Jamie Dimon is the CEO of JPMorgan Chase, one of the few investment banks that has performed relatively well during the credit crunch. Below is a recent Dimon interview by Charlie Rose that focuses on the key current economic events.

(Part two of the Dimon interview begins at about 43:50)

Dimon states that he is not able to pick a bottom in this market. Many times guests on financial news shows like CNBC claim they can pick a bottom, but a common thread among great investors and financial leaders is a willingness to accept that they do not know all of the answers, and instead focus on positioning themselves or their firms to have the highest probability of success.

Dimon also compares the current financial crisis to the 1998 LTCM financial crisis. He points out that there are key differences between the current financial crisis and 1982, where inflation and unemployment were rampant. Today both inflation and unemployment are at lower levels. Dimon also identifies the similarities of fear in all financial crises that ultimately create financial opportunities.

Also, I think another great point the JPMorgan Chase CEO makes is to plan for the worst and focus on preventing potential negative problems. As Wall Street firms utilized more leverage and used more risky assets, these firms focused more on the positive upside than controlling potential losses.

The video has a great overview of the failure and acquisition of Bear Sterns. Dimon highlights one of the key lessons, which is stress testing and having a fortress balance sheet.

Dimon continues at the end of the interview to define great leadership. Dimon explains that there is no one form of great leadership. Emotional skills, communication, clarity, passion, work ethic, integrity, and the ability to act decisively are all qualities of great leaders. Having a strong team of people working with you is also critical to being able to act and lead a firm or group in the best direction.

WallStreetOasis.com

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