Tag Archives | JP Morgan

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The unacceptable face of banking

Banks are essential in any modern society. Their role is two-fold: • To take in deposits from companies and individuals • To lend out this money prudently to other companies and individuals Both are difficult roles to fulfil. Banking therefore requires employees who have both talent and integrity. They must be able to look after […]

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If you build it, they may not come

The story of the 1989 US movie Field of Dreams summed up the happy days of the economic supercycle that was then getting underway. Starring A-list players such as Kevin Costner and Burt Lancaster, its theme that “if you build it, they will come” came to define the era. In the world of manufacturing, companies […]

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‘The largest bank failure in American history’

Another day, another bank failure. That almost seems to be the pattern in US financial markets at the moment. Yesterday the nation’s 6th largest bank, Washington Mutual, was taken over by government regulators and sold to JP Morgan. The 119 year old bank, headquartered on the US West Coast in Seattle, had $307bn in assets […]

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And then there were none

20 years of investment banking as an independent activity came to an end on Wall Street last night. Bear Stearns was the first to go in March, rescued by JPMorgan. Last week Lehman failed, and Merrill Lynch sold itself to Bank of America. Now the two remaining survivors, Morgan Stanley and Goldman Sachs, have thrown […]

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US housing ‘terrible’

When a leading banker says things look ‘terrible’, one know they must be really bad. Jamie Dimon is CEO of JP Morgan Chase, the only major US bank not to take write-downs on its housing loans to date. He described the US housing market as follows: ‘We saw subprime go first, then you see home […]

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Financial players increase their bets on crude

Financial investors are already quite disruptive in crude oil markets. And their influence is set to grow this year. That’s the message from surveys by Barclays Global Investors and JP Morgan. $120bn is now invested in commodities as a class, with oil a major target. Even your own pension fund may be about to invest, […]

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Stress-testing the global financial system

Yesterday’s “swings in financial derivative prices were so extreme that they implied scenarios in which the core of the global liquidity system suffers a serious assault”, according to JP Morgan, the investment bank. Watch out, if current US sub-prime mortgage problems turn into a more general “flight from risk”.

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