An article from The Wall Street Journal titled “J.P. Morgan Seizes Fund’s Collateral” describes how financial services firm JPMorgan Chase & Co. decided to protect the best interest of bankers when it took hold of millions of dollars of collateral from a commercial-property debt fund operated by Guggenheim Partners LLC. This is the consequence of Guggenheim not being able to come up with additional capital to meet margin calls. J.P. Morgan is one of the firm’s lenders. According to the terms agreed upon, lenders can demand additional resources if the fund’s collateral’s value plunges.
Entities with investments in the Guggenheim fund include the Oregon Investment Council, and the California Public Employees’ Retirement System.
With $2.3 trillion in assets, JPMorgan Chase & Co. is one of the top global financial services firms. It operates in over 60 countries and is the largest deposit base and market capitalization of American banking institutions. JPMorgan is also the United States’ largest hedge fund with assets that amounted to $34 billion in 2007. The firm’s operations involve investment banking, asset management, private equity, financial services for consumers, financial transaction processing, and small business and commercial banking. Headquartered in New York City, JPMorgan has millions of consumers in the United States and several of the world’s well-known government, institutional, and corporate clients under the brands of J.P. Morgan, Chase, and WaMu.
JPMorgan was established after J.P. Morgan & Co. was bought by Chase Manhattan Corporation in the year 2000. The company originated from its predecessor, Bank of the Manhattan Company, founded in 1799.
JP Morgan tightens guidance on senior bond -IFR.
Oregan Investment Council considers new strategy.