JP Morgan

Devanshi Chauhan - 96
 Introduction
Leader in Financial Services
Offering solutions to clients in more
than 100 Countries
More than 200 years
J.P. Morgan is part of JP Morgan Chase
& Co.
Assets of $2.0 trillion.
 Line of Business (LOB)
Asset Management
Investment Bank
Private Banking
Securities Services
Treasury Services
Commercial Banking
 Current Scenario
2nd biggest US Bank with net income of
$3.6bn
Strong Performance in investment banking
Credit Card and consumer loans losses were
cancelled out
Benefited from buying Washington Mutual
Fund in September 2008
 JP Morgan’s Foreclosure
Problems
JP Morgan re-examines documents filed
in foreclosure proceedings
56,000 foreclosures possibly impacted
Employees may have signed the
documents based on review by other
Bharat Jain - 117
SWOT Analysis of JP
Morgan
 Strengths
Leading Global Financial
Brand
Extensive Retail
Distribution Network
High Quality Asset
Investments
Capital Strength
Fortress Balance Sheet
Weakness
Subprime Exposure in
the US
Over dependent on one
Geography: US
Increasing Debt
Servicing Ratio and
Debt Pay
 Opportunities
Banking and Brokerage
Global Investments
Asset Management Market
Growth in the Credit Card
Market
Growth in Commercial
Banking Industry
Opportunistic Acquisitions &
further Industry
Consolidation
 Threats
New Banking
Regulations in the US
and Europe
Weak Mortgage
Market in US
Increased Regulation
in Interchange Rates
Vyjantimala Karmarkar - 107
Porter ‘s 5 forces model
Competitive Advantage
 Barclays plc
Barclays is a Major Global Financial Services
Provider. It is engaged in
Retail Banking
Credit Cards
Corporate and Investment Banking,
Wealth and Investment Management
Its services are with an extensive international
presence in Europe, US, Africa and Asia.
With over 300 years of history and expertise in
banking, Barclays operates in over 50 countries and
employs nearly 1,47,000 people.
 Citigroup
A Major American Financial Services Company based
in New York City.
Formed from one of the world's largest mergers in
history - Banking giant Citicorp and Financial
conglomerate Travelers Group on April 7, 1998.
Citigroup Inc. has the world's largest financial
services network, spanning 140 countries with
approximately 16,000 offices worldwide.
It employs approximately 2,60,000 staff around the
world, and holds over 200 million customer accounts
in more than 140 countries. It is a primary
dealer in US Treasury  securities.
 Bank of America
Bank of America Corporation (NYSE: BAC) is
a Financial Services co. ,largest Bank holding
company in the United States, by Assets, and the 2 nd
largest Bank by Market Capitalization.
 Bank of America serves clients in more than 150
countries and has a relationship with 99% of the U.S. 
Fortune 500 companies and 83% of the Fortune
Global 500.
Is a member of the Federal Deposit Insurance
Corporation (FDIC) and a component of both the S&P
500 Index and the Dow Jones Industrial Average.
COMPETITIVE ADVANTAGE
Palak Shah - 072
STRATEGIC LIFECYCLE
KEY PHASES OF STRATEGIC
DEVELOPMENT
SCOPING

STRATEGY
CHOICE

EXECUTION PLAN
Area for improvements
Pre –Provision Holds
Capital Improves
Credit in Line
Reserves Nearing (but
not at) a Peak
Trust Banks – Less
Leverage
Cards—Mixed Bag
Praneta Vartak - 91
JP Morgan Merger with Bank One
About Bank One Corporation.
Sixth-largest bank in the
United States
Headquarters in Chicago
Bank One was created in 1998
Business of Bank One
Retail banking
Commercial Banking
Card Services
Investment Management
About the deal
The merger of J.P.
Morgan and Bank One
was in the year 2004

$58 billion merger

Was the third largest

merger in U.S. financial
services
Why did JP Morgan Acquire Bank
One
Expanding into Attractive new Markets

Enhances the Presence of JP Morgan in

Retail and Credit Card Market

After the Acquisition of Bank One its

Market position would rise to no. 2 position
The Terms of acquisition
Morgan exchanged 1.32 shares of its stock
for each Bank One share.

Bank One chief Jamie Dimon to become the

CEO of the company in 2006

Cost cutting is part of the logic of the deal

About 10,000 Job Eliminations
Tanvi Sangani - 106
JP Morgan Acquires Washington
Mutual (WaMu)
Washington Mutual (WaMu) Profile
Was Founded in 1889
Headquarters Seattle,
Washington, U.S.
Products – Consumer
Banking, Financial
Services
Employees 49,403
Parent - Washington
Mutual Inc
Washington Mutual (WaMu)
It went Bankrupt in 2008 due to Recession
Federal Deposit Insurance Corp (FDIC) of US
Government seized WaMu
It was a History
It was acquired by JP Morgan Chase & Co.
on 26th Sep, 2008
It was acquired for $1.9 billion whereas it
was worth $307 billion
 JP Morgan Acquires Washington
Mutual (WaMu)
WaMu was not acquired completely. There was part
Acquisition
JP Morgan Acquired
Substantially all of the Assets of Washington
Mutual’s Banks
All of the Deposits and certain Liabilities of
Washington Mutual’s Banks
Why did JP Acquire WaMu
Strategic Fit
Greatly enhances retail banking
platform in attractive markets
Combined deposits of $911 billion
and 5,410 branches at close
Expanding into attractive new
markets
Increases market share in existing
largest fast-growing markets
Bhavin Bajaria - 079
Acquisition of Bear
Stearns
 2007
June 14 : 10 percent decline in quarterly
earnings
June 18: Merrill Lynch seized collateral from a
Bear Stearns
June 22: Commits $3.2 billion in secured loans
to bail out
July 17: Troubled funds are essentially
worthless
Aug. 1: Two funds file for bankruptcy, Company
freezes assets in a third fund.
Aug. 6: Company assures Clients that the it is
financially sound
Sept. 20: Bear reports 68 percent drop in
quarterly income
Nov. 28 : Cuts 6% of its workforce
Mid-January: President Bush unveils a $150
billion stimulus plan
March 10: Market rumors say Bear may
not have enough cash to do business
March 14: The federal government and
J.P. Morgan Chase & Co. bail out Bear
March 16: J.P. Morgan announces it has
acquired Bear Stearns for $2 per share, or
about $236 million.
JPMorgan agreed to pay just $236
million
JPMorgan is guaranteeing Bear Stearns’s
counter party risk.
Fed had agreed to fund up to $30 billion
of Bear Stearns’s
Clients stopping trading with the firm
 JP Morgan - Strategy in 2009
Portfolio strategy: Stay in recovery and asset reflation
trades.
Fixed Income: Stay short duration.
Equities: Inflows into equity funds should start
accelerating in coming months as bond yields are at
historic lows.
Credit: Stay overweight super senior AAA CMBS and
consumer and mortgage-related ABS, as investors
reach further for yield.
FX: Stay short USD on FX reserve diversification. Add
to sterling shorts.
Shivam Khandelwal - 82
JP Morgan During Recession
Earnings in the Q3 of 2008, was $ 527
million.
Q3, 2009 Profits rose seven fold to $ 3.59
billion.
In Jan 2008, market share has risen to 11 %
from 6 % in the U.S. mortgage market.
High focus on outsourcing and Technology
Investment.
Jamie Dimon
 Jamie Dimon Profile
James Dimon CEO of JP Morgan Chase
since December 31, 2005. 
 He served as the Chief Executive Officer
of Bank One Corp from March 27, 2000 to
July 2004.
He became president of JP Morgan in mid-
2004 when it acquired Bank One.
Important Decisions made by Jamie Dimon
for JP Morgan
In March 2008 – Loan of $55 billion to bail
out Bear Stearns.
Acquisition of Washington Mutual.
Transfer of $25 billion from the US Treasury
Department to JPMorgan Chase on October
28, 2008 via the Troubled Asset Relief
Program.
Repayment of Bailout amount in quick time.
 Suggestions to JP Morgan as a
Consultant
Moving more to emerging markets
Outsourcing should be continued in
India
Retail banking should be started in
India
Should go for part acquisition more
Conclusion
Thank You 