00:00Herman, I mean, J.P. Morgan's already a behemoth. What else do they need to add on at this point?
00:05Right. So they are definitely a behemoth in the U.S. There are probably certain pockets of businesses that they
00:10could afford to bulk up on.
00:11And this has been discussed in the past. So I would characterize three possibilities in terms of what Jamie just
00:16talked about in his comments at the conference today.
00:19Number one, probably something internationally. So they have fledgling consumer operations in the U.K. and Germany.
00:27So they could afford to bulk up there. The second is probably payments where we have new payment rails, new
00:33technology, new competitors coming in and trying to usurp.
00:36I think J.P. Morgan has an opportunity to bulk up their payments business. And third is probably on the
00:42asset management and wealth side where they're already very strong but could be stronger as well.
00:46I mean, he was talking about this idea. We can sit on the money we have on the cash file.
00:51We don't have to deploy right away. But also share prices, including J.P. Morgan, are high.
00:55In order to get some of these done, does there need to be some softness in the market? Is that
01:00something that they would wait? Do they need to essentially wait for another SVB to really pounce in
01:04and do some transformational deals? Well, their stock's already trading at 2.7 times standard, which is way above any
01:10of their competitors.
01:11So the market's affording them an opportunity to do a deal today. It's really about their patience and what they
01:17think is strategic and really worthwhile from a risk-reward standpoint.
01:21So that being said, if there is another regional banking crisis and First Republic comes along, I'm sure they'll be
01:28happy to do something like that as well.
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