Frank Bisignano is chief administrator officer of JPMorgan Chase & Co and chief executive of its mortgage banking operations. In an interview with Somasroy Chakraborty, he discusses the investment bank's plans and allied subjects. Edited excerpts:
Do you think the worst is over for the US economy?
I think housing is at the bottom in the US right now. I think US consumers are in very good shape with regard to their household balance sheets. You do have a hangover of shadow inventory in real estate and issues of foreclosure but once that clears, you will see many of the clouds lift. The general mood is that the US economy is poised for recovery. I think there is a bright possibility that better times are ahead of us.
How do you plan to expand your businesses in India?
We think we have a solid set of clients in India. We are investing in talent and technology and hope to open more branches. We see it as a high-growth country, which is why we are growing our global corporate bank and consistently investing in the business. We will continue to deepen our relationship with existing clients and broaden our customer base to serve more institutions. Over the past 10 years, we have grown our business and now have about 18,000 employees in India. We are a big fan of this country. While there are some uncertainties, we plan on being here for the foreseeable future.
Is there a plan to set up a retail bank in India?
No. The decision, however, is not specific to India. We have decided to invest and grow our wholesale banking business globally. We have a strong consumer banking business in the US. But to become a global consumer bank, you need a 100-year plan, not just a five-year plan. Globally, we plan to build our treasury services businesses, focus on investment banking and asset management operations, and use our resources worldwide to manage the company better. At this point in time, we believe this is the right way to grow. We operate in more than 60 countries and have 50 different types of businesses, including six major business lines. For us, Job One will be to run those businesses in the best possible manner.
Has the recent policy paralysis dented the confidence of foreign investors in India?
When you are preparing for a change, there will always be more paralysis than usual. I don't think our customers believe there will be fewer opportunities in the future because of this. I think it is felt more locally than globally. Most countries have individual situations that cause concerns but the cumulative opportunities in India are still very good.
Most global banks are now focusing on transaction banking. Is it because of declining opportunities in investment banking?
We are focusing on treasury and security services and not because of a change in investment banking revenues. We are focusing in these areas because it is a strong business. I think the transaction banking wallet is the largest that exist in any country.
What are the key challenges for global banks?
One for financial services firms will be implementing of regulations. There has been a lot of turmoil in the past couple of years and the natural reaction to that is more regulation. We will, of course, always comply with regulations but I think it is important that regulations are helpful for consumers, corporations and their shareholders.