Annual Report What differences, if any, do you perceive in the approach each organization presents in its annual performance? Is information and data presented clearly so that the reader can make clear inferences about how the organization performed?

I believe the two organizations, Bank of America, and JP Morgan format their annual reports to reflect the culture of the business. Bank of America, due primarily to the negative sentiments prevailing in the marketplace, structures their annual report to dispel myths regarding company performance. The tone of the report isn't overly optimistic nor is it overly pessimistic. The report reports the facts as they stand at that point in time. Conversely, JP Morgan's report is much more candid, truthful and optimistic, reflecting the company's outstanding performance. The report is filled with success stories, future growth prospects and failures along the way. JP Morgan, presents the facts clearly and in a concise manner. He describes aspects of the company that are relevant to consumers. Such activities include the Washington Mutual acquisition, and growth opportunities (Ellis, 2008). Bank of America however seemed somewhat esoteric in their approach to the annual report. Figures were difficult to locate in some instances. Both reports however did provide ample information that a potential stakeholder or investor would find interesting. However, I do admire Moynihan's ability to divest of non-core assets in order to provide greater shareholder wealth (Son, 2011).

What goals, challenges, and plans do the organizations emphasize in their discussion of results?

Both banks are operating in tough macroeconomic conditions. Net Interest Margins (NIM) has been shrinking due to the prevailing low interest rate environment. Furthermore, loan demand has subsequently declined due to uncertainties within the

The presidential election, excessive banking regulation, tepid economic growth, and negative consumer sentiments all help curtail otherwise strong loan demand. Businesses are reluctant to hire individuals as they are uncertain regarding the future course of the country. As such, consumers are responding by saving more, purchasing fewer products. This activity has a direct impact on loans as both businesses and consumers are reluctant to use any lines of credit.
Banks have responded with cost cutting initiatives that are designed to help offset the lower revenue. Bank of America, for instance has initiated project new BAC. This cost cutting initiative is designed to eliminate 30,000 jobs, streamline the business, and save approximately $8 billion dollars a year. JP Morgan is utilizing its size to achieve economies of scale. They are combining operations together to provide a more comprehensive package of services. These initiatives will help the company save roughly $100,000 million dollars. The emphasis of both annual reports was placed primarily on cost cutting initiatives that can ultimately offset the temporary lack of revenue.

How does the format and organization of each report enhance or diminish from the information being presented?

To begin, Bank of America and JP Morgan are polar opposites in regards to underlying business operations and performance. This contrast is directly reflected in their financial reporting metrics and behaviors. Jamie Dimon, arguable one of the best banking CEO's of our time, formats his annual reports in a more conversational tone. His reports begin with a shareholder letter that should be the envy of the executive suit. Typically, shareholder letters add little value to the actual shareholder. The letters have overly broad and generic statements that reveal nothing regarding the operations of…