Free Essays

JPMorgan Chase & Co.

JPMorgan Chase & Co. is a global financial services firm. The company operates through its offices in more than 50 countries. JPMorgan boasts of assets totaling to $1. 6 trillion. The firm conducts business in more way than one; The Company is involved in such monetary undertakings such as asset management, investment banking, commercial banking, as well as other financial services for its clients.

Under its JPMorgan and Chase brands, the firm serves millions of consumers in the United States. This includes a myriad of corporate, institutional and government clients around the world. JPMorgan classifies its clientele into three primary segments namely: retail and consumers, large customers and institutions, and private companies. JPMorgan Chase & Co. is considered as a “money center” bank primarily; due to the nature of operations as a large investment banking and retail banking firm.

While its investment banking business primarily competes with investment banking powerhouses such as Goldman Sachs and Morgan Stanley; it is often ranked among other money center institutions such as Bank of America Corp. , Citigroup, Inc. , and Wachovia Corp. , all of whom have diversified financial services practices. JPMorgan is second only to Bank of America Corp, with a market capitalization of $147. 9 billion. The company known as Bank of America Corporation has a market capitalization of $189. 1 billion. Citigroup follows with a market capitalization of $125.

5 billion. The industry of investment banking has been characterized by consolidation activity, which boosts the progress of its maturity. The company’s aim of its primary strategy is to become a “one-stop” shop for its clients and customers. For instance, it has the ability to offer mergers and acquisitions advisory services for its large corporate customers and simultaneously offer corporate loans to that same customer; and then retail banking products such as savings accounts and home loans to the employees of that customer.

Larger investment banking firms such as Merrill Lynch and Lehman Brothers do not have the capability to do such. Therefore, this is primarily how JPMC seeks to maintain competitive advantage in a competitive industry. Since the economic downturn of the early 2000’s, the company has consistently received top rankings in M&A advisory and high-yield loan issuance, as well as underwriting. It consistently earns top rankings for asset-based and middle-market lending, credit card issuance among others.