Financial Crisis: JP Morgan Chase

People will want their money to be securely kept until they need it and if the bank is not safe they will remove it. An increase in bank failures during the last few months of 1930 generated widespread attempts to convert deposits to cash. People lost faith in the

In All the Presidents' Bankers, Nomi Prins argues that the associations between the leaders of the largest banks and the presidents of the last century influenced economic policy in the U.S. and other countries. The presidents and the bankers worked together to make the U.S. the most powerful nation in the world. However, the bankers wanted power and profit without regard to the harm they caused people in the U.S and other countries. Although Prins’ commentary is biased, her arguments are well-supported and based on extensive research. Prins’ book is well-organized chronologically by time periods in history and presidents.

The Federal Reserve bank is the central bank of all American banks. Its main job is to make sure the America economy is safe and sound. It is known as nicknames such as the “Fed” and ‘The Banks’ Bank.” For many years this “banks’ bank,” is met with animosity. In an article on the BBC by Zoe Thomas, titled “Why do many Americans mistrust the Federal Reserve?”

Very few of the New Deal programs are still established; the existence of this program over 80 years after its establishment shows that it is a successful, needed component of the American economy. The FDIC now insures at least 250,000 for each depositor in a bank; by doing this, it reduces the consequences if a banking institution were to fail. Since it's establishment, not a single depositor has lost money due to a blank closure. The people of today’s society know that their money is safe in banks, and they are more likely to deposit it than ever

Our 32nd president, Franklin D. Roosevelt, in his speech, The Banking Crisis, explain to the common man about the legislation that has taken place and the directions the American people will be taking. His purpose is to address his recent decision of closing all banks for an extended holiday. He creates a welcoming tone in order to get through a skeptical audience that had lost hope in the government and had been demoralized by the depressed economy. Roosevelt opens his speech by addressing the citizen of the United States whom he referred as “My friends”, which set up a friendly, and welcoming tone that was much needed during the Great Depression.

J.P. Morgan also greatly impacted investment through his firms and banks. According to “John Pierpont Morgan”, “John Pierpont Morgan (1837-1913) was probably the most important and powerful business investment banker in U.S. history.” J.P. Morgan, at age 23, he founded his own company J. Pierpont Morgan and Co. (John Pierpont Morgan). After consolidating many railroads, he began to gain respect in the banking community which led him to even more business ventures (John Pierpont Morgan). In the coming years after the founding of J. Pierpont Morgan and Co. he invested in General Electric and would make the largest deal of his life which was the creation of the world’s largest steel company (John Pierpont Morgan).

Amidst the troubles of the Great Depression, rumors of bank corruption and closure provoked investors to pull their money out of American banks. Of course, the banks could not keep up, and fueling even more panic and withdrawals. To curb this vicious cycle, president Franklin Delano Roosevelt established an indeterminate bank closure, a “holiday” to allow the banking crisis to stabilize. However, for the plan to work, he needed the support of the American public. And so, in his first “fireside chat,” as journalists would later dub it, Roosevelt reassured the public and informed them of his plan to repair the banking situation.

After the stock market had crashed and backs had failed people feared putting their trust and money in banks. “FDR went on national radio to deliver the first of his many “fireside chats,”” (Oakes 828). After reopening banks, FDR convinced people that their money would be safe in a reopened bank through his fireside

JPMorgan Chase Bank has faced several lawsuits in recent years. They have been hit with cases concerning fraudulent misrepresentation, bribery, and many things in between. By studying the accusations the company has faced, one receives a better understanding of who is really handling their money. An act of fraudulent misrepresentation cost JPMorgan the fine of a lifetime.

(Wikipedia, 2014). Corruption in

As banks failed, the public

In Addition to maldistribution stood the credit structure of the economy, some farmers were in deep land mortgage debt, so they lowered their crop prices in order to regain credit, and because the farmers were no longer accountable for what they owed banks. Across the nation the banking system found themselves in constant trouble. In America both small and large bankers were concerned for their survival, so they began investing recklessly in stock markets and granting unwise loans. These unconscious decisions would lead a large consequence, such as families losing their life savings and their deposits became uninsured. “ More than 9,000 American banks either went bankrupt or closed their doors to avoid bankruptcy between 1930 and 1933.”Although

Bass & Riggio (2005, pp. 4-8) explains that transformational leaders inspire their followers to exceed their own expectations and perceived capabilities and is comprised of the four components of idealized influence, inspirational motivation, intellectual stimulation and individualised consideration. DuBrin (2016, p.163) suggest that leaders in a time of crisis need to

Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.

Consequently, many financial institutions closed down and many business owners were indicted and sent to Federal prison to serve long terms. According to Jennings (2014) “A 2010 study indicates that if companies are not ever-vigilant in adhering to ethical standards, they slip into illegal activity and destroy their profitability, often to the point of bankruptcy.” I decided to quit my job and educated consumers on the first time home buying process. I wrote on blogs and printed informative material on how to avoid costly mistakes when choosing a mortgage.