JP Morgan could also emit bonds for the government, and a nice fee could be made out of that. However, should government spending be excessive, this could lead to inflation, which would seriously affect the bank's activity and profit margins. The ways in which JP Morgan would feel the effects of fiscal policies are countless. The conclusion however is that the bank's well-being really depends, just like with all other companies, on the general favorable situation in the economy.

References:

1. -- Kelly, Tom- "Economics" - Chapter 12: Fiscal Policy - Baylor Business http://business.baylor.edu/Tom_Kelly/2307ch12.htm

Greg Ip. Why Today's Soaring Deficits Don't Inspire Fears; Though New Threats Loom, Complacency Has Reigned Since '80s Concerns Faded
. Wall Street Journal. (Eastern edition). New York, N.Y.: Jul 12, 2004. On the Internet at http://gateway.proquest.com.libproxy.unm.edu/openurl-url_ver=Z39.88-2004& res_dat=xri:pqd& rft_val_fmt=info:ofi/fmt:kev:mtx:journal& genre=article& rft_dat=xri:pqd:did=000000661569721& svc_dat=xri:pqil:fmt=text& req_dat=xri:pqil:pq_clntid=2877

Kelly, Tom- "Economics" - Chapter 12: Fiscal Policy http://business.baylor.edu/Tom_Kelly/2307ch12.htm