JP Morgan Chace & Co.
JP Morgan Chace & Co. is a U.S multinational financial service and investment bank headquartered at the heart of the American business district in New York City. JP Morgan Chace & Co. currently trade in the New York securities markets (NYSE) as JPM has an estimated total asset value of $2.534 trillion. It is ranked as is the largest bank in the U.S and the sixth largest bank globally (Chernow, 2010). Currently, JP Morgan Chace& Co. operates in 60 countries across the globe and has 180, 667 employees, and serves over 50 million customers of whom 46.7 million represent digital customers. The organization’s services include private and investment banking, security as well as treasury services, credit card services, mortgages and house loans, and automobile finance. The company’s wide portfolio is considered one of the most extensive within the banking industry subsequently generating high revenues. Figure 1 shows JPMorgan Chase net revenue over the last decade, spanning 2006 to 2017. From the data presented, it is evident that over the last three years the bank has been on the ascendancy in regards to Net revenues.
Figure 1. Net revenue of JPMorgan Chase from 2006 to 2017 (in billion U.S. dollars).
Despite the high performance, JP Morgan Chace & Co is also known for making significant losses because of the 2008-2009 global meltdown. As indicated by Chaitman, Gotthoffer, and Act, (2015), by the beginning of 2009, JP Morgan Chace & Co real estate department was experiencing a hard time because the company had invested over $100 billion in loans, which it had a hard time collecting. However, in late 2008 and early 2009, the firm revived a $25 billion bailout from the Treasury’s program (Ivashina & Scharfstein, 2010). This move according, as evidenced by figure 1, saw the enterprise increase its cash flow thus augment its revenue.
Other than the losses made in 2008 and 2009, JP Morgan Chase has been in the headlines for some wrong reasons, including the 2001 allegations of aiding and abetting Enron Corporation securities fraud scandal. In 2016, the organization agreed to settle a fine of $264 million after it was found guilty of bribery charges spanning over a decade in Hong Kong (Chaitman, Gotthoffer, and Act, 2015). Nevertheless, the firm has continued to be active and competitive in an environment that has seen increased competition as well as technology advances, including mobile and internet banking. The banking industry is continuously changing, particularly due to the changes in technology. As indicated by Clement (2006), the advent of the use of mobile and internet banking has changed the financial or the banking landscape. JP Morgan currently serves about 47 million digital customers across the world on this platform. As the global banking GDP continues to grow so does the risks of increased competition. Subsequently, it can be argued that JP Morgan is at the epicenter of a current and future battle for maintaining its market share.
The banking business is considered as one of the most dynamic and competitive sectors of the financial industry. JP Morgan for centuries has defied the odds and maintained a large market presence both in the U.S and around the world. However, its success has not come without a struggle as the company has had to deal with controversies globally and in different scales. Nonetheless, as the future of the banking industry continues to grow there exist numerous opportunities for the corporation to expand both its operations as well as achieve more success.
Chaitman, H. D., Gotthoffer, L., & Act, B. S. (2015). JPMadoff: The Unholy Alliance Between America’s Biggest Bank and America’s Biggest Crook. CreateSpace Independent Publishing Platform. Retrieved from http://jpmadoff.com/wpcontent/uploads/book/Website_Book_Full.pdf
Chernow, R. (2010). The House of Morgan. New York, NY: Grove/Atlantic, Inc. https://books.google.com/books?hl=en&lr=&id=sgNUEqkgctEC&oi=fnd&pg=PT11&dq=Chernow,+R.+(2010).+The+House+of+Morgan.+New+York,+NY:+Grove/Atlantic,+Inc.&ots=JWkp525WML&sig=SA06nmT0RCW_v_EJ7_MpBKLYjL0
Clement, R. W. (2006). Just how unethical is American business?. Business Horizons, 49(4), 313-327.
Ivashina, V., & Scharfstein, D. (2010). Bank lending during the financial crisis of 2008. Journal of Financial Economics, 97(3), 319-338.