CASE Study JP Morgan PDF

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CASE:JPMORGANCHASE J PMor ganChas eandi t spr edec essori ns t i t ut i onshav el onghadas i gni ficanti mpactont hel i v esof Amer i cansandot her st hr oughoutt hewor l d.Forexampl e,t hecompanyt ookont her esponsi bi l i t yf or fi nanc i ngl ar gescal er i skyl ar gepr oj ect ssuc hast heEr i eCanal ,t hePanamaCanal ,andt her ai l r oad ex pansi ont hatopenedt hedoort ocommer c eandeconomi cdev el opmentt hr oughoutt heUni t edSt at es. Thecompanyhasal s obeenatt hef or ef r ontofi mpor t anti nnov at i onss uchascr edi tcar ds ,aut omat i ct el l er mac hi nes,andonl i nebanki ng.I nf act ,i t ’ snott oof arofas t r et cht osuggestt hatbot hcr eat i vi t yandt he wi l l i ngnesst ot akebol dr i sksf orhi ghr et ur nshav ebeenhal l mar k sofeffec t i veempl oy eesatJPMor gan Chase,andt hi shasbeent r uet hr oughouti t sl onghi st or y .Lesswenotf or gett hatt hegenesi soft he c ompanyr est swi t ht hec r eat i v el anguagei nser t edi nt ot hec har t erofafledgl i ngwat ercompanybyoneof i t spr i nci pal ssot hatex cessc api t alc oul dbei nv est edi noppor t uni t i est omak emoneyi nar i sky env i r onment . Unf or t unat el y ,bol dandcr eat i v ebehav i orofempl oy eesatJPMor ganChasehasnotal way sr es ul t edi n pos i t i v ec ons equenc es.I nf act ,t hecompanyhasr ecent l ypai dt ensofbi l l i onsofdol l ar si nfines, s et t l ement s,andl egal f eesduet ohi ghl yquest i onabl eempl oy eebehavi or .Asanex ampl e,t hec ompany pai d$13bi l l i oni naset t l ementf oral l egedl ys el l i ngf r audul entmor t gageback eds ecur i t i est oFanni eMae andFr eddi eMaci nt hey ear sl eadi ngupt ot hefinanc i al cr i si sof2008.Ot herhi ghl ypubl i c i z edpr obesi nt o t hecompanyi ncl udei t si nv ol v ementi nBer ni eMadoff’ sPonz is c heme,r i ggi ngofc ur r encyandener gy mar k et s,andt heLondonWhal ei nci denti nwhi chat eam ofempl oy eesgambl edoncompl exfinanc i al der i v at i vest hatr esul t edi nmor et han$6bi l l i oni nt r adi ngl os es. Asar es pons et ot hesei nc i dent s ,whi chobvi ous l yhur tt hecompany’ sr eput at i onandbot t om l i ne, c ompanyex ecut i v eshav et ak enanumberofmaj ors t eps .Forex ampl e,CEO Jami eDi monpubl i s heda doc umentt hatack nowl edgest hecompany’ sr ol ei nt hes ei nc i dent sandout l i nesex pect at i onsof empl oy eeswi t hr egar dt ocompl i ancewi t hl egalandet hi cal s t andar ds.Thecompanyal s os etupphone andemai l l i nessoempl oy eescananony mousl yr epor tcompl i anceconcer nsandr el at edbadbehavi or . Per hapst hemos tnot abl ei ni t i at i vehasbeent heuseofacomput eral gor i t hm,or i gi nal l ydev el opedf or c ount er t er r or i s m,t hatmoni t or sandanal yz esal ar ges etofempl oy eebehav i or st ot r yt ocat chempl oy ees bef or et heyact ual l ydoanyt hi ngt hatr es ul t si nac os t l ypr obl em.Empl oy eeswhomi ssacompl i ancecl as s, v i ol at emi norr ul esr egar di ngper sonal t r adi ng,ex c eedr i skl i mi t s ,orusecer t ai nwor dsi nemai l sma ybe fl aggedasbei ngl i k el yt ovi ol at ear egul at i onorpol i c y .Al t houghJPMor ganChas ehasnotdesc r i bedal l t hei nf or mat i oncons i der edbyt hesy st em,orwhatwi l lbedonet oempl oy eeswhoar ei dent i fiedasl i kel y r ul ebr eak er s ,i thopest hats ur v ei l l anceofempl oy eeswi l lhel pt hecompanypol i c ei t s el fbet t erandbui l da c ul t ur ewher eempl oy eesunder st andt hatbadbehav i orwi l l notbet ol er at ed. 2. 1Whi chdi mensi onsofj obper f or manc edoy out hi nkJ PMor ganChaseemphasi z edpr i ort ot he fi nanc i al cr i s i sandt hecost l yl egalpr obl emst hatf ol l owed?I nwhatwaysdi dt hi semphasi scont r i but e t obot ht hecompany’ ss ucces sandi t spr obl ems ? 2. 2Whi chdi mensi onsofj obper f or manc edoy out hi nkJ PMor ganChasei semphasi z i ngnow?I nwhat wayswi l lt hi ss hi f ti nemphasi shel pt hecompany ?Mi ghtt her eber eas onst obel i ev et hes hi f ti n emphas i swi l l hur tt hec ompany ? 2. 3Whi chspec i ficdi mensi onofj obper f or mancei st hec ompanyt r yi ngt omanagewi t ht hecomput er al gor i t hm?Howmi ghtt her ebeuni nt endedj obper f or mancer el at edc ons equenc esofusi ngt hi s s yst em?Ex pl ai nhowt hec ompanyc oul dmanages omeoft hepot ent i aldownsi desoft hes y st em?...