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Given the global nature of the industry, it is increasingly difficult for investment banks such as JP Morgan to manage human behavior. The Dow Chemical example shows the impact that communication and oversight can have. The U.S. subsidiary was forced to enforce the company's codes of behavior on a foreign subsidiary that clearly did not understand the company's mission or outlook on the issue. The Dow deal would have been sour, and could have earned the company a reputation for putting profit ahead of ethics. Retrieved April 22, 2009 from http://files.shareholder.com/downloads/ONE/622180208x0x283416/66cc70ba-5410-43c4-b20b-181974bc6be6/2008_AR_Complete_AR.pdf
The deal almost happened -- the U.S. company was only alerted to the negotiations out of England by the conflict of interest office. The organizational structure therefore played a strong role. The company is structured around business unit, not geography. This means that New York still holds some degree of oversight into the activities of the subsidiaries. The weak matrix structure therefore provides an opportunity for head office to ensure behavioral standards are met across the entire company, providing a critical layer of support.
Works Cited:
No author. (2008). The History of JP Morgan Chase & Co. JP Morgan Chase. Retrieved April 22, 2009 from http://www.jpmorganchase.com/cm/BlobServer?blobtable=Document&blobcol=urlblob&blobkey=name&blobheader=application/pdf&blobnocache=true&blobwhere=jpmc/about/history/shorthistory.pdf
Ellis, Katrina; Michaely, Roni & O'Hara, Maureen. (2005). Competition in Investment Banking: Proactive, Reactive or Retaliatory? Cornell University. Retrieved April 22, 2009 from http://forum.johnson.cornell.edu/faculty/michaely/Competition%20in%20Investment%20Banking.pdf
Moore, Heidi N. (2008). Banking Ethics 101: How JP Morgan Fought Itself and Won. Wall Street Journal. Retrieved April 23, 2009 from http://blogs.wsj.com/deals/2008/06/03/banking-ethics-101-jp-morgan-and-dow-chemical/
Hoffman, Douglas G. (2002). Managing Operational Risk. Retrieved April 22, 2009 from http://books.google.com/books?id=qBCegetwV0cC&pg=PA460&lpg=PA460&dq=JP+morgan+competition+managing+behavior&source=bl&ots=2x7zQuXsSw&sig=VPYa4ngywbMy4Dn1Pq-zv52muDY&hl=en&ei=z-3vSfKUIZeclQekuoCzDA&sa=X&oi=book_result&ct=result&resnum=6
Works Cited:
No author. (2008). The History of JP Morgan Chase & Co. JP Morgan Chase. Retrieved April 22, 2009 from http://www.jpmorganchase.com/cm/BlobServer?blobtable=Document&blobcol=urlblob&blobkey=name&blobheader=application/pdf&blobnocache=true&blobwhere=jpmc/about/history/shorthistory.pdf
JP Morgan website: Retrieved April 22, 2009 from http://www.jpmorgan.com/pages/jpmorgan
JP Morgan Chase 2008 Annual Report. Retrieved April 22, 2009 from http://files.shareholder.com/downloads/ONE/622180208x0x283416/66cc70ba-5410-43c4-b20b-181974bc6be6/2008_AR_Complete_AR.pdf
Ellis, Katrina; Michaely, Roni & O'Hara, Maureen. (2005). Competition in Investment Banking: Proactive, Reactive or Retaliatory? Cornell University. Retrieved April 22, 2009 from http://forum.johnson.cornell.edu/faculty/michaely/Competition%20in%20Investment%20Banking.pdf
Moore, Heidi N. (2008). Banking Ethics 101: How JP Morgan Fought Itself and Won. Wall Street Journal. Retrieved April 23, 2009 from http://blogs.wsj.com/deals/2008/06/03/banking-ethics-101-jp-morgan-and-dow-chemical/
Hoffman, Douglas G. (2002). Managing Operational Risk. Retrieved April 22, 2009 from http://books.google.com/books?id=qBCegetwV0cC&pg=PA460&lpg=PA460&dq=JP+morgan+competition+managing+behavior&source=bl&ots=2x7zQuXsSw&sig=VPYa4ngywbMy4Dn1Pq-zv52muDY&hl=en&ei=z-3vSfKUIZeclQekuoCzDA&sa=X&oi=book_result&ct=result&resnum=6
It was from Pecora's hearings that many of the standards and regulations affecting the financial industry emerged, and continue to govern the way the 'street' does business today. It was also the time of the Glass-Steagall Act. The roaring twenties gave way to the Depression Era of the 1930's and still J.P. Morgan bore the standard for financial firms on Wall Street. The firm was the first one to be investigated
It also indicates that to some extent the company's strong growth between 2004-2007 was as attributable to industry-wide expansion. So while on the surface, JP Morgan's numbers look exception, they were merely just riding the wave that carried all of the industry's main players. Likewise, the struggles of 2008 were more directly related to the industry's struggles as a whole than anything specific to JP Morgan. The trading desk lost
JP Morgan Chase Role of administrative agencies The securities and the banking system of a country are known to be one of the strongest and the most important foundations of an economy. To ensure that these systems do not move into negative or loss making territories, the government of a country requires keeping a check and control over the functions and operations of entities that are part of these securities and banking
Bank of America credit is rated Baa2, compared with A2 for JP Morgan Chase. Both of these banks have similar structures and similar product lines. Bank of America is more heavily oriented towards retail, while JP Morgan Chase has a strong investment banking business. The latter factor contributes to the superior stability of JP Morgan's business. Also contributing to the superior performance of JP Morgan is that the companies it
JPMorgan Chase, in 2012, announced one of the greatest losses through high-risk gambles in securities investments, which are an essential foundation of the U.S. economy. The incidence that occurred in the summer of 2012 resulted in an estimated of $5.8 billion loss in one of the country's biggest banks. The bank's chief investment officer, Jamie Dimon, announced the loss in May 2012. The losses, according to the CIO, resulted from
It must be remembered that Morgan Stanley has always considered Sydney an excellent location form which it would be possible to tap directly into Australia's skilled and highly productive multilingual workforce, who would be capable of providing human resources, global processing, and financial services for the region. In the year 2005 Morgan Stanly employed about 140 individuals, while today it employs about 220 people, and the number is expected