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surprised that it wasn't Chase that got most of the deposits. Rippling, for example, switched to JP Morgan as it's payment processor. There's just something mor

surprised that it wasn't Chase that got most of the deposits. Rippling, for example, switched to JP Morgan as it's payment processor. There's just something more trust worthy about JPMs brand in my opinion

brutusurp 4y ago
Is there? JP Morgan Chase repeated stated throughout 2022 that Fed would lower interest rates; that they'd be foolish not to. And, they haven't. So, if SVB (and anyone else) took JP Morgan's cavalier assertions as fact when deciding how and where to invest, that would prove catastrophic. Interestingly, majority of the articles highlighting JP Morgan's position are no longer available on the first few pages of DuckDuckGo and Google search engines... Sept 2022: https://markets.businessinsider.com/news/stocks/stock-market-outlook-fed-save-markets-rate-cuts-deep-recession-2022-9 https://markets.businessinsider.com/news/stocks/stock-market... Jan 2023: https://www.barchart.com/story/news/13401774/two-of-the-largest-banks-in-the-world-expect-the-fed-to-cut-interest-rates-in-2023 https://www.barchart.com/story/news/13401774/two-of-the-larg... Here's a June 2021 report stating that JP Morgan would stand to lose the most of all banking institutions under severe recession (roughly 84 billion US dollars), according to Federal Reserve Dodd-Frank Act Stress Test: https://www.risk.net/risk-quantum/7848481/fed-stress-test-jp-morgan-would-bear-brunt-of-losses https://www.risk.net/risk-quantum/7848481/fed-stress-test-jp... "JP Morgan’s loan portfolio would be hit the hardest under a severe recession, according to the results of this year’s Federal Reserve Dodd-Frank Act Stress Test. Bank of America, Wells Fargo and Citi would be the next worst hit. JPM’s losses as projected under the DFAST’s severely adverse scenario, which saw real US GDP drop as much as 4% below end-2020 levels and unemployment peak at 10.75%, would amount to $84 billion, representing 17.7% of total losses across the 23 banks subject to the test..." May be worth rethinking one's opinion about the position of "more trustworthy" + "JP Morgan Chase."
- unmole 4y ago
  JPMC is the only Tier-4 Global Systemically Important Bank in the world: https://en.wikipedia.org/wiki/List_of_systemically_important_banks https://en.wikipedia.org/wiki/List_of_systemically_important... The reason it would be hit the hardest is because it's literally the biggest among entities deemed Too Big To Fail.
  - yourapostasy 4y ago
    Makes one wonder what it takes to be designated Tier 5. On percentage of global GDP basis, surprisingly to laypeople JPMC hardly makes a dent measuring by AUM, but I’d like to see the total transaction value run through them tallied as a percentage of global GDP.
    - credit_guy 4y ago
      Here’s a back of the envelope: the global GDP is about 100 Trillion USD [1]. The annual volume of Fedwire transactions is about 1 Quadrillion USD [2]. The Fed does not disclose volumes by bank, but let’s make the assumption they are roughly proportional with the AUM of the bank. JPMorgan has a 25% market share when calculated by AUM [3]. So a rough approximation would be that the volume of Fedwire transactions where JPMorgan is one of the counterparties is more than twice the global GDP. [1] https://en.m.wikipedia.org/wiki/Gross_world_product https://en.m.wikipedia.org/wiki/Gross_world_product [2] https://www.frbservices.org/resources/financial-services/wires/volume-value-stats/annual-stats.html https://www.frbservices.org/resources/financial-services/wir... [3] https://www.statista.com/statistics/727548/market-share-top-banks-thrifts-usa-by-assets/ https://www.statista.com/statistics/727548/market-share-top-...
  - brutusurp 4y ago
    Doesn't make them trustworthy. It makes them a liability.
- senttoschool 4y ago
  To be honest, I think it's fine to deposit your money into any big bank. They're already deemed too big to fail and will get bailed out. The only question is whether you should invest your money into their stocks, which are riskier.
iancmceachern 4y ago
Having banked at both I'm not surprised. In my experience Chase and Wells Fargo are the worst giant banks as far as customer service.
- TechBro8615 4y ago
  I like banks that don't require me to call customer service in the first place.
  - iancmceachern 4y ago
    Exactly my point. I'm using the term customer service to say service of the customers. You are using the term to mean a department of a company you call.
    - iancmceachern 4y ago
      I personally know the open agriculture stuff was a joke, I got wrapped up in it and actually had several conversations and email exchanges with Caleb Harper (not in any shady or illegal way, I just sold kits of their open source food computer after seeing Caleb's TED talk, until I found out they didn't work, and never did, and don't provide any real benefit over something like an Aerogarden) https://www.wired.com/story/dirty-money-and-bad-science-at-mits-media-lab/ https://www.wired.com/story/dirty-money-and-bad-science-at-m...
      - TechBro8615 4y ago
        I think you replied to the wrong post?
        iancmceachern 4y ago
        Yup, appreciate it
jjeaff 4y ago
If JP Morgan Chase was a person, it would be in prison for life and considered the most notorious financial criminal the world has ever known. $13B settlement for fraud related to sub-prime mortgages https://www.google.com/amp/s/www.southflalaw.com/amp/jp-morgan-chase-settles-with-justice-department-for-13-billion.html https://www.google.com/amp/s/www.southflalaw.com/amp/jp-morg... JP Morgan to pay $920 million in settlement over precious metals market manipulation fraud. https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-920-million-connection-schemes-defraud-precious-metals-and-us https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-... JP Morgan pays $614 million settlement over mortgage fraud https://www.whistleblowerllc.com/false-claims-act-whistleblower-helps-government-reach-614-million-settlement-with-jpmorgan-in-yet-another-mortgage-fraud-case/ https://www.whistleblowerllc.com/false-claims-act-whistleblo... JP Morgan $2.2B settlement for helping facilitate Enron fraud. https://www.rgrdlaw.com/news-item-JPMorgan-Enron-Settlement-UC-061405.html https://www.rgrdlaw.com/news-item-JPMorgan-Enron-Settlement-... France fines JP Morgan $30m in tax fraud scheme. https://www.reuters.com/business/france-fines-us-bank-jp-morgan-296-mln-tax-fraud-settlement-2021-09-02/ https://www.reuters.com/business/france-fines-us-bank-jp-mor... JP Morgan to pay $154m for defrauding investors with mortgage backed cdo products https://www.sec.gov/news/press/2011/2011-131.htm https://www.sec.gov/news/press/2011/2011-131.htm $153m fine for recommending investment vehicles that the bank was secretly betting against $56m settlement for evicting guiltless people from their homes. $229m settlement for ruse to rig municipal bond market in 30 states $88m fine for doing business with Iran, Liberia, Sudán, and other embargoed countries. $5B fine for faulty foreclosure processing $100m fine for check sequencing to cheat customers by charging overdraft fees https://www.google.com/amp/s/www.southflalaw.com/amp/jp-morgan-chase-settles-with-justice-department-for-13-billion.html https://www.google.com/amp/s/www.southflalaw.com/amp/jp-morg...
- salawat 4y ago
  Think about what this means for a second. JPMorgan, by being deemed "too big to fail" is basically so large as to be immune to overall regulation, as any enacted fine of sufficient magnitude to make a punitive difference would jeopardize it's load bearing in the global financial system. If I can't toss you out without slitting my own throat, you don't have a problem, I do.

brutusurp 4y ago

Is there? JP Morgan Chase repeated stated throughout 2022 that Fed would lower interest rates; that they'd be foolish not to. And, they haven't. So, if SVB (and anyone else) took JP Morgan's cavalier assertions as fact when deciding how and where to invest, that would prove catastrophic. Interestingly, majority of the articles highlighting JP Morgan's position are no longer available on the first few pages of DuckDuckGo and Google search engines... Sept 2022: https://markets.businessinsider.com/news/stocks/stock-market-outlook-fed-save-markets-rate-cuts-deep-recession-2022-9 https://markets.businessinsider.com/news/stocks/stock-market... Jan 2023: https://www.barchart.com/story/news/13401774/two-of-the-largest-banks-in-the-world-expect-the-fed-to-cut-interest-rates-in-2023 https://www.barchart.com/story/news/13401774/two-of-the-larg... Here's a June 2021 report stating that JP Morgan would stand to lose the most of all banking institutions under severe recession (roughly 84 billion US dollars), according to Federal Reserve Dodd-Frank Act Stress Test: https://www.risk.net/risk-quantum/7848481/fed-stress-test-jp-morgan-would-bear-brunt-of-losses https://www.risk.net/risk-quantum/7848481/fed-stress-test-jp... "JP Morgan’s loan portfolio would be hit the hardest under a severe recession, according to the results of this year’s Federal Reserve Dodd-Frank Act Stress Test. Bank of America, Wells Fargo and Citi would be the next worst hit. JPM’s losses as projected under the DFAST’s severely adverse scenario, which saw real US GDP drop as much as 4% below end-2020 levels and unemployment peak at 10.75%, would amount to $84 billion, representing 17.7% of total losses across the 23 banks subject to the test..." May be worth rethinking one's opinion about the position of "more trustworthy" + "JP Morgan Chase."

unmole 4y ago
JPMC is the only Tier-4 Global Systemically Important Bank in the world: https://en.wikipedia.org/wiki/List_of_systemically_important_banks https://en.wikipedia.org/wiki/List_of_systemically_important... The reason it would be hit the hardest is because it's literally the biggest among entities deemed Too Big To Fail.
- yourapostasy 4y ago
  Makes one wonder what it takes to be designated Tier 5. On percentage of global GDP basis, surprisingly to laypeople JPMC hardly makes a dent measuring by AUM, but I’d like to see the total transaction value run through them tallied as a percentage of global GDP.
  - credit_guy 4y ago
    Here’s a back of the envelope: the global GDP is about 100 Trillion USD [1]. The annual volume of Fedwire transactions is about 1 Quadrillion USD [2]. The Fed does not disclose volumes by bank, but let’s make the assumption they are roughly proportional with the AUM of the bank. JPMorgan has a 25% market share when calculated by AUM [3]. So a rough approximation would be that the volume of Fedwire transactions where JPMorgan is one of the counterparties is more than twice the global GDP. [1] https://en.m.wikipedia.org/wiki/Gross_world_product https://en.m.wikipedia.org/wiki/Gross_world_product [2] https://www.frbservices.org/resources/financial-services/wires/volume-value-stats/annual-stats.html https://www.frbservices.org/resources/financial-services/wir... [3] https://www.statista.com/statistics/727548/market-share-top-banks-thrifts-usa-by-assets/ https://www.statista.com/statistics/727548/market-share-top-...
- brutusurp 4y ago
  Doesn't make them trustworthy. It makes them a liability.
senttoschool 4y ago
To be honest, I think it's fine to deposit your money into any big bank. They're already deemed too big to fail and will get bailed out. The only question is whether you should invest your money into their stocks, which are riskier.

iancmceachern 4y ago

Having banked at both I'm not surprised. In my experience Chase and Wells Fargo are the worst giant banks as far as customer service.

TechBro8615 4y ago
I like banks that don't require me to call customer service in the first place.
- iancmceachern 4y ago
  Exactly my point. I'm using the term customer service to say service of the customers. You are using the term to mean a department of a company you call.
  - iancmceachern 4y ago
    I personally know the open agriculture stuff was a joke, I got wrapped up in it and actually had several conversations and email exchanges with Caleb Harper (not in any shady or illegal way, I just sold kits of their open source food computer after seeing Caleb's TED talk, until I found out they didn't work, and never did, and don't provide any real benefit over something like an Aerogarden) https://www.wired.com/story/dirty-money-and-bad-science-at-mits-media-lab/ https://www.wired.com/story/dirty-money-and-bad-science-at-m...
    - TechBro8615 4y ago
      I think you replied to the wrong post?
      - iancmceachern 4y ago
        Yup, appreciate it

jjeaff 4y ago

If JP Morgan Chase was a person, it would be in prison for life and considered the most notorious financial criminal the world has ever known. $13B settlement for fraud related to sub-prime mortgages https://www.google.com/amp/s/www.southflalaw.com/amp/jp-morgan-chase-settles-with-justice-department-for-13-billion.html https://www.google.com/amp/s/www.southflalaw.com/amp/jp-morg... JP Morgan to pay $920 million in settlement over precious metals market manipulation fraud. https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-920-million-connection-schemes-defraud-precious-metals-and-us https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-... JP Morgan pays $614 million settlement over mortgage fraud https://www.whistleblowerllc.com/false-claims-act-whistleblower-helps-government-reach-614-million-settlement-with-jpmorgan-in-yet-another-mortgage-fraud-case/ https://www.whistleblowerllc.com/false-claims-act-whistleblo... JP Morgan $2.2B settlement for helping facilitate Enron fraud. https://www.rgrdlaw.com/news-item-JPMorgan-Enron-Settlement-UC-061405.html https://www.rgrdlaw.com/news-item-JPMorgan-Enron-Settlement-... France fines JP Morgan $30m in tax fraud scheme. https://www.reuters.com/business/france-fines-us-bank-jp-morgan-296-mln-tax-fraud-settlement-2021-09-02/ https://www.reuters.com/business/france-fines-us-bank-jp-mor... JP Morgan to pay $154m for defrauding investors with mortgage backed cdo products https://www.sec.gov/news/press/2011/2011-131.htm https://www.sec.gov/news/press/2011/2011-131.htm $153m fine for recommending investment vehicles that the bank was secretly betting against $56m settlement for evicting guiltless people from their homes. $229m settlement for ruse to rig municipal bond market in 30 states $88m fine for doing business with Iran, Liberia, Sudán, and other embargoed countries. $5B fine for faulty foreclosure processing $100m fine for check sequencing to cheat customers by charging overdraft fees https://www.google.com/amp/s/www.southflalaw.com/amp/jp-morgan-chase-settles-with-justice-department-for-13-billion.html https://www.google.com/amp/s/www.southflalaw.com/amp/jp-morg...

salawat 4y ago
Think about what this means for a second. JPMorgan, by being deemed "too big to fail" is basically so large as to be immune to overall regulation, as any enacted fine of sufficient magnitude to make a punitive difference would jeopardize it's load bearing in the global financial system. If I can't toss you out without slitting my own throat, you don't have a problem, I do.