What Is JP Morgan/Chase?
Microeconomics
July 7, 2010
JP Morgan/Chase
JP Morgan is one of the oldest and financial firms with its leading financial Services.
In order to understand how JP Morgan/Chase came to be one of the oldest financial service firms in the world we need to understand the background of the banking institution. The commercial banking started in the revolutionary war and played a major role in the growth of the nation’s economy. One of the first banks was The bank of New York in 1784 and really had no other competition until 1799 when Aaron Burr founded The Manhattan Co. In 1863 the United States created a dual system of federal and state chartered banks and one of the institutions was The first national bank of Chicago in which …show more content…
As more borrowers stop paying their mortgage payments (this is an on-going crisis), foreclosures and the supply of homes for sale increased. The result placed a downward pressure on housing prices, which further lowers homeowners' equity. The decline in mortgage payments reduced the value of mortgage-backed securities, which caused the net worth and financial health of banks. The government failed regulation and deregulation contributed very much to the crisis because in 1995, the GSEs like Fannie Mae began receiving government tax incentives for purchasing mortgage backed securities which included loans to low income borrowers. Thus began the involvement of the Fannie Mae and Freddie Mac with the subprime market. …show more content…
had received permission from U.S. regulators to repay in full the $25 billion preferred investment it accepted through the Troubled Asset Relief Program (TARP). The article explains how they plan to reapy the funds in full with accrued dividends. U.S Treasury. www.jpmorgan.com JP Morgan the first institution granted permission to repay the TARP. It was said in the article that given their strong financial position they fulfilled their conditions outlined by the US Federal Reserve. In May the company completed extensive testing for major banking institution and then government reviewed the banks capital and financial strength under various scenarios and agreed that JP didn’t need any additional capital.
July 7, 2010
JP Morgan/Chase
JP Morgan is one of the oldest and financial firms with its leading financial Services.
In order to understand how JP Morgan/Chase came to be one of the oldest financial service firms in the world we need to understand the background of the banking institution. The commercial banking started in the revolutionary war and played a major role in the growth of the nation’s economy. One of the first banks was The bank of New York in 1784 and really had no other competition until 1799 when Aaron Burr founded The Manhattan Co. In 1863 the United States created a dual system of federal and state chartered banks and one of the institutions was The first national bank of Chicago in which …show more content…
As more borrowers stop paying their mortgage payments (this is an on-going crisis), foreclosures and the supply of homes for sale increased. The result placed a downward pressure on housing prices, which further lowers homeowners' equity. The decline in mortgage payments reduced the value of mortgage-backed securities, which caused the net worth and financial health of banks. The government failed regulation and deregulation contributed very much to the crisis because in 1995, the GSEs like Fannie Mae began receiving government tax incentives for purchasing mortgage backed securities which included loans to low income borrowers. Thus began the involvement of the Fannie Mae and Freddie Mac with the subprime market. …show more content…
had received permission from U.S. regulators to repay in full the $25 billion preferred investment it accepted through the Troubled Asset Relief Program (TARP). The article explains how they plan to reapy the funds in full with accrued dividends. U.S Treasury. www.jpmorgan.com JP Morgan the first institution granted permission to repay the TARP. It was said in the article that given their strong financial position they fulfilled their conditions outlined by the US Federal Reserve. In May the company completed extensive testing for major banking institution and then government reviewed the banks capital and financial strength under various scenarios and agreed that JP didn’t need any additional capital.