From: David Stern al===> To: Jeffrey Epstein <[email protected]> Subject: Date: Mon, 19 Oct 2009 11:50:02 +0000 Might be useful background on JPM in China: Published November 21, 2008 Transcript: Interview with Peter Lighte, Chairman, JP Morgan Chase Bank (China), on November 21, 2008 The Asian Banker (TAB): Before I ask about the situation globally and in China, can you touch on some of the points you discussed with us last year after your local incorporation and kicking things off here—about your business model and some of the approaches you were looking to take. JP Morgan Chase Bank (Lighte): We're sticking to our plan. As my uncle used to say, `keep your eye on the donut and not on the hole.' I think we're really living by that message from last year. TAB: Can you describe the evolution and development of the bank over the last year, since the incorporation in China. Lighte: The knock on effects of regulatory imperatives are fascinating. For example...the regulator doesn't want to hear about lines of businesses. The regulator wants to hear about J.P. Morgan. So, that has really assisted us in looking at ourselves in a better way. We're much better governed now, partially benefiting from regulatory oversight. So, we look more across the businesses now. We sit around the table together and actually aim to do the right thing for the franchise in China. Although the locally incorporated bank (LIB) is not a huge institution, it inadvertently is the flagship of J.P. Morgan in China because it's a regulated entity, attracting attention way out of proportion to its size; and we're very mindful of that. It has also given the bank outside of China a focal point to look within China in a less random, more organized, more rational way. So, JP Morgan--the bank, is a visible entity, containing businesses which are chugging along well in concert and trying to get thing right in China for our clients. We've been able to give new focus to the busines