NEW YORK--(BUSINESS WIRE)--JPMorgan Chase & Co. (NYSE: JPM) confirmed that Chairman and CEO Jamie
Dimon would attend today’s White House meeting to discuss the bank’s
plans to continue to support the Administration’s objectives of
increased and responsible lending to individuals and businesses,
increased efforts to keep families in their homes, better consumer
protections, and responsible executive compensation.
As a global financial services firm, JPMorgan Chase is connected to many
corners of the economy and is working together, every day, with its
customers, communities, employees and vendors to support a successful
“This is simply what a bank should do,” said JPMorgan Chase Chairman and
CEO Jamie Dimon.
JPMorgan Chase serves over 90 million consumers and 2 million small
businesses across the country. The firm lends to approximately 10,000
government organizations, non profits, hospitals and schools in the
United States, and the investment bank has client relationships with
over 4,000 issuers and 15,000 investor clients globally. As a market
leader, the bank has led the market with $120 billion in corporate loans
to its large, corporate clients this year and raised $580 billion for
clients in the global debt and equity markets.
The bank spends more than $15 billion per year with approximately 40,000
vendors, who provide jobs to millions of employees. JPMorgan Chase pays
more than $10 billion a year in taxes to the U.S. federal government as
well as to state and local jurisdictions.
Specifically, JPMorgan Chase continues to focuses its efforts on:
Supporting Small Businesses:
Recognizing the role small
businesses play in creating jobs and supporting our economy,
JPMorgan Chase has $29 billion in outstanding balances in the form of
loans, lines and credit card balances to small businesses.
Last month, the bank announced plans to increase lending to small
businesses by up to $4 billion in 2010, boosting expected new lending
to about $10 billion next year to this vital segment of the U.S.
To accomplish increased lending, JPMorgan Chase is hiring 325
additional small business bankers to work around the country
supporting all of these efforts, adding to the 1,900 bankers who
currently support the less than $10 million segment. The bank also
added approximately 100 middle market bankers to support lending to
In November, the bank began offering a second look on all previous
loan applications from small businesses to ensure the bank has
examined all possible ways to provide the credit.
Maintaining Responsible Lending, Despite Decreased Demand:
The bank is continuing to offer customers responsible loans that meet
their needs and that they can afford.
Banks are competing to lend to qualified business borrowers – but
demand is down. Mortgage applications are down 10 percent
year-to-date, and credit card spending is down 7 percent.
Small business loan applications were down 37 percent in the third
quarter, but the bank maintained its lending at nearly the same levels
over the past year. JPMorgan Chase has just recently started to see an
uptick in these applications, following on its announcement in
November that it would increase lending even more in this area.
While financial institutions should do all they can to lend
responsibly, it is important that institutions are not pushed to lower
their underwriting standards. Making bad loans would be even worse for
the economy, and this was one of the leading causes of the financial
Stepping Up for Local Governments and Non Profits:
Since the credit crisis that struck in the fall 2008, JPMorgan Chase
has provided more than $90
billion in financing to non-profit and healthcare companies,
universities and state and local governments, helping to build bridges
and parks, improve social services, train young people for jobs,
expand hospitals and fund medical research
JPMorgan Chase was able to offer billions of dollars in financing to
states and municipalities like Illinois, New Jersey and California at
critical times when credit markets were shut down.
The company’s strong capital position allowed it to step in and help
these borrowers through traditional loans, credit facilities and bond
and capital market underwritings.
Chase has offered more than 568,000
mortgage modifications to struggling homeowners in 2009 through
the government's and Chase’s modification programs.
The bank modifies mortgages in accordance with the standards specified
by the Obama Administration, and when a borrower does not qualify for
the Administration’s program, we use a range of other modification
Chase opened 30 Chase Homeownership Centers in 13 states this year for
more effective face-to-face contact, with a planned addition of 21
more sites in the first quarter of 2010. We are proud to be the first
major servicer to offer this option.
We’ve hired 3,700 additional mortgage operations employees to handle
the unprecedented volume generated by the troubled economy and housing
We’ve also launched a coordinated program to call a customer 36 times,
reach out by mail 15 times and make at least two home visits, if
necessary, to get the appropriate documents.
We are hopeful that streamlined programs and constant improvements
will increase modifications even more. The bank is constantly working
with Treasury officials on new methods to try to increase the number
of borrowers who make their mortgage payments under these programs and
to encourage them to return income verification documents.
Supporting Financial Regulatory Reform:
As CEO and Chairman Jamie Dimon has written in the Wall
Street Journal and the Washington
Post, we agree with the need for better financial regulation,
including regulatory consolidation, systemic risk regulation, ending
too-big-to-fail, better consumer protection, and more transparency in
the derivatives markets.
The details matter, and the stakes are simply too high and the
consequences too far-reaching to do this hastily and poorly. While we
agree with many of the proposals, we share concerns with others that
some regulatory proposals could restrict lending by banks, which will
hinder economic growth and job creation.
Clarity and consistency build confidence and are critical to companies
that are looking to create jobs, invest and expand their businesses.
Upholding Sound Executive Compensation Principles:
Poorly designed compensation practices contributed to the financial
crisis. JPMorgan Chase has always tried to stay at the forefront of
sound and sensible compensation practices, with a process that is
disciplined and rigorous.
JPMorgan Chase has always paid a significant share of our incentive
compensation in stock. Executive compensation is tied to long-term
company performance with equity awards that vest over multiple years.
All senior executives retain at least 75 percent of all equity awards
granted to them.
Incentive compensation is determined by looking at multi-year
performance periods, not just a single year, and does not reward
excessive risk taking. The bank’s bonus recoupment policy is beyond
that required by Sarbanes-Oxley.
As a general practice, JPMorgan Chase does not have: change-of-control
agreements, special executive retirement plans, golden parachutes,
special severance or medical packages for senior executives or merger
JPMorgan Chase is committed to working with policymakers and looks
forward to hearing President Obama’s ideas about improving the economy
and getting people back to work. For more information on JPMorgan
Chase’s work to help the economic recovery and serve its communities,
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services
firm with assets of $2 trillion and operations in more than 60
countries. The firm is a leader in investment banking, financial
services for consumers, small business and commercial banking, financial
transaction processing, asset management and private equity. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves
millions of consumers in the United States and many of the world’s most
prominent corporate, institutional and government clients under its J.P.
Morgan and Chase brands. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.
JPMorgan Chase & Co.
Short Name: JPMorgan Chase & Co
Category Code: MSC
Sequence Number: 207088
Time of Receipt (offset from UTC): 20091214T135642+0000