Abstract July 2012, after one decade of the scandal ENRON and associates, the history was repeated, with one of the most prestigious banks, JPMorgan Chase had announced the losses of almost $ 5.8 billion from a dysfunctional trading operation, as a result of gambling with other people’s money, on Wall Street. JPMorgan’s report to the SEC that the bank recorded a $718 million loss from the London trades on its internal accounts, but did not report the loss in its first quarter earnings
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Q. 1. What were the major factors that led to the recent financial crisis? How did we get here? Answer: One of the primary factors that can be attributed as to have led the recent financial crisis is the financial deregulation allowing financial institutions a lot of freedom in the way they operated. The manifestation of this was seen in the form of: a) Financial innovations that were not backed up with adequate risk controls and management. b) Too much reliance on Quantitative Risk
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Alexander Jackson Business and Society Bonnie Stoltz February 17, 2015 Week #2 Application 1. Does this case indicate that JPMorgan and the federal government were in a collaborative partnership or working at arm’s length? Why do you think so? JPMorgan and the Federal Government were working at arm’s length in the beginning. JPMorgan, along with the other “big banks”, argued with congress about Imposing government rules when it came to the trading of derivatives. 2. Which stakeholders
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refinancing agreement covers debt held by creditors that include JPMorgan Chase, which holds about $1.22 billion of the sewer debt, the biggest block; three bond insurers; and seven hedge funds, according to a term sheet circulated in a meeting of the county commission on Tuesday. The terms call for these creditors to receive about $1.84 billion for the $2.4 billion of debt they now hold. The concessions were weighted most heavily toward JPMorgan, the term sheet said, "to increase the recovery of other sewer
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FREEPORT 1. Why do you think JPMorgan and Merrill Lynch were selected to underwrite and book-run all $23.3 billion in financings (all debt, common stock, and convertible), instead of sharing the underwriting with additional firms? JPMorgan and Merrill Lynch were selected to underwrite and book-run all of the financings because together they committed $6 billion in bridge loans and to underwrite the entire $17.5 billion in debt financing, plus $1.5 billion in credit lines. This created significant
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FREEPORT 1. Why do you think JPMorgan and Merrill Lynch were selected to underwrite and book-run all $23.3 billion in financings (all debt, common stock, and convertible), instead of sharing the underwriting with additional firms? JPMorgan and Merrill Lynch were selected to underwrite and book-run all of the financings because together they committed $6 billion in bridge loans and to underwrite the entire $17.5 billion in debt financing, plus $1.5 billion in credit lines. This created significant
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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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SESSION 9 PRE-WORK 1000 words max in total, although some questions may require more than 100 words (question 5). P.C: “Freeport-McMoRan: financing an acquisition” 1/What is a poison pill? What is a white knight? A poison pill is a shareholders’ right plan approved by the Board of Directors of a corporation to discourage hostile takeovers. There are two types of poison pills: a) Flip in: shareholders have the right to buy more shares at a discount, if a bidder buys
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structure. This allows for the company to manage the profitability for each individualized department. We have the Consumer and Community Banking department (consumer banking and lending), Commercial Banking (business banking and lending), and our JPMorgan division (investment services) (Client Services, 2015) Within each of these three divisions, there are departments for research and development, marketing, sales, accounting, etc. Now the fear of having a divisional structure is that many employees
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the board to consider: Option 1: Merit could approach JPMorgan Chase, a bank that had served Merit well for many years with seasonal credit lines as well as medium-term loans. Lehn believed that JPMorgan was unlikely to make a $4 billion loan to Merit on its own, but it could probably gather a group of banks together to make a loan of this magnitude. However, the banks would undoubtedly demand that Merit limit further borrowing and provide JPMorgan with periodic financial disclosures so that they could
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