...L1F07BBAM2075 SECTION: A Washington Mutual ACKNOWLEDGEMENT In the name of Almighty Allah who is most Merciful, and who give us strength to accomplish honors. We take this opportunity to acknowledge our teacher’s efforts Miss Kainat Riaz without which our success would not have been possible. Also would like to pay my gratitude to the very cooperative group members Omer, Waqas and Zubair and also want to applaud our parents for their selfless efforts and cooperation. Executive Summary This report explains that what were the rise and fall of the Washington Mutual the 119 year old bank. How JP Morgan acquired this bank? How it got bankrupt? CONTENTS Acknowledgement 2 Executive Summary……………………………………………………………………………….2 History of WASHINGTON MUTUAL 4 Principle Line of Business...............................................................................................................5 Reasons of Rise of Washington Mutual…………………………………………………………...6 Reasons of fall of Washington Mutual……………………………………………………………8 Conclusion……………………………………………………………………………………….12 Recommendations…………………………………………………………………………..........13 References………………………………………………………………………………………..14 Washington Mutual Introduction of Washington Mutual Washington Mutual, Inc. is a savings bank holding company and the former owner of Washington Mutual Bank, which was the United States' largest savings and loan association. Washington Mutual was incorporated as the Washington National Building Loan and...
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...WORST AND BEST CEOS OF 2008 Jamie Dimon, 52 CEO, JPMorgan, New York Dimon largely shunned the subprime bets and exotic financial instruments that brought down rivals. As a result, JPMorgan was able to pick up the pieces of Bear Stearns when it imploded in March and later absorb collapsed mortgage lender Washington Mutual. That doesn’t mean JPMorgan is immune to the turmoil. “We are not holding ourselves up as paragons of virtue,” says Dimon. “We were not exceptional in every category. But if you don’t do a good job for the customers, you’re never going to do a good job for the shareholders. That’s the point of a commercial enterprise.” Takeo Fukui, 64 CEO, Honda, Tokyo While it has outperformed rivals with fuel-efficient small cars, even Honda sees fewer sales. Fukui has cut costs, but he refuses to skimp on innovation and research. Best advice he’s received: “The basic social responsibility of a business is to both maintain employment and meet the obligation to pay taxes.” Great book: How to Stop Worrying and Start Living by Dale Carnegie. “Regardless of my job description, as an engineer or member of company management, this book provided spiritual support when I faced difficult challenges in the business world.” Jim Sinegal, 73 CEO, Costco, Issaquah, Wash. Many retailers scrambled to raise prices this year amid rising costs. Not Sinegal. He held back price increases longer than his peers to gain market share for his membership-only chain. The move paid off: 87%...
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...What caused the financial crisis of 2008 and who is responsible for it? My original intent for this paper was to argue that market failure, particularly in the housing sector, was the primary cause for the crash. Unfortunately my research has lead me in a different direction. According to the discussions we had in class that means I should be arguing from the perspective that the crisis was caused by government intervention then, right? I’m not so sure that’s the case either. Instead I’ll argue that the financial crisis of 2007-08 and the following “Great Recession” were the result of a perfect storm of both regulatory and market failure. Senators Carl Levin and Tom Coburn lead a 2-year long Senate subcommittee investigation into the crash. In April 2011 they released a 635 page report on their findings where they concluded that there was indeed no singular cause of the crash. The bipartisan subcommittee implicates several primary causes. Inflated credit ratings on mortgage related securities are cited as being “…the most immediate cause of the financial crisis…” The two primary rating firms, Standard & Poors and Moody’s had been assigning risk profiles to mortgage related securities similar to that of Treasury Bills – widely regarded as the most secure investment you can make since the government can just print money to pay you. In July of 2007 both firms did massive downgrades that exposed how risky these investments actually were. The downgrades resulted in a...
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...Tell Us About Yourself Mandatory fields are marked with an asterisk.Please answer the following questions as accurately as possible. 1. Are you proficient or fluent in any of these languages? Arabic Bengali Chinese (Cantonese) Chinese (Mandarin) Chinese (Other) English French German Gujarati Hindi Italian Japanese Korean Portuguese Punjabi Spanish Urdu Other (please specify in profile) 2. Do you have the legal right (i.e. appropriate documentation/work permit) to work in the location in which you are expressing an interest? Yes No 3. For U.S. positions only: Can you, within three days of employment, submit verification of both your identity and your authorization to work in the U.S. pursuant to the U.S. Immigration Reform and Control Act of 1986? (Applicants to positions outside of the U.S. please choose N/A) Yes No N/A 4. For U.S. positions only: Will you presently or in the future require sponsorship for employment visa status (e.g. H-1B status)? (Applicants to positions outside of the U.S. please choose N/A) Yes No N/A 5. For U.S. positions only: (Applicants to positions outside of the U.S. please respond N/A) Is any additional information relative to change of name, use of an assumed name or nickname necessary to enable a check on your arrest/conviction, work or school records? If yes, please provide other names used with dates in the following format: (first/middle/last) Date(mm/yyyy) or N/A if not applicable. 6. Are you related to an employee of J.P. Morgan Chase &...
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...Competitive Strategies and Government Policies Paper Maryna Lambropoulos, Trenton Acrey, Jose Esquivel & Jorge Benitez ECO/365 January 7, 2015 Matthew Mulyanto Competitive Strategies and Government Strategies Paper Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified financial services company with $1.6 trillion in assets. Founded in 1852, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, approx. 12,500 ATMs, online banking and asset management at wellsfargo.com, and mobile apps for mobile devices so you can access your accounts on the go. With headquarters located in San Francisco, Wells Fargo has more than 265,000 team members in 36 countries across our approximately 90 businesses. At the end of the third quarter 2014, Wells Fargo ranked fourth in assets among United States banks and was the world’s most valuable bank by market capitalization. In 2013, Euromoney named Wells Fargo “Best Bank” in its Global Awards for Excellence, the first time a United States based bank has won the top award. Wells Fargo Bank is one of the largest banks in the United States. Prior to 2008 through 2010, WFB had many United States based competitors, but that number has decreased due to bank failures and mergers. The number of United States Banks fell by 12% between December 2006 and December 2010. During that same period, U.S. deposits held by the 10 largest banks rose from...
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...Colby Bowles Personal Response 4/3/13 In the October 2012 New York Times article, “The Woman Who Took the Fall for JPMorgan Chase,” author Susan Dominus provides an in-depth look at the rise of JPMorgan Chase’ chief investment officer, 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...
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...Aligning Strategy and Sales 2012 December 2 - December 7, 2012 Schedule for Sunday, December 2, 2012 Time 11:00 - 3:30 PM 4:00 - 5:45 PM Event Registration Opening & Introductory Case Session Instructor: Frank Cespedes Location McArthur Hall Program Office McCollum 101 Cabot Pharmaceuticals, Inc. (510030) 5:45 - 6:30 PM 6:30 - 7:30 PM 7:30 PM Opening Reception Opening Dinner Individual Preparation McArthur Hall Lounge Kresge South Terrace Copyright 2012 President and Fellows of Harvard College Aligning Strategy and Sales 2012 December 2 - December 7, 2012 Schedule for Monday, December 3, 2012 Time 7:00 - 8:00 AM 8:00 - 8:45 AM 9:00 - 10:15 AM Event Breakfast Discussion Groups Case: Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition Instructor: John Wells Location Kresge Boardroom Assigned Living Group McCollum 101 Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition (796109) 10:15 - 10:30 AM Class Photo 10:30 - 10:45 AM Break 10:45 - 12:00 PM Lecture: Strategy Articulation Instructor: John Wells 12:00 - 1:00 PM 1:00 - 1:40 PM 1:45 - 3:00 PM Lunch Discussion Groups Case: Edward Jones in 2006: Confronting Success Instructor: Frank Cespedes Kresge Boardroom Assigned Living Group McCollum 101 Baker Library McArthur Hall Lounge McCollum 101 Edward Jones in 2006: Confronting Success (707497) 3:00 - 3:15 PM 3:15 - 4:15 PM Break Lecture: Making & Articulating Strategic Choices Instructor: Frank Cespedes 4:15 - 6:15 PM 6:30...
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...James “Jamie” Dimon, JPMorgan Chase's CEO, is one of America's most powerful and outspoken bankers. Dimon's career in the brokerage business seemed preordained by his lineage. His grandfather, a Greek immigrant from Smyrna, was a broker and passed on his knowledge of the business to his son and partner, Theodore Dimon. Jamie Dimon's father and grandfather worked together for 19 years, and Dimon worked summers in their New York office. In 1978 Dimon graduated cum laude from Tufts University. He worked for the Management Analysis Center, a consulting firm in Boston, for several years and then enrolled in Harvard Business School. While a student at Harvard, Dimon interned at Goldman Sachs and was offered a job there after graduation in 1982. He declined, instead going to work for the mentor who would profoundly shape his career: Sandy Weill. From 1982 to 1985 Weill and Dimon teamed up at American Express, where Dimon signed on as vice president and assistant to the president. Dimon's abilities to crunch numbers meshed well with Weill's people skills. When Weill was forced out of American Express, he made Dimon his second in command at the little-known consumer-lending outfit that he bought called Commercial Credit Company. That tiny firm was the beginning of what would eventually become Citigroup. Dimon was a key member of the team that launched and defined Commercial Credit's strategy. He served as the company's chief financial officer and an executive vice president and then...
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...After the financial crisis, the executive’s compensation was not as huge as in the video. The highest paid executive in financial industry in 2012 was Kenneth Chenault from American Express. James Gorman, which is the chief executive of Morgan Stanley, got paid $10.4 million in 2012. The JPMorgan’s chief executive-Jamie Dimon got paid by 20 million dollars for 2013 which is 74% more than 2012. However, JPMorgan narrowly escaped a criminal guilty plea and paid more than 20 billion in regulatory fines. The board seemed to think that Mr. Dimon deserves credit for handling all these regulatory matters. The board thought Mr. Dimon deserved credit for navigating the bank through a treacherous regulatory and political environment while continuing to improve the bank’s financial performance. But the board somehow choose to forget he got the company into trouble in the first place. Mr. Raymond, the chairman of compensation and management development committee of JPMorgan said that the compensation committee went through an exhaustive process to determine the right level and the board considered the likely negative reaction. When we take a look to Mr. Raymond’s old job, the 20 million is just a piece of cake. Mr. Raymond is the former long-serving chairman and chief executive of Exxon Mobil. While he was at Exxon Mobil, his compensation was often criticized as excessive, as was his retirement package, valued at nearly 400 million. Wall Street executives are still being lavishly...
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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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...JP Morgan Amends Interim Financial Statements ACC 537 March 29, 2014 Professor Refi Raza JP Morgan Amends Interim Financial Statements The company chosen for review, based on their amendment to a Financial Statement, was JP Morgan Chase (JPM). After considerable review, JPM announced on 13 July 2012 they would amend their first quarter 2012 interim Financial Statements. When JPM first published their interim Financial Statements for the first quarter the method they used for valuation was within the allowable limits. However, they discovered that the integrity in which the traders within Chief Investment Office (CIO) marked the positions of synthetic credit portfolios was questionable. It appears that the valuations may not indicate an accurate reflection of the total losses within their portfolios. Given that the total losses may not be reflected correctly, JPM decided to amend their interim Financial Statements for the first quarter. While the article did not explicitly state which accounting principle was used to arrive at their decision, this writer, using their accounting knowledge, surmises the Full Disclosure Principle was the reason JPM decided to amend their interim Financial Statements for the first quarter. JPM could have left their first quarter Financial Statements alone since it did not affect their total earnings or revenues for that portion of the year. Since JPM’s total earnings and revenues for the first quarter were not changed, they could...
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...The Rainmakers 1. Describe the steps in the process that J.P. Morgan Chase uses as it creates teams, blending its own employees and those from the banks it has acquired. Mainly how they formed a team was to pick the strongest employees. Dimon was seen as both a risk taker and a team player. The banks name for him was a rainmaker which is an employee who is very successful at attracting new, wealthy clients for his or her team. They five employees that he took from Citigroup where also seen as top employees so he came to J.P Morgan with a strong team already. He was known to handle delicate tasks of merging employees. The team was also brought together by bringing them into an effective workplace, integrating functions, brands, and people across all of the banks businesses. 2. What benefits would JP Morgan gain by using blended teams? What difficulties will it have to overcome as it goes through the process of team formation. Benefits that are gained is bringing people together with strong skills from two different companies and making/helping the company to grow. There will be plenty of issues because you are working with a lot of leaders, people that are use to taking charge rather than working together. It is just as Susan Nash states in the reading, “the toughest thing to do is get people to….let go of their heritage.” and that was a wise statement. Sometimes people do not know how to except change and still want to do things the way that they feel is...
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...JP Morgan Chase Katherine Phillips Timothy Kellum Business Law/LEG 100 March 8, 2013 JP Morgan Chase announced a trading loss from investment decisions made by three managers that was in the Chief Investment Office (CIO) of 5.8 billion. Those three men were let go soon after and could lose at least two years of income. The traders involved were also let go from the bank with no severance. The CEO Jamie Dimon commended the Ina Drew who was over the office and Dimon volunteered to give two years’ of pay. Drew retired after the trades were exposed. The Securities and Exchange Commission (SEC) enforces the Securities Act of 1933 and 1934. Act 34 consists of disclosure requirements for public companies. Act 34 requires companies to file quarterly and annual financial statements and other documents with the SEC. The documents are publicly available through the SEC database. The documents have to be accurate and represent the company’s financial position and operations. The four elements of a valid contract are capacity, offer and acceptance, consideration and compliance with the law and public policy. The duty of good faith and fair dealing in the banking relationship is a general belief to a contract that will treat each other honestly, fairly and in good faith. It is done either verbal or written. The breach of the contract will result in a lawsuit and the courts decide the disputes between parties to contracts. Intentional tort is a civil wrong doing...
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...|Name of the acts |Needs of the acts |Outcomes of the acts | |1933 glass steagall act: |There was a need to curb and control the |This act separated investment and commercial | |The Glass-Steagall Act, also known as the |activities of investment banks and commercial |banking activities. | |Banking Act of was passed by Congress in 1933|banks. |Prohibited commercial banks sales of | |during a nationwide commercial bank failure |To get rid from the Great Depression of the |securities | |and the Great Depression. Two members of |economy. | Created the Federal Deposit Insurance | |Congress put their names on what is known |Commercial banks were accused of being too |Corporation (FDIC), which insures bank | |today as the Glass-Steagall Act (GSA). |speculative in the pre-Depression era, not |deposits with a pool of money appropriated | | |only because they were investing their assets |from banks. | | |but also because they were buying new issues | Public confidence was restored by the act in | | |for resale to the public...
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...While the parade of failures still represents a mere fraction of America’s small banks, it underscores a growing divide between them and large institutions like Goldman Sachs, JPMorgan Chase and U.S. Bancorp, which are slowly growing stronger as the economy improves. Burdened by worsening commercial real estate loans, many small banks’ troubles are just beginning. Many analysts say that the now-toxic loans could sink hundreds of small lenders over the next few years and place a significant drag on the economy. Already, the bank failures are placing enormous strain on the F.D.I.C. and its fund, which keeps depositors whole. Flush with more than $50 billion only two years ago, the fund recently fell into the red. The prospect of more failures has led the F.D.I.C. to seek new ways to replenish the fund with higher and earlier payments by healthy banks, even after setting aside reserves for future losses. The initial wave of failures has also unsettled some communities, even though most of the troubled institutions have been bought by other banks rather than shuttered. While deposits are safe thanks to federal insurance, the new buyers often do not have the same ties to local businesses as the former owners. In some cases, they tighten lending and make it harder for longtime customers to obtain loans or favorable terms. In other cases, managers of the new bank make other changes, like ending offers for high-interest certificates of deposit and calling in certain lines...
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