No. 12 of The Subprime 25: Chase Home Finance/JPMorgan Chase & Co.

Introduction

Total high-interest loans 2005-2007:

At least $30 billion

Federal bailout money received:

JPMorgan benefitted when the Federal Reserve Bank of New York guaranteed against losses $29 billion in shaky Bear Stearns assets, clearing the way for the company’s sale. JPMorgan has also collected $25 billion in funds from the government’s Troubled Asset Relief Program.

Company overview

• Status: ACTIVE
• History: JPMorgan Chase & Co. is one of the nation’s largest banks and its CEO, James “Jamie” Dimon has gotten good press for keeping it largely out of the subprime mess. In 2001, Chase bought the mortgage business of Advanta Corp., which serviced a $15.8 billion “nonprime” lending portfolio. Chase Home Finance did its share of subprime, though it was a relatively small portion of the bank’s overall lending. In 2006, in a letter to shareholders, Dimon wrote, “The subprime business is a great example of what happens when something good is taken to excess.” Dimon said when done right, “subprime is good business” but that a recession would be “the only thing that will make it a lot worse.” JPMorgan bought Bear Stearns in May 2008 with help from a $29 billion government guarantee against losses on Bear assets. JPMorgan also bought the remnants of Washington Mutual in September 2008, a bank whose failure was the biggest in U.S. history.
• Parent/subsidiary companies: In 2001, Chase bought Advanta Corp.’s mortgage business. Chase Home Finance was the consumer lending unit of JPMorgan Chase & Co.
• CEO: Chairman/CEO: James “Jamie” Dimon (still in that position as of May 2009) became CEO on December 31, 2005, replacing William B. Harrison Jr. Harrison held the position from 2001 through the end of 2005.
  • Most recent salary: 2008 (Dimon) — salary, $1,000,000; total compensation $19,651,556, which includes $16,841,799 in stock awards, $1,413,200 in option awards.
• Location: Iselin, New Jersey
• Year founded: 1799
• Backers: JPMorgan, in addition to originating subprime mortgages, was also a major underwriter of subprime mortgages for other lenders.

Lobbying overview

• Lobbying: 1999-2008: JPMorgan and subsidiaries reported $62,024,099 in lobbying expenditures. **
• Total Contributions: At least $14,995,087 *
• Top Recipients:
  1. Democratic Senatorial Campaign Committee $755,229
  2. Barack Obama $551,408
  3. Democratic National Committee $439,116
  4. National Republican Senatorial Committee $429,035
  5. Democratic Congressional Campaign Committee $413,680

** Lobbying totals calculated by the Center for Public Integrity using data from the Senate Office of Public Records.

* Contribution grand total includes employee and soft money contributions from the lender and its subsidiaries. Top recipient totals include employee and political action committee contributions. Data provided by CQ Money Line, analysis by the Center for Public Integrity.