Megabank JPMorgan Chase has had to deal with numerous regulatory and criminal problems over the last decade. The financial giant has spent billions of dollars litigating and settling these cases, and the firm has been working diligently to strengthen our its internal controls through enhancements of our infrastructure, technology, operating standards and governance over the last few years.
How We Do Business — The Report
In an attempt at damage control, JPMorgan Chase published a report titled “How We Do Business — The Report” on December 19th. The report is intended to reassure investors and the general public business regarding the steps the bank has taken to address their several-year history of legal problems and what they’re doing to prevent these kind of problems in the future. Of interest, the report was undertaken due to a request by a group of shareholders spearheaded by The Sisters of Charity of Saint Elizabeth.
Overview of JPMorgan Chase
The JPMorgan Chase report notes that its Consumer & Community Banking division works with close to 53 million households, nearly half of the households in the U.S. The megabank boasts more than 5,600 branches and 20,500 ATMs, popular mobile app and its website chase.com. The Consumer & Community Banking division had 139,000 employees as of the end of September 2014.
The firm’s Corporate & Investment Bank offers innovative investment banking, market-making, prime brokerage, and treasury and securities products and services globally. he Corporate & Investment Bank’s clients include multinationals, corporations, governmental entities, central banks and asset managers. More than 52,000 professionals were employed in the Corporate & Investment Bank as of the end of September 2014.
The Commercial Banking division provides credit, banking and treasury services to approximately 59,000 clients in 119 cities in the U.S. and 13 major cities worldwide. Typical clients include mid-sized businesses, corporations, municipalities, financial institutions and nonprofit entities. Commercial Banking employs 7,000 employees as of September 30, 2014.
The Asset Management division works with both individuals and institutions, including more than 3,000 financial intermediaries, 60% of the largest pension and sovereign wealth funds, and numerous wealthy individuals and families. As of September 30, 2014, more than 19,000 professionals are employed in Asset Management.
New corporate culture
In the overview of the report, JPMorgan Chase Chairman and CEO Jamie Dimon noted the firm was turning over a new leaf in its approach to doing business. “…we’ve re-articulated and re-emphasized our corporate standards and what we’re doing to help ensure that our employees internalize these values and focus on them every day.”
Dimon also noted that the firm had published a new set of business principles earlier this year, which are also summarized in the report. “The Business Principles focus on exceptional client service; operational excellence; a commitment to integrity, fairness and responsibility; and cultivation of a great team and winning culture. They emphasize the importance of being a good corporate citizen and always trying to do the right thing.”