tom: gerard cassidy looked at j.p.gan earnings and said that was a key idea to see what consumer was doing with card lending as well. "balance of power" today, annmarie hordern and tom keene in for david westin on the linkage of economics into our policy. on fed policy, julia coronado scheduled for a macro policy perspective. the vix from a 16.00, the bloom of 16.70. stay with us on radio and on television. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body condition

problems finally work themselves out and the demands for loans starts to accelerate again >> gerard cassidy, thank you >> thank you >> i know why you would want to get into the universals because of what gerard cassidy just said karen, does it still hold? can you get into these banks and still feel comfortable with an investment perspective >> banks always trade cheaper in the market, they always have but the amount of cheapness is now pretty high. they normally trade tighter than they do to the market. so i'm comfortable owning jp morgan's citibank, bank of america, wells fargo and morgan stanley which is a little different animal >> i am short of the xpf i know a guy would make a valuation case for citigroup, and you look at citigroup and the way that stock has traded, it just hasn't seen an uptick in the last month or so i don't think you're going to see results out of bank of america or citigroup i'm not going to say any more. i think jp morgan and goldman is about as good as it gets you start to think about the back half of this year, and i'll just go back to what china did on friday.

as gerard cassidy said, they've got balance sheets that are truly unimaginable.ow do you extricate yourself? you talk about overnight reserves near $1 trillion. jp morgan has its own overnight reserves called the balance sheet. jonathan: fiscal stimulus has helped these banks in a big way. a whole lot more given what's happened to loan growth. tom: given capital absent -- capital allocation, absolutely. these conference calls are going to be critical when the sell side asks them about use of cash. jonathan: lisa, what is your focus? lisa: i am thinking about the 23% increase in deposits. when do people start spending that money? why are people already spending? why aren't people investing that elsewhere? jonathan: let's ask that question to anastasia amoroso of i capital network. we were all projecting this big room in growth this year. what the consumers do with their cash has been slightly confusing. what is your read on things? anastasia: the consumers have been venturing out into the real economy, and they have been gradually putting that cash to work. i thin

tom: gerard cassidy with us with rbc capital markets.t a five-year dividend growth coming off the trauma of 14 percent. what's the model dividend growth that jp morgan can deliver? >> when you look at the excess capital that these banks have including j.p. morgan chase, dividend growth should be considered into the high single digits. i think that's reasonable anywhere. these are not double-digit dividend growers. there are period like the one we just came out of where some banks increase dividends by double-digit rates. last year they were frozen because of the pandemic. there was a catch up in the recent announcement about dividend increases. tom: are you starting with a cash on cash return? >> i think you can see that the combination of the share repurchases in the dividends could easily exceed earnings not just for jp morgan but for the industry. that would suggest we could see those types of numbers that you mentioned from jp morgan as well as some of the other banks in the large bank universe. lisa: there is a high bar and they met

different industries who rely on strong leadership and vision let's break it all down now with rbc's gerard cassidysherman. so, everybody, let's begin with jamie dimon and jpmorgan's plan to keep him ceo for as long as possible what does this tell you? >> well, i think it's an award that really looks at what he has done for the jpmorgan shareholder, their employees and the communities in which they serve. as you may know, there's over 250,000 employees at jpmorgan that jamie dimon leads you look at his stock price since the merger at bank one and jpmorgan it compounds growth rates far better than the financial indexes and even better than the s&p 500. and today, when you look at his valuation, he trades at a nice premium, about 30% to his peers. ceos cannot control their stock prices they do control the evaluation that's a direct reflection on the success he has >> is there a concern he has for walking away there's been evidently some talk that he could do even better by going into a different kind of industry so is this meant to be some sort of move to close that compensation gap he's been at this