Blue Chip Reputation An Interview with James B. Lee Jr., Vice Chairman, JPMorgan Chase & Co. EDITORS’ NOTE Jimmy Lee joined The banks you started with brand. You won’t fi nd a senior executive here Chemical Bank in 1975 and worked weren’t exactly the leading corpo- who isn’t naturally that way. in a variety of specialty lending busi- rate banks at the time. How did you JPMorgan Chase gave $150 million nesses until 1980, when he founded deal with that? through our philanthropic foundation last and ran Chemical’s merchant bank We gradually built a financing year; that’s on top of the billions of dollars we in Australia. In 1982, he returned to machine that was so successful well- lent or committed to governments, schools, the U.S. and started the bank’s syndi- known companies sought us out and and nonprofits. We always include our cor- cated loan group, which constituted deep relationships were formed. That porate social responsibility efforts in our the origins of the investment bank- machine has allowed us to be there earnings reports, which you won’t see many ing business at Chemical and later for each business cycle and fi nancing companies do. We want people to hire us be- Chase Manhattan Bank. He is widely needs, including DIPs, hostile take- cause they trust us. credited as the architect of the mod- overs, leveraged recaps, mergers and How much of a benefit is having a ern day syndicated loan market. Lee James B. Lee Jr. acquisitions, etc. Because we can fi - mayor from the private sector to build a ran the investment bank until the nance deals that others can’t, we have strong public/private partnership? merger with J.P. Morgan & Co. in 2001. Following been involved in some of the largest and most Mike Bloomberg built one of the largest, Chemical’s merger with Manufacturers Hanover historic transactions of our time. most successful fi nancial information services in 1991, Lee founded the bank’s high yield busi- Through the years, we also recruited some companies in the world – from scratch. Being ness, which was the company’s fi rst public securi- very talented Wall Streeters that helped lift our Mayor of New York City has sort of overshad- ties business therefore competing directly with Wall capabilities as a company. So it was a combina- owed that. He is one of the most successful Street for the fi rst time since Glass-Steagall was en- tion of integrated product excellence, the big entrepreneurs ever in the United States. Mike acted. At the same time, he built the bank’s cover- deals, the hiring and the mergers that turned sets the tone and that’s what makes him so ef- age of private equity fi rms and its mergers and a pretty average bank into a leading fi nancial fective. We’re all businessmen, we’re all in this acquisitions business. Later on, he led the acquisi- institution today. together; it’s not Republican or Democrat – it’s tion of Hambrecht & Quist, which was the bank’s You’ve had the chance to work on some New York. We all have a stake in the success fi rst public equity business. Along the way, he re- of the most historic deals in the United of this city. cruited several talented executives to help lead this States. What’s that been like? Who have your mentors been through effort, many of whom are still with the company in Along with many terrifi c J.P. Morgan partners, the years? positions of leadership. This integrated approach I’ve worked on some of the largest deals in our My most signifi cant mentor has been Jack to loans, bonds, equity, and M&A –“one-stop shop- country’s history, including IPOs of the TARP com- Welch. He and I helped build a major lead- ping” – pioneered today’s industry standard for panies to repay taxpayers: GM and AIG. Other ership program for the bank about 10 years investment banking. He received a B.A. from deals were the merger of United and Continental – ago, and we’ve put thousands of employees Williams College in 1975, where he double ma- two heavyweights in the airline sector creating the through it. Jack is one of the most extraor- jored in Economics and Art History. largest airline in the country – and the $30-billion dinary leaders I’ve ever met. I really look up sale of NBC to Comcast. I’d have to say that work- to him. COMPANY BRIEF JPMorgan Chase & Co. ing with Jeff Immelt and Brian Roberts was a career My relationship with Jamie has elements (www.jpmorganchase.com) is a leading global fi - high for me. of friendship, brotherhood, and mutual respect. nancial services fi rm with assets of $2.2 trillion How was the investment banking busi- One of the greatest things that ever happened and operations in more than 60 countries. The ness for J.P. Morgan positioned during the to me in my career is getting the opportunity to fi rm is a leader in investment banking, fi nancial economic crisis? sit next to, and learn, from him. services for consumers and small business, com- When Jamie (Dimon, CEO and Chairman) It is pretty rare to fi nd a guy who has mercial banking, fi nancial transaction process- fi rst came to JPMorgan Chase, he went about been with the same company for 35 years- ing, asset management, and private equity. shoring up everything before the storm. It no less a wall street firm-how did that wasn’t a question of whether there would happen? You were the fi rst fi rm to build a one-stop in- be a storm, only when it would hit – so we Three reasons: First, it’s a great company, vestment bank model. What prompted that? had to be ready. If you went into it weak, so wanting to wear the J.P. Morgan uniform for Our clients were pulling us in that direction. over-leveraged with no liquidity and no long- a long time makes sense. Second, I’ve had mul- They wanted the benefi ts of having one bank term funding, you were vulnerable. Thanks to tiple careers within a career; fi rst, I worked in they could rely on for their ongoing needs, es- Jamie’s efforts, we went into it in a position Australia, then I helped build key businesses pecially the heavy users like private equity fi rms. of strength. during the ’80s and ’90s and then ran the By combining loans with bonds, public equity How critical is community engagement investment bank; now I am back to my roots as and M&A, we created the fi rst fully integrated to the JPMorgan Chase brand and culture? the company’s dealmaker. Thirdly, the men and one-stop shop. It’s the industry standard now. As It all starts at the top and Jamie is an in- women I work with at J.P. Morgan Chase such, it was really the clients who drove the end credibly patriotic, responsible, and generous everyday aren’t just the most competent, they of Glass-Steagall, not the banks. person – and that is core to our culture and our are great human beings.• VOLUME 34, NUMBER 4 POSTED WITH PERMISSION. COPYRIGHT © 2011 LEADERS MAGAZINE, INC. LEADERS 35.