Despite the mayhem on Wall Street, JP Morgan unveiled plans to invest $1 billion (£560 million) on technology to expand its global treasury service capabilities.
The investment, which started at the beginning of 2008, will be used to finance the migration of all of its international customers onto a single, global platform that includes treasury services such as accounts, payments, billing and information reporting. The bank claims the platform will give clients greater transparency into their treasury activities, and help them manage their cash more efficiently across regions.
"While many banks are curtailing treasury investments, selectively downsizing their global footprint due to the current economic environment, JP Morgan is taking the opposite approach. We are boldly expanding our global treasury services capabilities," said Melissa Moore, CEO of JP Morgan’s Treasury Services business when announcing the move.
“In conjunction with our substantial investment plan, we are expanding the JP Morgan footprint in every region in the world. Through these efforts, we are combining global and local capabilities that will enable clients to operate more efficiently worldwide."
JP Morgan is already investing in an offshore clearing network for Asia to help clients to keep liquidity in the region, clear in multiple regional infrastructures, consolidate cash balances and benefit from same-day finality.
The announcement comes a day after the biggest shake-up in the financial markets for a century with the news that Lehman Brothers filed for bankruptcy, Merrill Lynch has been bought by Bank of America and American International Group (AIG), one of the biggest insurers in the world, is ensconced in negotiations for emergency funding.