JPMorgan Chase & Co.
Q1 2018 Earnings Call Transcript

Published: 15 May 2018

[Operator:]

Good morning. Welcome to our 2018 Annual Shareholders Meeting for JPMorgan Chase. We're going to start with a brief video, and then Jamie Dimon and our General Counsel, Stacey Friedman, will come up on stage to commence with the formal proceedings.

[Jamie Dimon:]

Good morning, ladies and gentlemen. It is 10

[Stacey Friedman:]

Thank you. First, to begin, my welcome as well to everybody who's here today. Hopefully, most of you or all of you are customers as well as shareholders. And so we have with us today the executive office. I think Larry Thode is here, our Head of the Executive Office. So if you have questions about the products or services or anything that we do or can do for you, please -- after the meeting outside. Just to take care of the rules of the meeting. As a reminder, no personal devices, cell phones, electronic equipment for recording, photo taking or video taking is prohibited for the meeting. For the business of the meeting under the rules, I do have the update that mailing has been noticed of the meeting. I have the proxy statement, the form of the proxy and the Annual Report to shareholders, which is available for inspection, and representatives of American Election Services has been appointed as the inspector of elections. So the meeting is properly convened. We have a quorum. The proposal resolution as set forth in the proxy statement will be filed as part of this proceeding. It is right now 10

[Jamie Dimon:]

Stacey, thank you. First, I'd like to recognize our directors. If I could ask each director to stand up as I introduce you. And audience, please hold your applause till all the directors are introduced. The directors are

[Lee Raymond:]

Good morning. Thanks, Jamie. On behalf of my colleagues on the board, I'd like to thank our fellow shareholders for participating in today's meeting. For those of you who are employee shareholders, thank you for the work you do everyday for JPMorgan. As Jamie has described, 2017 was another strong year for the company on many measures, as we achieved healthy growth across all of our businesses, adding clients and customers and delivering record earnings per share. Most importantly, the firm maintained its focused balance sheet, discipline and client focus. And we continue to build value for our shareholders your board continues to focus on issues that are important to us and to our shareholders. And because this has been an especially notable year, I'd like to highlight a few for you. To begin, having a first-rate management team in place is one of the highest priorities of the board. To see that we continue to do so, management succession planning is a key focus of your board. The Independent Director -- senior leaders very well and believe that, under all timing scenarios, the firm has in place highly capable successors to Jamie and other members of the Operating Committee who are well prepared to meet future challenges. We recently announced that Jamie will continue in his current role for approximately 5 more years and that Daniel Pinto, the CEO of our Corporate & Investment Bank; and Gordon Smith, the CEO of Community and Consumer Banking, have been appointed co-Presidents and co-Chief Operating Officers. In their new roles, Daniel and Gordon will work with Jamie to help drive critical firm-wide opportunities. These changes are consistent with the board's commitment to succession planning. The board also has spent significant time on the -- strategy. The firm's strategic priorities and management's annual and multi-year plans reflect our belief that our business model enhancement long-term shareholder value and focuses on addressing challenges such as accelerating the pace with which we deliver innovation and change. To that end, we have placed the priority on investing in innovation and new technology initiatives that allow us to deliver products and services that are more valuable to our customers. We remain committed to an effective and efficient risk control environment. While the firm has strong controls, we are always striving for continuous improvement. Throughout the past year, the board has spent significant time on overseeing management's efforts to continue the strength of our infrastructure and enhance our control toward improving client and customer experience. Cyber defense and improving our resiliency against cybersecurity threats remains a key focus at all levels of management within the firm and on the board. As part of risk management, we also take very seriously our responsibility to set the tone at the top. The commitment to a strong and healthy culture at JPMorgan Chase remains steadfast. The board provides direct oversight of the firm's culture and conduct program. This year, there was continued emphasis on our business principles and cultivating strong, cohesive culture across all levels of the firm. The board is also very mindful of its own succession planning. We are focused on ensuring that we have the right mix of skills and experiences to align with JPMorgan's business strategy. We conduct an annual board evaluation process and an ongoing review of the board's composition and potential candidates. Maintaining an appropriate balance of experienced and fresh perspective is also a key objective. We are pleased to welcome the newest member of our board, Mellody Hobson, President of Ariel Investments LLC, whose election in March of 2018 reflects the board's commitment to seeking out and including top talent with fresh perspectives. Mellody brings to the board a remarkable combination of skills, experience and personal qualities that will serve our shareholders and the firm and the board very well. We look forward to continuing to deliver value to our customers, shareholders and communities. On behalf of all of my colleagues on the board, we are grateful for your support of the board and of JPMorgan. Thank you.

[Stacey Friedman:]

Thank you, Lee. Thank you, Jamie. Now it's time to turn to the proposals that are in the proxy statement. I will introduce the management proposals. After that, I'll ask for the representatives who are here to introduce the shareholder proposals. We'll have general Q&A after that. For the management proposals, I formally now move that all of the proposals set forth in the proxy statement be brought forward

[Frank Rauscher:]

Good morning. My name is Frank Rauscher. I'm with the Finance Associates representing John Chatterton and his proposal. Mr. Chairman; Mr. Lee, Director, Mr. Raymond, the directors, Chase employees and fellow shareholders, thank you for your attention. And also, I'd like to just thank Mr. Dimon for having this meeting here in Plano. Your whole presence here is wonderful. I've been a resident of Plano for 20 years. And having to hear Chase's story is really great. So thank you very much. The shareholders request the Board of Directors to adopt as policy at an governing documents as necessary to require that the Chairman of the Board of Directors, whenever possible, to be an independent member of the board. The board will have the discretion to -- on its policy for the next Chief Executive Officer transition implemented so as consistent with existing agreements. If the board determines that a Chairman who was independent when selected is no longer independent, the board shall select a new Chairman who satisfies the requirements of the policy within a reasonable amount of time. Under the current JPMorgan structure, Jamie Dimon, dual role of CEO and Chairman since 2006, received the highest negative -- in 2017. JPM also -- a new Lead Director who helps a little in the oversight of a powerful Chairman and Chief Executive Officer. The current Lead Director -- in 78 had 16 years long tenure. Long tenure can impair the independence of any Lead director no matter how well qualified, and Mr. Raymond is indeed very qualified. JPMorgan deserves best practices in Corporate Governance. A keystone of this is an independent chairman. The 2008 financial crisis underscored risk management weaknesses in the practices of large, interconnected financial institutions such as JPMorgan. As the financial crisis unfolded in 2008, JPMorgan stock fell from $49 to $15 a share. So please vote to approve oversight of the JPMorgan Chief Executive Officer, Independent Board Chairman, proposal 6. Thank you.

[Stacey Friedman:]

Thank you. We oppose this resolution, and our reasons for doing so appear on Page 90 of the proxy statement. I'll now ask for the representative of Proposal 7 to come to the microphone, which was submitted by the AFL-CIO Reserve Fund. I think we've been advised that Mark Yorke will do the presentation. Mr. York, proceed.

[Unidentified Company Representative:]

My name is Mark Yorke, representing the AFL-CIO Reserve Fund to present Item 7 on the agenda. Our proposal orders -- urges the Board of Directors to prohibit the continued vesting of equity awards for senior executives who resign to enter into government service. Equity-based awards typically -- over a period of time as an incentive for continuing to work for our company. The practice addressed in this proposal, however, involves continued vesting of equity awards for employees to involuntarily resign from the company to enter into government service. In other words, a golden parachute for government service. After just 5 years at the company employed -- full career eligible may continue vesting in their outstanding stock awards. For example, at the end of 2017, JPMorgan's CEO, Jamie Dimon, was eligible to continue vesting over $96 million in such awards that he had left for a government job. While government service is commendable, we question the practice of providing accelerated vesting of equity-based awards to executives who are leading our company. We believe compensation plans should align interest of senior executives with long-term interest of the company. We oppose plans to provide windfall to executives. Surely, we don't expect to receive favorable treatment from our former executives working for the government, which begs the question, how does our company benefit in providing government service golden parachutes? Seeing no clear answer, we urge the shareholders to vote for this proposal. Thank you.

[Stacey Friedman:]

Thank you, Mr. York. We oppose this resolution. Our reasons for doing so are set forth on Page 101 of the proxy statement. Now we'll turn to proposal 8. This was submitted by Mr. William Rosenfeld. We've been advised that Mr. Eric Cohen will present the proposal. Mr. Cohen, go ahead and proceed.

[Eric Cohen:]

Thank you. My name is Eric Cohen, Co-Founder of Investors Against Genocide. I'm here to present the proposal asking JPMorgan to report on investments tied to genocide and specifically explain how its investments in CNBC Petro China are consistent with its corporate values. The CNBC Petro China Group is a notable example because of its substantial long-term support for the genocidal and murderous governments of Sudan, Burma, Syria and Iran. And because, for many years, JPMorgan has been a very large shareholder of Petro China. Petro China is a publicly-traded arm of its controlling parent, CNBC. The company partners with those governments oil industries, thereby helping fund governments sponsor genocide and crimes against humanity. A few of JPMorgan's customers and investors are aware of Petro China's ties to genocide, but JPMorgan is well aware. The reasonable people may disagree on the definition of ethical investing, but you who would know when we invest in companies -- in genocide. Since we first raised this issue 11 years ago, JPMorgan has resisted acting. JPMorgan opposed our numerous genocide investing proposals, which asked to avoid investments in companies substantially contributing to genocide. As recently as last month, JPMorgan increased its holdings in Petro China. This shareholder proposal details some of JPMorgan's many statements on supporting human rights, developing best practices on human rights, signing on UN principles for responsible investment and even risk management processes considered human rights. Given what JPMorgan says, one might assume indirectly that JPMorgan takes reasonable steps to avoid and help its customers avoid investments tied to genocide. JPMorgan's investments in Petro China demonstrate that it does not. JPMorgan statement of opposition raised this question about the sincerity of its human rights commitments, and particularly, its UN PRI commitment to take ESG factors into account when making investment decisions. JPMorgan claims that its fiduciary duty prevents it from avoiding investments tied to genocide. However, ever since the famous Department of Labor Eric Calvert letter of 1998, we have known that environmental social and government considerations are consistent with fiduciary duties. JPMorgan implies that others are responsible for its problematic investments. This claim ignores JPMorgan's role in selecting and recommending investments. Why does JPMorgan not even act on shares it directly controls? If it cannot avoid such investments, why not provide clear disclosures so the customers do not inadvertently invest in companies tied to genocide? Why does JPMorgan help CNPC and Petro China raise capital? If -- and others can take steps to avoid investments tied to genocide, why can't JPMorgan? JPMorgan has articulated powerful and important values. That's why it's so important that JPMorgan evaluates and reports on how it aligns its values with its policies regarding investments in companies tied to genocide. If JPMorgan fails to address the inconsistency between its commitments and its practice, its corporate values are a fad, irrelevancy at best and a dangerous hypocrisy at worst.

[Stacey Friedman:]

Thank you, Mr. Cohen. We oppose this resolution. Our reasons for doing so are on Page 103 of the proxy statement. Now turning to Proposal 9. This was submitted by Mr. William Steiner. And Mr. Rauscher, you're going to take this as well?

[Frank Rauscher:]

I'm back again. Don't shoot the message you're -- . Actually, I personally believe that Mr. Dimon and Mr. Raymond are 2 of the finest executives the United States has ever seen, and I think that you all have done a great, great job for our community and our nation. These are Corporate Governance issues. Shareholders recommend that the Board of Directors take the steps necessary to adopt cumulative voting. Cumulative voting means that each shareholder may cost as many votes as equal to the number of shares held multiplied by the number of directors to be elected. A shareholder may cast all such cumulative votes for a single candidate or focus on a few candidates. Under cumulative voting, shareholders can withhold votes from corporate -- directors in order to cast multiple votes for other director candidates because it's an important protection for shareholders. Cumulative voting also allows a significant group of shareholders to elect a director of its choice, to safeguard minority shareholder interests and to bring a greater independent risk management perspective to the board decisions. Cumulative voting won 54% at Aetna, 51% in Alaska Air. It also received 53% support at General Motors in 2 annual elections. The Council of Institutional Investors and -- recommended adoption of this proposal -- of this proposal of topic. Cumulative voting can be used by shareholders to elect director with a highly focused specialization in making this management. This is of utmost importance because shareholders of big banks such as JPMorgan have paid tens of billions of dollars in fines since big bank managers pay to prevent misconduct relating to -- Ponzi scheme, energy market manipulation, foreclosures, collateralized obligations, mortgage servicing and foreign exchange rigging. Please vote for a means to improve this management at JPMorgan. Thank you for your time.

[Stacey Friedman:]

Thank you, Mr. Rauscher. We oppose this resolution. Our reasons for doing so appear in the proxy at Page 105. That does complete the introduction of the shareholder proposals. We oppose them for the reasons set forth in the proxy, and we're now ready for the general Q&A., after which we will close the polls and present the prelinary voting results. There are 2 standing microphones in the back. If you wish to address the meeting, please go ahead and proceed to the microphones and take your place in line. I will ask that when you address the meeting, state your name and tell us whether or not you're a shareholder. Please do limit your remarks to 3 minutes. And we will limit ourselves to 10 minutes on any given topic. Also, please direct your questions to our Chair and CEO, Mr. Dimon. We'll start on the left. If you'd like to go ahead and introduce yourself.

[Unidentified Company Representative:]

Mr. Dimon, members of the board and fellow shareholders. My name is Anne Roberts, and I'm with Dana Investment Advisors. We hold more than 320,000 shares of JPMorgan Chase on behalf of clients. I'm here this morning also on behalf of fellow members of the Interface Center on Corporate Responsibility who are safe base and values-driven investors to follow us on an engagement we had with members of your team several weeks ago. We are concerned about the risks posed by JPMorgan Chase's financial ties to the private prison industry, specifically core civic and jail group. As state-based end values-driven investors, we feel it's fundamentally wrong to be garnering profit at the expense of people's liberty. The bank's business relationships with these companies, where there are widely reported human rights violations and crimes, seem to be at odds with JPMorgan's human rights policy and your own stated support for the rights and dignity of the immigrant community. My question this morning is this

[Stacey Friedman:]

We appreciate your comments on the private prisons, and we understand that the fundamental issues you raised are of concern to all of us. We're interested in continuing the dialogue as well and look forward to it. Question on the right?

[Unidentified Analyst:]

Good morning. My name is Justin -- . I'm General Counsel of the National Center for Public Research for Investor. I want to ask about the company's controversial -- center. A New York Times commentary criticized the company for its donation to SPLC, noting that "that Jamie Dimon had -- due diligence." You would know that SPLC is an organization that has lost its way, -- people who are fighting for liberty. Similarly, a Wall Street Journal article also criticized the donation. It noted that the company donation was for "working and tracking, exposing and fighting hate groups and other extremist organizations." However, as columnist pointed out, since the SPLC is a far left activist group, the math comes down to this. If the SPLC doesn't agree with your views, it tags you as a hater. If both New York Times and The Wall Street Journal criticized your actions, it's likely you've done something very wrong. SPLC is a little more than a fundraising outfit that publishes its annual hate list, targeting its political enemies. Those are namely conservative and Christians in this country. The SPLC considers -- traditional marriage and support for the civil rights of Muslims to be hatred on par with the beliefs of the -- clan. In 2012, after a gunman opened fire at the Family Research Council, he admitted that he was inspired to do so because the SPLC had listed it as a hate group. The SPLC has also labeled well-regarded social scientist, Charles Murray, as a white nationalist, a classification which -- for which he had been physically attacked. SPLC recently placed me on the take radar simply because I did a public policy radio interview on a Christian network. My Christian faith doesn't teach me to hate anyone. My mother didn't raise me to hate anyone. I'm not raising my daughter to hate anyone. But the SPLC wants people to think otherwise about me and so many others is insulting and appalling. SPLC is sitting on more than $477 million, and it's a small nonprofit. Why did they get money from JPMorgan shareholders? They are using JPMorgan funds in ways that -- anti-religious bigotry and violence towards individual. I represent a free markets group. We've never once called for a boycott or tried to direct the company philanthropy. We just want to make sure the company is fully informed about what the SPLC is doing with your money. Can you explain to us, investors, Mr. Dimon, why JPMorgan is funding antireligious bigotry and the provocation of violence? And what do you have to say to the numerous conservative and religious leaders who have been ascribed such hateful labels by SPLC?

[Stacey Friedman:]

We appreciate your comments. Obviously, the goal of our philanthropy is the opposite of what you've laid out because we certainly will take them into consideration as we continue to invest in communities, places where we work and where we live. We'll seek to achieve the goal that I think we all share when we make these choices. Question on the left?

[Unidentified Analyst:]

My name is Patrick Macaulay [ph]. I am from Rainforest Action Network. I'm a shareholder. JPMorgan Chase is the 1 U.S. funder of extreme fossil fuels. Last year, it was the two funder in the world of extreme fossil fuels among banks. Its funding for extreme fossil fuels was 3x higher than the next 3 U.S. banks combined. It is the worst U.S. bank in terms of funding -- sands, funding coal power, funding olive oil. 2017 lending for coal mining from JPMorgan Chase went up 21x. This is despite a policy in place from JPMorgan Chase saying they must reduce their exposure to coal mining overtime. Funding for tar sands last year from JPMorgan Chase went up 4x. Anyone who has looked at any of the signs of climate change knows that we are running out of time. We need to take action now. We are fast running out of our carbon budgets. We are running out of time to stay under the agreement limits of two degrees. We know that once we pass that two degrees threshold, the impacts of climate change are going to get even more catastrophic to the point where it will pose existential dangers to human society and too much of the life on this planet. The climate cannot afford any new fossil fuel infrastructure. JPMorgan Chase, they should follow the lead of its European peers such as HSBC and BNP Paribas and start to phase out its funding for fossil fuels, starting with the worst fossil fuels like tar sands and coal and Arctic oil. Now there seems to be 2 major impediments to action from JPMorgan Chase, 2 reasons why JPMorgan Chase is so much worse than its peers. One of them is you, Mr. Dimon, do seem to be pretty unaware of this issue when it comes to your annual shareholder report, remarks to shareholders. There's lots of concern for various issues in society that, I think, we would all share concern over, but as for climate change, 0. We looked through the last 10 shareholders letters that you wrote, one mention of climate change in 10 years. We think this is a big problem, and it is your responsibility as CEO of this measure financial institutions and as a major public figure in the society to be educated to get yourself educated on climate change. Second major problem we see is the longer-serving board member of JPMorgan Chase, Lee Raymond. Mr. Raymond is probably the most notorious climate denier in the world. In his role as CEO, long-term role as CEO of ExxonMobil, h put tens of millions of dollars into climate denying groups and big tanks. These are very largely responsible for the lack of action in climate change in the U.S., especially through the 1990s, a time when had we taken action and Mr. Raymond not funding groups that were stressing the uncertainties of climate change and fighting against any action, things could have been done. We could be on path now to solving this problem. Instead, we're on a path to destruction. So I would urge you first, Mr. Dimon, please educate yourself on this issue. And two, I think it's time to replace Mr. Raymond with someone who understands the new energy economy and is representing the energy economy of the 21st Century and not the 20th. Thank you.

[Jamie Dimon:]

I'd just like to comment that we are concerned about it. And you mentioned my shareholder letter. I'll think about that next year. You should know that we support -- . We're quite public about it. -- with the administration and with our shareholders. I think we made an announcement about it. And anything we do to finance the energy industry is done very responsibly. We do still need to have energy to power your ability to get your air conditioning possible, et cetera. We built extensive rules around each one we do, how we do it and maintain the right laws, rules and regulations in both the country as -- think are appropriate.

[Stacey Friedman:]

Question on the right?

[Unidentified Analyst:]

It's Eric again. I got two things, -- two quick questions. Number one, Plano is a very expensive place to live. And I would ask that -- you did a wonderful presentation on corporate responsibility in the North Dallas area -- . I'd ask that you would give us some consideration for affordable housing or moderate housing brands such you have employees that live and work in this building. The lower -- employees will have some place to live because you cannot get an apartment living on $15 an hour. Your tellers can't do the job. So already, your workforce is going to be driving in here, and I would just like to have you entertain looking at climate -- projects within your control to allow you to at least try and alleviate a little bit. So that's just a request. --

[Jamie Dimon:]

We'll look into that, yes.

[Unidentified Analyst:]

Second one has to do with, again, succession planning. Chase has been -- as I've been in banking for most of my life, and I've seen banking most of my life. Chase has been a public insular. You're basically contained within yourselves, and I don't -- other than yourself, Mr. Dimon, I don't see that your other people are exercising opportunities of leadership. And I would hope that you would consider your two prime succession candidates, getting them more involved in leadership and participating in things. I was getting one quick example, and then I'll shut up. Fortunately, you had -- in the right place back about 4, 5 years ago. I called him and asked that Chase not get involved in payday lending to your customers as Wells Fargo had done payday lending fiasco going on. And he said, "Yes, that's a good idea." I said, "How about taking a leadership position with the ADA or the Consumer Bankers Association?" Well, we're not so sure we want to go that far. And the same thing happened with Citibank. I got -- but did want it. So my point is, you guys are 1. You're in the position to exercise leadership and influence. And I think it'd be a great opportunity you're developing your staff to help them and allow them to be out and more involved and trying to exercise leadership and bringing the banking industry back to the respect it deserves. So thank you.

[Jamie Dimon:]

I appreciate that. I do think the whole Operating Committee extensively speaks to shareholders, people representing shareholders, they're on TV all the time, watching -- . There are capitals around the world all the time. They -- you think We do get involved with all public policy issues actively.

[Stacey Friedman:]

Thank you. On the left? That's fine.

[Unidentified Analyst:]

My name is Linda Dominguez -- and I'm just going to cheat here. And I am a member of -- New York, and I am a transgender woman. I am here because I suffer from my -- , my trans friend who are suffering from deportation and a lot of abuse inside penitentiaries and private prisons. Transgender people are -- make up about one every 500 people in -- . But our survivors of every 1 in every 5 cases of sexual abuse in the system are transgender people. I am a victim of discrimination by the police just like my friends. I know that Chase is always saying that it is on the side of immigrants and the side of the LGBT community, but at the same time, it's financing the impression of my community. You shouldn't be marching in the pride parade if you continue to support these companies. Jamie Dimon, my question is, how can you say that you support immigrants and LGBTQ community while you continue to finance and earn money from the private prison and penitentiary industry?

[Jamie Dimon:]

I just want to reiterate our strong support for the LGBT community, our publicly strong support for immigration in the United States. I'm the grandson of Greek immigrants and obviously would never in any way, shape or form condone this treatment of any prisoner anywhere. And we have extensive looked into these prisons. We'll do so again. And if we think they're acting inappropriately, we wouldn't be doing that.

[Unidentified Analyst:]

Thank you. My name is -- . I come from the Amazon, from the -- people. Our people are at risk of extinction. In the rain forest, we protect, we take care of, we're the guardians of the forest so that climate change doesn't keep affecting us on the forest. But we're facing a major problem. There are large oil companies, in particular Chinese oil companies, that want to drill for oil in our territory. And what this means for us is that it will be the end of us and for our -- and the end of our way of seeing the world. So that's why I'm here, and I want to ask a question. In 50 years, what kind of future are we going to have? If your company keeps investing in these kinds of investments and oil companies like the ones in our territory that wants you continue to exploit non-renewable -- , what kind of future will our children have? What kind of future will your children have? What kind of guarantees will we have for the ability to survive on this planet? And with that, I want to thank you for listening.

[Jamie Dimon:]

We share your concerns, and we appreciate in -- policy, which governments can follow, which would create proper incentive to reduce CO2 in the air. And I'm aware of this specific drilling you're talking about in the Amazon, and we will look into that.

[Stacey Friedman:]

Thank you. On the left? Would you like to go ahead? Or would you like somebody else to -- oh, translator. -- the other person who cannot translate couldn't get in, so...

[Unidentified Analyst:]

Hello, Mr. Dimon. I am indignant and said because, I have to say, I have to make reference to some of what you spoke in a different shareholder meeting last year. I don't know if you remember, but you told me exactly a year ago that you didn't realize that JPMorgan was investing in the private prison industry and the detention industry and that you would look into it. And those were empty words. Since Trump, the tendencies of the -- of your investments in this industry have increased by 97 -- 97x, and my community continues to suffer. Mr. Dimon, I have two questions for you. What have you done to fulfil the promise that you made that you would look into these investments of JPMorgan Chase? And how can you apply this into your environmental and social risk framework and [indiscernible] go to the actual facts about what we do in New York City and around the country to help people's color minority areas, lower middle income housing. We started a whole new project in the South Bronx about skills initiatives. We started the -- Color Fund. We have -- which helps minorities get venture capital to start small businesses. And we just started up in the South Bronx precisely for the reason you said. We have extensive rules in place to avoid making errors and mistakes. I think actually be proud and impressively making do the right thing. And we have specifically built that you can opt out of overdraft fees. The -- card is specifically meant for that community so it is going to spend under card, et cetera. So if you have other ideas, I'd love to hear them.

[Unidentified Analyst:]

If I may, Mr. Dimon. If you go to neighborhoods like the South Bronx and invest this money...

[Jamie Dimon:]

I was there three times recently.

[Unidentified Analyst:]

That's great. I live in a community of color in New York City. And when you go into these communities and investing the way that you do, giving 60% of your loans to white residents, it doesn't matter if you go into a neighborhood of color. You're pushing people of color out. You're not giving them opportunity. You're actually taking it away.

[Stacey Friedman:]

So we'll invite you to come in. And yes, and there's only one set of facts and happy to have you take a look at them. On the right?

[Unidentified Analyst:]

My name is Paul Brown. I'm coming to you from Keeper of the Mountains Foundation in West Virginia [ph]. I'm going to speak to you briefly about a concern I have with JPMorgan Chase. We all know that any investment is a gamble, and every company or individual has the right to gamble their own resources in the hopes of making a profit. In the hope, however, no company, no individual has the right to gamble that which does not belong to them. Your money is far from the only asset that is at risk due to your investments in fossil fuels. Also on the table are the health of those living in the communities affected by the industries you support and profit from. The damage and devastation of the resources that we all rely on such as clean water and clean air and lastly, climate change. We are long past the time for taking climate change seriously. There is no debate among those -- clearly and honestly. Dear members of the board, Mr. Dimon, shareholders of JPMorgan Chase, you're gambling with that which does belong to you and we, the people of the communities you're profiting from, are suffering and literally dying as a result of your gamble. The truth is that our appetite for wealth through the consumption of fossil fuels is destroying the life support system for human beings. The truth is that we must realign our investment priorities in favor of renewable and sustainable and equitable energy economy. The truth is that the laws of nature will always supplant the laws of humans. And so that you my, dear board and shareholders, are clear that I'm not speaking in hyperbole, I submit these more than 20 peer-reviewed health studies and ask that they be entered into the official record of this meeting. You have the right and responsibility to know the harm of your investments. We all know the truth. Now we're left with one of 2 choices

[Jamie Dimon:]

Thank you.

[Unidentified Analyst:]

My name is Andy Morrison, and I'm with New Economy Project. As you heard, we're a New York City-based organizational shareholder in JPMorgan Chase. And you heard from my colleague a moment ago, Julian Robinson, who laid out concretely and factually 3 ways in which Chase harms New Workers and New York City neighborhoods through redlining and wealth extraction. But that's not all. Chase builds to reinvest adequately in its hometown of New York City according to the Association for Neighborhood and Housing Development, among the 4 biggest banks, Chase has the worst record of reinvestment relative to deposits. Chase also finances New York City's worst landlords, driving gentrification and displacement in New York City neighborhoods. In 2017, according to the city officials, Chase was a top lender to New York City's worst landlords, landlords which routinely and systematically violate tenant's rights, housing laws and building codes, using poor health and safety conditions to displace low-income tenants. And as you've heard today from other groups about how Chase is fueling climate disaster and endangering New York City's frontline communities, financing dangerous pipeline, they violate indigenous rights, also its financing the company that has proposed a pipeline to carry frac gas through the -- in New York City neighborhoods, and Chase's actions to bankroll private prisons and immigrant detention centers, which have detained immigrant New Yorkers under Trump's shameful immigration policies and subjected them to inhumane conditions. The list goes on and on, and it all amounts to a clear message. Chase to New York City

[Jamie Dimon:]

Again, I think you're highly misinformed. And I think you also can sit down and talk about some very specifics about what we're trying to do and what we think we can do if landlords -- to be happy about name-by-name because I'm unaware of what you're talking about. And I think mostly, you're uninformed.

[Unidentified Analyst:]

Well, everything we've laid out today is factual. I'd like a response to those questions.

[Stacey Friedman:]

We're happy to meet with you and talk in private. So we look forward to that meeting. And we'll call you up to set a time. On the right?

[Unidentified Analyst:]

My name is Jessica -- . I am undocumented law student from Rice University. I come here on behalf of the -- in Houston, Texas. And my question is as follows. I think I will be probably the last person that will be speaking about private prisons. But obviously, Chase has been the largest contributing bank to donate over $132.5 million to a company like -- and also about $900 million to the GEO Group. And so obviously, JPMorgan, without a doubt, has quietly been -- the immigration detention centers that have average of over 26,000 people per day through the year of July 2017. And as Harris County in Houston, Texas has officially became the capital of deportation in the United States with Senate bill for currently in effect in Houston, in Texas as a whole. My question is, Mr. Dimon, I'm sorry, when will JPMorgan start being more proactive about these issues instead of just being reactive?

[Unidentified Analyst:]

I think we've been quite reactive. We're pro-immigrant, pro-DACA, pro giving our law-abiding citizens the path to legal status and citizenship. We've been public about it. I've written about it. We lobby in Washington about it. about We spoke to the administration about it. Perfect. If I will be able to sit down with you, will it be possible in the near future?

[Stacey Friedman:]

We'll set up a time. Thank you. On the left?

[Unidentified Analyst:]

Thank you. Eric Cohen with two follow-up questions about investments tied to genocide. First, I was very pleased to hear Mr. Dimon say that he would look into the issue that was raised earlier about Chinese oil companies and the risk they pose that they're drilling in Amazon. I didn't reference that company at Sinopec [ph] that JPMorgan is a very large holder in Sinopec, in addition to the one that I used as my example, Petro China. And only by looking into these things can you have the knowledge to then be able to decide what you can do about it. But once you have the knowledge, you also have some responsibility. So I'm very pleased that you said you would follow up on that. In that vein, I was -- and here's my first question. I was at the shareholder meeting a few years ago. And at the time, Mr. Dimon and Director Raymond said they knew nothing about Petro China. So I ask you today, do you and the board now understand the role that CNPC Petro China plays in substantially contributing to genocide? And if so, what do you plan to do about it?

[Jamie Dimon:]

We'll look into what you said. I think -- audience to get it clear. JPMorgan Chase does not own -- at Sinopec or CNPC, et cetera. It's owned in a fiduciary, which I can't tell them what to do, but I still let you meet with them and tell you them exactly that specific company and their specific countries. And we'll do it from there.

[Unidentified Analyst:]

So that leads to my second question because the statement of opposition to the proposal on...

[Jamie Dimon:]

But we also would never, in any way, condone any form of genocide.

[Unidentified Analyst:]

So my second question tied to that is related to what you just said. The statement of opposition said that JPMorgan owns shares, but you're not the beneficial owner of shares. And so that limits what you can do. However, your filing with the Hong Kong Exchange on April 27 of this year said that JPMorgan Chase was a beneficial owner of 365 million shares of Petro China. So if we put all these things aside, what can we do about those shares?

[Jamie Dimon:]

I don't think it's true.

[Unidentified Analyst:]

I'll leave you a copy --

[Stacey Friedman:]

Yes, thank you.

[Unidentified Analyst:]

This time I'll speak for myself. My name is Moi Rivers [ph], and I work with an organization called Amazon Watch, the Amazon rainforest, not Amazon the company. And I just wanted to be able to complement something that -- said. We've done some research into the investments of JPMorgan in companies that are drilling or are exploring drilling projects in the Amazon that include -- Petroleum, Frontera and Geo Park. And so to give you some direction of where to look, and my question is both, would you be willing to meet with us and ideally also including community leaders like Bartolo from the Amazon about the effects of the investments you have in our communities and also what your plans are for not just looking into them but actually addressing some of the concerns of these communities?

[Stacey Friedman:]

Definitely. You will see Mellody Hobson afterwards, -- meeting to discuss. Last question.

[Unidentified Analyst:]

My question is inspired actually by some of the comments made here. And you're absolutely right, Mr. Dimon. Today, obviously, have some clients influence on the lending and relationship. You also have a fiduciary opportunity because you're growing, what, $22 trillion in fiduciary, as I recall. So the proxy voting guidelines -- okay. The proxy voting guidelines that are applicable for -- in your fiduciary capacity, do you have any board oversight as to the construction of those proxy voting guidelines and the process or organizations that seem to be coming here to at least approach, I think, a presentation to try and persuade the authors of those proxy voting guidelines to maybe get consideration? It is a big topic.

[Jamie Dimon:]

Yes. There is a group that set up their fiduciary. They're set up to do exactly that. I'm sure you've probably met with some of those people in this room. And if you don't know how to get them, you can get to Stacey or me, and we'll hook you up with the right people. You have the right to be heard by those investors, too.

[Stacey Friedman:]

Great. Thank you. That concludes the discussion period. Please -- any remaining ballots to our team. If you have a ballot, just hold it up, we'll collect it, include it in the final tabulation. I declare the polls closed as of 11

[Jamie Dimon:]

Yes. So on behalf of all of the Board of Directors and myself, we greatly appreciate the views of all our shareholders and how thoughtful how you were in engaging us, and we will be following up with some of the issues he raised. The entire board takes their feedback very seriously and will continue to incorporate the input in how we govern the company. And we're going to continue to build towards the best-in-class in every single way. So we really appreciate it. Thanks for coming. Thanks to all the folks of JPMorgan Chase for all the great things you do to your around communities around the world, and we'll see some of you next year.

[Stacey Friedman:]

Can you just please note that meeting is adjourned?

[Jamie Dimon:]

Yes, the meeting is adjourned.

[Stacey Friedman:]

Okay.