Essays on JP Morgan

Introduction

The financial crisis of 2007/9 was the worst in the U.S. since the Great Depression of the 1930s. It was the cause of the failure of some of the biggest financial institutions including Washington Mutual which was closed in 2008, and its assets transferred to JP Morgan. In 2008, the crisis reached its peak with loans dropping dramatically to the lowest levels to be witnessed in a half a century. For example, new loans to large borrowers fell by 47 percent in the fourth quarter of 2008 as compared to the previous quarter and by 79 percent relative to ...

On 20 Moorgate EC2, London City, UK

For Henvesco Manager of Central London Office Unit Trust (CLOUT) As of Real Estate Acquisition Team (REAT), London, UK Project no. Regarding: 20 Moorgate, London, UK In order to comply with your request, our team has conducted research on the market data and is through with the value analysis of the property named above. This study is therefore presented to you in a summarized report that narrates the factors surrounding the acquisition of 20 Moorgate EC2. This study is geared towards estimating the market value of the Estate “As is” on 31st March 2017.the report is therefore written in ...

The four stocks which I chose for the couple who have just retired are 3M, Facebook, JP Morgan Chase and Capital One. I chose these stocks because over the years these companies have exhibited substantial growth. They are already mature companies; thus, less risk is involved. Furthermore, they have registered high yields during the past years. For 3M, its second quarter 2016 results showed an EPS of $2.08, up by 3.0%, year-on-year. Moreover, the company has also declared $1.5 billion in dividends and gross share repurchases. The future for 3M looks bright as it has developed a new advanced ...

Introduction

Under a merger, two business entities come together and become a new business with a new name. On many cases, the mergers bring together firms, which are equal in size and stature. On the other hand, an acquisition involves a larger and more powerful company buying another business; a smaller business. The purchased business may be fully absorbed by the parent company or in some occasions, may be operated as a subsidiary. The use of mergers and acquisitions may take place during any economic environment meaning that it may take place when the companies involved are both performing well, ...

Introduction

In late 2007, the Dow Jones Industrial Average (DJIA) closed at a record low. Stock markets around the world nose-dived alongside the DJIA. Turbulence in the sub-prime segment of the US housing market, paralysis of the credit markets, excessive lay-offs in organizations, steep decline in investments etc. were all some of the indicators that the world was heading for a massive credit crunch. In the words of Mr. Strauss-Kahn, head of IMF, “Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown” (BBC ...

High-risk investments mean volatility associated with the returns on investments and stock prices change. Any investment transaction has a risk element. Moreover, the major proportion of the investment theory states that the potential profitability is inversely proportional to the risk level . At this, it is not important whether it goes about the passive investment, active stock transactions or new business projects. Risk allows earning much and provokes losing much because associated with potential losses even in the case of success. It is extremely important to understand quantitative and qualitative characteristics of risks, which affect the amount of the invested ...

PRESENTATION

PRESENTATION

Oil: West Texas Intermediate Crude Oil Spot Contract with a 40% share of the portfolio. The oil is the most important commodity in the world economy. It is used as the main source of energy in the world to empower the transport of goods and people, electricity generation and the use of its physical derivatives for polymer manufacture. The oil has always been attached to geopolitical tensions in Latin America and the Middle East, a very important factor in the price of the commodity. US Dollar: Dollar Index Spot with a 25% share of the portfolio. The US ...

Abstract

Banking and finance is arguably and in reality one of the biggest industries, if not the biggest. According to a recent report published by IBIS World, the banking industry has collective revenue of around $687 Billion. This is consolidated for the approximately 5,324 individual businesses and firms tied to the industry. In terms of its manpower size, the said report claims that the industry as a whole employs, both directly and indirectly, some 1.56 million people . If building doing business in the banking industry is being considered a venture, one has to factor in some important factors such ...

Succession Planning in Organizations

Appointive posts in organizations always have a set time limit under which an executive officer or director serves. An organization can have a compulsory retirement age of 60 years for Chief executive officer (CEO) and other senior management officials. When these people are approaching this age limit, an organization began a roll out program to start looking for CEO five years before the current officer leaves the office. In this case, when the current CEO reaches 55 years, the company will be on the lookout who will be the successor. Succession planning is highly practiced in organizations for the ...

ABSTRACT

The aim of this dissertation is mainly to analyzethe risk in the New York Stock Exchange using Statistical aspects and the computation of Value at Risk. The technique of Value at Risk or Value at Risk (VaR) is a methodology to standardize the calculation of the various risks that occur in a business e.g. banks, stock exchanges and corporations. The risk is defined as the probability of obtaining a result different than expected, the factors that will depend on the position of the entity, the risk factor under consideration and the time of calculation. Thus, the VaR seeks to establish quantitatively the ...

It all started during 2006 when the US Justice Department came up with discovery of meeting of JP Morgan Executives where despite of red flag signals from US department, the officials continued selling shoody mortgage securities. JP Morgan- one of the largest banks in US, came to mutual agreement with US Government Officials to pay $13 billion as part of civil settlement against charges over JP Morgan. . The record penalty was the result of investigation held by Securities and Exchange Council and US Justice Department where they found that the big national banks were responsible for fueling the financial ...

The first foreign bond issue is the Gazprom bond issue. It is an Eurobond; which was issued in the Russian Ruble currency. The issue date was 21st February 2011. The maturity date for this Gazprom bond is 12th February 2017. The coupon is 5.136% per annum (Williams 31). Price for the Gazprom bond is 1,000 Rubles. However, details on the yield for this bond are unavailable. The seniority for these bonds has been set above that of other bonds by this company. This applies to those bonds which are of a term less than the expiry date of 2014. ...

Modernization of finance industry through the use of information technology (IT) is one of the important and most convenient developments in the insurance industry. However, with the risks attached to IT, the finance industry is currently facing the challenges of security breaches which affected the growth of some companies and the industry per se. This paper will discuss the IT issues confronting the industry, how it is likely to be resolved, and the future of the finance sector. Media organizations have reported various data breaches cases that affected the finance industry in the past few years. Martha C. ...

[Author Name(s), First M. Last, Omit Titles and Degrees] [Institutional Affiliation(s)] [Include any grant/funding information and a complete correspondence address.] In marketing, Positioning is a model that creates a framework for the business, and notifies the business about the strategies to be used to market the products or services to its customers. The product or service trademark identification is obtained through positioning, when the product comes into the market. Positioning requires that the business initially differentiates between a product and a service before launching them. Audience plays an important role in positioning, as the marketing teams create promotional activities ...

Answer 1)

Securities Exchange Commission and Commodity Futures Trading Commission have an important role to play in the US Economy. While the function and objetcivbe of SEC is to protect theinvestors by ensuring that all the public listed companies provide fair and accurate financial information through their mandatory SEC Filings every year. It also ensures order and efficiency in capital markets which facilitate capital formation in US economy. Thus, the approach of SEC, assure that the securities market in US Capital Market are fairly traded, which helps the investor to take high- risk gambles and allows them to make sound financial ...

J. P. Morgan Interview The organization I chose to conduct my interview is J.P. Morgan Chase. The reason I chose this organization to do my research is that I have several accounts with this bank and I love their service having never walked out of one of their banks disappointed. They know how to keep their customers happy. I am that glad that I got an opportunity to interview one of their bank managers to understand their company better. I ran into a little problem, the bank manager was too busy to talk to me, but he sent me ...

Types of Leadership Styles

Prior to begin discussing and researching on analyzing leadership styles of different CEO’s in corporate finance, it would be helpful to figure out basic leadership styles which are likely to be well-known in business and management circles. The scholar D.D. Warrick distinguishes four main styles of leadership: 1) “human relations leader”; 2) “democratic leader”; 3) “laissez faire leader” and 4) “autocratic leader” (158 – 162). The researcher applies certain criteria to define the styles mentioned above: the focus has been put on the fulfillment and workers. An autocratic leader pays a great attention to fulfillment process within a company but ...

Portfolio Management

Introduction The objective of this report is to understand the performance of various stocks ranging from different industry over a period of three weeks. The companies selected by us include: - Apple Inc. - Ebay Inc. - Delta Airlines - Coca-Cola Company - Bank of America - Wells Fargo - Banco Santander - JP Morgan - Progressive Corp - Pepsi - Mcdonald - AT&T The companies were selected as each one represented their industry significantly while the banking stocks were selected primarily because of recent growth ...

The term whistleblower refers to an individual who raises his/her concerns against the unethical or illegal activities of the organization. The employee may raise concerns either internally that is, within the organization or externally that is, any legal institution or organization (EthicalSystems.org). The misconduct of the firm that is brought under the spotlight may include activities such as; law violation, rule and regulation violation, threat to the organization’s stakeholders, fraud, health and safety violations, or corruption. As a result of bringing into notice, the unlawful activities of the organization whistleblowers often experience the reprisal from their fellow colleagues. In ...

Abstract

Marketing and advertising are two important aspects of managing a business, or to be more specific, of leading a business towards success. A product or a service offering may be good or even of the highest quality when compared to those that the competitions in the industry offer but if the marketing and advertising strategies used are not effective or not suitable to the target market, or in some cases, simply do not work the way how they are supposed to, then the actual sales and profitability or the company’s product or service may not reach the expectations . The objective of ...

Introduction: With data explosion and availability of everything via internet there is a transformation in the area of ethics, risk and compliance. It has become easy to track and trace misdoings, and illegal transactions.. Though, there have been sufficient measures to prevent risk and compliance, they have become ineffective now. The norm of compliance and averting risk has changed many folds. New and tough measure of deploying compliance and risk is mandatory. According to Keith Darcy an Independent Senior Advisor at Deloitte, the top five accounting and consulting firm, “Good Enough” is just no longer good enough (Deloitte.wsj.com, 2014). Mr. ...

- Discuss how administrative agencies like the SEC or the CFTC take action in order to be effective in preventing high-risk gambles in securities, banking, and foundation of the economy. The financial market is one of the pillars that make the United States economy a strong and stable one. To be able to contribute to the strength and stability of the economy, the financial market has to be strong and stable as well. There are various organizations that have been established to safeguard that strength and stability, two of which include the Securities and Exchange Commission (SEC) and the Commodities Futures ...

The economic meltdown in the US was, as a result, of the housing bubble burst that brought about a massive economic recession in the US. The film, Inside the Melt Down, depicts a series of large American corporations going bankrupt and their shares dropping down drastically due to the economic recession. For example, Bear Stearns is a one of the multinational investment company that took an economic downturn in that its shares dropped from $171 to only $57 in a single day. Given that the media aired out their concerns regarding the economic drift of the corporation, most investors withdrew from Bear Stearns. Despite ...

Introduction

The introduction of banks replaced the traditional method of storing money. During the Stone Age period, human beings stored their possessions in caves and caverns. An ancient Chinese legend talked of a dragon which was the kept by villagers to guard their treasure. The banking industry replaced the need for hiring animals and soldiers to guard their possessions. The advent of banking replaced the barter trade and signaled the demise of the traditional method of keeping money. The conventional banking system was first developed in England. Banks kept equal an equivalent amount of gold or platinum with the amount of ...

Debt of Capital: Debt or Equity

Debt signaling is a sign provided to investors and other stakeholders of the company that the company is going to issue debt financing or delay the issuance of this form of financing. If a company management decides to issue debt financing, it gives out a positive signal. A company that is in a stable financial position would be willing to issue debt. As interest has to be paid on debt, a company that has a stable financial basis would opt for this method of raising finance. On the other hand, if the company delays the issuance of debt financing it gives out negative signals. This ...

1. - Discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy. SEC plays a significant role in shielding the United States investors from likely loss of income. This takes place through maintenance of fair and orderly practices that encourage capital markets. The commission mandates every business to reveal meaningful information about the sold securities in order to ensure that decisions made by investors are well versed. Another significant role of SEC ...

Question 1

The United States economy needs to be protected from the high-risk gambles in the securities/banking, a basis of the economy. The administrative agencies such as the Commodities Futures Trading Commission (CFTC) as well as the Securities and Exchange Commission (SEC) should thus be at the forefront in protecting the economy by preventing these high-risk gambles in banking/securities. These two administrative agencies played a key role in inspecting massive trading losses in JP Morgan Chase case. The investigation by SEC could only center on completeness and appropriateness of the financial reporting of JP Morgan Chase as well as other public disclosures. ...

Introduction

Value of a risk (VaR) is widely defined as probabilistic measure of market risk. Financial analysts use VaR to predict the future value of the market portfolio. Previous scholars who invented this idea of VaR did not use the name value of a risk. However, names like dollar at risk (DaR), income at risk (IaR), capital at risk (CaR), and earning at risk were used in place of VaR. The name ‘value at risk’ originated within JP Morgan before 1985. Historically, value of a risk was developed though two parallel line. One of them was called Portfolio theory and the other ...

Organization Culture regarding linked article

Summary In the two referenced articles JPMorgan $2B Trading Loss Roils Markets, Raises Fears About Bank Risks (Mcguire & Kim, 2012) and In the two referenced articles JPMorgan $2B Trading Loss Roils Markets, Raises Fears About Bank Risks and Why JPMorgan May Have The Best Strategy On Wall Street we compare two different perspectives. In the first, the authors describe the huge loss incurred by the giant corporation JP Morgan Chase & Co. over the past 6 months. The article cites CEO James Dimon attributing these losses to “egregious” errors in a unit managing risks and “sloppiness and bad judgement”. It ...

Historical Development of Global Regulations - Basel I & Basel II

In 1988, central bankers from different countries gathered in Basel, Switzerland to deliberate on banking regulations that would chat the way forward for providing minimum capital requirements for banks. Despite being enforced by law in 1992, the 1988 Basel Accord is currently regarded as outmoded. There have been numerous developments with regards to risk management, financial innovation, and financial conglomerate thus making the provisions of Basel 1 outmoded. In 2004, Basel II was published to supersede Basel I. The main aim was to create global standards for central banks. The banking regulators were required to control the capital that ...