JP Morgan Chase

JP Morgan Chase

JP Morgan Chase & Company is the leader of global firm in terms of financial services. It has $2.3 trillion of assets and operations around the world. JP Morgan is a leader in financial services for consumers, investment banking, commercial banking, the asset management, financial transaction processing and private equity. This company serves millions of customers in the United States of America, and the worlds most prominent institutional, corporate and government are the clients of JP Morgan and its Chase brands (Cho, 2009).

Competition Analysis of JP Morgan Chase

The major competitors of JP Morgan include Bank of America, Wells Fargo and Citigroup. These competitors are the major players in the financial market and approach the renowned products of banking as like as JP Morgan Chase. Citigroup operates in the wider market. The presence of JP Morgan operates under 60 countries. However, Citigroup has resorted and adjusting its business model after demising the financial crisis in United States. Citigroup aligned its business with new global drivers. The strategy of JP Morgan Chase is the feasible source of its competitive edge. Bank of America operates a global program of resiliency which triggers a reaction anytime. There are discrepancies in the internal operations of the firm. Furthermore, Bank of America enjoys stable leadership since 2005 (Morris and Shin, 2008).

Recently, JP Morgan announced a loss of $2 billion on difficult heading by using derivatives of credit on a corporate debt's basket. The CEO of JP Morgan, Jamie Dimon has failed to understand the principles and concept of risk management. Those activities are found to be large for the market of credit derivatives. JP Morgan has implements VaR Models that should have indicates a potential for the huge loss on certain positions. Why this risk was not considered as a red ...