LIZ: WHEN IN DOUBT, PUT YOUR CEO
OUT FRONT.
GOLDMAN CHARGING HIGHER AND
HIGHER AFTER THE INVESTMENT BANK
PUT ITS TOP GUN IN THE EARNINGS
CALL PILOT SEAT.
THE STOCK IS UP NEARLY 10% WITH
JUST 15 MINUTES LEFT TO TRADE.
TO THE MAN WHO TOOK YOU INSIDE
GOLDMAN'S PLAYBOOK DAYS BEFORE
TODAY'S CALL.
>> WHERE SHALL I BEGIN?
LIZ: HOW DID I KNOW YOU WERE
GOING TO SAY --
>> WHERE SHALL I BEGIN?
LIZ: I TOLD YOU?
>> OH, YOU DIDN'T KNOW ABOUT THE
DR. EVIL IMPERSONATION, RIGHT?
YOU DID KNOW THAT WAS COMING.
BUT YOU KNEW THE OTHER ONE WAS
COMING?
LIZ: GETTING OLD.
>> WELL --
LIZ: OKAY.
LET'S GET TO IT.
>> I HURT MY ARM A LITTLE
PATTING MYSELF ON THE BACK
THERE.
LIZ: I CAN SEE THAT.
DISLOCATION.
>> IN ANY EVENT, LISTEN, I THINK
HE DID WHAT HE HAD TO DO.
I THINK THE FACT THAT HE SAID
THAT MAINLY THE MALAYSIAN FUND
SCANDAL WHICH IT LOOKS LIKE
GOLDMAN IS WRAPPED VERY DEEPLY
IN THIS.
I MEAN, THEY CREATED THE FUND,
THEY HELPED THEM CREATE THE FUND
AS A WAY TO DO INFRASTRUCTURE
FOR THE COUNTRY, ONE OF THEIR
TOP BANKERS HAS BEEN INDICTED, I
BELIEVE, AS PART OF THIS
INVESTIGATION.
LIZ: FORMER TOP BANKER.
>> FORMER, BECAUSE THEY USED THE
MONEY FOR PERSONAL REASONS, NOT
ESSENTIALLY TO DO WHAT THEY WERE
SUPPOSED TO DO.
GOLDMAN UNDERWROTE THE BONDS.
THERE'S A QUESTION OF WHETHER
THEY DISCLOSED ANY OF THE FUNNY
BUSINESS THAT CLEARLY OR LOOKS
LIKE ONE OF THEIR EXECUTIVES
KNEW, SO THEY ARE IN THE SOUP ON
THIS.
I THINK THE GOOD PART IS, HE
CAME OUT AND ADDRESSED THAT
SPECIFICALLY, HE SAID IT HURT
OUR REPUTATION, HE SAID IT'S NOT
HURT OUR BUSINESS JUST YET.
I THINK THAT'S ONE OF THE
REASONS WHY THE STOCK IS UP.
AND YOU KNOW, I THINK THIS -- I
MEAN, HE'S A DECENT CEO AND HE
SOUNDED GOOD ON THE CALL.
I HEARD A LITTLE BIT OF IT.
BUT I THOUGHT HE SOUNDED VERY
HONEST AND UP FRONT, AND KIND OF
UNGOLDMAN-LIKE.
YOU KNOW WHAT I'M SAYING?
USUALLY THIS IS A FIRM THAT
HIDES BEHIND STUFF, THAT SPEAKS
IN SORT OF BUREAUCRATESE.
HE SOUNDED LIKE A NORMAL GUY
MOSTLY ON THAT CALL EXPLAINING
THESE THINGS.
I THINK THAT'S GOOD.
THEY STILL HAVE A BUSINESS MODEL
PROBLEM.
I DON'T CARE WHAT ANYBODY SAYS.
LOOK WHAT HAPPENED.
THEY HAD A LOUSY DECEMBER.
I KNEW THIS WOULD HAPPEN.
THEY WOULD MAKE UP WITH IT WITH
SOME REVENUES, WITH REVENUES
FROM INVESTMENT BANKING, KIND
OF, AND PROBABLY PULLED
SOMETHING OUT OF THEIR HAT,
MAYBE A PRIVATE EQUITY
INVESTMENT.
I GOT TO LOOK AT THE NUMBERS A
LITTLE CLOSELY.
THEY STILL HAVE A BUSINESS MODEL
PROBLEM.
LIKE JPMORGAN, YOU KNOW, FOR
BETTER OR WORSE, I THINK IS WAY
TOO BIG, IT SHOULD BE SMALLER, I
REALLY THINK THEY HAVE A
BUSINESS MODEL WHICH MAKES UP
FOR THE LOSSES.
THEY ARE BIG ENOUGH.
WE HAVE SOUND I JUST HEAR IN MY
EAR, WE HAVE SOUND ON WHAT MR.
SOLOMON IS SPEAKING?
LET'S GO TO IT.
LIZ: LISTEN TO THE CEO.
>> I'M NOT IN ANY WAY, SHAPE OR
FORM, NOT AWARE OF ALL THE NOISE
IN THE PRESS AND ALL THE
ARTICLES, AND YOU KNOW, I READ
THEM, I WATCH THEM AS YOU DO,
AND I FOR A MOMENT WOULD NOT SAY
THAT THE IMPACT OF THIS IS A
REPUTATIONAL DENT TO THE FIRM
THAT WE HAVE TO AND WILL WORK
THROUGH.
LIZ: HE CALLED YOU NOISE.
>> I THINK HE WAS REFERRING TO
ME.
THEY'RE GOING NUTS ON ALL THE
STORIES I'M DOING.
I'M GETTING NASTY E-MAILS FROM
THEM, THIS ISN'T NEWS, YOU KNOW.
LIZ: WELL, IT ACTUALLY HAS
BEEN -- HAS HAD A SALUBRIOUS
EFFECT ON THE STOCK RIGHT NOW.
>> THAT'S A DR. EVIL TERM.
LIZ: AN S.A.T. WORD.
>> BUT YOU KNOW, IT DID, AND
BEING HONEST HELPS.
I STILL THINK THEY HAVE A BIG
MODEL PROBLEM.
YOU WANT TO GO TALK --
LIZ: I WANT TO TALK ABOUT JAMIE
DIMON BECAUSE YES, HE JUST SPOKE
IN THE LAST COUPLE OF HOURS,
RIGHT DOWN THE STREET, TIMES
SQUARE, AT THE NEW YORK ECONOMIC
CLUB.
I HAVE TO TELL YOU, CHARLIE, IT
WAS A Q & A, IT WAS ON THE
RECORD BUT I WAS FURIOUSLY
WRITING STUFF DOWN BECAUSE WHEN
THEY BROUGHT UP BREXIT, HE
SPECIFICALLY TALKED ABOUT THE
FACT THAT HE SAID A HARD BREXIT
WOULD BE DISASTROUS FOR GREAT
BRITAIN.
HE SAID WE ARE PREPARED AT
JPMORGAN FOR A HARD BREXIT.
HE SAID THAT JPMORGAN HAS
SPENT -- HE SAID I THINK $100
MILLION OR SO, HE WAS THROWING
THAT NUMBER OUT, JUST TO PREPARE
FOR IT BECAUSE HE SAID AT JAR
JPMORGAN WE TRY TO MODEL FOR 20
DIFFERENT SCENARIOS, TAKE THE --
>> WHY DOES IT MATTER?
LIZ: BECAUSE GLOBALLY, THEY HAD
SO MANY OPERATIONS IN THE UK, IN
LONDON.
>> IF YOU CAN'T DO EASILY
CROSS-BORDER TRADES AND
EVERYTHING, WHICH BETWEEN THEIR
LONDON UNIT AND THE GERMAN UNIT,
THAT BECOMES A PROBLEM.
IF THEY HAVE A HARD BREXIT, THEY
WON'T BE ABLE TO DO THAT.
LIZ: HE SAID THEY HAVE NO CHOICE
AT JPMORGAN.
THEY COULD NOT BE IN A POSITION
WHERE THEY WAKE UP THE DAY AFTER
ARTICLE 50 KICKS IN, WHERE IT'S
OVER, HE SAID MARCH 19th-20th.
>> MOST OF THE FIRMS --
LIZ: HE SAID WE WOULD BE UNABLE
TO DO BUSINESS IN EUROPE.
>> MOST OF THE FIRMS HAVE DONE
THIS.
THEY ARE PREPARING FOR THE HARD
BREXIT.
IF IT DOESN'T HAPPEN, THAT'S
GREAT.
IF IT DOES, THEY ARE PREPARED.
AGAIN, IT'S BECAUSE THEY CAN'T
DO BUSINESS EASILY.
WE SHOULD ALSO POINT OUT, HE
MENTIONED THE -- MENTIONED THE
SHUTDOWN, DIDN'T HE?
LIZ: YES, HE DID.
HE MENTIONED THE GOVERNMENT
SHUTDOWN.
PRETTY MUCH SAID WHAT HE SAID
YESTERDAY.
>> THAT IT WOULD CAUSE
ECONOMIC --
LIZ: YEAH, DISLOCATIONS.
HE ALSO SAID COME ON, THE WHOLE
POINT OF A DEMOCRACY IS TO
COMPROMISE.
HE WANTS TO SEE MORE COMPROMISE.
ONE MORE THING ON BREXIT,
SPECIFICALLY HE SAID PRETTY MUCH
IT'S VERY CLEAR WHO HOLDS THE
LEASH HERE.
HE SAID IT IS NOT A NEGOTIATION
OF AN EXIT FOR THE UK, IT'S A
SURRENDER.
HE SAID IT'S 100% UP TO WHAT
EUROPE WANTS, BRITAIN HAS NO
CHOICE.
>> BY THE WAY, JAMIE, I LOVE
JAMIE.
I HAVE KNOWN HIM SINCE NEITHER
OF US HAD GRAY HAIR.
LET ME TELL YOU SOMETHING.
LIZ: HOLD ON.
WHO ARE YOU TALKING ABOUT?
OH, YOU AND JAMIE.
>> NO, NOT YOU.
BIG RED OVER HERE.
ANYWAY, HE IS SUCH A GLOBALIST.
I MEAN, LISTEN, I HATE THAT TERM
BECAUSE I GET CALLED -- TWITTER
TROLLS ATTACK ME --
LIZ: WHAT DO YOU WANT TO BE, A
JINGOISTIC PERSON?
I'M GLAD HE'S A GLOBALIST.
>> I THINK BRITAIN NEEDS TO, I
THINK MOST COUNTRIES, LISTEN, WE
ARE NOT IN THEIR SHOES.
WE DON'T HAVE SOME FOREIGN BODY
TELLING US WHAT TO DO.
LIZ: HE DID SAY IS IT A BAD
THING THE UK WANTS TO EXTRICATE
ITSELF FROM A SCLEROTIC EUROPEAN
UNION, NO, THAT'S NOT BAD BUT
THINK ABOUT WHAT YOU'RE DOING
AND BE PREPARED FOR IT AND MAKE
SURE IT'S DONE PROPERLY.
>> I THINK THERESA MAY HAD A
PRETTY GOOD WAY OF DEALING WITH
IT.
PARLIAMENT IS INSANE.
LIZ: GOT TO GO.
>> GOT TO GO.
SEE YOU MONDAY.
I'M GOING TO BE IN FLORIDA FOR A
COUPLE DAYS.
LIZ: I'M SO DISAPPOINTED.
>> I WILL COME BACK WITH A