...Assignment: Chemical Banks – Allocation of Profits Submitted By: G.K. Shyam Arya, PGXPM - 11 Date: 12-Mar-2015, Thursday Assignment Questions & Solutions: 1. Describe the due bill controversy and how do you resolve it? Proposed Solution: a. Due Bills controversy: Introduction: Due Bills controversy is an example of intra department priorities that dilutes the focus away from organizational goals. Chemical Bank was the 6th largest U.S. commercial bank in 1983. Chemical Bank was organized into three main profit centres: Personal and Banking Services World Banking Group Treasury Group The Due Bill was an acknowledgement (transactional evidence) that The bank had sold securities to a customer His/her’s account has been charged If requested, securities would be delivered when they become available Upon maturity, Chemical bank would pay principal plus interest at a specified rate Due Bills Lifecycle at Chemical Bank is described below: Due Bill was a product designed, marketed and sold by the Treasury group, which was responsible for generating continual funding of $25 Billion for Chemical Bank at the lowest possible costs highly profitable product for Chemical Bank sold in majority by the Metro division of Personal & Banking Group that processed Due Bill requests on demand from the customers Processed and administered by Trust & Investment division of Personal & Banking Group. Events that lead to decline of profits earned due to Due Bills: Introduction...
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...1799. Chase bank is a subsidiary of JpMorgan Chase & Co that specializes in?. The Chase brand is used for credit card services in the United States and Canada, the bank's retail banking activities in the United States, and commercial banking. It is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The history of Chase Bank dates back to September 1st, 1799 when the Manhattan Company was founded by Aaron Burr as a water carrier company. Burr’s goal was to bring clean water to New York City and put a stop to the monopoly that the Bank of New York and the federal bank had on the state. Alexander Hamilton started Bank of New York in 1784. The Mannhattan Company received its charter in an unusual way, through Burrs’ political connections in New York. Being a former congress man and vice president as well as other prominent positions, he sponsored abill through the New York assembly that established the water company which in turn allowed the creation of a bank. A clause in the bill allowed the company to invest surplus capital in any lawful enterprise. The Bank of Mannhattan started paying dividends in June 1800. The water carrier/bank was off and running. In 1804 Burr was successful in his task. He killed Hamilton in a duel. In 1853 the Manhattan Company became one of the original 52 members of the New York Clearing House Association. The Manhattan Company turned Chase National Bank was founded...
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...of capital, some $2 million, the directors voted to use those funds to open an office of “discount and deposit”. On September 1, 1799, the Bank of the Manhattan Company was founded by Aaron Burr and opened in a house on 40 Wall Street. Over the next few years, after the success of its waterworks, the company sold the waterworks and retained its focus solely on banking. Growth was steady over the years, but its expansion took off after the onset of the 20th century. In 1918, the company acquired its first branch office after a merger with the Bank of the Metropolis. Two years later, it merged with the Merchants’ National Bank of the City of New York and then the International Acceptance Bank, Inc in 1929. This merger noted the banks future in foreign trade financing. The Chase National Bank was organized September 12, 1877, by John Thompson, who named the bank in honour of the late U.S. Treasury secretary Salmon P. Chase although Chase had no connection with the bank. Chase National’s growth was phenomenal, and by 1921 it had become the second largest national bank in the United States, without any mergers. After that year the bank acquired a number of smaller bank: Metropolitan National Bank (1921), Mechanics and Metals National Bank (1926), Mutual Bank (1927), Garfield National Bank (1929), National Park Bank (1929), Seaboard National Bank and Interstate Trust Company (1930). Howeverf, the most significant of its mergers was the acquisition of the Equitable Trust Company of New...
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...merged to form the company. The well- known heritage banks include JPMorgan and Co., The Chase Manhattan Bank, Bank One, Manufactures Hanover Trust Co., Chemical Bank, and The First National Bank of Detroit (JPMorgan.com). JPMorgan predecessors were the introducers of the first automated teller machine (ATM). The ATM revolutionized banking by allowing customers to conduct transactions from almost any ATM in the world. The Chemical Bank was the first bank in the country to allow customers to withdraw cash 24 hours a day. The Chase Manhattan Bank introduced the Chase Money Card, the first Visa debit card offered by a bank in New York. The predecessors were also the first to develop one of the earliest online home banking services. Today, JPMorgan Chase is one of the largest bank holding companies in the United States. JPMorgan is a leader in asset management, investment banking, private banking, treasury and securities services, and commercial banking. The company services large franchises, corporations, institutional investors, hedge funds, governments, health care organizations, educational institutions, and individuals. JPMorgan has over two trillion dollars in assets and has over five thousand branches in several states. JPMorgan Chase is also one of the top lenders and credit card issuers. The company operates globally in over one hundred different countries (JPMorgan.com). The company has subsidiaries JPMorgan Private Bank and investment manager JPMorgan Asset Management...
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...Organizational Behavior Terminology and Concept Paper MGT 307 August 23, 2010 University of Phoenix Organizational Behavior Terminology and Concept Paper With any type of organization that exist the most important asset they have are the people who work for them. It is important that employees understand certain key terminology when they are part of any organization. Terms such as organizational culture, organizational behavior, diversity, and communication are important that every employee understands because they can influence employees. Understanding each terminology and their concepts can help organizations and employees to accomplish a successful working environment that can help increase productivity. Terminology - organizational culture The personality of an organization can be seen in the organizational culture (OC). The organizational culture are beliefs, values that influence any employees behavior in an organizational. " Organizations with strong cultures operate with a clear vision of the future that is supported by well-developed and well-communicated beliefs and values" (Schermerhorn, Jr., Hunt, & Osborn, 2008, p. 11). In an organizational Culture Inventory Organizational is made up of three cultures. They are constructive cultures, passive/defensive cultures, and aggressive/defensive cultures. In a constructive culture members are encourage to work with one another as a group. Constructive cultures encourages employees to work together to...
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...related services of commercial banking is a middle business based on the security investment. The US bank started dabbling in this area since 19 century. Along with the increasing of securities quantity and variety, for controlling the cost and marginal profit, concentrating on developing the market, the investment institution delegated such business to professional institution. Based on such background, the investment security service, different with traditional banking business, from a simple reconcile and custody business to a highly sophisticated investor service business has been rapidly developed in the previous 30 years. I am working in the JPMorgan Chase Bank, worldwide security services division. Our main custody business clients are insurance company, direct invest institutions, bank, pension fund, QDII Fund. JPMorgan is the biggest custody bank in this world owns about 1.12 Trillion US dollars assets. In mainland China, custody is a very new business for JPMorgan starting from 2007. We own the license of QDII which is call the “Qualified Domestic Invest Institution”. From the starting point about 18 Billion RMB custody assets, in 2013, there are more than 80 Billion RMB custody assets in China mainland. Rapid growth is good news for every business but potentially there are potential risk in this competitive industry and JPMorgan is brand new comparing with such old bank: HSBC, Citic group and Standard Charter. Analysis: I use a SWOT model to analyze the current...
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...Geswein Ice Miller L.L.P. BEFORE: E.A. Gallagher, P.J., E.T. Gallagher, J., and Laster Mays, J. JOURNAL ENTRY AND OPINION EILEEN A. GALLAGHER, PRESIDING JUDGE {¶ 1} Plaintiff-appellant Carrie Rebello appeals from the trial court's judgment entering a directed verdict on her claim for wrongful discharge in violation of public policy against defendants-appellees Lender Processing Services, Inc., et al. (collectively, "LPS").[1] Rebello claims that she was wrongfully terminated in violation of public policy from her employment at LPS because she objected to, and threatened to, report LPS's practice of password sharing among LPS employees when accessing the nonpublic customer information of one of its largest clients, JPMorgan Chase Bank, N.A. ("Chase"). For the reasons that follow, we reverse the trial court's judgment. Procedural and Factual Background {¶ 2} LPS is in the business of providing processing, technology and field services to clients, including mortgage lenders and financial institutions. The services provided by LPS include inspections, property validation for repairs and services and loss mitigation in connection with defaulted assets. From August 2009 until her termination on April 11, 2012, Rebello was employed by LPS as a supervisor in its property preservation department. She worked in LPS's Solon, Ohio office. Rebello supervised a team of employees who provided field services for properties owned by customers...
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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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...Enterprise Corp. The Chief Financial Officer of Merit Enterprise Corp has two options that she can recommend to the board. Let’s take a look at option 1. Pros: We already know that JPMorgan Chase bank has served Merit for many years. The $4 billion loan can come quickly from JPMorgan Chase by gathering a group of banks together. As an investment bank it can help Merit raise capital, and engage in trading and market making activities. Because of their good relationship with the bank merit can negotiate to obtain a low interest rate. The business will stay private. (Montoya, D, and Media, D. (n.d.)). The cons: JPMorgan has served with Merit for many years with seasonal credit lines as well as a medium-term loan. Depending on how business goes they may need a long-term loan. Since the loans will come from different banks if the business does not produce enough cash flow there may be a chance for bankruptcy. JPMorgan will have the upper hand in their finances by demanding periodic financial disclosures to monitor Merit’s financial conditions while their operation is increasing. The bank may lay down certain restrictions that can affect future financing. Since $4 billion is a large sum of money to lend the bank may require collateral. If the business doesn’t do so well the bank may use that to control assets and sell it for a profit to make up for what the business owes. Lastly failure to pay back the loan can result in a lawsuit, which can be the worst possible outcome...
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...Whistleblowers have key characteristics. An individual becomes a whistleblower when they report a person or organization for wrong-doing, misconduct, corruption, unethical or illicit activity. Whistleblowers can expose the information internal to the organization or external to regulators and the media. Whistleblowers are unselfish, courageous and necessary. In many cases, a whistleblower feels the organization is violating the law or endangering the welfare of others. (Halbert, 2012) Blow the whistle1 The cases, U.S. ex rel. Edwards v. JPMorgan Chase Bank NA et al, U.S. District Court, Southern District of New York, No. 13-00220 is one instance of whistleblowing in a publicly traded company. Keith Edwards was awarded $63.9 million for blowing the whistle on JPMorgan Chase & Co’s. He was the current assistant vice president supervising a government insuring unit in 2008 before his termination. He had been working for the company five miserable years when he first sued under the federal False Claims Act. Edwards claimed JPMorgan Chase & Co’s defrauded the government into insuring home loans that didn’t qualify for FHA and VA guarantee. Many of these loans ended in evictions and foreclosures. Edwards reported wrong doing and misconduct that endangered the welfare of stockholders, taxpayers and the government. His actions were justified and had an effect on both his career and JPMorgan Chase and Co’s. Edwards was terminated and mistreated after reporting his beliefs...
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...and stockholders’ equity amounted $2.4 trillion and $211.2 billion, respectively. Currently, the firm is the leading banking institution in various business segments that include investment banking, commercial banking, asset management, private equity, and financial services for small businesses and individuals. JP Morgan & Chase, Co. offers financial services through its subsidiaries, divided between principal bank and nonbank subsidiaries. Its principal bank subsidiaries are JPMorgan Chase Bank and Chase Bank USA, which the former, has branches in 23 U.S. states, and the latter, the Firm’s credit card-issuing bank. JP Morgan & Chase, Co.’s nonbank subsidiary is J.P. Morgan Securities LLC (hereinafter referred as JPMorgan Securities), which is the Firm’s investment banking subsidiary in the U.S. Both the bank and nonbank subsidiaries operate domestically and overseas. One of the principal subsidiaries oversea in the United Kingdom (hereinafter referred as U.K.) is called the J.P. Morgan Securities plc, a company that is wholly owned by JPMorgan Chase Bank, N.A. For reporting purposes, JP Morgan & Chase, Co.’s business activities are grouped under four business segments and a Corporate/Private Equity Segment. The four segments are: Consumer & Community Banking segment for consumer business; and wholesale business segments are for...
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............................ 6 5. Reference list...................................................................................................................... 8 Tables Table 1: Cash-flows................................................................................................................ 6 Table 2: Discounted cash-flows ............................................................................................. 6 Table 3: Banks strengths in comparison................................................................................. 7 1. Evaluate the rationale for the merger After a period of record number of bank failures during the 1980s, the Banking Industry entered a period of record profits in the 1990s. Also the industry saw a large number of bank mergers that pointed out a new trend, leading to more concentrated and bigger banks holding a majority of total banks assets. Following this trend a Chemical/Chase merger became attractive. By accomplishing this merger Chase Manhattan would grow to the largest bank of the USA and the fourth largest in the world, which would sum up to total assets of $297.3 billions, a market capitalization of $22.9 billions and shareholder equity of $7.3 billion. A clear rationale for merging was the elimination of overlapping business activities, which would lead to massive cost savings of $1.5 billions per annum. This would be achieved through a reduction...
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...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 taking dangerous risks that threaten the wide-ranging financial system. Rule The relevant rule of the JP Morgan Case requires that companies successfully mitigate risk of trading losses through internal controls and to disclose losses using transparency. According to CNN Money, “In legal language, regulators said that the bank engaged in “unsafe and unsound practices” (Isidore & O’Toole,...
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...Ina Drew and her eventual downfall after her unit’s $6 billion trading loss. Through dozens of interviews with friends and colleagues of Drew, Susan Dominus provides a unique insight into Ina Drew’s personality and demeanor which were instrument in her rise in wealth and power. In her 30 years with the firm, Drew had become the most recognizable and powerful woman on Wall Street. The majority of the article is dedicated to providing information about how Drew was able to rise in rank in an industry where women were not accustomed to holding power. Dominus speaks to the strong will of Ina Drew and the confidence she maintained in both her knowledge and ability. Dominus points out that the trouble that eventually ended Drew’s career at the bank was a major hedge against the possibility of a credit crisis. I believe that the ethical issue that is brought to light by the author is the issue of gender. Throughout the piece, Dominus points to numerous instances of mistreatment towards women within the Wall Street arena. The majority of the article seems to praise Ina Drew in many ways, and hints towards the unfair treatment of Drew in her firing. As Drew accepts, the $6 billion dollar loss happened on her hands and she should hold responsibility for the...
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...America's Largest Bank * In mid-August 1995, Walter Shipley, chairman and CEO of Chemical Banking Corporation, was preparing to leave the bank’s Manhattan headquarters building after a long day. For the past four weeks he and other senior Chemical managers had been in intensive negotiations with their counterparts at Chase Manhattan Corporation, including that bank’s chairman and CEO Thomas Labrecque. At issue was whether the two banks would agree to merge in a friendly transaction. If completed, the merger would produce the largest commercial bank in the United States, and the fourth largest bank in the world, with total assets of nearly $300 billion and over 74,000 employees. Shipley believed the merger would create value in two ways. First, it would allow the banks to realize substantial savings in operating and overhead costs. The banks’ businesses overlapped in many areas, and they both maintained extensive retail branch networks in the Downstate New York area. In addition, both banks were headquartered in Manhattan, and maintained elaborate trading floors in both Manhattan and London. Cost savings of up to $1.5 billion were deemed possible, but this would require reducing the banks’ combined workforce by 12,000 employees and closing over 100 branches. The second benefit of the merger, in Shipley’s view, was that as a larger bank with significant product and market leadership positions, Chemical-Chase would enjoy significantly higher revenue growth. Larger banks with leadership...
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