...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...
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...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 ................................
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...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...
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...Transcripción de Andersen : Una obstrucción de la justicia ? Andersen : Una obstrucción de la justicia ? David Duncan fue el testigo principal en el caso Andersen. Él triturar los documentos que son necesarios para la investigación de la SEC . mientras que Nancy Temple era el consejo legal y abogado en el departamento jurídico de la Anderson. Ella ordenó David Duncan para destruir todos los documentos relacionados con Enron con el fin de estar a salvo en la investigación. Por lo tanto Nancy Temple era más responsable de la Andersen SEC y el Departamento de Justicia que han intentado ANDERSEN AS FIRME Y también debe tener como objetivo a individuos concreta realizada ACTOS ILÍCITOS . En opinión del tribunal , las instrucciones eran demasiado vagas para permitir que un jurado para encontrar realmente había ocurrido la obstrucción de la justicia. El tribunal consideró que las instrucciones fueron redactadas de tal manera que Andersen pudo haber sido condenado sin prueba alguna de que la empresa sabía que había violado la ley o que no había habido un enlace a cualquier procedimiento oficial que prohibía la destrucción de documentos. A pesar de la condena de Andersen fue anulada , no creemos que los empleados de Andersen actuaron de una manera ética en el caso de la fiscalía principales socios en la oficina de Andersen Chicago habían permitido Enron utilizar prácticas contables agresivas que eran cuestionables , dada la naturaleza de los negocios de Enron. 2 . Los temas...
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...Caso de estudio: Sears. Roebuck and Co. vs. Wall-Mart Stores, Inc. Por Daniel Escobillana, Christl Hepner y Caterina Ojeda 1- ¿Cómo difieren las estrategias de ventas al por menor de Sears y Wal-Mart? A pesar de ser dos compañías que comparten el mismo rubro, y compiten de manera similar en cuanto a sus modelos de negocios y estrategias, existen dos diferencias principales en el approach que tienen ambas en la forma de implementar su estrategia. La primera, en términos de valor agregado y diferenciación, y la segunda es en términos del modo de pago. En cuanto a qué ofrece cada tienda en cuanto a valor agregado a sus clientes, vemos que la estrategia de Walmart es mantener los costos de producción lo más bajos posibles, para de la misma manera, mantener los precios de ventas menos elevados que la competencia. Esto se ve reflejado en su lema “Precios bajos todos los días”. Por otra parte, Sears optó por una reorientación de su mezcla de productos, para aumentar las ventas apelando a una clientela objetivo de clase media, es decir, busca diferenciarse en términos de exclusividad. Esto se ve reflejado en el lema: “Venga y vea el lado más elegante de Sears”. La segunda diferencia tiene que ver con las facilidades de pago, específicamente, el crédito. Por una parte Sears administra su propia tarjeta de crédito, en cambio la tarjeta de Wal-Mart era emitida por el Chase Manhattan Bank y el riesgo de no pago era asumido por el mismo. Esto afecta los resultados de ambas empresas...
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...Scandal BU486-B : Accounting Information Systems and Computer Audit & Controls Kevin G. Bullock Wilfrid Laurier University Alexander Brik - 110882860 Aman Smagh – 110257570 Jack Welton – 100791540 Zaid Iqbal – 110184970 Synopsis of the Case In April and May of 2012, JP Morgan Chase & Co. incurred major trading losses of $6 billion dollars. However, JPMorgan’s financial statements represented these losses as only $2 billion. The losses were the result of risky bets taken in the credit markets by a trader named Bruno Iksil. Iksil worked at JP Morgan’s London office, and made extremely large trades in the credit markets. Because of this, Iksil earned the nickname “London Whale,” and this entire scandal is referred to as the “London Whale Scandal.” In the worlds of finance and gambling, whales are people who “play” with very large sums of money. This debacle started in JP Morgan’s Chief Investment Office (CIO), in the London branch of the firm. CIO’s are central to any major bank. Their purpose is to invest the difference between deposits the bank has on hand from its customers and the credit lent out to borrowers. This difference is called the bank’s reserves. With $1.1 billion in deposits and $750 billion on loan, JP Morgan’s CIO handled assets in excess of $350 billion. In theory, CIO’s are supposed to keep the reserves safe and to protect them against inflation. However, in reality, most CIOs will enter into more risky investments in order to earn higher returns...
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...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 taking...
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...In May 2012, JP Morgan's trading loss should send shudders down the spine of shareholders, management and regulators. Jamie Dimon, CEO of JP Morgan, says it was the chief investment office (CIO) that should responsible for a $2 billion loss. He claims that the reason of loss is because CIO ignore the risks or don’t realize the risks associated with the positions in the investment. Based the failure investment and after reading the whole background of the case, I think JP Morgan should make some changes in their internal board arrangement. In other worlds, JP Morgan should increase the considerable power for CEO and CRO should be empowered to oversee risks. Increasing expertise to know what risk management details are is necessary; after all, risk management needs to run deep. The direct reason for JP Morgan’s loss is taking exceptionally large positions in credit default swaps (CDS); this phenomenon is also called “London Whale”. Therefore, we can find the director’s role in enterprise-wide risk is absolutely important. Director should responsible for enterprise risk management, identify potential risks and manage risk within the risk appetite and protect their shareholder’s value. These responsibilities can also involved fiduciary part, be loyalty and care their clients’ interest is needed. However, JP Morgan’s director is not sufficient responsible for their duty, internal board arrangement need to be changed and improved. The performance of JP Morgan’s risk management...
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...Table Of Contents Brief Company Information Brief History and Company Information----------------------------------------------------------- 2 Mission and Vision Statement------------------------------------------------------------------------3 Industry and Competitive Analysis Industry Dominant Economic Features-------------------------------------------------------------4 Porter’s Five Competitive Factors-------------------------------------------------------------------4 Key Success Factors-----------------------------------------------------------------------------------6 Driving Forces------------------------------------------------------------------------------------------8 Industry Competitors-----------------------------------------------------------------------------------9 Strategic Map-------------------------------------------------------------------------------------------10 Strategic Position Hambrick Model---------------------------------------------------------------------------------------12 SWOT Analysis----------------------------------------------------------------------------------------14 Company Competitive Strategy----------------------------------------------------------------------17 Leadership and Corporation Culture-----------------------------------------------------------------19 Company Resources and Competencies-------------------------------------------------------------21 Competitive Strength Assessment-------------------...
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... regulation and/or a direct threat to public interest, such as fraud, health and safety violations, and corruption. Whistleblowers may make their allegations internally to other people within the organization, or externally to regulators, law enforcement agencies, media outlets or to groups that are concerned with the issues they are bringing forth. In this paper I will describe key characteristics of a whistleblower and give details on a recent case. History of Whistle blowing and Recent Case The Key characteristics of a Whistle-blower are a person who is honest and fearless. Whistle-blowing requires a person to have tenacity and a fighting spirit because those who take the action to Whistle-blow are in for a long, tough road. Whistle-blowers are often put under public scrutiny and shunned by co-workers and communities and go through long strenuous legal battles before seeing any justice served. Whistle-Blowers also must combat retaliation from their employers, such as being fired or put on work suspension. The first case of whistle-blowing occurred nearly 236 years ago. By a unanimous vote, The Continental Congress enacted the first whistleblower protection law in the United States on July 30, 1778. The Continental Congress was moved to act after an incident in 1777, when Richard Marven and Samuel Shaw “blew the whistle” and suffered severe retaliation by Esek Hopkins, the commander-in-chief of the Continental Navy. Congress...
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...J P MORGAN CHASE Vs. CITIGROUP TO : PROF FRANK OWARISH BY : RAYAN SEQUEIRA ZHOUXIA WANG HOMAR WRIGHT DARA SIU WAN HO TABLE OF CONTENTS EXECUTIVE SUMMARY 3 INDUSTRY BACKGROUND 4 COMPANY PROFILE 6 RATIO ANALYSIS 8 ANALYSIS OF OPERATING ACTIVITIES 9 ANALYSIS OF INVESTING ACTIVITIES 11 ANALYSIS OF FINANCING ACTIVITIES 13 COMMON SIZE ANALYSIS 19 DEBT AND EQUITY FINANCING 20 INDUSTRY STANDARDS 22 FUTURE PROSPECTS 23 CONCLUSION 26 REFERENCES 27 APPENDIX 28 Page 2 of 33 EXECUTIVE SUMMARY The financial statement analysis of JP Morgan Chase and Citigroup has been conducted and compared with each other to understand how one is performing in relation to the other. Further, the two companies are also compared against the industry standards to know their positions. Since the two companies operate in the banking industry, they have similar components in their financial statements, which facilitate better comparison of their financial health. For the purposes of the analysis, we have considered the cash flow statements, balance sheet, income statement and the notes to the 10K. Further, the ratio analysis has also been conducted to assess its financial efficiency. JP Morgan Chase used in approximately $3.752 billion cash in its operating activities while the Citigroup provided for $35.686 billion cash for its operating activities. In terms of the investing activities JP Morgan...
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...[Type the company name] | Ethical Breaches in the Bank | A Look in the London Whale Scandal | ACC557 Professor Brandy Havens | Kristi Spann | 1/23/2014 | | In recent times, there have been several ethical scandals that, in some cases, destroyed companies. The most infamous scandal was Enron. Enron was an energy company that was formed in 1985. It was the seventh largest energy company in America. According to Forbes.com, the charges related to knowingly manipulating accounting rules and masking the enormous losses and liabilities of the company. Ultimately charges were brought against the company’s high ranking executives including former CEO Jeff Skilling and his successor Kenneth Lay. They were charged with over twenty charges by the SEC (Securities Exchange Commission) and sentence to prison. Unfortunately, Kenneth Lay passed away before he was sentenced. Scandals like as Enron affected many people such as shareholders, employees, customers, and the economy. Shareholders lost their investments, employees lost their jobs, and customers lost their services. With all the losses, the economy was affected. Because of this scandal, Congress passed the Sarbanes-Oxley Act in 2002. Under this law, corporations would be held accountable for their actions. Organizations are required to be transparent. Under the Sarbanes-Oxley Act in section 302, one of the parts that are required by organizations is for the financial reports to reveal any and all internal...
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...The recent JP Morgan debacle has become the eye of the storm about excessive pays of top management. Given the significant losses reported, there is a need for some drastic steps for both image building and strategy correction in regard with compensation practices. JP Morgan issue: JP Morgan’s decisions in this case are especially significant because the causes are not the usual ones — fraud, rogue trading etc. The problem is the loss of capital and reputation. At firms like JP the approach to risk management revolves around holding people accountable for their decisions. In fact there are rules governing “recoveries” for such undesirable acts in JP Morgan proxy statement. It stated that a clawback review could be conducted "as a result of a material restatement of earnings or by acts or omissions of employees." Even in the 2011 annual report, they said the stock-based compensation awards were subject to such clawback provisions. One question that can be asked is if this is a “material loss” of this magnitude material? This is answered by the fact that JPMorgan felt that they needed to disclose the problem trade. This points to the fact that the bank realized that “materiality” threshold was reached. Another issue addressed in the proxy is that a payback can be demanded if the employees act“improperly or with gross negligence fail to identify, raise, or assess, in a timely manner and as reasonably expected, risks and/or concerns with respect to risks material to the...
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...any justice served. Whistleblowers also must combat retaliation from their employers, such as being fired or put on work suspension. The first case of whistle-blowing occurred nearly over 200 years ago. By a unanimous vote, The Continental Congress enacted the first whistle-blower protection law in the United States on July 30, 1778. The Continental Congress was moved to act after an incident in 1777 when Richard Marven and Samuel Shaw “blew the whistle” and suffered severe retaliation by Esek Hopkins, the commander-in-chief of the Continental Navy. Congress declared that the United States would defend the two whistle-blowers against a libel suit filed against them by Naval Commander Hopkins. The Continental Congress also declared it the duty of all persons in the service of the United States, as well as all others who inhabit the U.S. to inform the Continental Congress or proper authorities of any misconduct, fraud or misdemeanors committed by any officers in the service of these states, which may come to their knowledge (Lipman, 2012). A publicly traded company that has recently been in the news for whistle-blowing is JP Morgan Chase & Co. On March 7, 2014 a New York Federal Court awarded whistle-blower and former JP Morgan employee, Keith Edwards, $63.9 million for tips leading to a False Claims Act settlement in which JP Morgan Chase & Co. agreed to pay $614 million over allegations it defrauded the U.S. government into...
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...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...
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