Famous, then you were born ten years later and thats where goldie. I knew her well from all shoo hes on it since then. Im not going to bring up laugh in considering the Hawn Foundation is doing brain and meditation reseven. Shes come a long way. Her son. Oliver. Havent met the daughter. I know the son you probably wish you knew the daughter. Ive known you long enough. Before we get to all of that we have a roundup of this mornings top stories. Chinas lenovo is buying the low end service for 2. 3 billion. Ebay is pushing back at carl icahn, the activist investor has taken a stake in the company and proposing a spinoff of its paypal division. But ebay rebuffed the overture arguing that the unit would lose synergies with the overall ecommerce business. Ebay reported Quarterly Results yesterday with earnings beating the street by a penny. Shares of netflix soaring after the Company Announced it added more than 2. 3 million u. S. Customers in the Fourth Quarter. Netflix says it is testing different pricing plans for its monthly tv and movie streaming service. Things got interesting on the netflix Earnings Call an analyst asked Reed Hastings what he thought about the sharing pat passwords saying he doesnt mind when people hair their hbo passwords. Here is the answer. I guess the ceo of hbo doesnt mind me sharing his account information so its plouffeler at hbo. Com. Really . Wow. Okay. Thats interesting. Lets check on yesterday we gave someones email, gary. It was gy water. Org. People wanted matt lauers email. Asked for marty sorensons, too. Supposedly its going to snow today. Looks beautiful out today. Do they have not have the Weather Channel over here . We have the Weather Channel here. Right here. Does it look like snow to you . This looks beautiful, 13. 8, thats celsius, right . Yes. Can you do the fahrenheit conversion . No. I could xwguess, i figure its about 25. Check on the markets, i cant forecast markets but i can forecast, i dont think it said snow do you . Theres not a cloud in sight. There are the futures again today, are the markets sad were not back there or something . Yesterday it was a little uneven, today down about 45 points or so. Thats manageable though. Well see what happens. I dont think the earnings at this point are, intel and ibm, is it going to live up. The banks that did well. Bank of america. Revenue at ibm people dont like that. The deal with lenovo gets the low end server business off their books, that will help them longterm. Were supposed to be finished with cost cutting and productivity gains so the revenue needs to take over in 2014 and and justify where the market is at this point. Lets look at the rest of the markets, you saw the dollar, i didnt see, there it is. Thats right, looking athe crude 96 a barrel at this point. Lets look at the tenyear which every day sort of validates. Reinforces. Like cicero im not going to bring up about the tenyear, andrew. There you go. To the interview of the morning i sat down with jamie dimon yesterday, jpmorgan irchaman and ceo to talk about his company, the economy and much, much more, the first time hes spoken in a long time since some of the companys troubles. We began with the companys legal issues and recent settlements and i asked him what the public should think about the firm now and his leadership. I want the public to know im proud of jpmorgan, we operate in 100 countries, did 2 trillion of lending and credit recovery, high customer scores and middle market Consumer Credit card. We try to do great stuff for communities. We were there in 08, 09, 2010, for cities, schools, states, hospitals when lots of others werent. We have a series of problems. The problems dont detract from what the great stuff our people do but a lot of the problem were 08 and prior. Theres no one at this company who is responsible for 80 and i would say we shouldnt pay 80 but thats neither here nor there. Companies have problems. The press has problems. The military has problems, the government has problems. That does not necessarily between cnbc is bad if you have one bad reporter so you got to be careful how you judge a whole company because something went wrong so you look at these big numbers and they are big numbers and so the public looks at them and theyre trying to grasp and understand what to make of it. Do you think ultimately it was fair . No. I this i a lot of the numbers are unfair but im not going to go into details. It all relates mostly to stuff that happened from 1990, 2000 up to 2008 so this wasnt like a oneyear number, this is litigation that built up over time, you know, and was settled and paid in big numbers this year and im grateful to have it behind us and because the most important thing for a company is you do your job, serving clients and communities around the world and this was a huge negative for the company, huge distraction of management time, board time, when we should be really helping our clients which includes cities and schools so we just want to get back and do what were good at and supposed to be doing. On the stuff that you think was wrong, do you think you fully remedied it . I guess at one point it doesnt matter whether you think its wrong or right. We can debate whether they should have paid all the bad mortgages or bear stearns but youre caught between two bad choices. We made the one better for the company. I have moved on, that was last year. Im looking foord to 2014. One more question on that, was there a moment or what was the moment for you when you said to yourself, okay, pay it. I want to put this behind me and was there something that happened . Was it a conversation with the board, was it a conversation with eric holder, what was that moment for you . First of all the board was involved every step of the way, unprecedented multiple regulators and u. S. Attorneys and former justice and it was just thinking is through, looking at our options and realizing there are two really bad options and the wrong thing to do is to complain, fight and then you could have said why not go to court. If you were my board you would have said why would you do that and subject your company to three or four more years and the outcomes could be worse, they wont necessarily be better. Lot of people said if you think youre right, fight, banks have a tough time doing that. It would really hurt this company and that would have been criminal for me to subject our company to that those kind of issues. Chris christie compared himself to you over the weekend suggesting when you won a big state in his case or a big company he said its impossible to really understand everything thats going on. As a ceo do you feel that way . I have enormous respect for chris and i dont know what the words were used, i think its true and important for the press when you talk about the military, we have the best military in the planet, the skills and capabilities of our people are exceptional. That does not mean that bad things dont happen and the worst thing you can do is im going to destroy everything good because something bad happen. The way you judge a company do they admit bad things. In the mull tear they have cold blooded an little cat what you did, why it worked, what didnt, what went wrong but its not to punish people but make you better. Right through there is now ther punishment. Its impossible to know every single thing people are doing. Thats why you have controls and good people. Even good companies, god governments are going to make mistakes. If. You said you have a lot of good people at jpmorgan. One of the critiques of the government in this whole sort of prosecuting of wall street is that theyve gone after the companies and shareholders and not held the individuals who actually made these decisions accountable. What do you think of that . I think thats a legitimate complaint. If people broke the law, they should be punished. In the old days if someone come in and broke a law the person would be punished and the Company Found very broad systemic on the company all the way to the top but the company pun ushed. Thats a legitimate thing. The lawyers and the courts will figure out where the balance is and it seems to be chakd but i consider anyone who says where should it be and if individuals wrote the law why arent they being punished. Shareshoeld hoholders say weg for somebody in the bowels of this Organization Made a decision, right or wrong and the governments decided its wrong. Thats totally true and a lot of things totally true and you pay twice. So my Shareholders Benefit from the good things we do and get punished from the bad things we do and the government, too. Ill let it to the professionals and the courts can sort that out. Two years ago we were in davos you said you were barely a democrat. Are you still a democrat . I am still a democrat, yes. Despite all of this . Hasnt changed your view . Ive said to you before there are social reasons im a democrat, more fiscally conservative. I wish the democrats on the left would celebrate private ebt prize and success a little bit more. Were brothers we shyou lift everybody up. I believe in progressive taxation. I want more equitable society. Why is it, how did it get there, what we should do about it and clb rate taken and fix it. In terms of risks legal or otherwise that you this i about, theres the investigation into the chinese. I would tell you that some of these things are beginning, some companies did worse than others like in libor. Let the court figure it out. I just want to continue to build jpmorgan and sort those out in due course and if we find people did something wrong we will independently take action. One of the things that happened in the past week, you got out recently of a chemical company, po because you had employed the daughter, in part. Is that something well be hearing more and more about in terms of you deciding i dont want to touch that . By the way that company was not a government controlled company. I understand that. I think were, look i dont know the circumstances exactly but i think were trying to make decisions to make it as pure as possible, trying to do the right thing and i think evans going to look back at the rules. Not just banks. People hire exgovernment officials, hire sons and daughters of companies and give them proper jobs and dont violate the american fair practices act. We have to create a safe harbor for that. Is there anything in this whole thing that you read that made you uncomfortable . Like i said i dont want to go into that anymore. Lets talk in the economy in davos, a lot of people talk about what the next year looks like. Last year you were positive, everybody was positive and it was right in terms of the Economic Growth and more importantly the stock market. Is the stock market out overet skis relative to where we are in the true economy in. I dont look at the stock market telling you about the future but times it does. Lot of smart people buying and selling and the prospect of 5,000, 8,000 individual companies and say i feel good about that. The American Economy and look i dont know, no one predicts the future but i believe the sun and the moon and the stars are lining up and look how the table is set. Corporate america is in excellent shape, profit margins, a lot of cash and cap you always point out, middle Market Companies are in excellent shape, Small Business back to where it was, not formation but credit, the access to credit, housing has turned the corner, 6 million more americans are working, americans are healthier in their homes, their 401 k s, and government is doing no damage. I am so dwratful we didnt have, that we have a budget, ill be grateful to get through the debt ceiling crisis and i think those will line up its possible well start to strengthen as a company that investors will be looking for opportunities, companies, remember Companies Want to expand. Ive never seen a ceo who says my goal is so shrink. The the switch is set to grow. We need immigration reform, tax reform. Do you think well get those things . No but im thinking well grow despite them. Capital overseas is a bad idea for america. When you think about europe, china, the rest of asia, where are you . If we were sitting here a year ago about a year ago the chatter about can europe grow at all . Its tough sledding so i dont expect it to boom but if it could grow a little bit its a plus. Japan is doing better, china, people worry they wouldnt grow at 7 . Theyve been growing at 7. 5 they reported yesterday and i believe china has the wherewhereal to keep their growth in their targets for the next couple years in spite of the fact they may have banking problems they have enough to meet the targets so theyll probably meet them. If you have china, japan, europe, and the United States possibly all doing better thats 75 of their global gdp. Banking business what do we think of not just the last earnings reports but the trend which is to say overall revenues have not gone up, theyve gone down to the extent profits have gone up its been a lot of cost cutting and perhaps you could argue some of the loan loss reserves which will come back to actually make the profits look better. Its a tale of two cities here. If. You look at banks and i think a lot of the banks youll see some loan growth, some deposit growth and you see it broadly. Thats the real underlying business. That doesnt always reflect itself in revenue growth. You have management margin spreads, higher expenses from a whole bunch of different things. Jpmorgan had deposits up 10 , assets under manage up 515 , commercial real estate loans up 15 , the bond markets are open, the Capital Markets open so you see a lot of positive signs, they will eventually lead to profits but spreads are going against you, costs are going against you and that will change. That will change and the mortgage thing i know people made a lot of big deal about mortgages. When rates went up we told everyone refi will go down. Theyve gone down a lot. We know thats going to happen. That is the business, luke a pizza shop when its storming jo upt side will have less business. You should look at it necessarily as a bad thing. There are positive effects to rates going up and other positive effects. Lot of things you deal with in a business and with he shouldnt overreact to mortgages. I also asked jamie about jpmorgan overtaking bitcoin and whether he thinks bitcoin will ever be a real currency. Well have the answer in the next half hour. Did you think he was defensive, apologetic. I didnt think he was apologetic. At the beginning i thought he was a little fired up about things but then it seemed like look hes probably trying to keep lay a little low and stay out of the spotlight. We talked, i know how he feels about certain things. In you were in jamie dimons position i would not be as conciliatory after the same questions hes fielded over and over and i know the bottom line is you cannot fight city hall. They had over 20 billion set aside, that allows regulators to say this is what we want. You got 20, if the 20 is there i want the 20. Its better for shareholders to do that but i dont think hes admitting anything. Do you think the attention is off jpmorgan or will it continue . I wonder whether the government if you believe the government has squeezed that firm whether theyre going to the next or hes still in the vices. I think they go to the next firm, my guess. Government should not be vindictive but depending how he acts from here on out i could see them either not or i could see hem continuing or not continuing based on if he behaves or not. You could pay 23 billion and thats the companys earnings, shareholders oddly, i dont want to say theyre happening. They knew this was the overhang and want it to be removed. We come from a different perspective. Here is the media universe and its opinion of jpmorgan. I think its an essential part of our economy. I have heard it called an International Crime syndicate that violates International Law on a daily basis and pillages and plunders. Ive heard people that write things and arent sued for libel. Well have a lot more from jamie throughout the program. From mother jones or matt whats his name, and the guy that came on closing bell slate or salon or one of them. Coming up were still a couple hours away from the opening bell on wall street. Up next nyse duncan, they have so assets at the New York Stock Exchange. Well be back and it isnt going to snow. [ male announcer ] we dont just certify our preowned vehicles. We inspect, analyze, and recondition each one, until its nothing short of a genuine certified preowned mercedesbenz for the next new owner. [ car alarm chirps ] hurry in to your authorized mercedesbenz dealer for 1. 99 financing during our certified preowned sales event through february 28th. Auto. Our next guest was recently honored at the museum of American Finance for his distinguished Public Service and financial leadership, duncan is ceo of the euro next which runs the New York Stock Exchange. Were glad youre here. We brought some good weather. You did, if you think about it, this is the first time in seven years ive been here where its colder in new york than it is here and more snow on the ground in new york than there is here so good chance to get some work done. You live right and good things happen to you and squawk box, i dont know, there is such a thing as its got to be you. A halo effect of us. Im demented, arent i . It happens. Im just saying. Im just saying. So getting right to what it you can gauge and that is what 2014 will be like in terms of the ipo environment, thats like a pulse of things and the pulse is getting better. I think the pulse was really, really good in 2013 if you think about it, nearly 250 ipos in the u. S. From all sectors, all geographies, didnt feel the slightest bit like a bubble, coincident with the cooperative market that seems poised to continue throughout 2014. We have a little less visibility into the forward because so many people are using the jobs act to file confidentially but the companies were aware of that have filed and the companies that we can see in the pipeline, 14 looks really good, too. It was coincident with a better market but what was the market coincident with, a better economy or can you see the money coming in, or can you so he where bernanke signed the checks for the money coming in or the economy . It feels