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Bank of America - J.P Morgan Chase

Autor:   •  September 22, 2011  •  Case Study  •  457 Words (2 Pages)  •  947 Views

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The purpose of this report is to show why J.P Morgan Chase is a better option to invest then its main competitors. JP Morgan Chase, Bank of America, and Wells Fargo, are among financial firms that added employees last year as the industry adjusted to an expanding economy and demands imposed by new U.S. regulations. Bank of America, the biggest U.S. lender, counted 288,000 employees, an increase of 1.4 percent. Wells Fargo, the biggest U.S. mortgage dealer, increased employees by 1.8 percent; and Bank of America's workforce increased 17 percent in 2009. Their stocks have been performing not so well since the housing market bubble burst. At the same time that this has kept the confidence towards bank low, it is a matter of time before investors buy back into bank stocks; however, banks will follow the rise of the stock market and have continuous gains for investors.

One of the main reasons is that I believe it is one of the safest U.S. banks, and because it is showing remarkable improvements in performance across different business line. JP Morgan Chase has outperformed Bank of America and Wells Fargo over the past months. JP Morgan "provides diverse forms of financing to people as well to corporations and also manage their investments. In all, it moves more than a trillion dollars in cash and securities through the system every day." JP Morgan managed to reduce its credit-card loan loss by $1 billion, and its investment banking segment posted strong earnings and client flows.

On the other hand Bank of America's stock has been really volatile since August, showing the degree of the uncertainty the economy is facing and may show signs of a recession. The Charlotte-based bank, with $2.3 trillion in assets, 284,000 employees, and 5,879 branches, is lagging behind its rivals in recovering from the financial crisis. The company's shares fell 11 percent last year, the second-worst showing in the 24-company KBW Bank Index. On the


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