JP Morgan Chase Publicly Traded Company

JP Morgan Chase & Co. is on of the oldest and largest financial institutions in the world. They founding was in New York in 1799 and they have grown and succeeded by listening to there customers. They are a global financial service firm in more than 50 countries. “J.P (John Pierpont) Morgan is the founder and one of the most powerful bankers of his era. He financed railroads and helped organize U.S. Steel, General Electric and other major corporations” (Staff, 2009).
The circumstances revolving around the fraudulent issues for JPMorgan began in 2008. It was involved in a massive fraud of residential mortgage backed securities in the billion of dollars. It was widespread fraud leading to the financial collapse of 2008. “Which lead to JPMorgan Chase facing class action lawsuits that claims it defrauded New Jersey residents who applied for the Home Affordable Mortgage Program, a federal program that is designed to help homeowners in danger of defaulting on their homes” (Mirando, 2011). When loans stated to go bad, the bank was required to take them out of the securitization products and seek restitution from the mortgage originators. The impact that it had on the company was very negative as far as it’s financial and operations were families where improperly foreclosed on, and will be able to save or get there homes back. JPMorgan Chase agreed to pay $13 billion dollars to settle the allegations on the mortgage back securities it sold. It played a major part in the financial crisis in 2008. Wall Street was affected, stocks went down and it affected the entire market. Families are still felling the affect today. There are some drawbacks for those who are seeking tougher action on Wall Street. “All the while Bear Stearns which was acquired by JPMorgan Chase in 2008 was telling the investors that it carefully investigated all of the loans. And Bear Stearns executives were indulging in a shameful double dipping scheme”. (Zornick, 2012)

If Bear Stearns would not have gotten greedy when he saw the opportunity to defraud the people and families in the mortgage scheme it would not have caused the confusion it did. A man with so much power in the financial industry I think if he would have looked into what was going on in his bank financials could have probably elevated some of this commotion. He is a smart man he should have taken more time to make sure his bank was not committing fraud, as an owner I no he knew what he was getting into. I have to wonder if he had the intent to defraud the bank and the people. You need to be aware of what is going on with the finances and show up more. Don’t just think that everything is going well if you are not there and you are just told everything is fine you need to get involved with all aspects of the jobs at hand and what is going on in the business be present more.

Work cited

A & E Networks. JPMorgan. Web. 1 March 2015 http://www.history.com/topics/john-pierpont-morgan.

Mirando, Sarah. JPMorgan Chase Mortgage Fraud Class Action. Web. 31 August 2011.
< http:// www.topclass.com/lawsuits-settlements/lawsuits-new-1345-jpmorgan-chase-mortgage-fraud-clss-action-lawsuit

Zornick, George. The National 150 Instigating Process Daily. Web 2 October 2012. http://www.thenation.com/blog/170280/motgage-fraud-task-jp-morgan-chase#