JP Morgan Chase & Co. was created when two fast growing firms merged on the first day of 2001. JPMC became the third largest bank in the United States. JPMorgan’s assets continually increased from $667 billion in 1999 to $2. 2 trillion in 2008, meaning a compound annual growth rate of 16% (U. S Government Printing Office, 2011). At the rate, JPMC has become the largest bank in the United States with $2. 4 trillion in assets (Irwin, 2013). However, JPMC is not only prevalent in the U. S. Employing approximately 255,000 people worldwide (Irwin, 2013), JPMC is an important global player in the financial sector.

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JPMC’s headquarters are located in America’s financial business hub, New York City, but JPMC has significant global presence in over 60 countries in the Americas, Europe, Asia and Africa. Diversity at JP Morgan Chase is taken seriously, and has been noted to have some of the most effective diversification recruiting of all the Fortune 500 firms. JPMC has created a positive identity for itself amongst banking circles, known for being selective and competitive but understanding that talented candidates come in many forms (Yemen & Davidson, 2009).

For customers and clients, JPMC strives to treat each customer as an individual and build relationships with clients. Amongst employees (current and prospective), JPMC treats them with respect and fairness with outlined procedures and managerial support, while keeping a sense of healthy competition. JPMC’s CEO Jamie Dimon, a Tufts undergraduate, Harvard MBA with a lot of previous executive-level experience, was appointed on December 31, 2005 (Yemen & Davidson, 2009) after having previously been president and COO.

The operating committee underneath Dimon consists of thirteen executives that must report to the CEO (Ibid). Dimon is a hard-worker and strong believer in diversity. He desires change that would lead to JPMC being more interconnected to all the top talent in the market, not just of a certain group. JPMC and The Credit Crisis While there were many causes to the 2008 financial crisis, the packaging of bad mortgages into mortgage-backed securities was believed to bethe “patient zero” (Irwin, 2013).

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Unfortunately, JPMC had been involved in this fraudulent behavior that led to the biggest recession since the 20s. During the recession, JPMC purchased two collapsing firms. In March 2008, JPMC agreed to finance a deal with the Federal Reserve to purchase Bear Stearns. Itlater purchased Washington Mutual as well, acquiring thousands of employees as well taking on the two firms outstanding legal exposures (Irwin, 2013). Since JPMC itself and the firms it acquired had been involved in offloading bad mortgages on other parties, such as mortgage backed securities investors and U. S.taxpayers, JPMC has had to deal with many consequences since, and since it often takes a while to see where legal culpability lies and the cases are complicated and time-consuming, JPMC will continue being involved in legal issues relating to the crisis (Irwin, 2013). However, by acquiring Bear Stearns and Washington Mutual, JPMC was responsible for saving almost 40,000 jobs that year (Yemen & Davidson, 2009). JPMC in the Media & Challenges JPMC Faces JPMC continues to face financial and legal repercussions for underwriting sub-standard mortgage loans and thereby playing a role in the global financial crisis.

Last year, JPMC agreed to around $20 billion in settlements as an attempt to clear up legal claims. The deals involved covered claims over mortgage issues, as well as derivatives and power trading (Ingram & Henry, 2014). Recently, JPMC agreed to pay $614m to the US government and admitted that it defrauded federal agencies by underwriting sub-standard mortgage loans (Ibid). They have also agreed to pay $1. 45 million to settle four-year-old allegations brought by the US Equal Employment Opportunity Commission that the bank had maintained a sexually hostile environment for women in a mortgage loan center on Ohio (Ibid).

JPMC is also still dealing with lawsuits stemming from their relationship with Bernard Madoff, a convicted Ponzi scheme mastermind. The firm has been approved to pay $543 million in order to end two lawsuits relating to Madoff (Ingram & Henry, 2014). These are just a few of the many various legal matters JPMC has been dealing with. These legal matters stretch over long periods of time, and win or lose, JPMC can expect these challenges to continue well into the future. As well, within the firm, managers continue in efforts of making diversity part of the continuing dialogue (Yemen & Davidson, 2009).

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