Strategic management Term Paper Example | Topics and Well Written Essays - 1250 words

Strategic concern - Term Paper ExampleThey are the leaders in investment banking, wealth management and a host of other services. The biggest change that ever took place in the history of the financial institutions was the unifyr with aver One. This change primarily took place because the other banks like the brink of America were almost ready to merge with other big banks like FleetBoston. This amalgamation took place because the financial institutions came under increasing pressure during the sequence of recession. The announcement of this merger was made on 14 January 2004. The Wall Street reacted very positively because of this merger and the NASDAQ witnessed growth soon after the merger took place.This change took place because the two financial institutions sine qua noned to downsize and crook the deadwood out. The aim was to save about $2.2 billion over three yearsand it was planned to egest as many as 10,000 people. This again goes to show how desperate even the bigge st financial institutions were at the judgment of conviction of recession. Mergers and acquisitions were very common and these overtures were the initial signs which showed that almost all the big financial institutions were panicking. Volatile corporate banking was the major(ip) factor on which JP Morgan primarily functioned.The investors looked less enthusiastic with the big bucks between Bank of America and Fleet-Boston. This deal was for a wallop $48 billion. The shares of Fleet-Boston were driven up as a result of this deal because Bank of America offered 40% premium in this deal. The shares of Bank of America however came down and the investors lost a lot of money consequently. Big mergers take place because both the companies involved in the merger want to grow at a tremendous pace but this merger was not very efficacious for both the financial institutions.The collapse of WORLDCOM in the year 2005 signaled trouble for JP Morgan chase, the institution had to pay a whoppin g sum of $2 billion. This sum was paid to the different