Sample cover letter for Internship position at JP Morgan

Please summarise a recent event or development relating to local, regional or global activity that impacts our Investment Banking business. (150 words)

New regulations pose a threat to investment banks. These include higher capital and liquidity rules; restrictions on activities such as trading for their own profit; and structural changes such as forcing banks to separate their retail banks from their trading businesses or to re-organize global businesses into national subsidiaries. This has a negative impact on the profitability of J.P. Morgan as the predicted return on equity for the world’s 13 largest investment banks may fall to 6-9% by 2017. Moreover, the separation of retail banking from investment banking may affect the investment-banking business as this proposal is meant to ensure that retail deposits cannot be used to finance investment-banking businesses. However, as J.P. Morgan has a strong expertise in the banking industry and the new regulations can be overcome by developing new methods which comply with all the regulations.