JPMorgan (JPM) Looking to Set Up Global Business to Sell Loans/Banking Services to Multinational Corporations

According to the Financial Times, JPMorgan (NYSE: JPM) is setting itself up to compete directly with Citigroup Inc. (NYSE: C) and HSBC (NYSE: HBC) by launching a global business that will work to sell loans and commercial banking services to multinational corporations. The unit -- yet to be announced -- will work to give JPMorgan a chance to obtain a large part of the international business market.

The business will sell loans and commodities and will likely focus on the emerging markets in China, India and Brazil, according to people familiar with the matter. Germany, Switzerland and the UK will also be targeted for this new business unit.

The move will allow JPMorgan to take advantage of a weakened Citigroup and also make a move away from the reliance on the slowly recovering U.S. economy. JPMorgan currently relies on the U.S. economy for nearly three-quarters of its revenues.

“Increasingly we are hearing from our clients that they want more corporate bank services in more of the international locations where they operate,” head of JPMorgan’s investment bank, Jes Staley stated in a note to staff of the company.

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