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JPMorgan Chase Lending: Laughable When It Comes To Small Business

JPMorgan Chase lending

JPMorgan Chase Lending

JPMorgan boasts that they’re #1 in SBA loans with $1.1 billion in SBA loans, but if you look at their total deposits ($1.1 trillion), the $1.1 billion doesn’t seem nearly so generous—since it’s only 0.1% of total deposits.

In fact, JPMorgan Chase scores an F on BankingGrades.com, which divides the total amount of small business loans by the total amount of deposits. So JPMorgan Chase hardly has room to boast.

Local lenders uniformly score far higher and are far more likely to support small businesses.

This is especially bad because JPMorgan Chase has grown tremendously in the past decade.

jpmorgan chase
The change in the size of the megabanks has been dramatic over the past decade. The other “big four” commercial banks have also grown at about the same rate over the past decade. Source

Here’s an excerpt:

The big banks are bigger than ever. According to a table prepared by SNL Financial and cited by the Wall Street Journal last week, the “big four” U.S. Banks—including JPMorgan Chase, Bank of America, JPMorgan Chase, Citigroup, and Wells Fargo—have a larger combined market share than they did ten years ago. The SNL data is limited to bank holding companies with deposits funding at least 25% of total assets.

  • JPMorgan Chase had $2.3 trillion in total assets as of June 30, nearly tripling in size over the past ten years, including the purchase of the failed Washington Mutual from the Federal Deposit Insurance Corp. in September 2008, the fire-sale purchase of Bear Stearns in March of 2008, which was brokered by the Federal Reserve. Among the largest 50 U.S. banks, JPMorgan had an 18.33% share of assets as of June 30, increasing from 12.51% in June 2002.


Wall Street Wages vs. Everyone Else

wall street wages

Wall Street wages have increased at a much higher rate than the wages for the rest of the US, especially during the nineties. One could possibly argue that it’s because Wall Streeters have been working harder since that time, or that they’re becoming more and more valuable to society as time passes. But since Wall Street was at the heart of the financial crisis, which caused millions of people to lose millions collectively, and since Wall Street inflated the housing bubble, we think that people should seriously question whether Wall Street deserves such heightened compensation.

We should question whether Wall Street wages are at the the level they should be, or whether perhaps they’ve been inflated. It should be obvious what we think on the issue. For more, read this post about Wall Street and Main Street. The post contains this stinging quote from Sheila Bair, former FDIC chair:

[Wall Street] create incentives for banks to come up with an endless array of complex “structured” financial products to meet investors’ insatiable demand for return. Just how many jobs did all of those CDOs-squared give us anyway?

Also see the source for the chart, with further clarification: “[The graph] displays the relative wage in finance in the Tri-State Area (New York, New Jersey, and Connecticut), where “Wall Street” employees are likely to generate income, together with the relative wage of finance in the rest of the United States.”


wall street banks wall street banks wall street banks wall street banks
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