgan Chase has been at the center of American banking for over a century. 00:00:48.117 --> 00:00:52.266 The company has an unabashed CEO not afraid to speak his mind. 00:00:52.340 --> 00:00:56.225 He weighs in on you know on politics on a pretty frequent basis. 00:00:56.340 --> 00:00:59.380 I would also tell the president that his two of his advisors told him 00:00:59.380 --> 00:01:00.380 and I'm not gonna name them 00:01:00.380 --> 00:01:03.480 but they told him there would be no retaliation. 00:01:03.480 --> 00:01:04.480 We said there actually will be and they were wrong. 00:01:04.480 --> 00:01:05.915 This man is a criminal.. 00:01:06.020 --> 00:01:09.534 Probably the most notable banker of the past 25 years. 00:01:09.580 --> 00:01:13.160 The company helps finance the largest economy on Earth. 00:01:13.160 --> 00:01:19.386 And even after millions were hit by the Great Recession, 00:01:19.386 --> 00:01:20.386 J.P. Morgan came out bigger and stronger. 00:01:20.386 --> 00:01:24.476 That's likely just how J.P. Morgan himself would have done it. 00:01:24.746 --> 00:01:26.982 So let's start at the beginning. 00:01:27.734 --> 00:01:35.010 The man behind the Empire J.P. Morgan was born John Pierpont in 1837 00:01:35.010 --> 00:01:36.010 to a prominent New England family. 00:01:36.010 --> 00:01:37.640 After traveling Europe, 00:01:37.640 --> 00:01:40.864 Morgan returned home to launch his financial career. 00:01:40.996 --> 00:01:44.780 His father was in many ways the most important person in his life 00:01:44.780 --> 00:01:50.560 and his father Junius was a very straight shooter. 00:01:50.560 --> 00:01:56.280 Very moral, very convinced that in a in the high risk 00:01:56.280 --> 00:01:57.280 high stakes business of investment banking 00:01:57.280 --> 00:02:00.330 your word is your bond, your reputation is everything. 00:02:00.340 --> 00:02:06.470 In 1871, J.P. Morgan along with the help of a former banker 00:02:06.470 --> 00:02:07.470 Anthony Drexel created a private merchant 00:02:07.470 --> 00:02:12.762 partnership called 'Drexel Morgan and Company.' 00:02:12.762 --> 00:02:13.762 It later became J.P. Morgan and Co. 00:02:13.762 --> 00:02:18.652 The U.S. was the emerging economy in the 19th century 00:02:18.690 --> 00:02:19.731 Booming 00:02:19.750 --> 00:02:20.680 Busting. 00:02:20.680 --> 00:02:26.040 Just going through all the growth patterns of what was becoming 00:02:26.040 --> 00:02:27.040 a major industrial economy. 00:02:27.040 --> 00:02:31.520 What they were doing was funneling investments from Europe 00:02:31.520 --> 00:02:32.520 to these American companies, 00:02:32.520 --> 00:02:36.860 not putting their own capital into the railroads. 00:02:36.860 --> 00:02:37.960 A little bit, they did. 00:02:37.960 --> 00:02:42.940 When Morgan died, he had very minor investments 00:02:42.940 --> 00:02:43.940 in the companies that he had brokered. 00:02:43.940 --> 00:02:48.340 Morgan became heavily involved in reorganizing and consolidating railroads. 00:02:48.340 --> 00:02:54.490 If a railroad manager was suddenly playing fast and loose, 00:02:54.490 --> 00:02:58.940 cheating his investors really getting his company 00:02:58.940 --> 00:03:04.060 into trouble, Pierpont Morgan would step in 00:03:04.060 --> 00:03:05.060 and fire the managers, hire new ones. 00:03:05.060 --> 00:03:10.820 Morgan was trying to monitor and discipline the companies whose had sold securities to his clients. 00:03:11.020 --> 00:03:12.260 Morgan's next target? 00:03:12.660 --> 00:03:17.940 The steel industry. Andrew Carnegie had built the best steel company in the world. 00:03:18.500 --> 00:03:20.780 He figured out about economies of scale. 00:03:20.980 --> 00:03:25.460 He was able to out-produce an under-price all of his competitors. 00:03:25.820 --> 00:03:34.258 Morgan decided in 1900, 1901 that essentially 00:03:34.258 --> 00:03:35.258 he would do for the steel industry what he'd done for the railroad industry, 00:03:35.258 --> 00:03:37.576 which was consolidate a lot of smaller companies into one giant 00:03:37.778 --> 00:03:37.780 And he put together U.S. 00:03:38.062 --> 00:03:41.539 Steel capitalized at $1 billion dollars in 1901. 00:03:41.900 --> 00:03:50.740 That was an unheard of sum for that time and people were staggered or horrified, were skeptical. 00:03:50.900 --> 00:03:54.980 He did revolutionize the financial markets. 00:03:55.180 --> 00:03:57.180 And it wasn't only railroads and steel. 00:03:57.620 --> 00:04:04.900 J.P. Morgan was influential in creating what would later become AT&T 00:04:04.900 --> 00:04:05.900 and he helped finance America's electrification. 00:04:05.900 --> 00:04:10.180 His own house was the first private house ever illuminated entirely by electricity. 00:04:10.900 --> 00:04:16.459 His own private study caught on fire the couple of days after they installed the system. 00:04:16.579 --> 00:04:18.619 And he said do it again. 00:04:18.660 --> 00:04:19.540 I'm not giving up. 00:04:19.820 --> 00:04:26.620 Morgan combined Edison Electric with one of his chief rivals 00:04:26.620 --> 00:04:27.620 and that became General Electric in 1892. 00:04:27.620 --> 00:04:29.540 Morgan was not without controversy. 00:04:30.260 --> 00:04:37.340 What he was doing was very good for lenders from Europe, for wealthy people who had money to invest. 00:04:37.380 --> 00:04:40.340 It was very good for the growing American economy overall. 00:04:40.620 --> 00:04:44.100 It was not good for farmers and small businessmen who had to borrow money. 00:04:44.220 --> 00:04:46.740 He was basically keeping the dollar really strong. 00:04:46.860 --> 00:04:50.060 It cost them more to pay back their loans than what they had borrowed. 00:04:50.060 --> 00:04:51.220 And that was really painful. 00:04:51.260 --> 00:04:54.420 And there was a huge populist opposition to Morgan. 00:04:54.500 --> 00:04:57.500 It was very controversial and continued to be controversial. 00:04:58.060 --> 00:05:00.300 Then came the panic of 1907. 00:05:01.100 --> 00:05:05.340 It's regarded as the first worldwide financial crisis to hit the modern world. 00:05:05.740 --> 00:05:12.980 The American economy was growing so fast 00:05:12.980 --> 00:05:13.980 and with so little supervision so little government regulation. 00:05:13.980 --> 00:05:16.751 So few people who really knew how to govern it. 00:05:16.820 --> 00:05:22.560 There was a panic or a devastating crash in depression just about every 10 years. 00:05:22.580 --> 00:05:28.800 Despite reporting strong, corporate earnings, the stock market crashed and stocks plummeted on foreign exchanges. 00:05:28.800 --> 00:05:34.400 The U.S. government lacked the funds to stop the bleeding and there was no central bank. 00:05:34.460 --> 00:05:39.951 Morgan delegated two groups of men: one, young lieutenants who would stay up all night and assess the 00:05:39.951 --> 00:05:46.220 health of these trust companies to see whether they were worth saving or had to be let go. 00:05:46.220 --> 00:05:51.260 And then two other senior bankers along with himself who would be making the top level decisions. 00:05:51.700 --> 00:05:54.700 The group functioned as the country's unofficial central bank. 00:05:54.980 --> 00:06:00.169 The New York Stock Exchange didn't have enough money to complete its trades and the head of the exchange came out across 00:06:00.169 --> 00:06:05.660 the street to Morgan and said we're going to have to close before 3 o'clock because we can't keep the trades going. 00:06:05.660 --> 00:06:10.460 Morgan said you can't do that in this in this climate it will make things so much worse. 00:06:10.460 --> 00:06:12.380 We've got to keep the stock exchange open. 00:06:12.380 --> 00:06:19.659 So he called several of the leading bankers to his office and said we need $20 million dollars in 20 minutes 00:06:19.659 --> 00:06:22.220 to send across the street to stock exchange. 00:06:22.220 --> 00:06:25.740 And these guys without flinching put up that money. 00:06:26.780 --> 00:06:31.429 It's evidence of how much they trusted Morgan 00:06:31.429 --> 00:06:32.429 that they knew he was the guy who could stop this and he wasn't 00:06:32.429 --> 00:06:34.028 going to do anything tricky with it. 00:06:34.028 --> 00:06:38.980 Later that week New York City couldn't pay meet its payroll. 00:06:39.100 --> 00:06:42.660 It went on like this for two harrowing, terrible weeks. 00:06:42.900 --> 00:06:45.220 And finally it began to subside. 00:06:45.820 --> 00:06:47.780 One of the headlines in the middle of this. 00:06:47.860 --> 00:06:52.220 Something like stocks stabilized for the moment and J.P. 00:06:52.220 --> 00:06:53.140 Morgan has a cold. 00:06:53.500 --> 00:06:54.820 He did he had a terrible cold. 00:06:54.900 --> 00:06:59.060 He was as some of this was going on he was just sneezing and coughing 00:06:59.060 --> 00:07:00.060 and making calculations on a piece of paper. 00:07:00.060 --> 00:07:03.580 But it was just he was totally exhausted and not young. 00:07:04.540 --> 00:07:10.451 While Morgan was celebrated on Wall Street for saving the economy, people quickly realized that perhaps one 00:07:10.451 --> 00:07:12.768 banker shouldn't have so much power. 00:07:12.768 --> 00:07:17.780 For about a minute after the end of the panic, 00:07:17.780 --> 00:07:18.780 Morgan was an international hero. 00:07:18.780 --> 00:07:29.060 But the minute after that the idea of that much power residing with one private banker really was not OK. 00:07:30.220 --> 00:07:36.140 It's set in motion a number of financial reforms including, eventually, the creation of the Federal Reserve. 00:07:36.340 --> 00:07:38.500 But Morgan never got to see the Fed. 00:07:39.100 --> 00:07:43.100 J.P. Morgan died on March 31, 1913 in Rome. 00:07:44.020 --> 00:07:48.340 The New York Stock Exchange was closed until noon on the day he died to honor his memory. 00:07:49.500 --> 00:07:52.280 His son J.P. Morgan Jr. took over. 00:07:52.280 --> 00:07:58.140 And the company continued to play a prominent role in financing major American projects. 00:07:58.620 --> 00:08:03.700 In 1915, the bank facilitated the largest foreign loan in history. 00:08:04.220 --> 00:08:10.180 $500 million to the English and the French to support the war effort during World War I. 00:08:10.580 --> 00:08:16.760 When the Depression-era Glass-Steagall Act of 1933 forced banks to split from investment banks, 00:08:16.760 --> 00:08:18.900 J.P. Morgan and Company was broken up. 00:08:19.140 --> 00:08:23.244 Grandson Henry Sturgis Morgan went on to found Morgan Stanley. 00:08:23.580 --> 00:08:27.580 But that is the history for only half of what became today's J.P. Morgan Chase. 00:08:27.980 --> 00:08:33.299 The other side has an interesting history too that goes back even further to the 1700s. 00:08:33.980 --> 00:08:40.240 Aaron Burr, famous for winning a duel against Alexander Hamilton and exiled after being tried for treason, 00:08:40.240 --> 00:08:44.900 but he is also credited with creating the earliest predecessor to J.P. Morgan Chase. 00:08:45.380 --> 00:08:48.500 He founded the Manhattan company in April 1799. 00:08:49.100 --> 00:08:54.200 It sought out a charter that would enable the company to supply purified water to New York City residents 00:08:54.200 --> 00:08:56.540 in an effort to stave off yellow fever. 00:08:56.540 --> 00:09:00.620 It also got a banking charter to take on Alexander Hamilton's Bank of New York. 00:09:01.700 --> 00:09:08.380 In fact, J.P. Morgan Chase to this day has the pistol that Aaron Burr used to shoot Alexander Hamilton. 00:09:09.180 --> 00:09:15.060 After a slew of mergers over 150 years, it became Chase Manhattan Bank in 1955. 00:09:16.580 --> 00:09:22.680 While J.P. Morgan and Company floundered as a major player in finance, another company emerged: 00:09:22.680 --> 00:09:23.420 Chemical Bank. 00:09:23.860 --> 00:09:29.860 What started as a chemical company in New York City in the 1800s became one of the foremost banks in the Northeast. 00:09:30.460 --> 00:09:38.220 In 1969, it created the first cash dispensing machine that was installed in the Rockville Centre branch on Long Island. 00:09:38.220 --> 00:09:40.260 Now we call these ATMS. 00:09:40.820 --> 00:09:47.800 And all of that brings us to the major banking consolidation, 00:09:47.800 --> 00:09:48.800 of the 1990s that created the behemoth that is J.P. Morgan Chase today 00:09:48.800 --> 00:09:55.980 The global economy, technology and the rise of Wall Street's political power got Washington to change the rules. 00:09:55.980 --> 00:09:59.220 Deregulation from the 1990s came in two parts: 00:09:59.260 --> 00:10:03.580 One would be a national banking in the ability to have greater efficiency. 00:10:03.620 --> 00:10:08.580 I still remember you had to take traveler's checks if you went from the east coast to the west coast. 00:10:08.700 --> 00:10:10.740 I mean how inefficient it was that. 00:10:11.460 --> 00:10:14.900 Chemical Bank merged with Chase Manhattan in 1996. 00:10:15.620 --> 00:10:17.780 A huge bank merger is in the news this morning. 00:10:18.020 --> 00:10:23.219 Chemical Bank and Chase Manhattan are joining forces to become the biggest banking company in the nation 00:10:23.219 --> 00:10:27.124 with assets of nearly $300 billion dollars. 00:10:27.124 --> 00:10:31.100 Then in 1999, the law that originally split up J.P. 00:10:31.100 --> 00:10:34.220 Morgan and Company in the 1930s was repealed. 00:10:34.460 --> 00:10:40.820 Today, we proved that we could deal with the large issue facing our country and every other advanced economy in the world. 00:10:43.582 --> 00:10:47.659 Now the elimination of Glass-Steagall, that was much more controversial. 00:10:47.660 --> 00:10:52.460 I believe this legislation in its current form will do more harm than good. 00:10:52.700 --> 00:10:54.940 In 2000, Chase merged with J.P. 00:10:54.940 --> 00:10:57.620 Morgan to create the country's largest bank. 00:10:58.500 --> 00:11:03.300 Chase had a very good brand name but we think J.P. Morgan is a better brand name. 00:11:03.460 --> 00:11:05.804 That gave a little extra cachet. 00:11:06.020 --> 00:11:09.220 J.P. Morgan a good brand name, long legacy. 00:11:10.020 --> 00:11:14.480 But you know despite the vision, 00:11:14.480 --> 00:11:15.480 the vision was to better compete against like Goldman Sachs and 00:11:15.480 --> 00:11:17.020 Morgan Stanley, Merrill Lynch. 00:11:17.340 --> 00:11:19.500 You know the banks they were second tier. 00:11:20.100 --> 00:11:22.860 Size didn't equal success in the early years. 00:11:23.220 --> 00:11:28.260 I mean these were big bureaucratic error prone lumbering giants. 00:11:28.900 --> 00:11:31.220 But the consolidation didn't stop there. 00:11:31.700 --> 00:11:35.580 The company merged with Midwest giant Bank One in 2004. 00:11:35.820 --> 00:11:38.660 It's the biggest financial deal to hit Wall Street in six years. 00:11:39.060 --> 00:11:42.820 J.P. Morgan buying Bank One for roughly $58 billion dollars in stock. 00:11:42.900 --> 00:11:45.700 We negotiated and I think we did it to be great for our shareholders. 00:11:45.900 --> 00:11:49.140 Jp Morgan wow look how far they've come. 00:11:49.940 --> 00:11:55.200 Five of the eight money center banks of the 1980s are in J.P. Morgan. 00:11:55.200 --> 00:12:00.700 In fact, over the last century of the notable bank mergers that have taken place, J.P. 00:12:00.700 --> 00:12:04.660 Morgan and its predecessors have been involved in almost one fourth. 00:12:05.740 --> 00:12:08.940 That set up Jamie Dimon to be the next CEO of the company. 00:12:09.420 --> 00:12:14.620 To me as a bank analyst who has covered the space for three decades that was a defining moment. 00:12:14.660 --> 00:12:20.820 That was when J.P. Morgan and its legacy firms got a new religion. 00:12:20.940 --> 00:12:27.710 And at some point the platitudes got pretty heavy I mean fortress balance sheet this, fortress balance sheet that and you know 00:12:27.710 --> 00:12:36.880 he's a fast talker and a lot of good signs from Jamie Dimon but there is also a degree of OK the jury is out on this leader Jamie Dimon. 00:12:36.880 --> 00:12:44.340 While there are lots of external factors we cannot control, we must expect increasing tough competition around the world. 00:12:44.340 --> 00:12:52.464 I would say a defining moment also happened during the financial crisis and that would be the acquisition of Bear Stearns. 00:12:52.464 --> 00:12:55.050 The firm that I keep hearing 00:12:55.050 --> 00:12:57.900 that's most likely to buy it will be J.P. Morgan Chase 00:12:57.900 --> 00:13:01.303 obviously helping with the bank, helping with the financing the bailout. 00:13:01.340 --> 00:13:04.580 And that showed the value of having a fortress balance sheet. 00:13:04.620 --> 00:13:09.365 It showed the value of having strength when others are weak. 00:13:09.400 --> 00:13:12.030 Just like one hundred years before, J.P. Morgan 00:13:12.030 --> 00:13:14.881 had to grapple with a collapsing financial system. 00:13:14.940 --> 00:13:17.083 I called up my whole operating committee. 00:13:17.100 --> 00:13:20.760 I told them we're about to have a catastrophe take place. 00:13:20.808 --> 00:13:22.860 All hands on deck the next day. 00:13:22.900 --> 00:13:28.470 I think I called my board that Saturday and said we have a national emergency. 00:13:28.470 --> 00:13:31.300 And when you told them how bad it could get what did you tell them? 00:13:31.300 --> 00:13:35.710 That you're going to see the worst week ever in American financial history since the Great Depression. 00:13:35.720 --> 00:13:38.407 That in my opinion Lehman is going to go bankrupt. 00:13:38.420 --> 00:13:42.758 That AIG is a possibility and that might be a domino effect after that. 00:13:42.780 --> 00:13:45.330 But the company kept playing a role as a buyer. 00:13:45.330 --> 00:13:48.860 J.P. Morgan Chase followed up with the acquisition of WaMu. 00:13:48.900 --> 00:13:52.310 And the company emerged in the crisis stronger. 00:13:52.380 --> 00:13:59.580 If you made one move more than any other if you're investing in bank stocks since 2004, it should have been to own J.P. 00:13:59.580 --> 00:14:01.500 Morgan Chase as an investment. 00:14:01.740 --> 00:14:04.600 Since the bank one merger of the last 15 years 00:14:04.600 --> 00:14:12.980 J.P. Morgan Chase has outperformed the bank stock index by an average of 600 percentage points each year. 00:14:13.540 --> 00:14:16.460 That's tremendous outperformance versus the banks. 00:14:17.700 --> 00:14:23.220 Despite the company's relative strength, Dimon was called in front of Congress to defend the bank's actions 00:14:23.220 --> 00:14:28.580 after the industry received more than $700 billion dollars in government bailout money. 00:14:28.580 --> 00:14:36.260 The question that I, nor any one, will ever be able to answer is what would have happened had that not been 00:14:36.260 --> 00:14:38.780 injected when and how was injected. 00:14:38.780 --> 00:14:41.180 He even called for more systemic regulation. 00:14:41.460 --> 00:14:45.800 I think would be a tremendous benefit to have one regulator looking at anything 00:14:45.800 --> 00:14:47.500 that could cause systematic risk. 00:14:47.900 --> 00:14:51.860 Well you know I would make a distinction between regulation and red tape. 00:14:52.340 --> 00:14:57.880 So thank you regulators for making the banking industry stronger than it's been in a few decades 00:14:57.880 --> 00:15:00.100 and they've done it with very clear rules. 00:15:00.420 --> 00:15:03.820 OK. You won't have as much leverage which means more capital 00:15:03.820 --> 00:15:08.180 and capital protects banks from unexpected problems during tough times. 00:15:09.300 --> 00:15:13.620 But it hasn't always been completely smooth sailing for Dimon at the helm of J.P. Morgan. 00:15:13.980 --> 00:15:18.420 The annual shareholder letter from JP Morgan Chase CEO Jamie Dimon. 00:15:18.700 --> 00:15:21.180 It addresses the London Whale issue right off the bat. 00:15:21.260 --> 00:15:23.260 He says it was an extremely embarrassing episode. 00:15:23.260 --> 00:15:26.860 The most embarrassing episode that he has ever dealt with and it also cost the firm money. 00:15:27.300 --> 00:15:33.620 The company lost more than $6 billion dollars on the trade and Dimon was marched in front of Congress again. 00:15:42.520 --> 00:15:46.420 Well I went to the annual meeting after J.P. Morgan had the London Whale incident. 00:15:46.420 --> 00:15:52.340 It was down in Tampa, Florida and I went to ask questions of the lead director to find out how much the 00:15:52.340 --> 00:15:55.740 board was overseeing Jamie Dimon in the rest of the management team. 00:15:55.779 --> 00:15:57.220 So it was certainly an issue. 00:15:57.220 --> 00:15:59.940 And you know J.P. Morgan Chase said you know what, 00:16:00.460 --> 00:16:02.580 we still earned money that quarter. 00:16:02.620 --> 00:16:06.940 Yeah that's kind of like OK you're you're texting while driving, never do that. 00:16:07.220 --> 00:16:11.180 You hit the guard rail and you cause like you know $500 hundred dollars worth of damage to your car. 00:16:11.340 --> 00:16:12.460 See it was only $500 dollars. 00:16:12.700 --> 00:16:16.460 No. The point is you could have gone off the edge and killed a few people. 00:16:16.500 --> 00:16:19.260 OK. Could have been much greater damage than it was. 00:16:19.420 --> 00:16:23.580 And in 2013, J.P. Morgan settled with the Department of Justice. 00:16:24.340 --> 00:16:29.500 The charges were that the company overstated the quality of mortgages it sold to investors in the run up 00:16:29.500 --> 00:16:30.700 to the financial crisis. 00:16:31.420 --> 00:16:34.540 It cost the company $13 billion dollars. 00:16:34.780 --> 00:16:40.460 Overall. J.P. Morgan Chase has settled more than a dozen government cases and private lawsuits in 00:16:40.460 --> 00:16:41.980 connection with the financial crisis. 00:16:42.220 --> 00:16:46.580 That's according to a CNBC analysis of KBW's litigation tracker. 00:16:47.100 --> 00:16:51.380 Some of the settlements were liabilities from the Bear Stearns and WaMu acquisitions. 00:16:51.820 --> 00:16:55.700 In total, though they've cost the company more than $30 billion dollars. 00:16:55.940 --> 00:17:01.660 While there still is some outstanding litigation for the most part the company has put the crisis behind it. 00:17:02.020 --> 00:17:04.339 J.P. Morgan Chase has gained market share. 00:17:04.500 --> 00:17:09.780 they're now ranked number one in global investment banking and trading activity. 00:17:10.500 --> 00:17:14.619 That's from a second and third class status a couple of decades ago. 00:17:14.660 --> 00:17:15.460 Now they're number one. 00:17:15.740 --> 00:17:20.400 On the retail side, J.P. Morgan Chase especially Chase, the retail brand name, 00:17:20.400 --> 00:17:23.497 you know they ranked number one, two or three in most categories and 00:17:23.497 --> 00:17:28.660 they're ranked number one in digital banking an area of you know tremendous growth. 00:17:28.660 --> 00:17:36.440 So now you look at it and for the last 10 years despite flat market share, J.P. Morgan has improved its deposit 00:17:36.440 --> 00:17:39.940 market share nationally from 7% to over 10%. 00:17:40.020 --> 00:17:43.620 Who is using JP Morgan Chase more than ever before? 00:17:43.980 --> 00:17:45.660 Young people. Millennials. 00:17:45.860 --> 00:17:49.940 They're taking all these processes that used to be very paper heavy 00:17:49.940 --> 00:17:50.940 or very sort of people heavy like you had 00:17:50.940 --> 00:17:54.696 to go to a to a branch and they're turning that digital. 00:17:54.696 --> 00:17:55.696 And they're putting it so that if you wanted to 00:17:55.696 --> 00:17:57.480 if you want to apply for a mortgage you could do it through your mobile phone. 00:17:57.480 --> 00:18:01.740 If you wanted to trade stocks easily for free, 00:18:01.740 --> 00:18:02.960 you could do it through the mobile phone. 00:18:02.960 --> 00:18:05.500 You also have something called Sapphire Reserve. 00:18:05.500 --> 00:18:09.300 It's a hugely popular credit card that they rolled out in 2016. 00:18:09.820 --> 00:18:15.500 Tons of millennials have bought into that 00:18:15.500 --> 00:18:16.500 primarily because they get extra points, reward points for things 00:18:16.500 --> 00:18:21.020 like dining out and travel. Things that millennials supposedly like to do a lot. 00:18:21.180 --> 00:18:25.620 This is a play to get people relatively early on in their in their financial lives. 00:18:25.780 --> 00:18:31.340 I mean is it do you think millennials wake up say 00:18:31.340 --> 00:18:32.340 "oh we want to do business with a big institution, a big bank?' 00:18:32.340 --> 00:18:33.500 That's not the thought process. 00:18:33.540 --> 00:18:36.520 The thought process is hey they better digital banking. 00:18:36.520 --> 00:18:37.920 They've better online banking. 00:18:37.920 --> 00:18:39.751 They make our lives easier. 00:18:39.780 --> 00:18:41.660 Let's go to J.P. Morgan Chase. 00:18:41.660 --> 00:18:42.860 You're seeing this some other banks too. 00:18:42.940 --> 00:18:46.269 But J.P. Morgan Chase certainly is a leader in that category. 00:18:46.340 --> 00:18:49.235 And what would JP Morgan think of the company bearing his name 00:18:49.256 --> 00:18:51.446 being back at the top of banking? 00:18:51.446 --> 00:18:54.834 He'd think that was perfectly appropriate.