JPMorgan Chase (JPM)

History of the Company

JPMorgan Chase is the largest bank in the United States with assets of $2.415 trillion, and the second largest in the world, represented in over 100 countries worldwide. The bank is a leader in derivatives, and deals with private banking, investment banking, securities, and asset management. 

JPMorgan Chase has a long history of mergers and buyouts with other banks, but its roots go back to 1871, when John Pierpont Morgan founded a bank in his own name. In 1895 the bank was renamed J.P. Morgan and Co. JPMorgan Chase is the result of mergers with Chase Manhattan, Chemical Bank, Bear Stearns, Bank One, Washington Mutual, and others. 

Retail banking in the United States happens under the Chase brand. JPMorgan Chase is one of the Big Four banks (Bank of America, Citigroup, and Wells Fargo are the others). 

Trading JPMorgan Chase: What You Need to Know

  • JPMorgan Chase (and its predecessor Chemical Bank) was the primary bank of Bernard Madoff, infamous for running a Ponzi scheme from 1986 to 2008. In 2014, a judge approved JPMorgan’s $218 million class action settlement for the victims of Madoff’s scheme. According to the suit, Chase should have known about Madoff’s fraud, but neglected to provide proper oversight.
  • JPMorgan’s stock hit a high in 2008, and then in 2011-2012 fell and flattened out due to the fallout of the global economic crisis. A net profit of $21.3 billion was reported for 2012. Prices dropped in response to the banking crisis, but they recovered. 
  • JPMorgan’s annual report and quarterly earnings reports provide great insights into the future performance of the company and whether it is a profitable trade. With recent favorable growth rates for the future and feelings that the stock is undervalued, the majority of analysts are saying that JPMorgan is a good buy.

Anyone who wants to trade JPMorgan Chase stock should carefully analyze the market conditions and the history of the company before trading.

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