JP Morgan Analysis Brief Essay

Specific strategic initiatives were established to help JUMP find talent though unusual channels, believing that a averse workforce is what will help them stand apart from the rest (Yemen & Davidson, 2009). Position in Industry & Importance JUMP is the largest bank in the United States and third largest publicly trading company in the world (Forbes, 2014). The decisions and actions made by JUMP can drastically affect the global economy as witnessed during the global financial crisis. Also, as such a largest institution, It serves as a role model to other companies around the world.

Global Financial Crisis During the Global Financial Crisis, the revenues of JUMP dropped significantly and ere forced to lay off workers who were originally employed. Aside from Internal effects, JUMP also took over several firms were In financial trouble Including buying out Bear Stearns for $1. 5 billion, and Washington Mutual for $1. 9 billion (Wright, 2013). In the process, they prevented employees of the firms from being Jobless. During the financial crisis, JUMP was also fighting to stay above the waters and therefore the diversity of employees were less of a focus during the period, but It was always still a consideration.

Surprising to many, JUMP was actually a big part In the case of the financial meltdown as the company they acquired In Bear Stearns actually committed fraud when It sold high-risk mortgages to Investors without Informing them of the real risks (WAS, 2012). In fact, they were required to pay $13 billion dollars to settle a lawsuit (Wright, 2013). JUMP In Media Over the last few months, JUMP has been Involved In several public scandals, such as the energy manipulation In several states and the Maddox scandal. Energy Manipulation

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Through September 2010 to November of 2012, Jam’s energy unit, JP Morgan Venture Energy Corporation was accused of manipulating energy prices Illegally (Greenberg 2013). The bank would offer electricity at an affordable price, but after the strategy the state’s power-grid operator, would then have to pay the bank a bidding cost. This scheme was repeated over and over again to generate profits for JUMP. Even though the company has not publicly admitted to any of these violations, it has agreed to pay $410 million to settle charges against them (Commonly 2013). Maddox Scandal

Earlier this month JUMP was penalized $2 billion dollars for being involved in the Maddox Scandal. Bernie Maddox utilized a Opinion scheme, which is considered illegal, to launder billions of dollars. JUMP was the primary bank in which Maddox conducted his illegal wrongdoings and despite knowing about the illegal activities, JUMP repeatedly chose to ignore warnings signs and failed to carry out its legal obligations of reporting the illegal activities (Henry, 2014). Current & Prospective Challenges The huge payouts in the recent year aren’t the only problems JUMP has to worry bout.

Because of Jam’s actions, it has lost trust of the public and governments, which means there could be long-term implications. Governments will change the way they treat large financial institutions and will also tighten down on regulations. Also, banks like JUMP usually rely on high leverage but due to its recent implications, securing such funds could be more challenging (Sloan, 2013). It will be interesting to see how JUMP handles these challenges in the near future. Works Cited Greenberg, Jessica. “U. S. Accuses Comparing of Manipulating Energy Markets.


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