“AN ORGANISATION STUDY

ON J.P MORGAN & CHASE CO.”

(PART 1)

INTERNSHIP REPORT

Submitted by
ROHIT GOWDA

In partial fulfillment of the award of the degree

Of

BACHELOR OF BUSINESS ADMINISTRATION

ST. JOSEPH’S COLLEGE

HASSAN

UNIVERSITY OF MYSORE: MYSORE 570005

APRIL 2024
 BONAFIDE CERTIFICATE

Certified that this project report “AN ORGANIZATIONAL STUDY ON J.P

MORGAN & CHASE CO. ” is the bonafide work of “Mr. ROHIT GOWDA”

who carried out this project work under my supervision.

Mr. Pradeep Kumar V

VICE-PRINCIPAL
St. Joseph’s College,
B.Katihalli, Hassan,
Karnataka

Ms. VEENA
SUPERVISOR
Department Of Mgt Studies
St. Joseph's College
B. Katihalli, Hassan
Rohit Gowda
Investment Banking Job Simulation
Certificate of Completion

April 10th, 2024

Tom Brunskill
CEO, Co-Founder of
Forage

Enrolment Verification Code 897sYB67KyEPRuQDW | User

Verification Code S2fTzWc2SuJoLBBKd | Issued by Forage
 ABSTRACT

This certificate acknowledges Rohit Gowda’s successful completion of the online

internship program with J.P MORGAN & CHASE CO. The internship spanned 10

days, during which Rohit Gowda actively contributed to finding some M&A

targets, Financial analysis, Target information, and auction process and

provided an investment recommendation, demonstrating a strong understanding

of targets and completion on time. This experience has enhanced Rohit Gowda’s

professional development and understanding of organizational structure.

 DECLERATION

I, ROHIT GOWDA, hereby affirm that the online internship project titled “AN

ORGANIZATIONAL STUDY ON J.P MORGAN & CHASE CO.” is an

authentic endeavor undertaken by me. This work is submitted to the University of

Mysore to partially fulfill the requirements of the BACHELOR OF BUSINESS

ADMINISTRATION program during the academic years 2021-2024. I conducted

this study under the supervision and guidance of Ms. Veena, Department of

Management Studies at St Joseph’s College Hassan.

ROHIT GOWDA
Reg No: U01GK21M0040

DATE:
Ms. VEENA,
Department of Management Studies,
St. Joseph’s College, Hassan
 ACKNOWLEDGEMENT

I have great pleasure in expressing a word of thanks to all those who rendered
their help and guidance to make my project a success.

I would like to express my sincere gratitude to Fr. Daniel Fernandes,

Principal, and Mr. Pradeep Kumar, Vice-Principal, St. Joseph’s College Hassan
for allowing me to do this project. I am immensely grateful to Afrah A, Internship/
Placement Coordinator, St. Joseph’s College Hassan for the valuable instruction
given to me.

I would like to thank Ms. VEENA, Department of Management Studies, St. Joseph’s
College, Hassan for the guidance given to me. I also wish to acknowledge the
support extended to all my faculty members and lecturers of St. Joseph’s College,
Hassan.
 Table of Contents

Acknowledgement

Executive Summary

Chapter I
Introduction 1-2

1.1 Background of the Study 1

1.2 Objectives of the Study 1

1.3 Limitations 2

1.4 Methodology 2

Section I
Profile of JPMorgan Chase & Co. 5-12

1.1 Introduction of the Company 5

1.2 History of JPMorgan Chase & Co. 6

1.3 Company Structure 7

1.4 Products and Services 8

1.5 Recent News and Events 12

Chapter II
Analysis of Environment 13-17

2.1 Assessment of Internal Environment 13

2.2 Assessment of External Environment 14

2.3 JPMorgan Chase & Co. SWOT Analysis 14

Chapter III
Summary and Conclusion 18-19

3.1 Summary 18

3.2 Suggested Strategies 18

References
 Chapter I

Introduction

1.1 Background of Study

The report entitled “Comprehensive Study of JPMorgan Chase & Co.” is

our final SMART Project Work assigned to us. The report is prepared to
enhance the understanding of the students of the banking field as well
as undertaken to broaden the knowledge about the international
practices in the banking sector, business operating strategies, and
environmental assessment of business activities.

The report also provides the key financial highlights on the banking
industries of
America regarding JPMorgan Chase & Co. Our group has taken JPMorgan
Chase & Co. as the subject matter of study to explore the ideas and
information as much as possible. We have aimed to provide a detailed
touch on the key business operations and market situation through this
report with the following objectives mentioned in the below topic.

1.2 Objective of the Study

The principal objectives of the present study are mentioned below:

• to carry out a detailed analytical study &find out the current position
of JP Morgan Chase & Co.;
• to find out the major factors behind the growth and expansion of its
business over the centuries;
• to formulate structure, environment analysis, and market practice of
the company; and
• to enhance the idea and strategy of presenting JP Morgan Chase
among the management students.

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1.3 Limitations of the Study

The major limitations of the report are mentioned below:

• The report is lacking the key financial data in the form of tables,
graphs, etc. which could be helpful in better understanding its
financial position;

• The report does not consist of all relevant information about

JPMorgan Chase &
Co. due to its worldwide business operation;

• The report does not include any kind of primary data.

1.4 Methodology

Research methodology is concerned with various methods and

techniques which are the process of the studies. It includes a wide range
of methods, including quantitative data analysis and presentation.

1.4.1 Report Design

The objective of the study is to make an analytical study of JPMorgan

Chase & Co. This research would proceed with descriptive, exploratory,
and analytical methods in combined form.

1.4.2 Data Collection Procedure

Information and data are collected in different ways. Office records,

published data, statements, and balance sheets would be taken as the
major source of secondary data. Since the report is of an international
company beyond our reach to study, all the data here included in the
very report is secondary data.

1.4.3 Methods for Analysis and Presentation of Data

2
The main purpose of analyzing the data is to change it from an
unprocessed from to an understandable presentation. The analysis of
data will consist of organizing, tabulation, pie-chart presentation, etc. in
case required.

Section I

Profile of JPMorgan Chase & Co.

1.1 Introduction of the Company

JPMorgan Chase & Co. (NYSE: JPM) is an American multinational banking

corporation of securities, investments, and retail. It is the largest bank in
the United States by assets, and as of 2012, it ranks as the second largest
bank in the world by assets. It is a major provider of financial services,
with assets of $2.509 trillion. The hedge fund unit of JPMorgan Chase is
one of the largest hedge funds in the United States. It was formed in
2000 when Chase Manhattan Corporation merged with J.P Morgan & Co.

JPMorgan Chase is one of the Big Four banks of the United States with
Bank of America, Citigroup, and Wells Fargo. According to Bloomberg, as
of October 2011, JPMorgan Chase surpassed Bank of America as the
largest U.S. bank by assets. Through its predecessor, the Bank of the
Manhattan Company, it is the 22ndoldest bank in the world. Similarly,
according to Forbs magazine, JPMorgan Chase & Co. is the world's
second-largest public company based on a composite ranking and at 16th
position on the Fortune 500 list from a previous rank of 13. The Bank of
America Corporation stands at first and Citigroup at second place based
on the composite ranking.
Through a continuous operation in the market for over 160 years, J.P.
Morgan has been upgrading and strengthening its hold in the U.S.
market. Currently, the firm is operating its business in 6 major areas of
expertise which include:

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 1] Asset Management 2] Commercial Banking

3] Investment Bank 4] Private Bank

5] Securities Services 6] Treasury Services

1.2 History of JPMorgan Chase & Co.

The heritage of the House of Morgan traces its roots to the partnership
of Drexel,
Morgan & Co., which in 1895 was renamed J.P. Morgan & Co. (see also:
J. Pierpont
Morgan). Arguably the most influential financial institution of its era, J.P.
Morgan & Co. financed the formation of the United States Steel
Corporation, which took over the business of Andrew Carnegie and
others and was the world's first billion-dollar corporation. In 1895, J.P.
Morgan & Co. supplied the United States government with $62 million in
gold to float a bond issue and restore the treasury surplus of $100
million.
Built-in 1914, 23 Wall Street was known as the "House of Morgan", and
for decades the bank's headquarters was the most important address in
American finance. At noon, on September 16, 1920, a terrorist bomb
exploded in front of the bank, injuring 400 and killing 38.
In the 1930s, all of J.P. Morgan & Co. along with all integrated banking
businesses in the United States, was required by the provisions of the
Glass–Steagall Act to separate its investment banking from its
commercial banking operations. J.P. Morgan & Co. chose to operate as a
commercial bank because at the time commercial lending was perceived
as more profitable and prestigious. Additionally, many within J.P.
Morgan believed that a change in political climate would eventually
allow the company to resume its securities businesses but it would be
nearly impossible to reconstitute the bank if it were disassembled.

4
In 1935, after being barred from the securities business for over a year,
the heads of J.P. Morgan spun off its investment banking operations. Led
by J.P. Morgan partners, Henry S. Morgan (son of Jack Morgan and
grandson of J. Pierpont Morgan) and Harold Stanley, Morgan Stanley
was founded on September 16, 1935, with $6.6 million of nonvoting
preferred stock from J.P. Morgan partners. To bolster its position, in
1959, J.P. Morgan merged with the Guaranty Trust Company of New
York to form the Morgan Guaranty Trust Company.
The bank would continue to operate as Morgan Guaranty Trust until the
1980s, before beginning to migrate back toward the use of the J.P.
Morgan brand. In 1984, the group finally purchased the Purdue National
Corporation of Lafayette Indiana, uniting a history between the two
figures of Salmon Portland Chase and John Purdue. In 1988, the
company once again began operating exclusively as J.P. Morgan & Co.

1.3 Company Structure

The Bank began operations in Japan in 1924, in Australia during the later
part of the nineteenth century, and in Indonesia during the early 1920s.
An office of the Equitable Eastern Banking Corporation opened a branch
in China in 1921 and Chase National
A bank was established there in 1923. The bank has operated in Saudi
Arabia and India since the 1930s. Chase Manhattan Bank opened an
office in Korea in 1967. The firm's presence in Greece dates to 1968. An
office of JPMorgan was opened in Taiwan in 1970, and in Russia (Soviet
Union) in 1973, and Nordic operations began during the same year.
Operations in Poland began in 1995.
JPMorgan Chase, in its current structure, is the result of the combination
of several large U.S. banking companies over the last decade. Some of
the major host banking companies include the following:
* Chase Manhattan Bank * Washington Mutual.

* J.P. Morgan & Co. * Bear Stearns and

* Bank One

5
Going back further, its predecessors include major banking firms among
which are;

* Chemical Bank * Texas Commerce Bank *

Manufacturers Hanover * Great Western Bank.

* First Chicago Bank * Providian Financial and

* National Bank of Detroit

JPMorgan Chase & Co. owns five bank subsidiaries in the United States:

* JPMorgan Chase Bank * J.P. Morgan Bank and Trust

Company

* National Association * Dearborn

* Chase Bank USA * JPMorgan Chase Bank

* National Association * Custodial Trust Company

JPMorgan Chase's activities are organized, for management reporting

purposes, into six business segments:
* Investment banking * Asset management

* Card services and consumer lending * Home lending

* Commercial banking * Treasury & securities services

* Personal and business banking * Corporate - including private

equity

(One Equity Partners) and

treasury and corporate

functions

The above all division at JPMorgan is divided by teams of different

authorities and responsibilities. Apart from others, the investment

6
banking division is divided into teams: industry, M&A, and capital
markets. Industry teams include consumer and retail, healthcare,
diversified industries and transportation, natural resources, financial
institutions, metals and mining, real estate and technology, media, and
telecommunication.

1.4 Product and Services

JPMorgan Chase & co. is a leading global financial services firm with
operations in more than 60 countries. The firm is a leader in investment
banking, financial services for consumers, small business and commercial
banking, financial transaction processing, asset management, and
private equity. JPMorgan Chase & Co. serves millions of consumers in
the United States and many of the world’s most prominent corporate,
institutional, and governmental clients under its J.P. Morgan and Chase
brands.

Being the world-leading as well as one of the biggest financial

institutions, it has been serving its customers with several services and
7
products. It is almost not possible to mention all of the products and
services the company is currently offering to individuals, private
corporations, and the government. To make it easy for us to understand
the nature and complexity of those products and services, the numbers
of products are categorized in a broad terminology.

The major distinct products and services with which JPMorgan is

currently serving its customers are broadly mentioned below:

1.4.1 Investment Banking

Within investment banking, the firm works with a broad range of issuer
clients, including corporations, institutions, and governments, and
provides comprehensive strategic advice, capital raising, and risk
management expertise. The investment banking area of operation of
JPMorgan deals further with:

Mergers and Acquisitions (M&A)

JPMorgan has secured the top spot M&A advisory firm. The firm’s in-
depth expertise extends to a wide range of strategic M&A
transactions, including asset purchases and dispositions,
restructurings, and reorganizations.
Corporate Restructuring

Industry Coverage

Within investment banking, the firm works with a broad range of

clients including corporations, institutions, and government, and
provides comprehensive strategic advice, capital raising, and risk
management solutions. The industry coverage service includes
almost all types of business organizations around the world and
provides effective investment decisions to them.

Corporate Financial Advisory

J.P. Morgan Corporate Finance Advisory team provides thought

leadership on corporate finance issues and develops structured

8
 products for investment banking clients. The area of expertise
includes:

* Corporate Finance * Rating Advisory

* Strategies for Banks * Strategies for Insurance Companies

1.4.2 Equities Management and Services

J.P. Morgan is a global leader in providing a wide range of innovative
equities solutions to investors and issuer clients. Currently, the firm is
involved in cash equities and equity derivatives. The firm has great
potential in public offerings and hedge funds through its equity
management department.

1.4.3 Foreign Exchange

As a top-tier liquidity provider, JPMorgan offers comprehensive solutions
enabling clients to uncover their potential in today’s FX market. The firm
offers competitive pricing across 300 currency pairs in cash and
derivative products. This service enhances the efficient execution of
sales and trading of its clients in today’s competitive market.

1.4.4 Commodities
Under the commodities product, Morgan provides a global commodities
platform complete with market-making, managing market and credit
risk, and physical and financial solutions across the full spectrum of
commodities.

From metals and energy to environmental and agricultural commodities,

JPMorgan develops as well as provides complete solutions for its
commodities clients.

1.4.5 Risk Management

With an extensive experience of over 100 years in creating risk
management solutions, J.P. Morgan can meet the needs of both issuer

9
and investor clients. The risk management expertise of JPMorgan
demonstrated its innovative capabilities in:

* Derivatives * Longevity Risk Management

* Prime Brokerage * Credit Liquidity management and more...

1.4.6 Prime Services

Like every investment bank, the prime services of J.P Morgan include:

Broker-Dealer Service
J.P Morgan as an industry leader provides clearing, custody,
operations, technology, and order execution capabilities to broker-
dealers worldwide.

Futures & Options

J.P. Morgan is one of the most dynamic market leaders in the futures
and options brokerage business. At present, it is clearing more than
70 exchanges with electronic trading access to over 5o of the
exchanges. The future and option product deals in research, sales
execution, clearing service, foreign exchange, and commodity asset
classes, etc.

1.4.7 Other Products and Services

The other major products offered by the firm include the following:

Emerging Market Opportunities & Trading

J.P. Morgan serves Emerging Markets clients across origination,
derivatives, trading, foreign exchange, and research, while local
presence in each market ensures client accessibility.

Structured Investment Products

10
 Structured products also known as structured investments are
systematized classes of assets enhanced to provide increased
diversification for clients’ portfolios, and enhanced returns.

Global Corporate Bank

The Global Corporate Bank manages the firm’s overall relationships
with large corporations, financial institutions, and public sectors. This
service of J.P. Morgan deals with objectives and challenges in
financing, risk management, working capital management, cash
management, and investments.
All the minor products and services such as commercial cards, foreign
exchange, private banking, trade services, etc. are provided under
this very department.

1.5 Recent News and Events

It is not to mention that with such a huge portfolio JPMorgan is
achieving every bit of success on its way. The firm has a world-class
renowned standard as well as goodwill. It has always been the highlight
of the American economy because of its major contribution to the
economic welfare.

Recent news of the Boston Marathon which was devastated by a bomb

attack was organized by this very firm under the name J.P. Morgan
Corporate Challenge.

Similarly, the bank is also ranked #1 in Mobile Banking as of 25th April

2013. It has also received a sum of $70 million in new market tax credit
award from the U.S. Department of Treasury’s Community Development
Financial Institution Fund to help increase economic opportunities in the
nation’s most distressed areas.

The bank on April 22, 2013, unveiled new incentives to reinforce positive
spending habits towards the customers. The Chase Blue Print is the idea
behind this task.

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 Chapter II

Environment Analysis
As one of the world's leading financial institutions, JPMorgan Chase
recognizes that economic growth and rising living standards
fundamentally rely on the abundance and vitality of the planet's
resources and ecosystems. Supporting a more environmentally
sustainable global economy is a challenge with real implications for
every sector of modern society, including financial services.

2.1 Assessment of Internal Environment

In the wake of the Synthetic Credit Portfolio’s losses, in May 2012 the
Firm – under the guidance of its Chief Risk Officer – mandated a self-
assessment of the Risk function within each line of business and Chief
Investment Officer (CIO). As part of the self-assessment process, the
Firm identified three general categories for review and improvement:

Model Governance and Implementation,

Market Risk and Governance, and
Risk Independence.

Within each category, the Firm identified specific areas of focus. In

Model Governance and Implementation, the Firm focused on conducting
a spot check of significant drivers and broadening the model approval

12
process to encompass implementation and ongoing monitoring. Within
the category of Market Risk and Governance, the areas of focus were:

(1) The appropriateness of the limit structure relative to risks undertaken;

(2) The appropriateness of the risks undertaken;

(3) Policy, response, and escalation process concerning limit breaches;

and (4) Consideration within line of business risk committees of

liquidity and concentration in positioning.

Within the category of Risk Independence, the Firm reviewed its risk
committee
structure.
The company has established departments and heads throughout its
structure for the maintenance of the business activities. They are
focused on ensuring the financial health as well as proper control and
coordination of the business operation.

2.2 Assessment of External Environment

Environment Strategy in external environment assessment The

JPMorgan Chase & Co. emphasizes the importance of integrating–or
mainstreaming–environment into country development programs,
sector strategies, and investments and underpinning sustainable
development. It introduced environmental policies and procedures as
well as community development and environment sustainability to
integrate good environmental management into the business operations
and has also developed environmental assistance programs to help
client countries integrate environmental issues into their development
process, to address their pressing environmental challenges.

2.3 JPMorgan Chase & Co. SWOT Analysis

“SWOT is an acronym for the internal Strengths and Weaknesses of a
firm and the environmental Opportunities and Threats facing that firm.
SWOT analysis is a widely used technique through which managers
13
create a quick overview of a company’s strategic situation. The
technique is based on the assumption that an effective strategy derives
from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A
good fit maximizes a firm’s strengths and opportunities and minimizes its
weaknesses and threats. Accurately applied, this simple assumption has
powerful implications for the design of a successful strategy.”
The assessment of the internal as well as external environment can also
be done through the proper strategic SWOT analysis. Some leaders like
Stev Jobs have said that it is the environment that decides the
company’s key strengths and weaknesses and the potential
opportunities and threats.

Strength
JPMorgan Chase & Co. is one of the most successful business service
firms in the United States. It is a Business Company with $ 1.2 trillion in
assets and about $ 106 billion is shareholders equity which shows its
strength as a financial institution.

JPMorgan Chase & Co. is one of the oldest service firms in the world and
operates both banking and non-banking subsidiaries.

With revenues of $ 56.9 billion in the US and 206000 employee pools,

makes JPMorgan Chase & Co. a leader in business services providing
firms in the US. It is said to be the top 3 largest banking institutions in
the United States.

JPMorgan Chase & Co. operates on the national as well as international

levels. Therefore, its market share is not restricted to one region or
country. The company operates in over 60 countries worldwide and is
still able to meet the objectives and the needs of the clients effectively.

JPMorgan Chase & Co. has a superior reputation; its knowledge to

attract and keep its personnel and the attractiveness of its products to
its customers adds to its strength greatly.

14
JPMorgan Chase & Co. signed a $ 5 billion outsourcing agreement with
IBM. It also formed a merger with Bank One Corp. to encourage self-
sufficiency and cost reduction by employing a do-it-yourself approach.

Weakness
The IT infrastructure of JPMorgan Chase & Co. was not sufficient in
maintaining their systems in their business operations

The cancellation of the outsourcing agreement with IBM resulted in

transferring of employees to IBM’s payroll, in employee anger and loss
of productiveness of the company.

The new consultant had to be brought into the company to assist in

implementing the outsourcing strategy and in serving employees to
finish the transformation which caused additional expenses incurred by
the company.

There was a decrease in productiveness due to a heavier workload for

existing employees. Employees lost their jobs on the restructuring back
into JPMorgan Chase & Co. The merger with Bank One created 12000
layoffs.

Furthermore, it can be added that JPMorgan Chase & Co. has

overdependence on the USA market. This tendency of the company has
resulted in a lack of expansion of business and diversification.

Opportunities
The outsourcing agreement that the company undertakes from time to
time could make it more competent by resulting in cost reduction and
increased quality. The agreement with IBM and other lending companies
would create significant value for clients, employees, and shareholders.

The merger with Bank One led to the accomplishment of a large retail
banking presence. Therefore, helps in increased capacity to manage
large business infrastructure. The expansion of its products and services
could also create opportunities for the company with the diversifying
portfolios for consumers.
15
Threats
The company faces threats from several competitors because of its
operation in over 6o countries, both globally and regionally. The fact that
companies like IBM could supply its services for numerous companies of
the size of JPMorgan Chase & Co. and hence, increase their
competitiveness.

Employee having to do additional work, having salary reductions and re-

application process for their jobs could cause them to be de-motivated
and retrograde productivity.

The possibility of newborn firms entering into the business affects

competition, not only a firm’s present rivals pose a threat to the
business alone.

A danger of substitutes exists that the JPMorgan Chase customers might

find less expensive and hence, their product demand is affected by the
price change of substitute products.

Apart from the business operating threats, the increased regulatory

pressures on interchange rates as well as consolidation in the financial
services industry also pose a major degree of threats to JPMorgan Chase
& Co.

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 Chapter III

Summary and Suggested Strategies

3.1 Summary

JP Morgan Chase & Company (JPMC) is a financial services company that

provides investment banking, security services, asset management,
hedge fund, and retail banking services through its subsidiaries.
JPMorgan, the company's wholesale business, is one of the world's
leading investment banks. JPMorgan is a recognized brand name in the
financial services sector. It offers a full range of investment banking
products and services in all major capital markets, including advising on
corporate strategy and structure, capital raising in equity and debt
markets, sophisticated risk management, market-making in cash
securities and derivative instruments, and research.

JPMorgan maintains a leading position in the number of debt, equity,

and equity-related transactions undertaken globally. JPMorgan’s strong
investment banking operations, are core to JPMC’s global operations and
give the company a platform to drive growth. However, JPMC is

17
threatened by a weak mortgage market that could hurt the company's
earnings from the sector.

3.2 Suggested Strategies

JPMorgan Chase & Co. was built with hard work over 200 years. It should
create a company that all can be proud of, and integrate the overall
financial markets to work together to build the best financial services
company in the world.

JPMorgan Chase & Co. is the destination of several diversified customers

who greatly depend on it. Their success and intimate growth only come
from the success of the firm.

With all those business strategies of JPMorgan Chase & Co., we, group
‘V’, would like to suggest some of our views which we gained after the
analytical study of JPMorgan Chase & Co. They include:

Continuous market research and consumer requirements

forecasting for sustainability and driving success from the global
competition
Proactive in decision-making and succession planning to ensure
flexibility in the business operation and continuity of its
operation by removing
uncertainties in the middle of the operations.
Adopting unquestionable HRM practices with dynamic aspects.
Diversification of the portfolio through global expansion of the products
and
services.

Limit the over-dependence in the U.S. market and reach the

needed marketplace around the world.

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19
 References

Web Sites

http://www.jpmorganchase.com/corporate/Home/home.htm

http://www.jpmorganchase.com/corporate/Home/newsroom.htm

http://web.worldbank.org/wbsite/external/topics/environment

http://en.wikipedia.org/wiki/jpmorgan_chase

Newspapers

http://topics.nytimes.com/top/news/business/companies/morgan_j_p_chase_and_compan

y/index.html http://finance.yahoo.com/q/h?s=jpm

Reports

JPMorgan Chase & Co. Annual Report 2011 and 2012