JPMorgan Chase Private Client Services and 
their questionable Trustee Duties  

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The JP Morgan Chase Bank,  Private Client Services was assigned by Mary's deceased husband’s attorney to be the Trustee of the estate, which after her death will also benefit various charities. As known by law, the powers and duties of Trustees should be performed in a reasonable and prudent manner on behalf of the beneficiaries.

It is Mary's belief that the bank who made a commitment to be the trustee of this estate did not act in the trust's best interest.  With respect due to the transaction activities in the account, she believes they were reckless and incompetent and resulted in a large account balance reduction as they were improperly diversified and of high risk nature. This includes and is not limited to high-risk investments. 

The trust was extremely mismanaged by JP Morgan Wealth Management because most of the investments were subjected to a wrong ‘Buy’ and ‘Hold’ strategy since the beginning of 2007, resulting as shown in June 2009 in very big losses. 

As of June 30, 2009 a total of  64.5 %  of trust assets were positioned in JPMorgan's proprietary funds, a clear conflict of interest.  The overall cost of Mutual funds added 2.4 % to the trust management expenses.

As of Sept. 31. 2009 the trust assets were $ 5,579,602.50 with a cash position of  $ 3,303,084.28 or 59.2 %.The total trust income for September was only $ 3,522.91 or 0.63 %.

Who benefits from this cash position sitting in Money Market accounts?

Furthermore, JP Morgan managed to dispose of investments during September of 2009 resulting in a loss of $ 131,103.12, thus confirming their strategies were unsuitable for the trust. We disagree with Exxon Mobil being an 'unsuitable' investment.

In short, JP Morgan refused to diversify based on researched and reliable market strategies, rather the tactics they used only benefited their own organizational financial gain. 

In summary, this account suffered tremendous losses because it was unprofessionally managed.  With respect due to 
JP Morgan Wealth Management, this organization’s decisions makers have proven to be irresponsible and unethical without compassion to the client and the end-beneficiaries, charities who serve thousands of people in need.  The bank has not only added to the financial detriment of a spouse but also that of important helpful charities. Keeping at heart today's suffering in our communities and appreciating other compassionate organizations stressing to do the best to help. JPMorgan Chase Bank manages to show gains at the cost of their clients.

JPMorgan’s third quarter profits soared sevenfold to 3.6 billion JPMorgan 3rd-quarter profit soars; shares jump -
JPMorgan's profit for 2009 was 11.73 billion.

JPMorgan Funds Disclosure Statement shows the following:

Their professionals are paid a salary plus discretionary bonus. The amount of revenue resulting from sales of products to clients may be considered as one of several factors in determining a client-facing professional bonus. JPMorgan Asset Management may receive more revenue from sales of JPMorgan Funds than from sales of funds managed by external parties, because it receives compensation for providing JPMorgan Funds investment advisory, administrative and other services.

Note: JPMorgan readily and openly admits that it pays its employees greater compensation if the are able to invest in their own proprietary funds. Has this occurred in this case? 

Notes on Deposit Sweep (Page 5):
The deposit sweep uses a bank deposit held on your behalf with Chase Bank USA, N.A. or JPMorgan Chase Bank, N.A., wholly owned subsidiaries of JPMorgan Chase & Co. 
JPMorgan may receive certain benefits from having client accounts' cash balances deposited in the Deposit Sweep, including providing Chase Bank USA, N.A. and JPMorgan Chase Bank, N.A. with additional liquidity in the form of clients deposits.

Note: JPMorgan readily and openly admits that their clients accounts cash balances benefit JPMorgan. 
Was there a conflict of interest?

JPMorgan - Insights Newsletter - Breach of Fduciary Duties