Premium Essay

Jp Morgan Case Study

In: Business and Management

Submitted By sanguidha
Words 2888
Pages 12
Business and Financial markets

“Case Study – J.P.Morgan Chase & Co.”

Student Name: Gangadharan Renganthan
Student Id : 1229047

Table of Contents Introduction: 2 History of J.P.Morgan Chase & Co.: 3 Key Moments in J.P.Morgan Chase & Co. History: 3 Current Problems: 4 Important of the Analysis: 6 Different Approaches to dealing with the problem: 7 A change in focus for banks: 7 A change in focus for regulators: 7 Financial Summary Indicators: 8 JPMorgan Chase & Co. (JPM)-NYSE: 8 Recommendation: 9 Conclusion: 10 Reference: 10

Introduction: J.P.Morgan Chase & Co. is a financial company which is an American multinational banking corporation of securities, investments, financial, and retail. It is in the top ranking and it is world’s second largest banking in the assets. The main job of this banking is that they provide financial services for the assets. They have the assets of nearly $2,509 Trillion. They have the one of the largest hedge fund unit in the United States. They formed this hedge fund in the year of 2000. The hedge fund unit was formed at the period of the Chase Manhattan Corporation was merged with the J.P.Morgan & Co. In United States of America J.P.Morgan is one of the largest banks in the top four lists. The other top banks are Citigroup, Bank of America and Wells Fargo.
According to Bloomberg, J.P.Morgan Chase & Co. is as largest as the Bank of America while comparing with the assets them holding with them. J.P.Morgan Chase & Co. is the 22nd oldest bank in the world in the Bank of Manhattan Company. According to the Forbs Magazine, J.P.Morgan Chase & Co. was at the ranking of 13th previously, now it is in the 16th fortune position from the list of 500. And it is the public company which is based on a multiple ranking positions. In the composite ranking the Bank of...

Similar Documents

Premium Essay

JP Morgan Chase Case Study

...J P Morgan is one of the well known Companies headed in US and provides financial services to most of the countries. The company involves in investment banking, treasury services, investment management, private banking, wealth management and commercial banking services. In earlier 2014, JP Morgan Chase experienced in theft of 83 million customer records from JPMorgan Chase & Co (JPM.N) in a massive cyber attack. This includes 76 million individual customers as well as 7 millions corporate customers’ personal details. The hackers used the customer information to send emails to customers purporting to be from JPMorgan Chase. Links embedded in those emails could be used to con customers out of their passwords, a practice known as "phishing." This...

Words: 893 - Pages: 4

Free Essay

Jp Morgan Chase Settles the London Whale

...IRAC Brief: JP Morgan Chase Settles the London Whale This is a case study analysis of a current legal case regarding the governance principles of regulatory compliance and the methods used to manage risk arising. The briefing of this case will utilize the IRAC method of case analysis to give a breakdown on the case of JP Morgan Chase on regulatory violations and risk management. The IRAC method will address I - Issue, R - Rule, A - Analysis, and C - Conclusion which will provide a researched assessment of the trading loss violations on this case. Please read and review this analysis of the case utilizing IRAC method of case analysis. Issue JP Morgan Chase permitted traders in its London office to allocate magnified values to transactions and cover up huge losses as they continued to explode. Two traders could face criminal charges for fabricating records to cover up losses. JP Morgan’s charge to the $6 billion oversight in trading loss is the first for a main company since the Securities and Exchange Commission revised its practice of letting firms pay fines without admitting fault. An admission by JPMorgan could provide a pattern for pursuing other admissions in Wall Street cases. The Justice Department is aggressive in getting JPMorgan to admit that from 2005 to 2007, it sold mortgage securities to investors without fully warning of the risks. By wanting the bank to admit some responsibility, officials hope it will caution other corporations to double check before......

Words: 880 - Pages: 4

Free Essay

Mergers and Acqusition: Case Jp Morgan

...FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION MNEs, JVs, and M&As Osho Aquila Adeolu Student number: 2302887 Mergers and Acquisitions, Case Study: JP Morgan Chase &Co Oulu Business School 2013 1 Table of Contents 1 INTRODUCTION ............................................................................................................................... 2 2 HISTORY AND THE M&A PROCESS ............................................................................................. 3 2.1 History .......................................................................................................................................... 3 2.2 The M&A process ......................................................................................................................... 3 3 MOTIVES OF M&A ........................................................................................................................... 5 3.1 Challenges and human side during the merger process ................................................................ 6 3.2 Strategy used by JP Morgan Chase in solving some challenges ................................................... 7 3.3 The success factor of JP Morgan Chase Merger ........................................................................... 8 4 CONCLUSIONS................................................................................................................................ 10 References ................................

Words: 5597 - Pages: 23

Free Essay

Study of Corporation Bylaw

...Study of Corporation By-laws Table of Content I. Introduction II. Standard template of Corporation By-laws III. Case study (focus on corporation control provision) a. JP Morgan b. Lorillard c. KRAFT d. NYACS e. DUPONT CIRCLE CONSERVANCY IV. Summarization I. Introduction Corporate and organizational bylaws contain the rules and procedures that regulate the organization to which they apply and are generally concerned with the operation of the organization. It can govern the rights and powers of shareholders, directors, and officers. Generally, Bylaw of a corporation cannot be amended only by organization's board of directors. A super-majority vote of the membership, which means two-thirds present and voting or a majority of all the members, is usually required to amend bylaws. Therefore, corporation bylaw is an important regulation for the top of the company to restrict and supervise each other, and impel the members to achieve the common goal for the company. In order to further study the practical application of corporation bylaws, there are 5 actual corporation bylaws from different industries will be compared and analyzed later. II. Standard template of Corporation By-laws Bylaws widely vary from organization to organization, but generally cover topics such as how directors are elected, how meetings of directors (and in the case of a business, shareholders) are conducted, and what officers the organization will have and a...

Words: 1300 - Pages: 6

Premium Essay

Merit Enterprise Corp

...Case Study: Merit Enterprise Corp March 19, 2013 After careful review Merit Enterprise Corp case study the pros of option 1: (assuming that JP Morgan Chase will continue to extend season credit lines and medium term loans.) First, it would keep Merit Enterprise as a private company. Secondly, Merit’s would have the right of non-disclosure. Private companies are not required to disclose details about their operations. Third, Merit Enterprise does not have to answer to shareholders if the stock is underperforming. The cons of option 1 are: First, banks may limit Merit borrowing after being financed for the 4 billion dollars. This may become a problem if Merit is maxed out on receiving financing and would need any additional capital for any other projects. Another con is that JP Morgan Chase may require frequent review of financial statements during the expansion project to determine if Merit’s financial condition is sound. The pros of option 2: (assuming that Merit decide to take their company public) 1. Issuing stock to public would quickly raise the necessary financing ($4 billion) needed to expand Merit’s production capacity. 2. Also, going public would allow Merit to offer stock and stock options to their employees which is additional incentive to contribute to the success of the company. Option 2 cons: Merit would have to be subject to extensive financial disclosures such as quarterly and annual reports which are required by the SEC. Another con of going...

Words: 519 - Pages: 3

Free Essay

Risk Management in Banks

...RISK MANAGEMENT IN BANKS The business of banking today is synonymous with active risk management than it was ever before. The success and failure of a banking institution heavily depends on the strength of the risk management system in the current environment. This is true as the very business of banking is risk-taking as an intermediary, i.e. interposing between savers (depositor) on one hand and the borrower on the other hand, thereby accepting the risks of intermediation. Risk Management: Meaning & Components A risk can be defined as an unplanned event with financial consequences resulting in loss or reduced earnings. Therefore, a risky proposition is one with potential profit or a looming loss. Risk stems from uncertainty or unpredictability of the future. In commercial and business risk generates profit or loss depending upon the way in which it is managed. Risk can be defined as the volatility of the potential outcome.  Risk is the possibility of something adverse happening.   Risk management is the process of assessing risk, taking steps to reduce risk to an acceptable level and maintaining that level of risk. The essential components of any risk management system are – * Risk Identification: i.e. the naming and defining of each type of risk associated with a transaction or type of product or service; * Risk Measurement: i.e. the estimation of the size, probability and timing of potential loss under various scenarios; * Risk Control: i.e....

Words: 1618 - Pages: 7

Free Essay

Backsourcing

...Teaching Cases (2012) 2, 79–86 & 2012 JITTC Palgrave Macmillan All rights reserved 2043-8869/12 palgrave-journals.com/jittc/ Teaching case Understanding the process of backsourcing: two cases of process and product backsourcing in Europe Julia Kotlarsky1, Lars Bognar2 1 2 Aston Business School, Aston University, Birmingham, UK; Google Ireland Ltd., Dublin, Ireland Correspondence: J Kotlarsky, Aston Business School, Aston University, Birmingham, B4 7ET, UK. Tel: þ 44 121 2043116; E-mail: j.kotlarsky@aston.ac.uk Abstract Backsourcing, defined generally as bringing services outsourced to a third party back inhouse, is now a growing phenomenon. The decision to backsource has several significant implications for an organization, as it requires the organization to manage organizational change, reintegrate knowledge, and develop new capabilities and competences. Taking into account there is very limited empirical evidence of how to successfully accomplish the backsourcing process, two case studies included in this teaching case offer additional insight into the process of backsourcing. To prepare students for case analysis, this teaching case starts by describing the backsourcing phenomenon, followed by an overview of the backsourcing trend, and includes a brief review of the relevant literature that mainly focuses on backsourcing decisions and touches on critical success factors for implementing a backsourcing initiative. This is followed by two case studies......

Words: 6972 - Pages: 28

Premium Essay

Jp Morgan Chase

...most cases today the first and not the latter is the standard to what a business is. Business doesn't just end with a simple definition there are many parameters and difficult work to make a idea a working business. This paper will provide a comprehensive analysis into one of the largest financial institutions in the United States JP Morgan Chase and Company. These topics include the following: 1. The History of the firm. 2. The Environment of the Business. 3. The Business operations tactics of the firm. 4. The Human Capital of the firm. 5. The Marketing and Pricing tactics of the firm. 6. The Distribution and Promotional tactics of the firm. 7. The Investor Relations of the firm. Business History Whether, it’s John D. Rockefeller and The Standard Oil Company, Andrew Carnegie and Pittsburgh steel industry, or the railroad tycoon Cornelius Vanderbilt. Most of us in business are truly fascinated by the accomplishments of individuals and the companies they founded that became such great American institutions of finance and industry. So we as spectators and future entrepreneurs always want to know the four W’s when inquiring about the origins of a great businesses such as the aforementioned. Who, What, When, Why? But we also want the most important HOW? How did they become titans of industry that they are. Provided in this topic will be answers to these questions and more in this description of JP......

Words: 6220 - Pages: 25

Premium Essay

Running Your Own Mnc

...Maldives 7 CHAPTER 3: USING THE FOREIGN EXCHANGE MARKET 8 The Spot Market 8 Analysis of USD/MVR Cross Rate for the Last 1 Month, 3 Months and Last Year 9 CHAPTER 4: USE OF FORWARDS AND FUTURES MARKET 11 Analysis of Future Price Vs Spot Rate 12 CHAPTER 5: USING CURRENCY OPTIONS 13 CHAPTER 6: MONITORING CENTRAL BANK INTERVENTION 14 CHAPTER 7: ASSESSMENT OF SPOTS AND FORWARD RATES 16 CHAPTER 8: DETERMINING WHETHER IFE HOLDS 18 CHAPTER 9: MONITORING EXCHANGE RATE TRENDS 20 CHAPTER 10: EXPOSURES TO EXCHANGE RATE RISK 24 Analysis of the Foreign Exchange Exposures to Fashiona Jewelers 24 CHAPTER 11: FOREIGN EXCHANGE EXPOSURE HEDGING WITH FORWARD AND FUTURE CONTRACTS 26 CHAPTER 12: TRANSACTION AND ECONOMIC EXPOSURES IN THE CASE OF DOLLAR DENOMINATED RECEIVABLES 28 CHAPTER 13: SUMMARY 29 REFERENCES 30 EXECUTIVE SUMMARY Fashiona Jewelers Limited will operate as multinational operating in the United States and Maldives. The company will trade in jewellery which will be purchased in USA and sold in USA and Maldives. Currently, there exist no trade barriers restricting trade between USA and Maldives and jewellery is an import into the country. There is also continued demand for jewellery in Maldives which is driven by increasing number of tourists arriving into the country over the years. The business will be exposed to transaction and economic exposures. There is importance of hedging such exposures as they could have detrimental effects on the firm’s......

Words: 4423 - Pages: 18

Premium Essay

Youth Unemployment

...Elements of moral judgement | 8 | 1.4 | Where people get their values | 11 | | List of References | 14 | QUESTION 1.1 MORALITY OF THE ACTIONS OF JP MORGAN According to Buchholtz and Carroll (2012) moral management conforms to the highest standards of ethical behaviour or professional standards of conduct, motives, goals orientation towards the law and general operating strategy. Moral management pursues its objectives of profitability, legality, and ethics as both required and desirable. Moral management would not pursue profits at the expense of the law and sound ethics. The operating strategy of moral management is to live by sound ethical standards, seeking out only those economic opportunities that the organization or management can pursue within the confines of ethical boundaries. The organization assumes a leadership position when ethical dilemmas arise. The stakeholders at JPMorgan Chase & Co. case include executives at the bank, other employees, competitors to JP Morgan and those who have accounts, funds, stocks, etc. associated with the bank. The executives of JPMorgan Chase & Co. had one major interest in their positions i.e. to maximize profits for the bank. The executive looked to continue this profit-streak, and keep finding large profits each quarter. According to the normative ethical theories, The JP Morgan Chase &Co executives conformed to amoral management where their motives were well-intentioned but selfish in the sense that impact on......

Words: 3977 - Pages: 16

Free Essay

Investment Banking

...and foremost, the biggest change that could have been made, would be to hold the bridge tournament a couple months earlier. I believe that would have changed the outcome of Bear Stearns and allowed Cayne to save the day. All joking aside, from reading the article or case study, CDO’s and ARM’s were not the only destruction of Bear, just the final blow. Similar to what is happening in China right now with failing/decreasing hedge funds, Bear called in $500 million of short term debt to cover its losses from an unprofitable hedge fund. There was also a $38 million dollar fine paid to the SEC for fraudulent behavior. They were caught up in the CDO craze like everyone else and accepted way too many mortgages without knowing the details. Cayne must not have grasped the situation in its entirety. I can’t believe he announced they had $11.4 billion in cash and was now taking the situation seriously. The hole was much deeper than that. March 10, 2008, I believe, is where they were caught in the biggest fraud. Even though they didn’t alert customers when they should have a year or two ago, Bear isn’t entirely to blame. Don’t forget about S&P and Moody’s, I know they were not innocent. Where was there punishment? JP Morgan certainly benefited from the fall of Bear when they acquired them for about $2 per share. This was a 97% discount from the original share price of $32 per share and upwards of $170 the year prior....

Words: 524 - Pages: 3

Free Essay

Mgmt

...Derivative Losses at JPMorgan Chase LaVita Rodriguez Business Government and Society Case Study: Derivative Losses at JP Morgan Chase 1. Does this case indicate that JPMorgan and the federal government were in a collaborative partnership or working at arms length? Why do you think so? In a collaborative partnership the government works closely with organizations in efforts to achieve a common objective that is mutually beneficial. Working at arm’s length is the opposite of a collaborative partnership due to the objectives of the organization and government being opposite, creating an adversarial relationship between them. In the case of JP Morgan and the federal government, they demonstrate working at arm’s length. The federal government imposed regulations that would extend government oversight in the trading of derivatives by implementing government rules that required trades involve intermediaries in public “clearing houses” so that regulators could closely inspect transaction (Lawrence, A. T., & Weber, J., 2014). JPMorgan opposed the idea of trading derivatives in public because it would potentially benefit rivals and compromise the profit of the bank (Lawrence, A. T., & Weber, J., 2014). The objectives of the federal government and JPMorgan do not align. The federal government wants to implement regulations that would work to restructure JPMorgan from being able to take excessive risks that would result in large bailouts being forced onto taxpayers who are......

Words: 913 - Pages: 4

Free Essay

Fins3630

...Australian School of Business Banking and Finance FINS3630 BANK FINANCIAL MANAGEMENT Course Outline Semester 2, 2012 FINS3630 – BANK FINANCIAL MANAGEMENT 1 Table of Contents PART A: COURSE-SPECIFIC INFORMATION 1 2 2.1 2.2 2.3 2.4 2.5 3 STAFF CONTACT DETAILS COURSE DETAILS Teaching Times and Locations Units of Credit Summary of Course Course Aims and Relationship to Other Courses Student Learning Outcomes LEARNING AND TEACHING ACTIVITIES 3 3 3 3 3 3 3 4 4 4 5 5 5 5 7 8 9 11 11 11 11 11 12 12 12 12 14 3.1 Approach to Learning and Teaching in the Course 3.2 Learning Activities and Teaching Strategies 4 ASSESSMENT 4.1 Formal Requirements 4.2 Assessment Details 5 6 7 8 9 9.1 9.2 9.3 9.4 9.5 10 11 COURSE RESOURCES COURSE EVALUATION AND DEVELOPMENT COURSE SCHEDULE ACADEMIC HONESTY AND PLAGIARISM STUDENT RESPONSIBILITIES AND CONDUCT Workload Attendance General Conduct and Behaviour Occupational Health and Safety Keeping Informed SPECIAL CONSIDERATION AND SUPPLEMENTARY EXAMINATIONS STUDENT RESOURCES AND SUPPORT PART B: KEY POLICIES, STUDENT RESPONSIBILITIES AND SUPPORT FINS3630 – BANK FINANCIAL MANAGEMENT 2 PART A: COURSE-SPECIFIC INFORMATION 1 STAFF CONTACT DETAILS Lecturer-in-charge: Dr. Lixiong Guo Room: ASB East Wing 363 (Note: Please use the ASB entrance next to the University Bookstore) Phone No: 9385 5773 Email: lixiong.guo@unsw.edu.au Consultation Times: Tuesday 4:30 pm – 6:00 pm (or by appointment) Tutor names: A full list of tutors will be......

Words: 4300 - Pages: 18

Premium Essay

Mis535 Week 1 Study Guide

...HW1 study guide (will be included in quiz1) 1. As discussed in the chapter opening case, which of the four generic strategies did Verizon employ to combat the competition offered by AT&T? a. low-cost leadership b. focus on market niche c. customer and supplier intimacy d. product differentiation Answer: D 2. According to the ________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment. a. microeconomic b. macroeconomic c. sociotechnical d. behavioral Answer: A 3. All of the following are major features of organizations that impact the use of information systems EXCEPT for a. business processes. b. environments. c. goals. d. agency costs. Answer: D 4. Business processes are collections of a. informal practices and behaviors. b. formalized and documented practices. c. routines. d. rights and privileges. Answer: C 5. Mintzberg"s classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n) a. entrepreneurial structure. b. divisionalized bureaucracy. c. professional bureaucracy. d. adhocracy. Answer: C 6. A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a ________ bureaucracy....

Words: 1064 - Pages: 5

Premium Essay

Amazon.Com: an E-Commerce Retailer

...approximately 54 million consumers in US and its foot print covers 80 % of the population. The bank is being led by Brian Moynihan who succeeded Ken Lewis as the President and CEO effective January 1, 2010. Some of the key highlights of Bank of America are: As of 2010, it is the second largest bank holding company behind JP Morgan Chase in United States by assets which stood over US$ 2 trillion As of 2010, the company is the fifth largest company in United States by revenue which is over 111.4 billion2 The company was also the 3rd largest non-oil company in the US after Wal-Mart and General Electric In 2010, Forbes listed Bank of America as the third largest company in the world 3 The bank has over 5500 branches along with approximately 16300 ATMs and an online banking with 30 million active users 4 The major competitors of Bank of America are JP Morgan Chase, Citi Group and Wells Fargo Bank. 1 http://www.forbes.com/companies/bank-of-america/ 2010 Bank of America Annual Report 3 http://www.forbes.com/companies/bank-of-america/ 4 http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol -homeprofile#fbid=W6HlSIbzfcd 2 4 Bank of America: Mobile Banking Case Report Financial Snapshot 5 Company History The company was founded originally as Bank of Italy in 1904 by Amadeo Giannini in San Francisco. Amadeo established the bank to serve the banking needs of many immigrants at that time who were ignored by the existing American Banks. The banks reputation increased when Amadeo......

Words: 4633 - Pages: 19