Assets
JPMorgan Chase is one of the oldest and most influential financial conglomerates on the planet. It is the largest public company in the world (according to Forbes magazine).
The financial institution, stationed in, New York is a leader in investment and commercial banking services. Assets of $2.3 trillion [put JPMorgan Chase in first place among the largest banks in - USA ahead of Citigroup and Bank of America. The hedge fund managed by JPMorgan Chase is the second largest fund of its kind in the United States with assets dollars of US 28.8 billion (2006). Formed by the merger of Chase Manhattan Corporation and J.P. Morgan & Co., the company serves millions of U.S. customers.
Aktivs
2022: Bank assets - 15% of US GDP
Performance indicators
2023
JPMorgan Chase captures nearly a fifth of profits for all U.S. banks and 13% of deposits
JPMorgan Chase captured nearly a fifth of the profits of all U.S. banks in the first nine months of 2023, taking advantage of a year of turmoil in the country's financial sector to become even more dominant.
The Wall Street lender is the largest U.S. bank by almost every metric, including earnings, deposits and affiliates.
When Jamie Dimon became CEO, JPMorgan accounted for about 8% of U.S. bank deposits; now it accounts for more than 13% of total deposits in the industry.
The most expensive bank in the world
History
2023
Staff reduction
Acquisition of First Republic bank assets after its bankruptcy
First Republic became the second largest bankrupt in the history of US banks. Among the biggest FDIC bankruptcies this century, three have occurred in the past few weeks, with Silicon Valley Bank and Signature Bank collapsing in early March 2023.
As of April 13, 2023, First Republic had assets of $229 billion, putting it in second place to Washington Mutual Inc., which collapsed in 2008 with assets of $307 billion and total deposits of $188 billion. The bank's deposit assets, its loan portfolio and the huge WaMu branch network all went to JPMorgan for $1.9 billion.
JPMorgan acquired another bank, including in an attempt to maintain its 5 billion investment in March. Now 173 billion loans and over 30 billion investments in securities are moving to the balance sheet of JPMorgan.
With almost 900 billion cash, JPM can buy up anyone, anytime, Spydell Finance wrote.
The most interesting thing is that JPMorgan privatizes profits and nationalizes losses. The FDIC agreed together with JPMorgan to share the burden of losses, and so any potential credit write-offs with probable coverage of up to $13 billion.
The FDIC is incapacitated, since it has exhausted almost all available reserves for rescuing the previous two banks.
According to the plan, JPM will incur restructuring costs of $2 billion in the next 1.5 years, but expects to recognize a one-time profit of 2.6 billion.
JPM is going to return 25 billion to other banks that rescued FRC in March, so the deposit base is estimated at $75 billion.
FRC assets are not so toxic, since the bank's problems were in undermining confidence and the gap between liabilities and assets. FRC had ultra-expensive funding at 5% with an average return on assets of 3.5%
The merger with JPM will allow funding to be returned FRS at 5% using JPM's trillion-dollar cash reserve, i.e. the bank's main problem in the yield gap will be eliminated, as will the confidence crisis specifically at this bank.
JP Morgan sues Frank startup founder Charlie Jevis
The idea behind the Frank project is to help get student loans. By 2019, Jevis raised $16 million in investments and was a star. His bank bought for $125 million.
In 2021, Jevis told JP Morgan that more than 4 million people used Frank's services. According to JP Morgan, the real number of clients was about 300 thousand, and Jevis and Development Director Olivier Amar created a fake list of more than 4 million people. To do this, Amar bought data on 4.5 million students from ASL Marketing for $105 thousand. And then a professor of computer science from the College of New York for $18,000 made 4.265 million fake customer accounts with addresses, phones, mail addresses.
In 2021, JP Morgan bought the startup, and Jevis and Amar went to work in the bank. After the deal, they received $15 million and were entitled to bonuses - $23 million.
JP Morgan sent marketing letters to 400,000 customers. Only 25% of the letters were delivered, and about 1% opened them. After that, the bank sued the founders of Frank.
Ray-Ban's loss in $272m theft trial
On January 4, 2023, it became known about the theft of $272 million from the accounts of the manufacturer of Ray-Bay glasses. The theft took place back in 2019. Read more here.
2022
Closing rapper Kanye West's account without explanation
The largest bank USA JPMorgan Chase in October 2022, without explanation, closed the accounts of rapper Kanye West. He had long-standing problems with JPMorgan Chase. On one of the TV shows, he complained that he could not get through to the bank's CEO and criticized the heads of divisions. "They treated me like shit," the rapper complained. A few days before that, the rapper bought opposition. social network Parler
American banks will pay more than $1 billion for using WhatsApp for work purposes
On August 22, 2022, it became known that large US banks such as JPMorgan Chase and Bank of America will collectively pay more than $1 billion in fines for employees using unauthorized messaging tools, including email and applications such as WhatsApp. Read more here.
Ex-head of precious metals unit and his trader convicted of manipulating gold market for years
Main article: Investment in gold
In August 2022, the former head of the precious metals division of JPMorgan Chase & Co. and his leading gold trader were [1] convicted by a federal jury in Chicago on charges of market manipulation (spoofing/spoofing) from 2008 to 2016.
The case was the largest in U.S. Justice Department history to allege that JPMorgan's precious metals business was organized as a criminal enterprise. Novak, the managing director in charge of that department, and Smith, his chief trader, were convicted of fraud, forgery and market manipulation.
"They had the power to move the market, the power to manipulate the global price of gold," prosecutor Avi Perry said during closing arguments.
The US Department of Justice has secured the conviction of 10 former traders from JPMorgan, Merrill Lynch & Co., Deutsche Bank, The Bank of Nova Scotia and Morgan Stanley.
Eyeglass maker Ray-Ban files lawsuit against bank over theft of more than $270 million from its account
On April 26, 2022, it became known that the manufacturer of Ray-Ban glasses filed a lawsuit against JPMorgan bank over the theft of more than $270 million from its account. According to the plaintiff, the bank knew about the "extremely suspicious scheme of fraudulent transactions," but did not notify the company about it.
Losses of $524 million due to withdrawal from the Russian market
Investment bank JPMorgan estimated at $524 million losses from leaving the Russian market in the first quarter of 2022. Such data were released on April 13, 2022.
According to Bloomberg, citing a statement by JPMorgan, these financial losses are caused by "the expansion of the spread earned on liabilities, as well as credit valuation adjustments related to both an increase in commodity risks and a decrease in receivables for derivatives from counterparties that are related to Russia."
JPMorgan announced its departure from Russia on March 11, 2022, and then noted that the bank's activities in the Russian Federation were already limited. It included "assisting global clients in resolving and closing pre-existing commitments; management of their risks related to Russia; performing custodian functions for our customers and taking care of our employees, "the bank said.
A spokeswoman for the bank told CNBC that the bank is "actively winding down Russian business and not doing any new business in Russia." She attributed the bank's actions to "directives from governments around the world." JPMorgan's direct influence on Russia is small, Bloomberg notes.
By March 2022, JP Morgan in Russia employed less than 200 employees within the corporate and investment divisions. Such data was cited by CNBC, and Bloomberg reported 100 employees. How the bank entered with this personnel (dismissed, offered to work in representative offices in other countries, etc.), by April 13, 2022, it was not reported. On this day, JP Morgan CEO and Chairman Jamie Dimon only said that the bank expects serious geopolitical and economic problems due to high inflation, supply chain problems and the Russian special operation in Ukraine.[1]
Opening a virtual office in the Decentraland metaverse
In February 2022, the American JPMorgan became the first major bank to open its virtual location in the metaverse. The Onyx lounge, named after JPMorgan's blockchain division, is located in the Metajuku shopping mall in Decentraland - a metaverse powered by the Ethereum blockchain.
A tiger wanders along the first floor of the "office," and a portrait of the bank's general director Jamie Dimon hangs on the wall. So far, the virtual representative office does not provide real banking services, but users will be able to familiarize themselves with Jamie Dimon's presentations on the crypto market.
Investing in Wayflyer E-Commerce Analytics Platform
In mid-February 2022 Wayflyer , it raised $150 million in funding as part of the Series B investment round. The round was led by the fund Yuri Milner DST Global and QED Investors, and Prosus Madrone Capital Partners and JP Morgan and existing investors Left Lane Capital and Guillaume Puza also invested in the company. More. here
Buying 49% of fintech firm Viva Wallet
On January 25, 2022, JPMorgan said it had agreed to acquire an estimated 49% stake in Athens-based payment fintech Viva Wallet, subject to regulatory approval. Read more here.
Allocation of $12 billion for digitalization of the bank
On January 15, 2022, it became known that JPMorgan Chase allocated up to $12 billion for the digitalization of the bank in 2022. In addition, the credit institution is increasing personnel costs in order to strengthen its competitive position.
Some of the increased costs are associated with higher wages, and an additional $2.5 billion is intended for compensation and travel expenses. JPMorgan also said it plans to increase investment in 2022 by $3.5 billion, or 30%, to almost $15 billion. Technology spending in 2022 will reach $12 billion in 2022, the report said.
 | Spending on information technology development around the world will be about $12 billion, an amazing figure, "said James Shanahan, an analyst at Edward Jones. - This probably negates the cumulative dollar value of the investments of all fintech companies in the world that are trying to destroy them. |  |
Shares of JPMorgan, which have almost doubled since the start of the pandemic, fell more than 6% on January 15, 2022.
Jamie Dimon, 65, who has established himself as JPMorgan's chief spending officer since 2005, told analysts the bank would have to "spend a few dollars" to beat competitors.
However, the spending plans prompted Mike Mayo, a Wells Fargo banking analyst who has recommended JPMorgan to customers over the past seven years, to downgrade the bank's stock without any performance metrics related to increased spending.
JPMorgan allocates new funds to data centers and cloud computing, as well as to enter new markets such as the UK, and to marketing initiatives.
Executives say investing in technology will eventually lead to lower operating costs. But it can take years to realise these savings, and the lack of detail is a source of frustration for investors.[2]
2021
Company# 8 by Global Net Profit
$200 million fine for doing business via WhatsApp
On December 17, 2021, JPMorgan Chase received a $200 million fine from the Securities and Exchange Commission (SEC) for violating federal records laws, as well as for not paying attention when employees corresponded via WhatsApp and personal devices.
The SEC said Dec. 17 that JPMorgan Securities agreed to pay $125 million after admitting "widespread" record-keeping violations. Between 2018 and 2020, employees used WhatsApp, text messages and personal email accounts to discuss sensitive business issues. JPMorgan acknowledged that these record-keeping violations occurred company-wide, a practice that was not hidden within the firm itself. This is the SEC's largest penalty for accounting violations.
The SEC said in response to court requests that JPMorgan often failed to search for relevant records contained on employees' personal devices.
| | JPMorgan's delays have hampered several of the commission's investigations and required staff to take additional measures that should not have been necessary, said Sanjay Wadhwa, the SEC's deputy director for enforcement. - This settlement reflects the seriousness of these violations. Firms should share the mission of protecting investors, not discouraging them. | |
On December 17, 2021, the bank also received a fine of another $75 million from the Commodity Futures Trading Commission (CFTC) for using unauthorized messages since 2015.
The CFTC said in a statement:
| | Since at least July 2015, JPMorgan employees, including those at the top level, have been communicating both inside and outside the company through unapproved channels, including through private text messages and WhatsApp messages. | |
| | None of these written communications were supported or preserved by JPMorgan, and they could not be promptly delivered to a CFTC representative upon request, the statement said.[3] | |
Fine of $200 million for surveillance of employees
In December 2021, it became known that one of the largest banks in the world, JPMorgan Chase & Co. will have to pay a fine of $200 million to the US authorities. The reason was the surveillance of employees, which was initiated by the bank's management. The amount is not yet final and it will change.
In the summer, JPMorgan sent instructions to employees to re-read their correspondence on the network, starting in 2018, and select from there all fragments related to the work. The bank later attributed this to concern for the use of communication channels by employees that were not approved by top management.
Buying financial planning platform for Frank students
On September 21, 2021, JPMorgan announced the acquisition of Frank's platform. Its participants did not disclose the cost of the transaction. Read more here.
Digital bank launch
In mid-September 2021, JPMorgan announced the launch of a digital bank in the UK. The move would be the American lender's first overseas retail operation in its 222-year history. Read more here.
Purchase of The Infatuation travel guide service
In mid-September 2021, JPMorgan agreed to acquire restaurant platform The Infatuation, which owns travel guide and review brand Zagat. Read more here.
Launch of Bitcoin fund for wealthy clients
In August 2021, JPMorgan Chase & Co. launches the Bitcoin fund for wealthy clients.
JPMorgan offers JPMorgan Private Bank customers a passively managed Bitcoin fund in partnership with NYDIG (the Bitcoin-focused institutional-level platform for secure storage, execution, asset management, etc., is a subsidiary of Stone Ridge Assets Management).
The fund will be presented to customers as the safest and cheapest Bitcoin investment tool available in private markets. The fund does not yet have investments from clients, but the bank recently held a meeting with consultants.
Buying 40% C6 Digital Bank
At the end of June 2021, JPMorgan Chase acquired a 40% stake in Brazilian digital bank C6, marking its debut in retail banking in one of the Latin American markets. Read more here.
Buying UK investment management firm Nutmeg
In mid-June 2021, JPMorgan Chase announced the purchase of the British investment management company Nutmeg. The financial details of the deal were not disclosed. Read more here.
Morgan Health Medical Unit Launch
At the end of May 2021, it became known that JPMorgan Bank is launching a medical unit Morgan Health to improve the quality USA of health care for 165,000 bank employees and their families in. The business will be led by Dan Mendelson, an issues consultant who health care served in the Clinton administration. The new unit, based in, will Washington also receive $250 million dollars for venture capital investments in companies offering "promising healthcare solutions." More. here
Lawsuit from Malaysian state investment fund 1MDB
On May 10, 2021, it became known that Malaysian state the investment fund (1Malaysia Development Berhad 1MDB) filed a lawsuit against JPMorgan Kuala Lumpur and German Deutsche Bank American British Coutts. The Investment Fund accuses of " banks negligence, breach of contract, conspiracy to fraud and damage and/or complicity in unfair actions." 1MDB is seeking $800 million in compensation from Swiss JPMorgan. More. here
2020
Sale of Quorum
At the end of August 2020, it became known that JPMorgan Chase sold the Quorum bank blockchain payment, which had previously been separated into a separate company. The developer acted as the buyer software Ethereum. ConsenSys More. here
Fines and dismissal for using WhatsApp at work
On April 8, 2020, it became known that JPMorgan Chase began to fine and fire employees for using WhatsApp at work. The largest bank in the United States is taking these measures for fear of violating privacy policies.
According to Bloomberg, JPMorgan Chase punished more than 10 traders for using WhatsApp during working hours. One of them is fired, and the rest have their bonuses cut.
The bank began taking tough action after employee Edward Koo, who worked for the company for more than 20 years, was suspended for creating a WhatsApp group to discuss work issues with colleagues. Koo was involved in trading corporate bonds and credit derivatives.
Knowledgeable sources told Bloomberg that the reduction in premiums caused a wave of indignation among traders who, like Edward Ku, used WhatsApp as one of the channels for organizing the work.
Banks and brokers are keeping a close eye on the communication between traders. Banks review their employees' conversations, emails and instant messages to make sure they don't violate privacy policies. Because WhatsApp messages are encrypted, it's harder for organizations to make sure their employees don't engage in illegal activities such as fraud or insider trading.
Although JPMorgan Chase did not identify data leaks or any other violations in the work of employees using WhatsApp in the workplace, the bank decided to protect against problems in the future, so it began to punish workers for using the messenger.
While it is forbidden to use mobile phones on trading floors, the WhatsApp scandal has shown that new communication applications also pose a threat to banks.[4]
Charging fees for buying cryptocurrency with credit cards and punishing it
In mid-March 2020, JPMorgan Chase Bank settled a class action lawsuit accusing it of overstating the cost of using its credit cards to buy cryptocurrencies. It turned out that the company charged fees for buying cryptocurrency with credit cards without warning and will now pay for it.
Plaintiffs Brady Tucker, Ryan Hilton and Stanton Smith notified the US District Court that they had reached an agreement with the defendant, Chase Bank. In accordance with the court order, the proceedings were terminated by mid-March 2020. Details of the settlement were not disclosed. The plaintiffs have 75 days from the date of the judgment to resume proceedings in the case.
The class action was filed in April 2018 when Tucker complained that Chase Bank charged him a fee of more than $160 and interest for regularly buying cryptocurrencies Coinbase from using a credit card. Tucker accused the bank of breaking the law because Chase Bank did not inform customers that cryptocurrency purchases were treated as "cash advances" and required higher fees. He also complained that the bank had refused to reimburse affected customers.
JPMorgan Chase Bank did not notify cardholders, which is why they unknowingly incurred expenses in the form of advance payments and incredibly high interest payments on each purchase of cryptocurrency, the complaint said. The bank did not charge similar fees for purchases made on debit cards.
In February 2018, Chase Bank, like some other banks in the United States, banned users from buying cryptocurrency with credit cards. While JPMorgan unveiled its own blockchain-based settlement solution and the JPMCoin token in 2019, the ban on credit card cryptocurrency purchases has not been lifted.[5]
WhatsApp ban
In mid-January 2020, it became known that JPMorgan Chase and other Wall Street companies are banning their traders from using WhatsApp. The main reason is the inability of banks to control the correspondence of employees. Read more here.
2019
Profit per day - about $89 million
Investing in fintech companies that help poor people
In mid-September 2019, JPMorgan Chase announced a $25 million investment in support of fintech startups that help low-income Americans get on their feet financially.
The head of the world charitable foundation JPMorgan Karen Keogh explained that the funds allocated by Financial Solutions Lab will help the products of these fintech startups stay on the market at an early stage, and those, in turn, will help people in such poor areas as Harlem (New York). JPMorgan and Financial Solutions Lab have collaborated for more than five years, with financial instruments developed by Financial Solutions Lab already used by 4.5 million people and saved them about $1 billion (by September 2019).
Keogh noted that financial technology, combined with the training and formation of healthy behavioural attitudes, can be critical to strengthening the financial position of many communities.
JPMorgan chief executive Jamie Dimon believes the company is responsible to all stakeholders, not just investors. Of course, the bank is also betting that supporting fintech companies and providing a place for public meetings with their representatives will lead to an increase in the number of new customers.
As part of that action, JPMorgan also opened a new branch in Harlem, specifically set up to serve the poor, the bank said in a news release. This branch was designed so that several conference rooms appeared in the building. They can be reserved for free for various public consultations, including those conducted by fintech companies. JPMorgan plans to build five more branches like the bank in Harlem, the next of which will open doors in Los Angeles.[6]
Russian hacker confessed to stealing data of 80 million customers of JPMorgan Chase bank
On September 23, 2019, it became known that Russian hacker Andrei Tyurin confessed to a cyber attack that led to the theft of data of more than 80 million customers of the American bank JPMorgan Chase, as well as other financial companies. Read more here.
JPMorgan hires blockchain specialists more than other banks
By the end of March 2019, it turned out that the largest US bank JPMorgan is hiring more blockchain technology specialists than any other financial company on Wall Street. This is evidenced by the results of a study conducted on the Indeed.com vacancies portal from February 2018 to February 2019. Read more here.
Replacing traders with robots
In mid-March 2019, JPMorgan dissolved teams working exclusively with corporate bonds in small deals known as the "incomplete lot." They were replaced by robots. Read more here.
2018
How JPMorgan picks fintech start-ups for investment
In April 2018, Business Insider published some excerpts from an interview with JPMorgan Chase Chief information officer Lori Beer, from which it became known how the bank chooses startups working in the field of financial technology to invest in them.
According to the source, JPMorgan Chase is a Wall Street giant that, despite its size, shows strong interest in small players in the fintech market, invests in them or builds partnerships. In October 2017, the holding acquired WePay for $220 million, which offers payment APIs as services that provide easy implementation and activation of payments. Earlier, JPMorgan began several partnerships in the payment fintech sector, and also led the funding round ($100 million) of the Bill.om project, which was eventually valued at almost $745 million.
According to Lori Beer, JPMorgan conducts a tough selection of companies before starting cooperation. As soon as the investment bank sees potential in the fintech project, the startup is offered participation in the JPMorgan In Residence curriculum. As part of this program, startups gain access to JPMorgan's bank systems and management advice. During the startup's participation in the program, the bank individually considers the possibility of investing in the project.
Some startups are able to scale on their own, but JPMorgan's knowledge and resources can be useful to those dealing with a vast array of complex Wall Street rules. For example, the payment service, considering JPMorgan as a potential client, faces difficulties trying to sell its product to the bank.
| | Some of their main problems in the fintech ecosystem are the size of the business of companies like JPMorgan Chase, its scalability and complexity. If you're trying to create something in the mass payment ecosystem, you're facing 200 regulators, $5 trillion of transactions that we process every day, more than 120 currencies and countries. There are many layers of complexity associated with anti-money laundering rules, anti-fraud requirements and new sanctions. How do you understand this versatility if I am a startup operating in the wholesale payment market? - said Beer.[7] | |
Chief information officer says the company is only considering acquiring a fintech start-up if the bank believes the company's product or service is capable of revolutionizing the industry and giving the investment bank an edge over rivals, as it did with WePay. However, the bank also considers cooperation with stratapes without buying a project or significant investments (this is the partnership JPMorgan began in the anti-fraud technology market in 2018) So, working with a startup can help the bank take a fresh look at its own product or improve customer experience.
| | Sometimes we make a decision to invest because we want to influence product development and work together... In the case of WePay, we saw a strategic competitive advantage and wanted to acquire the company, "said Lori Beer. | |
If JPMorgan has not bought the startup or invested heavily in it, the bank begins working with those companies it considers promising. This provides an opportunity for the financial giant to improve its technology. In addition, a startup one day could become a JPMorgan client if it needs funds or is preparing to sell.
Speaking at a conference in 2017, the head of JP Morgan Chase, Jamie Dimon, said that the bank is not afraid of fintech startups, although they are competitors.
| | We can do a lot of what they do. We don't want to do much of what they do, "he said, adding that JP Morgan is strong in adapting new technologies and in digitalizing the traditional banking business. | |
Establishing a Health Care Company
On January 30, 2018, Amazon Berkshire Hathaway and JPMorgan Chase announced the creation of a joint medical company with the aim of improving the quality health care and reducing the cost of medical services for their employees. USA The name of the new legal structure has not been announced by the time of the announcement. More. here
2010: Fed lawsuit
In May 2010, the US Federal Securities Commission, as part of an investigation into trading transactions with mortgage bonds, filed civil lawsuits against the bank.
1964: Construction of a new building in New York City
1955: Merger with Bank of Manhattan
In 1955, two of the largest banksUSA Chase Nashville Bank and Bank of Manhatten merged, a new bank called Chase Manhattan Bank in the early 1970s. was the third largest bank in the country.
1920: Car explosion destroys Wall Street bank building
1877: Chase National Bank Founded
Salmon P. Chase, whose name retains the name of the financial corporation, is a well-known American politician and lawyer. The Chase National Bank, founded in 1877, was named in his honor, by 1930 this bank was becoming the largest in the world.
Stock price dynamics
| Ticker company on the exchange: | NYSE: JPM |
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