JPM stock: Just how is JP Morgan doing?
Kenneth J. Dickson
This is the third in my series on stocks in the Dow Jones 30. In this we'll look at JP Morgan and JPM stock, and ask ourselves: in these troubled times, where now?
JP Morgan (NYSE: JPM)
Very few banks these days carry their original names and JP Morgan is no exception. Founded in New York as Drexel, Morgan & Co. in 1871 by banker Anthony Drexel and J. Pierpont Morgan, the merchant bank served Europeans that were interested in United States investments.
Soon, however, the bank became the nation’s dominant bank in both domestic and foreign investments and deposits. Soon known only as JP Morgan and Co., the bank helped finance the Allies to victory in WWI and was chosen to sell more than a billion dollars in securities in the New York market for France and Britain when war again broke out in 1939.
JP Morgan played a key role in the nation’s recovery from the Great Depression of the 1920’s, rallying other banks to help it provide thirty million dollars in emergency relief for the unemployed. The bank was able to do so because of consistent business practices that took world affairs as well as domestic circumstances into consideration. The financial welfare of the bank’s investors have always been an important consideration to the JP Morgan banking family and that consideration has paid off in consumer confidence and investor satisfaction.
Today, after merging with Chase Bank, JP Morgan-Chase is part of the backbone of the nation. Anticipating the future long before others, JPM began offering more than savings and checking account to the average consumer quite some time ago.
Investment advisors, mortgage branches and credit cards are just a few of the innovations JPM added as it merged with other banks and bolstered its already considerable financial foundation. JPM was instrumental in implementing electronic banking, affording convenience to the client and generating more income for the bank.
JPM has assets of $1.2 trillion and serves millions of people around the globe. It has branched out into investment banking, retail financial services, commercial banking and Treasury and securities service. Its card services have $135 billion in managed loans and ninety four million cards! And with its Asset and Wealth Management service, JP Morgan covers just about any financial need that any type of person could want.
The combination of consumer service and essential goods makes JP Morgan a safe and profitable investment. Although stocks have taken a beating recently, JPM has held its own and will most likely continue to prosper. The services it offers are ones that neither the public nor commercial concerns can do without and its competitive rates will generate a steady flow of income.
But the banking industry right now is under a lot of pressure from the fallout over the credit crunch. Many banks are literally losing their shirts, so is this a good time to be investing in the banking sector? Does the JPM stock price seem still sensibly priced with a yield chopped from 38c a quarter to only 5c or so?
How do you see JPM stock doing in the next couple of years? Banks are under pressure, Bank of America hasn't fared well, though international rivals seem to be prospering, even now.
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