Jp Morgan Part of Banking Research Proposal

The company has avoided the major scandals that have dogged many of its peers, and remains well-regarded in the industry.

Given the global nature of the industry, it is increasingly difficult for investment banks such as JP Morgan to manage human behavior. The Dow Chemical example shows the impact that communication and oversight can have. The U.S. subsidiary was forced to enforce the company's codes of behavior on a foreign subsidiary that clearly did not understand the company's mission or outlook on the issue. The Dow deal would have been sour, and could have earned the company a reputation for putting profit ahead of ethics.

The deal almost happened -- the U.S. company was only alerted to the negotiations out of England by the conflict of interest office. The organizational structure therefore played a strong role. The company is structured around business unit, not geography. This means that New York still holds some degree of oversight into the activities of the subsidiaries. The weak matrix structure therefore provides an opportunity for head office to ensure behavioral standards are met across the entire company, providing a critical layer of support.

Works Cited:

No author. (2008). The History of JP Morgan Chase & Co. JP Morgan Chase.Retrieved April 22, 2009 from http://www.jpmorganchase.com/cm/BlobServer?blobtable=Document&blobcol=urlblob&blobkey=name&blobheader=application/pdf&blobnocache=true&blobwhere=jpmc/about/history/shorthistory.pdf

JP Morgan website: Retrieved April 22, 2009 from http://www.jpmorgan.com/pages/jpmorgan

JP Morgan Chase 2008 Annual Report. Retrieved April 22, 2009 from http://files.shareholder.com/downloads/ONE/622180208x0x283416/66cc70ba-5410-43c4-b20b-181974bc6be6/2008_AR_Complete_AR.pdf

Ellis, Katrina; Michaely, Roni & O'Hara, Maureen. (2005). Competition in Investment Banking: Proactive, Reactive or Retaliatory? Cornell University. Retrieved April 22, 2009 from http://forum.johnson.cornell.edu/faculty/michaely/Competition%20in%20Investment%20Banking.pdf

Moore, Heidi N. (2008). Banking Ethics 101: How JP Morgan Fought Itself and Won. Wall Street Journal. Retrieved April 23, 2009 from http://blogs.wsj.com/deals/2008/06/03/banking-ethics-101-jp-morgan-and-dow-chemical/

Hoffman, Douglas G. (2002). Managing Operational Risk. Retrieved April 22, 2009 from http://books.google.com/books?id=qBCegetwV0cC&pg=PA460&lpg=PA460&dq=JP+morgan+competition+managing+behavior&source=bl&ots=2x7zQuXsSw&sig=VPYa4ngywbMy4Dn1Pq-zv52muDY&hl=en&ei=z-3vSfKUIZeclQekuoCzDA&sa=X&oi=book_result&ct=result&resnum=6.....