Discuss the courses of action that JPMorgan can take to maintain profitability that JPMorgan might loss...

Discuss the courses of action that JPMorgan can take to maintain profitability that JPMorgan might loss due to the Volcker Rule

Solutions

Expert Solution

The Volcker Rule prevents banks from using customer deposits for the purpose of making profit for the entity. The banks, in other words, are not allowed to invest in PE (private equity) funds, hedge funds, and other trading operations. Thus the rule limits proprietary trading by banks with the objective of controlling their levels of risk exposure.

To maintain profitability JP Morgan has continuously restructured its business. During the period of financial crisis JP Morgan’s proprietary trading was a significant source of income. After the 2008 financial crisis the company restructured its business so as to reduce its reliance to generate income and profitability from proprietary trading.

JP Morgan can, going forward, focus more on executing client transactions. This will enable them to increase their earnings from commissions earned from client trades. It can also trade in currencies in the spot market and day to day trading. Lastly JP Morgan can take large positions in safer markets and trades.

jeff jeffy answered 7 months ago

Next > < Previous

Related Solutions

Discuss each of the six possible courses of action the auditor can take when he or...

Discuss each of the six possible courses of action the auditor can take when he or she has concluded that the population is misstated by more than a tolerable amount.

Discuss several courses of action company management might take to decrease the break-even point and increase...

Discuss several courses of action company management might take to decrease the break-even point and increase profits. Identify specific examples of action companies might take to decrease the break even point. (At least 75 words.)

Discuss possible best courses of action when faced with an ethical decision in the workplace? What...

Discuss possible best courses of action when faced with an ethical decision in the workplace? What can you do if you think something is unethical?

what advocacy action might a nurse take to improve heatlhcare through legislation.

What steps can an auditor take to maintain their independence and the perception of their independence...

What steps can an auditor take to maintain their independence and the perception of their independence to the shareholders?

suggest steps the company might take to reduce its losses and establish profitability, the cenario: Reitmans...

suggest steps the company might take to reduce its losses and establish profitability, the cenario: Reitmans Ltd. (RET.TO) says it had a net loss of $3.2 million in the last quarter in an improvement from the $6.6 million net loss in the same quarter a year earlier (The Canadian Press, 2018). Reitmans management says sales were $207.6 million in the quarter, compared with $207.1 million a year earlier despite a net reduction of 32 stores, while promotional costs were up...

suggest steps the company might take to reduce its losses and establish profitability, the cenario: Roots...

suggest steps the company might take to reduce its losses and establish profitability, the cenario: Roots Corporation reported quarterly loss of $5.6 million in first quarter of 2018. Comparing to last year, the net loss increased from $5.1 to $5.6 million. The clothing retailer applies expansion strategy in US and is opening its first “brand activation centre” in Boston that will allow shoppers to familiarize themselves with the Canadian brand. It also plans to open 10 to 14 stores in...

Were the auditors justified in issuing a qualified opinion in this situation? Discuss fully, including alternative courses of action.

Western Trading Company is a sole proprietorship engaged in the grain brokerage business. On December 31, 20X0, the entire grain inventory of the company was stored in outside bonded warehouses. The company's procedure of pricing inventories in these warehouses includes comparing the actual cost of each commodity in inventory with the market price as reported for transactions on the commodity exchanges at December 31. A write-down is made on commodities in which cost is in excess of market. During...

which of the following is an action that company co-manager CAN take to boost a subpar...

which of the following is an action that company co-manager CAN take to boost a subpar roe A. decrease dividend payments and increase the company current ratio strive to boost the amount the company spends on corporate social responsibility and citizenship strive to boost the company's credit rating to A+ as fast as possible by avoiding all borrowing against the company's line of credit Repurchase shares of common stock and increase dividends payment (higher dividend payment act to reduce the...

List and discribe three of action that a firm's stockholders can take to manage the modern...

List and discribe three of action that a firm's stockholders can take to manage the modern agency problem?

Subjects