Financial Crisis: JP Morgan Chase

Several years ago, the United States of America went through a financial crisis that shook this country to the core. The catalysts behind it were individuals in the banking and housing industry. The word that summed up problem was ‘corruption’ During this time, a lot of information came out about banks being involved in fraudulent things. The choices of a few individuals, affected millions of people even so, an entire nation. Over time, the financial condition of the United State of America has greatly improved and many citizens have forgotten about the evils done by the banking industry, namely the bailouts! The affairs of the country were gradually returning back to normal and banks were keeping a low profile. One could be said that the

does not have a set up in management that creates accountability. The second factor that I believe led to this debacle is that JP Morgan Chase seems to use autocratic management. I believe if the organization ran more as a democratic management style, by the way nature of democratic style more people would have been involved and perhaps one of those people would have been able to inform the government of what was going on. The third factor that I believe led to this issue were pseudotransfromational leaders. Pseudotransfromational leaders are defined “as leaders who talk about positive change but allow their self-interest to take precedence over followers’ needs.” JP Morgan Chase’s business principle states “...what we can and will promise is to be truthful and give honest assessments of our businesses and prospects; act with integrity and honor; and do the right thing – not necessarily the easy or expedient thing” It is clear to see that although they talk about positive things, they have allowed their self-interest to triumph over their followers

It is understood that the nature of a bank is to acquire wealth however, a level is reached in which the desire to aquire wealth is less about for the good of the organization and the shareholders and more about selfish ambition. The shift from a communal desire for wealth to a selfish desire for wealth is greed. Despite the fact that the banking industry has been under severe scrutiny by the government and by the public, JP Morgan Chase believed that it was above the law and could attempt to be fraudulent without being caught or without repercussions JP Morgan Chase is a large organization, the largest bank in the United States of America. Furthermore, they are unlike other companies in that they do not produce goods, rather they are a financial institution. It is true that banks close down, (Lehman Brothers is a prime example of this) but for a bank of this magnitude to close down at this point in history would be catastrophic. Is is possible? Yes. In fact, I believe eventually all banks will close down as we move closer to having one currency. Perhaps the corruption going on in the banking industry is a political move to champion the idea of having a world bank with one currency. Perhaps their political claim will be that with one currency and with one world bank we can eliminate