Jp Morgan Chase Executive Summary

Competition is quickly encroaching on SunTrust’s territory. The financial crisis helped rivals gain more presence in SunTrust’s core markets through key acquisitions. BB&T bank, one of SunTrust’s main competitors, recently increased its presence with its acquisition of Florida-based BankAtlantic. This acquisition increased BB&T’s deposit market share to 6th in the Miami market. (BB&T Corporate Profile)

The world has encountered two major economic slumps since World War I. The Great Depression was the longest financial crisis witnessed by the modern world. It started at around October 29th, 1929 and lasted up to the beginning of the Second World War in 1939 (Temin 301). The great depression was by far the worst and longest economic crisis ever recorded in modern history, until towards the end of 2007. The next economic crisis that would be comparable to the Great Depression occurred in the late 2000s, precisely between December 2007 and June 2009 (Roberts 1). It would be popularly referred to as the Great Recession. The Great Depression and the Great Recession were undoubtedly similar in multiple ways. This paper aims at comparing these two great economic crises by highlighting their similarities. This paper answers the question ‘How similar were the failures of the financial markets during the great depression

In the summer of 2012, JPMorgan Chase, the largest leading U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that hidden this massive loss.

Chase Bank is a national bank and constitutes the consumer and commercial subsidiary of JP Morgan Chase. Chase Bank traces its origins to Manhattan Bank, created by Aaron Burr (The History of JP Morgan Chase & Co., 2008, p.2). Chase was the first tenant at the Rockefeller Center and was later on led by David Rockefeller in the 1960’s (Wilson, 1986, p.87). The famous Bank One became part of Chase in 2014, and the regrettable Washington Mutual, under receivership, was sold to Chase at a bargain during the crisis of 2008 (The History of JP Morgan Chase & Co., 2008, p.19).

America is today. John Pierpont Morgan once said, “If you have to ask how much it costs, you can’t afford it.” It is assumed amongst most people that John never had to ask the price of anything because he had so much money. J.P. Morgan was a significant figure in America’s 20th Century because of his role in saving the economy, funding huge companies and creating a wealthy bank that is still around today.

JPMorgan Chase is amongst the big four banks in the U.S. with Bank of America, CitiGroup, and Wells Fargo. According to Bloomberg, in of October 2011 they surpassed Bank of America as the largest bank by assets. JPMorgan Chase & Co is considered to be a universal bank.

Banks have been at the forefront of the financial system for as long as they have existed and have captured the attention of stakeholders on both controversial grounds as well as being undisputed with regards to the many helpful services they provide. JP Morgan & Chase is one such bank, surrounded by hostile news articles and excessive scrutiny but rightfully so as it has of recent been the topic of much controversy as turning a blind eye to the moral codes established by the Securities and Exchange Commission (SEC) and assisting Ponzi Scheme masterminds in swindling unsuspecting investors.

Commonwealth Bank has become one of biggest bank of Australia; one of the reasons is ERP implementation. The ERP system helps the financial institution to communicate worldwide, talking about its various management department, for them it’s really effective. Such as using customer relation management software it helps in keeping the records of consumers in data warehouse, which can be used at the time when information needed by the bank. For Human resource management it provides 24/7 hours services to customers and also helping employees due to real time processing. Financial resource management, it gives the relevant data of clients like whether this consumer has positive records or not and provides credit on the basis of their history. Manufacturing resource planning, ERP supports the firm to know about happenings during production process. Supply chain management, to select the best suppliers for the cards, the bank needs Enterprise resource planning. However this software got some weaknesses like it may be expensive and chances of security issues are always.

The Scotiabank is one of the world’s most popular banks in North America and is located in Canada, Halifax. Founded in 1832, Scotiabank came to be the second largest bank in Canada. A year after its development, Scotiabank paid out its first dividend to shareholders. Having marked the method in history, it was carried out through the golden era to the modern era and is yet continued to this day. Scotiabank provides innovative financial products and services to individual customers, small/medium sized business, corporations and governments across the world.

Companies often use a (CPM) – Competitive Profile Matrix to better understand their external environment as well as their competition within the industry they operate. The matrix identifies a company’s key competitors and draws a comparison using the industry’s critical success factors. The analysis also reveals a company’s strengths and weaknesses against its competition, making them aware of problematic areas needing improvement and also areas that are doing well and need to be protected (See Appendix F).

What Is Strategic Management a process for defining and addressing the management implications of an organization's strategic and operational plans? A long-term context for short-term activities. Strategic management is the analysis of the work done by the management of an organization on behalf of the owners. It gyrates around expressing the purposes of the organization and coming up with an appropriate mission and vision statement. Mission and vision statement together are used to help develop policies and plans to be used in long term and short term goals often categorized as projects or programs. It also involves the right resources of management to ensure that the business profit are maximized to grow the company. Strategic Competitiveness

Due to the consequences of the recent financial crisis, the company has observed a significant decline in the investment activities of its clients all over the world. These consequences brought negative impacts to its financial performance.

The years up to 2008 were economically strong for Western economies and it stands to reason that investors believed this would continue. Of course this expectation of high levels of future demand for their output resulted in their accumulated capital being greater than if they were expecting the credit crisis and global recession which were to follow. When the realisation that there was to be the biggest recession since the Great Depression hit, the firms inevitably updated their beliefs on the present value of future cash flows and found that a proportion of accumulated capital would generate a loss due to lower demand causing revenue to fall. The convexity of the marginal-revenue-product of capital with positive, diminishing returns suggests that firms would reduce their accumulated capital until no longer loss making. It is now possible to incorporate investment.

The early 2000s recession was a drastic decline in economic conditions, which mainly occurred in the developed countries. From 2001, the Federal Reserve initiated a move to quell the stock market, caused successive inflation in interest rate, thus “plunging the country into” the worldwide economic recession (Ruddy, 2006). The annual GDP growth rate dropped below 1% along with the significant downturn in U.S. housing and the stock market. From 2002, the economy started to recover from the recession: the GDP growth rate slightly increased every month, the monthly house price index increased and the S&P index increased with an approximate one year lag. The year 2002 and 2003 are the “golden age” of recovery. The annual GDP growth rate increased to 2%-3% and the housing price index increases significantly with a slight increase in stock prices in 2003. Interestingly, although the GDP growth rate and the house price index started to increase in 2002, the stock market remained in recession until the end of the year.

According to the work examined in this study the global recession that occurred in 2008 and 2009 was partially a result of the financial industry's failure to be responsible for the decision it made in using financial instruments that were risk and very complex in nature. The culture of corporations were constructed on risk-based rewards instead of rewards that resulted in value for stakeholders. The financial risks that banks took on were not well comprehended by the public or regulators and the mass media also failed to understand the risks that the banks had entered into with certain financial agreements.