Uniform Bank Performance Report - Anderson School of Management

eligible assets, and generally engaging in any non‐banking activity authorized by the Bank Holding
Company Act. These capabilities allowed the new JPMC to expand and become the universal banking
giant it is today.
Like all Financial Holding companies, JPMC is regulated by three major entities: The Federal Reserve, the
OCC, and the FDIC. These organizations closely monitor and regulate the operations of JPMC’s banking
and non‐banking subsidiaries. The Federal Reserve (Fed) is the central bank of the United States and is in
charge of regulating lesser banks, even enormous financial holding companies like JPMC. The regulations
and regulatory duties imposed by the Fed include: Requiring banks to follow equal opportunity loan
practices, setting and enforcing capital reserve requirements, setting the Fed Funds rate (the rate at
which banks can borrow capital from the Central Bank), and (recently) implementing government
bailout plans such as TARP12.
The FDIC is a government owned corporation that provides deposit insurance. A financial institution may
only qualify for this insurance if it meets the FDIC’s regulations and requirements. Nowadays, since
uninsured bank deposits are considered as safe as deposits with Bernie Madoff, the FDIC’s regulations
have become standard for all banks. They include: Requiring banks to pay premiums into the deposit
insurance fund, requiring banks to meet capital adequacy requirements, and reserving the right to take
over banks who do not meet the requirements.
Another important regulatory agency is the Office of the Comptroller of the Currency (OCC). The OCC
regulates banks by monitoring management, operations, and competitive practices, and has the
authority to make forced changes in these areas13. It is also responsible for the granting and altering of
corporate charters for financial institutions. Since JPMC is a federally chartered corporation, it is subject
to all OCC regulations.
12 http://www.federalreserve.gov/bankinforeg/reglisting.htm
13 http://www.occ.treas.gov/aboutocc.htm