Youtube Exercise » English Grammar Homework

How JP Morgan Chase Became The Largest Bank In The US

CNBC

3.2M views 7 years ago

Warm-up Questions

From the title, what do you think helped JP Morgan Chase become the largest bank in the US?
What kinds of events do you expect in a story about a bank becoming “the largest” (for example: mergers, crises, new technology)?
What does “largest bank” mean to you: most customers, most money (assets), or something else?

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Start With: Word Definition

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How JP Morgan Chase Became The Largest Bank In The US

Origins and early influence (assets, mergers, Morgan’s approach) (00:00 – 04:50)

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1. How much in assets does the video say the bank has?

Less than $1 trillion
More than $2 trillion
About $200 billion
About $20 million

2. What principle from Morgan’s father is emphasized about investment banking?

Your reputation is everything
Only invest in your own capital
Never work with Europe
Always avoid mergers

3. What huge company did Morgan put together in 1901, capitalized at $1 billion?

AIG
Morgan Stanley
AT&T
U.S. Steel

How JP Morgan Chase Became The Largest Bank In The US

The Panic of 1907 and reforms (unofficial central bank) (04:50 – 08:27)

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1. What major institution did the U.S. NOT have during the Panic of 1907, according to the video?

Foreign exchanges
Corporate earnings reports
A central bank
A stock exchange

2. How much money did Morgan demand in 20 minutes to keep the stock exchange operating?

$20 million
$500 million
$13 billion
$2 trillion

3. What did the panic help set in motion (eventually)?

The repeal of all banking laws
The end of railroads
The start of the Great Recession
The creation of the Federal Reserve

How JP Morgan Chase Became The Largest Bank In The US

Chase’s other roots, deregulation, consolidation, crises, and modern growth (08:27 – 19:02)

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1. What did deregulation in the 1990s help enable, according to the video?

A return to only local banking
National banking with greater efficiency
No more credit cards
A complete ban on mergers

2. Which acquisition is described as a defining moment during the financial crisis?

The building of Morgan’s private house
The acquisition of Bear Stearns
The creation of Drexel Morgan and Company
The founding of the Manhattan company

3. How much did the company say it lost in the London Whale episode?

More than $6 billion
More than $30 billion
About $500
Nearly $300 billion

How JP Morgan Chase Became The Largest Bank In The US

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1. Which factor is presented as a major reason JP Morgan Chase became so large over time?

Avoiding involvement in crises
Refusing to change regulations
Stopping all international business
A long series of mergers and consolidations

2. What main risk is highlighted when a single private banker has enormous power during a crisis?

The stock exchange becomes unnecessary
Too much power is concentrated in one person
Loans become impossible to repay
Technology stops working

3. In the modern part of the story, what is emphasized as a driver of customer growth (especially among young people)?

Reducing all regulation to zero
Closing branches and ending online services
Digital and mobile banking that makes processes easier
Only focusing on farmers and small businesses

Discussion Questions

Discuss the ideas from this video

How JP Morgan Chase Became The Largest Bank In The US

The video shows both benefits and harms of Morgan’s actions. In your opinion, when can consolidation be good for an economy, and when can it be harmful?
Should governments rely on private institutions to “save” the system in a crisis? Why or why not?
What do you think is the best way to reduce “systemic risk”: stricter regulation, better corporate leadership, or stronger competition? Explain.
Digital banking makes life easier, but it also concentrates power in a few big banks. How should societies balance convenience and financial stability?