...JP MORGAN CHASE BANK N.A. AND ITS ORGANIZATIONAL CHANGES FOR THE GOOD OR BAD? Analyze a change effort in the organization. What went well? What went wrong? What should they have done? COMPANY HISTORY AND OVERVIEW……………………………………1 ORGANIZATIONAL ISSUE…………………………………. EXTERNAL THEORIES/OPINIONS…………………………………………….. INDEPTH ANALYSIS………………………………………… SOLUTIONS……………………………………………………. PERSONAL REFLECTION………………………………………………………………. COMPANY HISTORY AND OVERVIEW: JP Morgan Chase Bank dates back to 1799 when its earliest predecessor was chartered in New York City. There have been many mergers and acquisitions throughout the years that shaped what the company is today. The company is built on the foundation of more than 1200 predecessor institutions. Its major heritage firms — J.P. Morgan, Chase Manhattan, Chemical, Manufacturers Hanover (in New York City) and Bank One, First Chicago, and National Bank of Detroit (in the Midwest) were each closely tied, in their time, to innovations in finance and the growth of the United States and global economies. In 1991, Manufacturers Hanover Corp. merged with Chemical Banking Corp., under the name of Chemical Banking Corp., then the second-largest banking institution in the United States. In 1995, First Chicago Corp. merged with NBD Bancorp., forming First Chicago NBD, the largest banking institution based in the Midwest. In 1996, The Chase Manhattan Corp. merged with Chemical Banking Corp., under the name of The Chase Manhattan Corp., creating...
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...General Environment Forces The financial crisis and the way that the American people viewed the nation’s financial institutions are two major indirect forces that that Chase bank had to deal with. The financial crisis the US has been dealing with for the past 3 years and is still currently trying to overcome today was triggered in part by the United States banking system (Whitney, 2010); because of this there was a tremendous collapse of some of our major financial institutions, the bailout of banks by national governments, and a stock markets plummeting everywhere around us (Whitney, 2010) In many areas, the number of evictions, and foreclosures rose to insane heights; the housing market experienced a huge hit (Whitney, 2010). The financial crisis in 2007 is considered by many economists to be the worst since the Great Depression of 1930 (Pendery, 2009). It has contributed to the failure of many key businesses, the decline in consumer wealth, substantial financial assistances by the United States governments, and a significant decline in economic activity. (Baily, & Elliot, 2009) The cry out for assistance was heard, “President Bush, in a televised address Friday morning, said the nation's economy is at risk, adding he believed that Congress will move quickly on a bailout proposal.” "We've got a big problem," he said. (Ellis & Sahadi, 2008) Henry Paulson, Treasury Secretary, proposed an act which he believed would help alleviate some of the issues during this financial fallout...
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...JPMORGAN CHASE RADEGUNDA MOSHA BUSINESS LAW 1 PROF. AALIYAH MOHAMAD AUGUST 25, 2013. REFERENCE Constance E. Bagley. Seventh Edition. www.stimmel-laws.com/articles/torts.html www.cftc.gov Administrative agencies are agencies created by the legislative branch of government to administer laws pertaining to specific areas such as taxes, transportation and labor. The Securities Exchange Commission and the Commodities Future Trading Commission are independent agencies that are legally charged with regulating and providing guidelines for the trading and exchange of the goods, services within their respective jurisdictions. The security act of 1934 has fully empowered the Security exchange commission the power to discipline individuals and entities that are regulated in breach of industry rules and regulation. The Commodities Future Trading Commission on the other hand was created in 1974 to protect individuals, the public and industry players from manipulating, fraud and potentially abusive practices. The mission of Securities and Exchange Commissions is to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation. Requiring public companies to disclose meaningful financial information to the public is an effective approach of the Security Exchange Commission takes in order to assure the security of...
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...Momentum 2014 Middle-Market Private Equity Outlook A CohnReznick LLP Report FEBRUARY 2014 Table of Contents Today’s Private Equity Business Environment.................1 Critical Issues Facing Private Equity in 2014...................6 Private Equity Due Diligence Focus................................24 The Road Ahead..................................................................29 A CohnReznick Report 3 Preface The private equity (PE) industry is well-positioned for an optimistic 2014. After five challenging years, there were a number of positive developments for the industry in 2013, including a rebound in fundraising and a record $120 billion returned to investors in private equity. mo • men • tum noun: the impetus gained by a moving object Overall, 2013 will be remembered as a solid year for private equity. Although the year started off slowly, activity picked up considerably in the second half, particularly in the world of exits. The fourth quarter of 2013 was one of the strongest quarters on record for PE exits, attributable largely to a robust IPO market. The key topic that must be considered in projecting the industry’s outlook for 2014 is whether it can build upon this momentum, or whether the industry’s capital overhang and competition for quality deals will prove too great a resistive force. While we’ll analyze the industry in its broadest sense, our focus is decidedly on the outlook for middle-market private equity firms―those firms with...
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...JPMorgan Chase I. Abstract The credit derivatives were introduced in the early 1990s, as large derivatives dealer searched for ways to transfer risk in financial markets. Although the financial innovations have only been used for decades, activity in credit derivations has grown rapidly. According to the Bank for International Settlement, the credit derivatives market reaches $21 trillion in 2014, and the main players for credit derivatives are investment banks, corporations or insurance companies. (Bank for International Settlement, 2014) Credit derivatives are relatively complex financial instrument, since it utilizes the leverage technique to mitigate the credit risk. One the one hand, credit derivatives allow banks to mitigate credit risk, reduce undesired risks and customize their risk profiles. On the other hand, the use of credit derivatives contains potential risks to the company since the market is still new. Users of credit derivatives must recognize and mange numerous associated risks. In fact, the historical evidence has shown that credit derivatives are the major causes to financial crisis. (Borodovsky & Lore, 2000) Although it is important to assess credit risk and market risk in the bank investment, operational risk is the fundamental part to the ultimate success of investment. “Operational risk is the risk of a breakdown in the operations of the derivatives program or risk management system.” (Chance & Brooks, 2012) Operational risk was generally defined...
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...JPMorgan Chase LEG100 Professor Cheri Reiser 03/04/2013 Discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy. In the summer of 2012, JPMorgan Chase, the biggest U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that concealed this massive loss. The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. Requiring public companies to disclose meaningful financial information to the public is an effective approach the SEC takes in order to assure the securities of this nation (U.S. Securities and Exchange Commission). This helps investors prevent high-risk gambles and allows them to make sound decisions when deciding on which companies to invest in. The Commodity Futures Trading Commission regulates the commodity futures and options markets. Its goals include the promotion of competitive and efficient futures markets and the protection of investors against manipulation, abusive trade practices and fraud (U.S. Securities and Exchange Commission). Both the SEC and the CFTC played a role in investigating...
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...Week 8 Assignment 2: Joshua Baker Leg100 Instructor: Prof. Madhavi Basnet-Karki Tuesday, November 26, 2013 In the summer of 2012, JPMorgan Chase, the biggest U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that concealed this massive loss. Now we are going to discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy. The foundation of the United States economy is the banking industry and the American people need protection from the high risk gambles that these securities participate in. We need to understand how the Securities and Exchange Commission provides that protection. The SEC creates laws and rules that govern the banking industry in order to be effective in protecting the public. These regulations are derived from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. In order to accomplish this, the SEC requires public companies to disclose meaningful financial and other information...
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...Global Social Finance Research 02 May 2012 Volume Growth and Valuation Contraction Global Microfinance Equity Valuation Survey 2012 J.P. Morgan Global Research J.P. Morgan Social Finance Yasemin Saltuk Yasemin Saltuk AC (44-20) 7742-6426 (44-20) 7742-6426 yasemin.x.saltuk@jpmorgan.com yasemin.x.saltuk@jpmorgan.com J.P. Morgan Securities Ltd. J.P. Morgan Equity Research Frederic de Mariz (55-11) 4950-3398 frederic.de.mariz@jpmorgan.com Banco J.P. Morgan S.A. CGAP Jasmina Glisovic Henry González This report is the result of a collaborative effort between CGAP and J.P. Morgan. J.P. Morgan analysts are solely responsible for the investment opinions and recommendations, if any, in this report. See page 21 for analyst certification and important disclosures. J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that See page 21 for important disclosures. the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. www.morganmarkets.com Global Microfinance Equity Valuation Survey 2012 Global Social Finance Research 02 May 2012 Background & Acknowledgements Equity capital flows into microfinance have been increasing for many years, with both retail and institutional investors showing interest in this sector of financial services. Despite this growth...
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...Assignment five: Persuasive paper part 3: possible Disadvantages, Answers, with Visuals Marc Fiston Professor: Susan Sgroi English 215 Strayer University September 3rd, 2014 Topic: should regulations regarding the use of cell phones while driving be standardized? The use cell phones have spread like wild fire in the last ten years. It has become a part of everyday life for many Americans citizens, and a good number of people depend on them to carry out daily operations. Unfortunately, many accidents have taken place in the ten years due to the use of cell phones while on the road. The leads to believe that if people cannot concentrate on the road while talking or texting on cell phones they should not have a cell phone near them at all while driving. The purpose of this research is to discover if texting while driving is the leading cause of automobile accidents of today. Society does not view texting while driving as a safe practice. There are many articles, news reports, and laws passed on texting while operating a vehicle because of the danger associated with the act. Texting while driving causes numerous of problems such as: distraction from the road, a decrease of attention once he or she turns away from the road in responding to a text, and limiting physical ability because texting requires the use of one or both hands to reply to messages. These are some of the issues researchers investigate in finding a conclusion to if the individuals should or should not...
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...ASSIGNMENT 1: SOCIAL MEDIA BESSIE BEARD PROFESSOR SAMUEL CHRISTIAN BUSINESS LAW 100 11 August 2014 In attempts to survive E-commerce and rapidly evolving technological advances, businesses are looking to social media marketing to predict and take advantage of increasing consumer buying power on the web. It’s no secret that consumers are actively perusing social media for the best prices, variety, and reviews of products and businesses as they make purchases for everyday needs and specialty items. In many instances, consumers have traded instant gratification from in-store purchases with the satisfaction of cost savings from items bought online. At the vanguard of such a decision to shop online rather than in-store is convenience. The web is the ultimate one stop shop. Big businesses, such as Wal-Mart, Target, Nike, and Best Buy offer all of their products online at reduced pricing and special deals. So, how does a business preserve its market-share and profitability in the web-based marketplace? It looks to social media. Social media outlets assist businesses in not only maintaining their customer base but also increasing the audience that sees and purchases its products. One such social media outlet is Facebook. Not only are companies paying Facebook to advertise their products and services, but they are also creating company Facebook pages to market to consumers and address concerns with products and services. Consumers are able to rate and review the products and...
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...Derivatives Analysis (2015 Term 1B) – Project Report Group Member: Zhou Xu Gu Hui Chen Fengyun Deng Xinping Yuan Zhongping Guan Tingting Lee Kong Chian School of Business Singapore Management University 5 November 2015 Table of Contents 1. Introduction 3 2. Background 3 2.1 Amaranth Overview 3 2.2 Natural Gas Market 4 2.3 Events in September 2006 5 3. Trading Strategy 7 3.1 Basic Strategy 7 3.2 Rationale for the Strategy 8 4. Risk Management 10 4.1 Market Risk 10 4.2 Liquidity Risk 11 4.3 Funding Risk 11 5. Conclusion 12 1. Introduction On September 18, 2006, Nick Maounis, the founder of Amaranth Advisors LLC, issued a letter to his investor states that it had lost $4 billion, about half of the $9.25 billion fund, largely due to its activities in natural gas futures and options market in September, After less than two weeks of the announcement, at the date that Amaranth being liquidated, these loss aggravated to $6.6 billion. The tremendous loss making Amaranth’s collapse the third largest trading loss in the history. In this paper, we are going to analyse the background of the company, the strategy of Amaranth’s activity and the risk involves in it, in order to get a comprehensive understanding of the causes and details of the Amaranth’s Collapse. Background Amaranth Overview Amaranth Advisor L.L.C was a hedge fund opened by Mr. Nicholas Maounis in Greenwich, Connecticut, which was a town owning many celebrated...
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...years, the United States of America may added to the list. JPMorgan Chase, America’s largest bank, has shown hesitation of implementing the judgment-based International Financial Reporting Standards for several reasons, a main one being the complexity of switching a multi-trillion dollar company’s accounting standards. Specifically, the difference in reporting of derivative assets from Generally Accepted Accounting Principles to International Financial Reporting Standards is one of the main challenges. SNL Financial, a data collection company, ranks the world’s banks based on their assets, which are reported by each firm according to their current method of accounting reporting. In January of 2014, they ranked JPMorgan Chase as the sixth largest bank in the world, with $2.463 trillion in assets. (PRWeb). The largest bank in the world was reported to be the Industrial & Commercial Bank of China, with $3.062 trillion in assets. The difference between the two banks, is that JPMorgan Chase reports assets under U.S. Generally Accepted Accounting Principles, while the Industrial & Commercial Bank of China uses International Financial Reporting Standards. According to SNL Financial, JPMorgan Chase would be the largest bank in the world if they used International Financial Reporting Standards accounting principles. This jump in five ranking spots would be because under the Generally Accepted Accounting Principles, JPMorgan Chase reports the net amount of derivative assets on balance...
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...April 7, 2013 Jamie Dimon, Chief Executive Officer JPMorgan Chase 270 Park Avenue New York, NY 10017 Dear Mr. Dimon, You’re Fired! Hiring the wrong person costs the company time and money, firing them just adds to that cost. Finding the right person to fill a position is not always easy. Think about it this way: the time, money and countless hours your company spends on hiring employees only to find they were not the right fit for your company. Has your company given a seemingly motivated individual a chance, only to have it backfire? Did you ever put in a good word to hire someone and end up with regret? If this sounds familiar, you are not alone. It is not uncommon to meet an applicant and walk away with a good “false” impression. But no need to worry! Support is just a call away! Highly qualified applicants at your fingertips! As a Fortune 500 Company, JPMorgan Chase understands the need to find highly qualified, dependable applicants quickly. Kelly Services can be of great value when fulfilling your new hire needs at any given moment. One of the short-term goals JPMorgan Chase revealed in its 2011 annual review is to open 2,000 branches nationwide within the next 5 years; this is where Kelly Services can help. Finding highly qualified applicants is overwhelming, time consuming and costs money. Why not let Kelly Services focus on finding the talent you need while you focus on other workforce issues, dilemmas, and day to day business duties. As...
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...JPMorgan Chase. Chartered in 1799, JPMorgan Chase which began as The Manhattan Company was founded by Aaron Burr. Ranked number 16, JPMorgan Chase is a Fortune 500 company that offers financial solutions to clients in more than 100 countries. Having $2.5 trillion in assets and $108 million in revenue; JPMorgan Chase is the largest bank in the United States and has been in business for more than 200 years. Services provided by JPMorgan Chase are asset management, investment banking, private banking, treasury and security, and commercial banking. During the summer of 2012, the Security Exchange Commission (SEC) decided to investigate JPMorgan Chase after reports came out that a London-Based trader had been taking sizeable bets that distorted the market possibly causing the firm a $2 billion or more. JPMorgan Chase provided false reports about the trading loss stating that there were trading losses from investment decisions made by its Chief Investment Office (CIO) in the amount of $5.8 billion. On September 19, 2013, the Securities and Exchange Commission today charged JPMorgan Chase & Co. with misstating financial results and lacking effective internal controls to detect and prevent its traders from fraudulently overvaluing investments to conceal hundreds of millions of dollars in trading losses (U.S. Securities and Exchange Commission, 2013). JPMorgan Chase agreed to pay $200 million and admitted to the wrongdoings to settle charges with the SEC. Security Exchange Commission...
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...Effects on management Merger & Acquisitions (M&A) term explains the corporate strategy which determines the financial and long term effects of combination of two companies to create synergies or divide the existing company to gain competitive ground for independent units. A study published in the July/August 2008 issue of the Journal of Business Strategy suggests that mergers and acquisitions destroy leadership continuity in target companies’ top management teams for at least a decade following a deal. The study found that target companies lose 21 percent of their executives each year for at least 10 years following an acquisition – more than double the turnover experienced in non-merged firms.[10] If the businesses of the acquired and acquiring companies overlap, then such turnover is to be expected; in other words, there can only be one CEO, CFO, et cetera at a time. Types of M&A by functional roles in market The M&A process itself is a multifaceted which depends upon the type of merging companies. - A horizontal merger is usually between two companies in the same business sector. The example of horizontal merger would be if a health cares system buys another health care system. This means that synergy can obtained through many forms including such as; increased market share, cost savings and exploring new market opportunities. - A vertical merger represents the buying of supplier of a business. In the same example as above if a health care system buys the ambulance services...
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