Investment Banking Industry in the United States and JP Morgan Chase

Essay by oasis007University, Master'sA-, July 2005

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JP Morgan Chase & Co. Overview

JP Morgan Chase is global financial service provider. The company has assets of over $ 713 billion and operations in more than 50 countries. The company specializes in mergers and acquisitions consulting, risk management and securities underwriting, through its investment banking operations. The company serves more than 30 million individuals and the world's largest corporate, institutional and government clients. JP Morgan Chase has headquarters in New York City, New York. For the fiscal year ended December 2003, the company generated revenues of $ 33.3 billion.

JP Morgan Chase & Co. is the second-largest financial services firm in US. It was formed by the 2001 merger of retail banker Chase Manhattan and investment bank JP Morgan. Comprising of hybrid of retail and wholesale banking, the firm ranks in the Fortune 500. (

Major Product and Services

· Investment Banking

· Investment Management & Private Banking

· Treasury & Securities Services

· JP Morgan Partners

· Commercial Banking for Middle Markets

· Card Member Services

· Regional Banking

· Diversified Consumer Services

· Fleming Investment Trusts

Definition of Investment Banking

Investment banks' business can be categorised into main areas;

· Broking- the broking of securities is a high-volume commodity business in which firms appeal to customers mainly on price and integrity.

· Trading- the trading of securities thrives on market volatility and has significantly increased in importance as banks distinguish greater capital resources to proprietary. (ei, government bond)

· Investment management- this includes the underwriting of new issues and expert work, with the latter being referred to as M&A (mergers and acquisitions).

· Fund management- this includes both retail and wholesale fund management, although the big firms have tended to do best selling mutual funds to retail investors in recent years.

· Interest widen-...