WebProNews

Tag: JPMorgan

  • JPMorgan CEO Jamie Dimon Working on First Republic Rescue Plan

    JPMorgan CEO Jamie Dimon Working on First Republic Rescue Plan

    JPMorgan CEO Jamie Dimon is reportedly leading the charge to save First Republic Bank and restore confidence in the bank.

    First Republic is facing its worst crisis in 15 years on the heels of three other banks collapsing. Silicon Valley Bank collapsed in early March, and Signature Bank followed shortly after. Meanwhile, Credit Suisse’s freewheeling ways finally caught up with it, leading to its sale to rival UBS.

    According to The Wall Street Journal, Dimon is leading a coalition of banks that are trying to keep First Republic from following SVB and Signature. Dimon helped orchestrate eleven banks in depositing $30 billion into First Republic in an effort to restore confidence.

    The assisting banks have yet to rule out converting the deposit into a straight cash infusion if necessary.

    Either way, the lengths Dimon and his fellow bankers are going to demonstrate the fragility of the current economic situation.

  • JPMorgan Says It Was Duped Into Buying a Startup, Sues Founder

    JPMorgan Says It Was Duped Into Buying a Startup, Sues Founder

    JPMorgan is in the middle of an embarrassing situation, claiming it was duped into purchasing a startup.

    JPMorgan bought Frank, a financial aid website for college students, for some $175 million. Unfortunately, when JPMorgan sent out marketing emails to Frank’s customers, 70% of them bounced back, according to CNBC. The bank is accusing Frank founder Charlie Javice of creating almost 4 million fake accounts to artificially inflate the value of her company.

    “To cash in, Javice decided to lie, including lying about Frank’s success, Frank’s size, and the depth of Frank’s market penetration in order to induce JPMC to purchase Frank for $175 million,” the bank said. “Javice represented in documents placed in the acquisition data room, in pitch materials, and through verbal presentations [that] more than 4.25 million students had created Frank accounts.”

    The bank claims that, in reality, Frank had “fewer than 300,000 customers.” JPMorgan also makes the case that Javice knowingly faked the email accounts, since she approached her engineering chief to use an algorithm to create “fake customer details.” When the engineering chief refused, Javice turned to a college professor in New York.

    Javice’s emails with the professor leave little to the imagination, in terms of what she was allegedly trying to do.

    “Will the fake emails look real with an eye check or better to use unique ID,” she allegedly asked.

    For her part, Javice is claiming JPMorgan bought her company and then failed to pay her what she was owed when the bank ran into unforeseen issues.

    “After JPM rushed to acquire Charlie’s rocketship business, JPM realized they couldn’t work around existing student privacy laws, committed misconduct and then tried to retrade the deal,” Alex Spiro, Javice’s attorney, told The Wall Street Journal. “Charlie blew the whistle and then sued.”

    JPMorgan has since shuttered the Frank website, but the case raises more questions than it answers, not the least of which is how JPMorgan could be duped in the first place. Either JPMorgan’s case is accurate, and it failed to properly investigate the scope of the business it was buying, or Javice is correct and JPMorgan bought a business it couldn’t properly monetize due to privacy laws — which is still a failure to properly investigate a potential acquisition.

    Either way, JPMorgan clearly needs to revamp acquisition process.

  • JPMorgan Decides Against Investment in Fintech Company Yapily

    JPMorgan Decides Against Investment in Fintech Company Yapily

    JPMorgan has reportedly decided against investing in fintech company Yapily, dealing a blow to the startups fundraising.

    Yapily is a company that develops APIs to help merchants accept payments without going through traditional credit card companies. The startup is already backed by Sapphire Ventures, the same company that has invested in Square and Wise.

    JPMorgan was reportedly looking to invest as much as $25 million in the company, but Business Insider is reporting that the investment bank has decided not to proceed, despite Yapily believing the deal was moving forward.

    One source told Insider the bank’s investment may have been contingent on more funding from other parties, meaning the deal may still happen if Yapily is able to raise additional funds from other sources.

  • Oracle Has a ‘Cloud-First’ Problem As Rivals Threaten Its Database Dominance

    Oracle Has a ‘Cloud-First’ Problem As Rivals Threaten Its Database Dominance

    Oracle may be the undisputed king of the database market, but cloud-first rivals are threatening that dominance with cheaper, more flexible options.

    Oracle has long been the dominant player in the database market. Even as the cloud has grown in importance, Oracle has managed to carve out a meaningful share of the market, thanks in large part to the strength of its database platform. Many customers see it as a full turn-key solution, combining the cloud and database solutions necessary. In spite of that, according to a report by Bloomberg, Oracle’s database dominance may be under threat from cloud-first rivals.

    Bloomberg cites the example of Shutterfly, which recently made the decision to move its database to the cloud. Despite relying on Oracle for years, the company decided to go in a different direction with the transition.

    Read more: Larry Ellison Touts Oracle Cloud’s Reliability in Wake of AWS Outage

    “The amount of time and energy that was consumed purely running just the plumbing was immense,” Chief Technology Officer Moudy Elbayadi said in an interview. A review of the existing options on the market led Shutterfly to conclude that Oracle’s solutions didn’t “fit our desires to have that level of openness and flexibility,” Elbayadi added.

    Unfortunately for Oracle, Shutterfly isn’t an isolated example. JPMorgan, Nasdaq Inc, JetBlue Airways Corp, and Automatic Data Process Inc are among the list of companies transitioning to non-Oracle options.

    “We have actually quite rapidly been reducing our Oracle footprint,” said Nikolai Larbalestier, Nasdaq’s senior vice president of cloud strategy and enterprise architecture. “There are plenty of good alternatives today.”

    Part of the problem stems from the complexity involved in running Oracle’s database and the cost to the client company of doing so. Mythical Games CEO John Linden emphasized the issue, despite his firm being valued at $1.2 billion.

    “Oracle hits us up every week,” he said. But “we’d have to have a massive team in place to run it appropriately.”

    See also: Google, Microsoft, and Oracle Had the Most Vulnerabilities in Early 2021

    Just as significant, Oracle’s tools seem to be developing a reputation for not being up to par with the latest developments, making the prospect of working with them unappealing to many developers.

    “I can’t even hire people if I told them that we majorly use Oracle,” Yao Morin, chief data officer at JLL Technologies, told Bloomberg. “People are yearning for better tools.”

    To be clear, Oracle is still the company to beat in the database market, especially among companies that want on-premise database solutions. Nonetheless, the company clearly has some significant areas it needs to improve on if it wants to remain relevant in the coming years. Otherwise, it may find itself in the same situation as IBM when personal computers replaced mainframes — the undisputed leader of a niche market.

  • RH CEO: ‘Anybody Who Thinks We’re Not In a Recession Is Crazy’

    RH CEO: ‘Anybody Who Thinks We’re Not In a Recession Is Crazy’

    Anyone hoping the current economic downturn is just a blip will surely be disappointed by RH CEO Gary Friedman’s warning.

    Companies and business leaders have been sounding the alarm about the state of the economy, freezing hiring and laying off workers in an effort to cut costs and weather what’s coming. According to Friedman, the economy may be worse off than some want to admit.

    “Anybody who thinks we’re not in a recession is crazy,” Friedman told analysts, via CNN. “The housing market is in a recession, and it’s just getting started. So it’s probably going to be a difficult 12 to 18 months in our industry. But these are the times where you can really capitalize.”

    Friedman is hardly the only one to sound a dire warning about the economy. In June, JPMorgan CEO Jamie Dimon warned there was a hurricane coming, although it was too soon then to tell how big it would be.

    “That hurricane is right out there down the road coming our way” the CEO said. “We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”

    Three months later, it appears the view is clear enough for Friedman to make the observation he did.

  • JPMorgan CEO Jamie Dimon Doubles Down on Economic Warning

    JPMorgan CEO Jamie Dimon Doubles Down on Economic Warning

    JPMorgan CEO Jamie Dimon has already warned about the state of the economy but has now doubled down, revealing exactly what worries him.

    Dimon is one of the most influential leaders in finance, so when he expresses concerns about the economy, people take notice. In early June he warned an economic “hurricane is right out there down the road coming our way,” but he’s now revealed what he believes are the biggest issues creating that hurricane.

    According to CNBC, Dimon made his comments at JPMorgan Chase’s latest quarterly release. Dimon acknowledged there were some bright spots, such as the “economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy.”

    Dimon then went on to highlight the plethora of negative factors that he believes will take a toll on the economy:

    “But geopolitical tension, high inflation, waning consumer confidence, the uncertainty about how high rates have to go and the never-before-seen quantitative tightening and their effects on global liquidity, combined with the war in Ukraine and its harmful effect on global energy and food prices are very likely to have negative consequences on the global economy sometime down the road.”

    In his comments in June, Dimon said it was still unclear what kind of economic hurricane was on the horizon, whether “it’s a minor one or Superstorm Sandy.” It’s a safe bet his latest comments aren’t going to ease too many people’s minds.

  • JPMorgan Circling the Wagons After Its Employee Monitoring Program Leaked

    JPMorgan Circling the Wagons After Its Employee Monitoring Program Leaked

    JPMorgan is circling the wagons, leaving employees feeling “disgusted” after the company’s employee monitoring program was leaked to the press.

    Like many large companies, JPMorgan has a complicated relationship with hybrid and remote work. CEO Jamie Dimon is not a fan of remote work despite the company finally adopting a hybrid remote policy.

    The company’s relationship with hybrid work, and its employees, became much more complicated after Business Insider reported on its employee monitoring system, called “Workplace Activity Data Utility,” or WADU for short. WADU is designed to track how employees spend their time, including their in-office time, Zoom usage, and much more.

    In response to the report, Insider is reporting that JPMorgan called an emergency meeting to try to prevent further leaks, even telling managers to communicate policy updates verbally to make it harder to leak documents and communication to the press.

    The company’s actions are not going over well with employees, many of whom are not happy about being monitored or JPMorgan’s opaque handling of the matter. According to one employee who was present at the meeting, “people felt disgusted. They just felt as if they were being betrayed, and that this was a way for the company to just instill fear into employees.”

    A JPMorgan spokesperson refuted Insider’s report, telling the outlet he was “not aware of any direction or meeting with ‘mid-level or senior-level executives’ to restrict access or knowledge of WADU, nor have we made any access changes to the system, as your anonymous source suggests.”

    If Insider’s reports are true, this certainly wouldn’t be the first time a major company has upset its employees with its handling of remote and hybrid work or by spying on employees.

  • Adobe CEO: E-Commerce Price Drops Should Fuel Strong Shopping

    Adobe CEO: E-Commerce Price Drops Should Fuel Strong Shopping

    Adobe CEO Shantanu Narayen had some good news for the e-commerce sector, saying that dropping prices in some categories should help fuel strong shopping.

    Government and business leaders the world over are worried about the state of the economy. Rising inflation, supply chain issues, unfilled jobs, the war in Ukraine, and other factors threaten an economic downturn. JPMorgan CEO Jamie Dimon likened it to a hurricane, although it’s still unclear how bad a hurricane it will be. Despite the cause for trepidation, Narayen believes the e-commerce sector has some reason to be optimistic.

    “When you look at the total expense, in addition to the macroeconomic, where there may be a little bit more concern, what’s happening is actually you’re seeing some price decreases in elements like electronics or things that are happening with games,” Narayen said in an interview on Mad Money.

    As a result of the decreased prices, especially in categories that have previously been hit hard by supply chain issues, Narayen believes digital shopping will continue at a healthy pace.

    “Nothing’s going to change as it relates to people saying, ‘I want to do digital engagement, I want to perhaps buy digitally, pick up physically and you know, the multi-channel thing,” he added.

    Narayen’s comments are some of the few elements of good news amid the economic uncertainty.

  • Microsoft Hiring Slows, Major Team’s Headcount Cut

    Microsoft Hiring Slows, Major Team’s Headcount Cut

    In yet another sign of an impending economic downturn, Microsoft has significantly cut hiring, impacting even high-profile teams.

    Business leaders across industries are warning about the state of the economy. JPMorgan CEO Jamie Dimon has even called the coming downturn a “hurricane,” the strength of which is still unknown. Microsoft appears to be taking the warnings seriously, significantly cutting its hiring efforts.

    According to Business Insider, the cuts are having a significant impact on Charlie Bell’s cybersecurity team. Bell was one of Microsoft’s most high-profile hires, poaching him from Amazon after a 23-year career there. While nothing was said about his role at the time, it was eventually revealed that Bell would lead a dedicated cybersecurity division.

    “After constructive discussions with Amazon, Charlie Bell started his new role on Oct. 11, focused on advancing cybersecurity capabilities that will benefit the tech sector and the broader economy,” a Microsoft spokesperson said.

    Bell’s team has now been cut to just 200 individuals, a far cry from the 4,000-strong organization Insider’s sources say was originally envisioned. Microsoft disputed that number, but did not clarify what the original number was. The company did say Bell’s team would likely grow to more than 1,000 in the coming fiscal year.

    “As Microsoft gets ready for the new fiscal year, it is making sure the right resources are aligned to the right opportunity. Microsoft will continue to grow headcount in the year ahead and it will add additional focus to where those resources go,” the spokesperson said.

  • JPMorgan CEO: ‘That Hurricane Is Right Out There’

    JPMorgan CEO: ‘That Hurricane Is Right Out There’

    JPMorgan CEO Jamie Dimon is warning of an economic hurricane, although how bad it will be is anyone’s guess.

    The economy has been rocked by supply chain issues, global shortages, rising gas prices, and skyrocketing inflation. Individuals and companies looking for good news were in for a disappointment, with Dimon warning an investor conference that a hurricane is coming, according to Forbes.

    “That hurricane is right out there down the road coming our way.” The CEO added, “We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”

    The warning is in stark contrast to the last few years, where federal stimulus programs helped usher in an era of free spending and the economy boomed in spite of a global pandemic. With those program ending, things are taking a much different turn.

    In addition, Dimon expressed concern about the possibility of the Russian invasion of Ukraine escalating, leading to further strain on the global economy.

    As Forbes notes, the indicators of a downturn are everywhere online, from increased numbers of available workers on LinkedIn to startup accelerator Y Combinator telling founders to start cutting costs.

    Here’s to hoping the coming hurricane a minor one and not the equivalent of Superstorm Sandy.

  • JPMorgan Taps Blockchain for Collateral Settlements

    JPMorgan Taps Blockchain for Collateral Settlements

    As companies race to adopt blockchain technology, JPMorgan is experimenting with using it for collateral settlements.

    Despite being synonymous with cryptocurrency, blockchain has applications far beyond bitcoin and company. Thanks to its decentralized and immutable nature, financial institutions are eager to find ways to incorporate it in their operations. JPMorgan is looking to blockchain to handle collateral settlements, handling its first transaction on May 20.

    According to Bloomberg, two of JPMorgan’s entities used the token representation of money market fund shares from BlackRock as collateral, transferring it on its private blockchain. The company sees an opportunity to give investors more flexibility with the kind of assets they can use for collateral, as well as when they can use them.

    “What we’ve achieved is the friction-less transfer of collateral assets on an instantaneous basis,” Ben Challice, JPMorgan’s global head of trading services, told Bloomberg in an interview. Interestingly, despite BlackRock not being a counterparty, “they have been heavily involved since Day One, and are exploring use of this technology.”

    JPMorgan has been blazing a trail in the financial world, being among the first to embrace new technologies. The company recently opened offices in the metaverse, becoming the first major bank to do so. With its use of blockchain, JPMorgan is continuing to innovate and embrace the changes new technology is bringing.

  • British Bank HSBC Buys Land in the Metaverse

    British Bank HSBC Buys Land in the Metaverse

    British bank HSBC is following JPMorgan’s example, claiming its stake on the metaverse with a land purchase.

    Companies are racing to stake their claim on the metaverse, the confluence of virtual, augmented, and in-person reality. According to Reuters, HSBC has purchased a virtual plot of land in the metaverse, specifically in The Sandbox.

    This follows JPMorgan opening its first virtual location in the metaverse in mid-February. HSBC has been cutting its in-person locations, announcing it would close an additional 69 branches in Britain.

    HSBC hopes its digital purchase will help it better engage with its customers and sports fans in the metaverse, as well as “create innovative brand experiences for new and existing customers.”

  • JPMorgan Opens Offices in the Metaverse

    JPMorgan Opens Offices in the Metaverse

    JPMorgan is a big believer in the metaverse, becoming the first bank to open an office it in.

    The metaverse refers to the convergence of virtual, augmented, and in-person reality. The entire tech industry seems to be pivoting toward it, with Facebook even changing its name to Meta to better position itself to lead the way.

    JPMorgan appears to also be going all-in on the metaverse, becoming the first bank to open offices in it.

    $MANA $SOL $ETH $JPM JPMorgan’s new lounge in Metajuku mall in Decentraland. Visitors are greeted by a digital portrait of Jamie Dimon and a roaming tiger.

    — Weather (@Weather40813438), February 15, 2022

    According to Fortune, JPMorgan believes the metaverse could eventually be worth $1 trillion annually, as its virtual worlds “infiltrate every sector in some way in the coming years.”

    A company like JPMorgan setting up offices in the metaverse may be the biggest endorsement yet of its potential future.

  • JPMorgan CEO Jamie Dimon Thinks Bitcoin is ‘Worthless’

    JPMorgan CEO Jamie Dimon Thinks Bitcoin is ‘Worthless’

    Bitcoin may be one of the hottest things in the tech and finance industries, but JPMorgan CEO Jamie Dimon is not a fan, calling it “worthless.”

    Dimon is a well-known critic of cryptocurrency, previously telling people he thinks they should “stay away from it.” He’s now gone even further, saying he thinks Bitcoin is “worthless,” according to Reuters.

    “I personally think that bitcoin is worthless,” Dimon said. “I don’t think you should smoke cigarettes either.

    “Our clients are adults. They disagree. If they want to have access to buy or sell bitcoin – we can’t custody it – but we can give them legitimate, as clean as possible access.”

    Dimon also believes significant government regulation is on the way, for a number of reasons.

    “No matter what anyone thinks about it, government is going to regulate it. They are going to regulate it for (anti-money laundering) purposes, for (Bank Secrecy Act) purposes, for tax,” Dimon said.

  • Banking Regulators Want Cryptocurrencies Governed by Strictest Rules

    Banking Regulators Want Cryptocurrencies Governed by Strictest Rules

    Global banking regulators are speaking out about cryptocurrency, saying it should be governed by the strictest rules in the interest of stability.

    Cryptocurrencies are rising in popularity and value, with companies the world over rushing to adopt them. El Salvador became the first country to adopt Bitcoin as legal tender, earlier this week, further adding to crypto’s rise.

    Many others, however, are less enthused and see crypto as a potential threat to the stability of the financial sector. According to The Guardian, the Basel Committee on Banking Supervision — made up of regulators from the world’s leading financial institutions — want a “new conservative prudential treatment” to ensure banks have enough capital to cover any and all losses they may suffer in the crypto market.

    “Crypto-assets have given rise to a range of concerns including consumer protection, money laundering and terrorist financing, and their carbon footprint,” the Basel Committee said. The committee added that the “growth of crypto-assets and related services has the potential to raise financial stability concerns and increase risks faced by banks.”

    The Basel Committee’s stand is a blow against crypto, and echoes the thoughts of JPMorgan CEO Jamie Dimon, who warned people to “stay away from it.” Like Dimon, the Basel Committee had a softer view of stable coins, viewing them as less volatile.

  • Salesforce and JPMorgan Unloading Office Space in Remote Work Transition

    Salesforce and JPMorgan Unloading Office Space in Remote Work Transition

    Salesforce and JPMorgan are the latest big-name companies looking to downsize their office space as remote work becomes the norm.

    The global pandemic has fueled a major transition, making remote work and telecommuting the new normal for a large portion of the workforce. Many companies are embracing this permanently, making remote work or hybrid work their default method moving forward.

    One market that has suffered as a result is commercial real estate, with many companies no longer needing the vast amount of office space as before. Dropbox recently made headlines when it sold its San Francisco headquarters for $1.08 billion.

    Salesforce and JPMorgan are the latest to join the trend, with The Wall Street Journal reporting that JPMorgan is marketing its 700,000 square feet of Manhattan office space. Meanwhile, Salesforce is listing space in one of its San Francisco buildings for rent.

    It remains to be seen how much the market will rebound but, at the current rate, it seems as though commercial real estate will forever be changed by the pandemic.

  • JPMorgan Chase Cyberattack Big In Volume, But Not Sensitive Data, According To Bank

    JPMorgan Chase Cyberattack Big In Volume, But Not Sensitive Data, According To Bank

    JPMorgan Chase, the largest banking institution in the U.S., revealed that 76 million household accounts and 7 million small business accounts were compromised in a recent cyberattack – an attack that was previously disclosed, but was much larger than first thought.

    Attackers obtained names, addresses, phone numbers, and email addresses, but not the really sensitive data like account numbers, passwords, user IDs, dates of birth, or social security numbers, according to the bank. In fact, the bank is actually telling people they don’t see any reason for customers to have to worry about changing their passwords.

    Chase tells customers in a message:

    We want to update you further on the cyber attack against our company. After extensive review, here is what our forensic investigation has found to date:

    Here’s what you should know:

    – There is no evidence that your account numbers, passwords, user IDs, date of birth or Social Security number were compromised during this attack.

    – However, your contact information – name, address, phone number, and email address – was compromised.

    Your money at JPMorgan Chase is safe:

    – Unlike recent attacks on retailers, we have seen no unusual fraud activity related to this incident.

    – Importantly ,you are not liable for any unauthorized transaction on your account that you promptly alert us to.

    We are very sorry that this happened and for any uncertainty this may cause you. We don’t believe that you need to change your password or account information. Scroll down for answers to questions you might have. As always, we recommend you use care with your accounts and information, as we describe in our Security Center

    We’re here to help

    Attacks like these are frustrating. There are always lessons to be learned, and we will learn from this one and use that knowledge to make our defenses even stronger.

    The New York Times reports:

    The hackers appeared to have obtained a list of the applications and programs that run on JPMorgan’s computers — a road map of sorts — which they could crosscheck with known vulnerabilities in each program and web application, in search of an entry point back into the bank’s systems, according to several people with knowledge of the results of the bank’s forensics investigation, all of whom spoke on the condition of anonymity.

    The attackers reportedly operated from overseas.

    The bank says customers were affected if they used Chase.com, JPMorganOnline, Chase Mobile or JPMorgan Mobile. It says that due to the fact that no financial or account data was compromised, it’s no necessary to get credit/identity theft monitoring.

    The attack’s access paths have been closed, it says.

    Image via Wikimedia Commons

  • JP Morgan’s Twitter PR Act Was “A Bad Idea”

    JP Morgan’s Twitter PR Act Was “A Bad Idea”

    The person behind JP Morgan’s Twitter account thought it’d be a good idea to host “our first live Q&A on leadership & career advice w/a leading $JPM executive on 11/14.” Twitter users were prompted to use the hashtag #AskJPM to give direct questions to the senior executive. This prompted a handful of Twitter users to pick up their proverbial social media shaming sticks and beat the living tar out of the company’s PR front with questions concerning the bank’s morals and lack-thereof. Here’s how it went down: Timothy Connolly CFA started it off with a little play on the acronym of the company:

    Later, user amusebarf, perhaps unbeknownst to him, seemed to have alluded to Matthew 19:23-24 of the Bible, which states: “23 Then Jesus said to his disciples, “Truly I tell you, it is hard for someone who is rich to enter the kingdom of heaven. 24 Again I tell you, it is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God.” The principle, which tends to be universal, puts to light that greed only creates suffering, as it hordes more than enough for one’s self, inadvertently depriving others.

    User Jack Lord posted Jamie Dimon’s (the CEO of JP Morgan) rap sheet. Part of the document reads, “Since 2009, the Company has paid more than $8.5 billion in settlements for the various regulatory and legal problems discussed in this report. These settlement costs, which include a small number of recent settlementsof older issues, represent almost 12% of the net income generated between 2009-2012.”

    Lauren Tara LaCapra asked JP Morgan if Jimmy Lee, its investment banker, cheats at golf.

    David Dayen posted probably the most back handed question in the flurry of tweets. Not one JP Morgan corporate executive has been jailed.

     

     Phil Perspective added his perspective with an inquisitive question about the economy:

    Mike Conrad put JP Morgan on blast,

    Amy Hunter was curious about how much loss JP Morgan would have to take in order to go under.

    The other 98% wanted to know how JP Morgan felt after getting away with fraud.

    Schoun with a little history lesson:

    Charlotte curious about the underreported talents of JP Morgan:

    David Dayen again, this time accusing JP Morgan having a hand in funding drug cartels:

    Alexis Goldstein wanted to know if the collection of fines that the bank has to pay is a source of pride.

    Kevin Murphy was curious about what makes a person want to join a morally bankrupt institution:

    Eddy Elfenbein needed some advice on keeping his linens fresh:

    Having suffered a blow to their character and unable to respond to the hardline questions, J.P. called it quits:

     

    (Pictures via WikiCommons, Twitter)

     

  • JPMorgan Scraps Twitter Q&A Over Fiscal Furor

    JPMorgan Scraps Twitter Q&A Over Fiscal Furor

    It was a brief idea that lasted all of nine glorious hours: the vice-chairman of US corporate banking giant JPMorgan, Jimmy Lee, announced he would be taking over the @jpmorgan Twitter feed at 1pm today. By last night, however, major news outlets around the world were reporting the idea as completely scrapped because of the thousands of angry, abusive tweets the company received at the hashtag #AskJPM.

    It all began with this tweet:

    It didn’t take long for the tweets to pile in, and a vast majority were far from friendly:

    By the time the company had had enough…

    … it was far too late. Not even Jamie Dimon could undo what had been done:

    Even Hacktivist group Anonymous weighed in on one of their many Twitter outlets:

    The wisest tweet, ironically, came from a fellow banker, who said:

    [Image via Twitter]

  • JPMorgan Refunds $389 Million to Customers for Ill-Suited Credit Card Practices

    JPMorgan Refunds $389 Million to Customers for Ill-Suited Credit Card Practices

    JPMorgan Chase & Co. have had coarse week that has cost them well over $1 billion in fines and refunds. Only hours following the announcement of admission in the London Whale trade devastation, which cost the bank $920 million in fines, JPMorgan made yet another announcement. The bank informed the public that they’d executed a massive reimbursement of over $309 million to credit card customers as well.

    As the United States’ largest banking empire, JPMorgan’s two largest financial subsidiaries – Chase Bank, USA and JPMorgan Chase Bank – the bank serves as a major contributor to the financial sector in regards to both business and consumer relations. According to Fox Business, The massive refund was disbursed to approximately $2.1 million customers as a result of “illegal credit card practice,” said the Consumer Financial Protection Bureau.

    The ill-suited credit card practices against consumers also came with another fine of $60 million in addition to the $309 million, which bumped the cost up to $389 million.

    The Consumer Financial Protection Bureau also stated: “The agencies found that Chase engaged in unfair billing practices for certain credit card ‘add-on products’ by charging consumers for credit monitoring services that they did not receive,” the CFPB said, they also alleged the bank, “charged customers as soon as they enrolled in these products even if they were not actually receiving the services yet.”

    The ill-suited practices took place over a span of 6 ½ years, from October 2005 until June of 2012, ranging from approximately $7.99 to $11.99 in monthly fees. These fees were assessed for services that were not provided. For example, any consumer who paid the additional monthly fee with the intent on receiving credit protection or other perks that supposedly came with the card as an additional feature actually didn’t receive anything.

    JPMorgan Chase’s Head of Operations for Consumers and Community Banking issued a statement on behalf of the bank as well:
    “We stopped new enrollments in these products in mid-2012 and will fully exit them by the end of this year. We have already credited or refunded the customers affected. Any mistakes like these are regrettable and we are committed to ensuring our partners and vendors hold themselves to the same high standards that our customers expect of us.”

    The latest announcement provided a combined total for JPMorgan’s regulatory fines in addition to customer refunds bringing the total to a staggering $1.289 billion.

     

    Image via Wikimedia Commons

  • Linda Bammann, Michael Neal to Join JPMorgan Board

    On Monday, JPMorgan Chase & Co. released a statement announcing the Board of Directors’ intent to elect Linda B. Bammann and Michael A. Neal on as directors. Jamie Dimon, Chairman and CEO of JPMorgan Chase, stated, “Linda and Mike are proven leaders and will bring outstanding risk, finance and management experience to our Board and to our firm.”

    The move was anticipated since at least last month. JPMorgan Chase is the largest US bank and has faced some recent regulatory scrutiny. Dimon says that the bank has prioritized improving regulatory compliance and internal controls this year.

    In another personnel move, Lee Raymond, a past director, has been named Lead Independent Director. Raymond’s new position is a more powerful one, apparently allowing him to call meetings any time, approve agendas and add to them at will. He is also expected to guide the Board in decisions on CEOs.

    Bammann’s anticipated election is for 16 September when she will also become part of the Board’s Risk Policy Committee. Her previous positions were Deputy Head of Risk Management at JP Morgan Chase and as Chief Risk Management Officer at Bank One Corporation (now a part of JPMorgan Chase) where she served under Dimon. Bammann, who is 57, retired in 2005. Her post-retirement service on other Boards includes Director of The Federal Home Loan Mortgage Corporation (Freddie Mac), member of the Risk Management Association and Chair of the Loan Syndications and Trading Association.

    Neal, 60, will step down from his current position as Vice Chairman of General Electric Company before joining the JPMorgan Chase Board in January 2014. Neal has been a committed GE officer since 1979. His positions there have included President and COO of GE Capital, CEO of GE Commercial Finance and Chairman and CEO of GE Capital starting in 2007.

    [Image via JP Morgan Chase Official Website.]