How the Bank of America and J. P. Morgan Chase differ
Two of the giants in the world of US financial corporations are the Bank of America and J. P. Morgan Chase. Between the two of them, they handle billions of dollars worth of financial transactions and are therefore considered to be the heavyweights in the area of finance and commerce. Although they are similar in some ways, there are distinct differences between them.
Bank of America
The Bank of America has a relationship with just about every one of the companies that are on the Fortune 500 list. In terms of market capitalization, this is the second largest bank in the country, the fifth largest of the Fortune 500 and the second largest of the non-oil companies. (Wal-Mart is first). After it acquired Merill Lynch in 2008, the bank became the world’s largest wealth manager. It provides a wide range of services for the public and is a very large investment company. As one of the four largest banks in the US, it controls about 12% of all the deposits in the country.
J. P. Morgan Chase
J. P. Morgan Chase is next in line after the Bank of America as the third largest bank in the US. It is involved in investment and retail banking as well as securities. It operates the largest hedge fund in the world and has assets totaling over $54 million. Until 2000, it was known as just J. P. Morgan, but in this year it acquired the Chase Manhattan Corporation and the name was changed to J.P. Morgan Chase. The shortened form of the name – Chase – is used to refer to the credit cards and retail services that are part of the bank’s financial activities. New York is the location of the corporate headquarters and Chicago is the location of the retail headquarters.
How the Bank of America and J. P. Morgan Chase are different
The Bank of America operates in many different financial services, and while J. P. Morgan Chase operates in these areas as well, it is also an investment bank. J. P. Morgan Chase operates in over 60 countries of the world and with an asset base of over $2 billion it is the largest financial organization in the world.
Both have gone through controversies. The Bank of America raised the ire of many of its customers when it raised the interest rates charged on loans for all customers, even those with great credit ratings. J. P. Morgan chased became involved in a case that resulted in a county of Alabama reaching the point of bankruptcy. The result was that the bank was fined and forced to pay about $722 million dollars.[poll id=”91″]