This assignment provides you with an opportunity to create a code of ethics for you and your family, as well as to explain the strategies and thought processes that went into developing the code
Running head: JP MORGAN CHASE & CO 1 Financial Management Tawni Morgan Columbia Southern University 07/17/2021 JP MORGAN CHASE & CO 2 Summary : JP Morgan Chase & Co. Summary JP Morgan Chase & Co is a financial holding company and one of the leading financial services firms based in the United States. The firm has many operations worldwide, and currently, it has a total of 2.4 trillion in assets and $279.4 billion in stockholder equity. JP Morgan Chase offers a variety of services from investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and assets management. The firm serves millions of customers in the United States and around the world. The firm operates in a very competitive environment, including other firms such as brokerage firms, investment banking companies, merchant banks, hedge funds, commodity trading companies, and investment and credit card companies. JP Morgan Chase can trace its roots in 1799 in New York City and many well -known heritage firms. I t is one of the world’s oldest and most extensive and best -known financial institutions. The firm acquired chase Manhattan in 2000, and in 2004, it merged with Bank one corporation. The firm has invested more in advancing cities launches. They invested ove r $500 in five years of initiatives. In 2019, the black pathways combined with JP Morgan Chase to advance black pathways. JP Morgan Chas e operates according to the Federal Reserve requirement in the United States and has ventured into many investment activities. The firm’s investment is informed of the loan of providing credit facility. According to the annual report, JP Morgan Chase’s total credit provided and capital raised totaled around $2.3 trillion. The credits are spread as follows: – credit for the consumer is $226 billion, $18 billion credit for U.S small business, $865 billion credit for corpora tions, $1.1 trillion capital raised for corporate clients and non -U.S government entities, $103 credit, and JP MORGAN CHASE & CO 3 capital raised for non -profit and U.S government entities. The firm investment activities include investment in held loans and investing in investme nt securities portfolios and other short -term instruments. JP Morgan Chase & Co operates as an investment bank and financial services. On 31 December, 2020JP Morgan Chase’s investment in securities was $587.9 billion. The bank’s source of funding includ es the use of customer deposits. Still, the firm acquires long – term unsecured funding from Parents Company which provides both banks and non -subsidiary funding needs. The senior notes issued in the U.S market are around $25,500 million, and seniors notes issued in the non -U.S market are $1,355. The firm also raises the secured long -term funding through securitization of consumer credit card loans and through FHLB advances. Credit card securitization issuance is around $1,000. These are types of capital st ructures that enable the firm to have good liquidity. Furthermore, JP Morgan Chase’s capital structure comprises of equity. Equity is the value of shareholder investment if all the assets are liquidated and all of the company debts were paid.
The firm issu es shares to shareholders to acquire more funds to support the company investment. The firm has a standard stock held of around $383,953,778,298 and shares a common stock outstanding of 3,051,506 326. Currently, JP Morgan Chase uses credit derivatives as a n end -user in order to manage exposure. These are an example of financial management strategies of reducing firm investment exposure from market risk. Examples of credit risk management strategies include credit derivatives. Companies use credit defaults swaps to hedge against the firm exposure to market risk. The firm issues bonds in the security market to raise funds. The raised fund by the company is used to extend credit facilities to the consumers both individually and small businesses JP MORGAN CHASE & CO 4 (Aivazian, Ge, & Qiu, 2005) . The raised funds are used to support the firm expansion goals, such as mergers and acquisitions. JP MORGAN CHASE & CO 5 References Aivazian, V. A., Ge, Y., & Qiu, J. (2005). Debt maturity structure and firm investment. Financial Management , 34 (4), 107 -119. JPMorgan Chase & Co.(n.d). History of the Firm. Retrieved from https://www.jpmorganchase.com/about/our -history JPMorgan Chase & Co.(n.d). Sec Filling form 10 -k: Retrieved from https://jpmorganchaseco.gcs -web.com/static -files/52ecd530 -2954 -4619 -acc6 – 2ebcdff4e173