The Bear Stearns acquisition helps the bank fill some of the gaps in its own investment banking franchise and clearly supports growth strategy: it brings Bear’s prime brokerage division, its clearing business and its significant energy platform to the table, and adds client coverage on many names that JPMorgan did not cover. Washington Mutual turns JPMC into the largest US retail depository bank, with the country’s second largest retail network; JPMC now banks 42% of the US population.
Moreover, the acquisitions have been completed while protecting JPMC’s balance sheet, which stands at $2300bn; it now commands total deposits of $911bn, and has maintained a Tier 1 ratio of almost 9%.
“This has been an extraordinary year for our company,” says Jamie Dimon, chairman and CEO. “We have worked hard to build first-class businesses, strengthen our balance sheet, upgrade systems and technology, and position our firm for profitable growth.
But our work has gone beyond simply doing what’s best for JPMorgan Chase. As a leading financial institution, we understand it’s also our responsibility to work with our government leaders and others to help strengthen our financial system and the communities where we do business, and we’ll continue to do so.”
