Bite the hand that feeds, you are fired! The JP Morgan Chase Case by the1uploader

Measuring the Strength and Performance of JPMorgan as the Largest Investment Bank by Sando Sasako Jakarta, 11 January 2017

Contents Measuring the Strength and Performance of JPMorgan as the Largest Investment Bank .................... i Contents ................................................................................................................................................ i List of Tables ........................................................................................................................................ i List of Figures ....................................................................................................................................... i Bite the hand that feeds, you are fired! The JP Morgan Chase Case ................................................... 1 Primary Dealer System in Indonesia .................................................................................................... 2 Policy and Politicisation....................................................................................................................... 4 Primary Dealer ..................................................................................................................................... 4

List of Tables Table 1 – Top Investment Banking Earners by Product, 2016 ............................................................ 1 Table 2 – Daftar 22 primary dealer di Amerika Serikat, 2014 ............................................................ 5 Table 3 – Beberapa veteran primary dealer pilihan Bank Sentral Amerika ........................................ 5 Table 4 – Daftar 19 primary dealer di Indonesia, 2014-2015 .............................................................. 6 Table 5 – Largest Investment Banks by Revenue, Jan. 2017 .............................................................. 8 Table 6 – Global Investment Banking Ranking, 2015-2016 ............................................................... 8 Table 7 – Global M&A Advisor Ranking, 2015-2016 ........................................................................ 8 Table 8 – Top 10 Global Deals in M&A, 2016 ................................................................................... 9 Table 9 – Global ECM (Equity Capital Market) Bookrunner Ranking, 2015-2016............................ 9 Table 10 – Global Top 10 Deals in ECM FY 2016 ............................................................................. 9 Table 11 – Global IPOs Bookrunner Ranking, 2015-2016 ................................................................ 10 Table 12 – Global Top 10 Deals in IPO FY 2016 ............................................................................. 10 Table 13 – Global DCM (Debt Capital Market) Bookrunner Ranking, 2015-2016 .......................... 10 Table 14 – Global Investment Grade DCM Bookrunner Ranking, 2015-2016 ................................. 11 Table 15 – Global Top 10 Deals of Investment Grade DCM, 2016 .................................................. 11 Table 16 – Global High Yield DCM Bookrunner Ranking, 2015-2016 ............................................ 11 Table 17 – Global Top 10 Deals in High Yield DCM, 2016 ............................................................. 12

List of Figures Figure 1 – Largest Investment Banks by worldwide activities, 2016 .................................................. 7 Figure 2: Global Investment Banking in Revenues by Sector Ranking, 2016 .................................... 7

Bite the hand that feeds, you are fired! The JP Morgan Chase Case by Sando Sasako Jakarta, 11 January 2017 It is a simple math and logic. Bite the hand that feeds, you are fired! JP Morgan Chase is not immune to such betrayal behaviour. Some can call it subtle, in either positive or negative ways. It was the second bold move of JP Morgan to encourage investors to sell Indonesian securities. In a 13 November 2016 note, the lead analyst Adrian Mowat downgraded JP Morgan's investment recommendation on Indonesian stocks from overweight to underweight. The first bold move happened in August 2015, whereas the Finance Minister Bambang Brodjonegoro and Central Bank Governor Agus Martowardojo took no action. Both seemed too afraid for negative consequences by firing JP Morgan. They knew JP Morgan's position as one of the biggest distributors of Indonesian government bonds overseas, likewise its 'significance' in the world's financial markets. To see how big JPMorgan is, we can employ the data provided by Dealogic. JPMorgan is the top earner in major investment banking activities, from Equity Capital Markets to Debt Capital Markets, Investment Grade securities, Corporate Bond-Investment-Grade, Corporate Bond-High Yield, Syndicated Lending, Leveraged, and Follow-On. Table 1 – Top Investment Banking Earners by Product, 2016

Table – Top Investment Banking Earners by Product, 2016 Product Revenue $m % cge Y-o-Y Top Bank Investment Grade 2,745.80 22 <0 JPMorgan Corporate Bond-High Yield 4,416.00 12 <0 JPMorgan Syndicated Lending 14,727.80 5 >0 JPMorgan Leveraged 11,982.10 13 >0 JPMorgan Follow-On 8,672.50 24 <0 JPMorgan Equity Capital Markets 14,036.40 25 <0 JPMorgan Debt Capital Markets 21,245.50 6 >0 JPMorgan Corporate Bond-Investment-Grade 12,223.90 17 >0 JPMorgan Mergers & Acquisitions 24,048.50 1 <0 Goldman Sachs IPO 4,074.90 27 <0 Morgan Stanley Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

% share 13.9 9.4 9.3 8.3 7.7 7.6 6.9 6.2 10.1 6.4

Unfortunately, JPMorgan’s second move was deemed to be intolerable, especially by Sri Mulyani Indrawati (SMI). Ranked as one of the most powerful woman in the world by Forbes, the highest one was in 2008, ranked at 23rd, SMI was re-appointed for the second time as the Finance Minister in July 2016. In 2016, SMI was ranked by Forbes at 37, downed from 31 in 2015, and a bit higher in 2014 which was ranked at 38. She was an executive director at the International Monetary Fund (IMF) for the period of 2002-2004, and one of Managing Directors at the World Bank Group for the period of June 2010-July 2016. As the Finance Minister, she dares to ditch JPMorgan’s participation in any securities issued by the Government of Indonesia. The last known participation of JPMorgan was the auction plan of SBSN (Surat Berharga Syariah Negara) as of 1 November 2016. It comprised of 3 PBS (Project-Based Sukuk, PBS012-PBS014) series and 1 SPN-S serie (SPN-S 19042017). Totaling at IDR3t, the auction did not include new issuance, but reopening. At the following auction plan of SUN (Government Securities) dated 6 December 2016, JPMorgan wasnot registered anymore as one of the primary dealers. Totaling at IDR6.2t, the auction comprised of new issuances of 2 SPN series (SPN03170307 and SPN12171207) and the reopening of 3 FR series (FR0061, FR0059, and FR0072). SPN is Indonesian T-Bills. 1

Sando Sasako The exclusion of JPMorgan’s participation was highlighted again in the ‘revised’ 2016 Offering Circular of GoI’s Global Medium Term Note (GMTN). The US$40b GMTN was first offered on 1 December 2015. BofA Merrill Lynch, CIMB, Citigroup, and HSBC were the arrangers. JPMorgan was one of 5 other dealers, that is ANZ, Barclays, Deutsche Bank, Standard Chartered Bank, and Société Générale (Corporate and Investment Banking). Arrangers also function as the dealers. The participation of JPMorgan remained intact at the Supplemental Offering Circular issued on 7 June 2016. Dated 1 December 2016, the revised OC eliminated JPMorgan’s participation. Some other revisions include an increase of value by US$10b and addition of other investment banks such as BNP Paribas, Goldman Sachs, and UBS. The dismissal of JP Morgan Chase case as the lead underwriter and primary dealer of Indonesian government debt securities is not barely new. Similar cases have already happened in the past. Recall the cases of Morgan Stanley (MS.N) in Singapore (2006) and China; Goldman Sachs Group Inc (GS.N) in South Korea's Kookmin Bank [KOOKM.UL] in 2008; Banco Santander (SAN.MC) in Brazil (2014); HSBC in Hong Kong (2014). What JPMorgan has lost is not limited to its function as the primary dealer, but also its status as the perception bank, the highly respected bank in Indonesian banking industry structure. JPMorgan also lost its function as the receiving bank of state revenue not related to imports, including tax, onshore excise, non-tax revenue, and penalty payments in regard to the tax amnesty programme. Primary Dealer System in Indonesia Prior to 2006, Indonesia barely knew the ‘primary dealer system’. Three years before, in 2003, Amone and Iden had assessed that Indonesia for somehow had applied some kind of PDS. The following is their assessment.1 1. Dealers in government securities So far, there are no dealers for government securities, just 14 brokers (7 brokers for capital markets and 7 brokers for money markets). However, these brokers are only for the central bank securities transactions called Sertifikat Bank Indonesia (SBI). 2. PD institutions No primary dealers (PD) system. 3. System evolution over time In 1993, primary dealers were needed to help develop the SBI secondary market. As the SBI secondary market developed, the primary dealer system was seen as unnecessary and therefore discontinued in 1998. Access to SBI was then opened to all market participants, i.e., banks, brokers, and individuals. The new regulation on SBI auction, which will be effective in October 2002, states that only banks and brokers have access to the SBI primary market. 4. Relation between the size of public debt and the desirability of PDs The need for primary dealers may become imminent should the government issue treasury bills and government bonds under the new Government Securities Law passed by the Parliament in September 2002. Currently, the only existing government bonds are recapitalization bonds issued to finance the cost of the government's financial participation in commercial banks as part of the

1 Marco Arnone and George Iden, Primary Dealers in Government Securities: Policy Issues and Selected Countries' Experience, IMF Working Paper, WP/03/45, March 2003. https://www.imf.org/external/pubs/ft/wp/2003/wp0345.pdf

Bite the hand that feeds, you are fired! The JP Morgan Chase Case national program to restructure and revitalize the hanking sector. Recapitalization bonds were issued through private placements. 5. Recommendation of system Strongly recommended at Indonesia's current development stage, i.e., the middle stage. The growth of Indonesia's equity and debt market and the passage of the Government Securities Law will make the need for primary dealer system imminent. Market supporting infrastructure has also been developed. Indonesia already owns two stock exchanges, i.e., the Jakarta Stock Exchange and the Surabaya Stock exchange, a fund transfer system called the Real-Time Gross Settlement (Bl-RTGS), and a Government Bond Settlement system called BI-SKRIP. Both the BI-RTGS and the BI-SKRIP are operated by the Central Bank, Bank of Indonesia. Based on this infrastructure and a Scripless Securities Settlement System currently being developed by Bank Indonesia, the Ministry of Finance and Bank Indonesia are developing a secondary market for government securities. 6. Advantages PDs can develop a secondary market for government bonds and create market liquidity. 7. Disadvantages A minor disadvantage might be that with primary dealers, the price of a trade might not reflect the market price, so not many participants would do securities transactions. The price seems determined only by primary dealers. The primary dealer system in Indonesia was set in the Regulations of Finance Minister (Permenkeu). 1. Permenkeu No.144/PMK.08/2006 regarding Primary Dealer System 2. Permenkeu No.108/PMK.08/2007 regarding Primary Dealer System 3. Permenkeu No.30/PMK.08/2008 amended Permenkeu No.108/PMK.08/2007 4. Permenkeu No.134/PMK.08/2013 regarding Primary Dealer 5. Permenkeu No.199/PMK.08/2015, the First Amendment of Permenkeu No.134/PMK.08/2013 6. Permenkeu No.234/PMK.08/2016, the Second Amendment of Permenkeu No.134/PMK.08/2013 7. Permenkeu No..../PMK.08/2017, the Third Amendment of Permenkeu No.134/PMK.08/2013 Although PDS had been implemented following the issuance of Permenkeu No.144/PMK.08/2006, the first participation of JPMorgan as the one of Indonesian primary dealer appeared on the auction of government bonds dated 30 October 2007. The PDS initiation and first implementation was set by SMI while she was the Finance Minister, the first time ever. The first participation of JPMorgan was to replace PT Bank DBS Indonesia in the auction of government bonds dated 30 October 2007. Worth IDR3t, the auction comprised of 2 FR series, that is FR0047 and FR0048. Both series were reopening issues. The auction system was operated by Bank Indonesia. Multiple price is offered in competitive (80%) or non-competitive bids (20%). On 28 August 2007 auction, the IDR3t bonds offered from FR0047 and ZC0001 series. JPMorgan was not registered as one of the primary dealers. Likewise on 28 September 2007 auction, where the IDR1t bonds offered were from ZC0002 series. The other 17 primary dealers were Bahana Securities; Bank Central Asia Tbk (BCA); Bank Danamon Indonesia Tbk; Bank Internasional Indonesia Tbk (BII); Bank Lippo Tbk; Bank Mandiri (Persero), Tbk; Bank Negara Indonesia (Persero) Tbk (BNI); Bank Panin Tbk; Bank Permata Tbk; Bank Rakyat Indonesia Tbk (BRI); Citibank N.A.; Danareksa Sekuritas; Deutsche Bank AG; HSBC; Mandiri Sekuritas; Standard Chartered Bank; and Trimegah Securities Tbk.

Sando Sasako The following is what I had written in my book titled by â&#x20AC;&#x153;Krisis Finansil Cina: Perspektif Kebijakan Moneter, Corporate Finance (Analisa Laporan Keuangan), dan Investment Banking (Valuasi Nilai)â&#x20AC;?, published in March 2016. ISBN 978-602-73508-5-4. Policy and Politicisation Banyak politisi, pengamat politik, ahli di bidang komunikasi politik beralih peran dan profesi menjadi kusir yang sering berdebat satu sama lain untuk hal-hal yang nyeleneh dan tidak perlu. Objek yang diperdebatkan pun biasanya terkait masalah pelanggaran etika, tata tertib, prosedur, dan segala hal terkait nilai dan norma.2 Kusir sebagai penunggang kereta kuda memang doyan menjadi bunglon yang sangat mudah berubah warna ketika tempat berpijaknya berbeda warna (situasi dan kondisi berubah). Tidak jarang pula mereka sering menunggangi kepentingan terselubung dalam implementasi dan eksekusi berbagai agenda. Wujudnya sangat jelas terartikulasi dalam setiap kata dan ucapan serta perbuatan yang sangat penuh propaganda. Penunggang gelap, penumpang gelap, free rider. Dalam kalimat yang sederhana, mereka merupakan salah satu pihak yang pasti berpotensi mendapat untung dan diuntungkan bila propaganda mereka bisa diwujudkan. Just follow the money. Di sisi lain, pasti ada pihak yang buntung dan dibuntungkan sebagai tumbal dan menjadi korban dan dikorbankan. Beberapa korban bersifat pasif. Ada pula yang reaktif dan aktif. Beberapa pihak yang reaktif karena merasa dikorbankan akan memberi perlawanan. Reaksi paling minimum berupa pengingkaran atas dasar logika, kata hati, dan/atau perasaan. Beberapa reaksi diaktualisasi dalam bentuk ucapan (curhat atau curcol) ke peer group yang tidak hostile, melainkan memberikan perlindungan dan menawarkan comfort zone. Beberapa reaksi diaktualisasi dalam bentuk penggalangan kekuatan, minimal dalam bentuk moral. Beberapa reaksi diaktualisasi dalam bentuk pengumpulan massa, terorganisir dan tidak. Salah satu bentuk telah terorganisirnya suatu massa adalah telah terkumpulnya dana secara rutin dan/atau melalui upaya penggalangan dana (fund raising) yang sifatnya temporer dan/atau regional. Massa yang terorganisir pun biasanya mengalami pengerucutan pada segelintir kelompok kunci dan kelompok inti. Primary Dealer Di dunia finansil, kelompok inti ini biasa disebut Primary Dealer. Di AS, mereka mendapat fasilitas kredit yang nilainya fantastis dan berbagai akses non-finansil lainnya yang memiliki nilai moneter jauh lebih besar dari nilai fasilitas kredit yang mereka terima. Di tahun 2014, 22 investment banking dipilih sebagai dealer utama dan kepanjangan tangan The Fed di pasar finansil dunia. Dua diantaranya merupakan pemain baru, yakni Jefferies LLC yang baru bergabung sejak Maret 2013 dan TD Securities (USA) LLC sejak Februari 2011. Jefferies LLC merupakan pengganti Jefferies & Co., Inc. yang menjadi dealer utama selama periode Juni 2009 sampai Februari 2013. Pemain lama sebelum tahun 2000 tersisa 2 institusi, yakni Goldman, Sachs & Co. (Des. 1974) dan HSBC Securities (USA) Inc. (Juni 1999).

2 Dewan Pembaca bisa menyimak diskusi lebih jauh tentang nilai dalam buku yang sudah penulis publikasikan di bulan Januari 2016 dengan judul â&#x20AC;&#x153;Nilai-nilai dalam Kehidupanâ&#x20AC;?, edisi kedua, ISBN 978-602-73508-3-0.

Bite the hand that feeds, you are fired! The JP Morgan Chase Case Tabel – Daftar 22 primary dealer di Amerika Serikat, 2014 1. Bank of Nova Scotia, New York Agency 2. Barclays Capital Inc. 3. BMO Capital Markets Corp. 4. BNP Paribas Securities Corp. 5. Cantor Fitzgerald & Co. 6. Citigroup Global Markets Inc. 7. Credit Suisse Securities (Usa) LLC 8. Daiwa Capital Markets America Inc. 9. Deutsche Bank Securities Inc. 10. Goldman, Sachs & Co. 11. HSBC Securities (USA) Inc. 12. Jefferies LLC 13. J.P. Morgan Securities LLC 14. Merrill Lynch, Pierce, Fenner & Smith Inc. 15. Mizuho Securities USA Inc. 16. Morgan Stanley & Co. LLC 17. Nomura Securities International, Inc. 18. RBC Capital Markets, LLC 19. RBS Securities Inc. 20. SG Americas Securities, LLC 21. TD Securities (Usa) LLC 22. UBS Securities LLC. Sumber: The Fed Table 2 – Daftar 22 primary dealer di Amerika Serikat, 2014

Tabel – Beberapa veteran primary dealer pilihan Bank Sentral Amerika Nama bank investasi Mulai J.P.Morgan Securities, Inc. 1960-05-19 Merrill Lynch Government Sec. Inc. 1960-05-19 Citibank 1961-06-15 Chase Manhattan Gov't Securities 1970-07-15 Bank of America NT & SA 1971-11-17 Morgan Stanley & Co. Incorporated 1978-02-01 Sumber: The Fed

Akhir 2001-04-30 2009-02-11 1989-04-13 1987-06-30 1994-04-15 2011-05-31

Table 3 – Beberapa veteran primary dealer pilihan Bank Sentral Amerika

Di Indonesia, di tahun 2007, 18 primary dealer atau agen utama perdagangan Surat Utang Negara (SUN) terdiri dari 14 bank dan 4 perusahaan efek.3 Lippo Bank yang pernah berjaya dan penuh dengan skandal akhirnya dilebur ke Bank Niaga pada pertengahan Juli 2008. Eksekusi peleburan dilakukan efektif per 1 Oktober 2008 dan diharapkan selesai pada kuartal keempat di tahun 2009. Statusnya sebagai primary dealer beralih ke PT Bank CIMB Niaga Tbk sebagai institusi hasil peleburan. Di tahun 2014, Bank DBS Indonesia tidak lagi menjadi primary dealer. Jumlah primary dealer pun bertambah menjadi 19. Dua bank lainnya mencakup PT Bank OCBC NISP, Tbk dan JP Morgan Chase Bank NA. JP Morgan Chase (JPMC) telah operasional di Jakarta sejak 17 Juni 1968 dengan nama The Chase Manhattan Bank, N.A (CMB). Di bulan Desember 1995, Chemical Banking Corp membeli Chase Manhattan Bank, N.A. tetapi tetap 3 Wahyu Daniel, Pemerintah Tunjuk 18 Dealer Utama SUN, detikfinance, http://finance.detik.com/read/2007/03/02/113333/748972/5/pemerintah-tunjuk-18-dealer-utama-sun

20070302,

Sando Sasako memakai nama Chase Manhattan Corp (CMC), induk perusahaan Chase Manhattan Bank. Di bulan Mei 2000, CMC New York mengakuisisi 91,72% saham Robert Fleming Holding Ltd, termasuk afiliasi RFH di Indonesia, yakni PT Jardine Fleming Nusantara. Di akhir 2000, CMC bergabung dengan JPMorgan & Co. menjadi JPMorgan Chase & Co. Anak perusahaan dari kedua perusahaan induk itu pun melebur juga. Morgan Guaranty Trust Co NY melebur ke CMB menjadi JP Morgan Chase Bank. Di awal 2004, Bank One Corp (BOC) melebur ke JPMC menjadi JP Morgan Chase Bank, NA (National Association). Menurut Rahmat Waluyanto, fungsi terpenting dari primary dealer ini adalah menjadi penggerak pasar atau market makers di pasar sekunder. Dealer ini diberikan hak akses eksklusif sebagai peserta lelang di pasar perdana dan sekunder, hak eksklusif untuk mendapatkan informasi pertama tentang program pengelolaan SUN oleh pemerintah. Di sisi lain, dealer wajib menyerap SUN di pasar perdana, memperdagangkan seri SUN yang sudah ditetapkan pemerintah sebagai benchmark, membuat kuotasi harga dua arah atau bid-offer dengan kisaran spread tertentu. Pemerintah juga menyediakan fasilitas securities lending kepada dealer utama untuk menjamin likuiditas pasar. Sejak akhir Agustus 2005, Bloomberg ditetapkan sebagai platform resmi untuk perdagangan obligasi primer di Indonesia. Platform fixed income electronic trading (FIET) mulai digunakan sejak awal kuartal keempat di tahun 2005. Volume rata-rata harian perdagangan obligasi pemerintah Indonesia bernilai Rp 2,1 trilyun, atau setara dengan $200 juta. Tabel â&#x20AC;&#x201C; Daftar 19 primary dealer di Indonesia, 2014-2015 1. Citibank N.A 2. Deutche Bank AG 3. HSBC 4. Bank Central Asia, Tbk., PT 5. Bank Danamon Indonesia, Tbk, PT 6. Bank Internasional Indonesia, Tbk., PT 7. Bank Mandiri (Persero), Tbk., PT 8. Bank Negara Indonesia (persero), Tbk., PT 9. Bank Panin, Tbk., PT 10. Bank OCBC NISP, Tbk, PT 11. Bank Rakyat Indonesia, Tbk., PT 12. Bank Permata, Tbk., PT 13. Bank CIMB Niaga, Tbk., PT 14. Standard Chartered Bank 15. JP Morgan Chase Bank NA. 16. Bahana Securities, PT 17. Danareksa Sekuritas, PT 18. Mandiri Sekuritas, PT 19. Trimegah Securities, Tbk., PT Table 4 â&#x20AC;&#x201C; Daftar 19 primary dealer di Indonesia, 2014-2015

Bite the hand that feeds, you are fired! The JP Morgan Chase Case

Figure 1 â&#x20AC;&#x201C; Largest Investment Banks by worldwide activities, 2016

Figure â&#x20AC;&#x201C; Largest Investment Banks by worldwide activities, 2016 Source: Financial Times, https://markets.ft.com/data/league-tables/tables-and-trends

Figure 2: Global Investment Banking in Revenues by Sector Ranking, 2016

Figure: Global Investment Banking in Revenues by Sector Ranking, 2016 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

Sando Sasako Table 5 – Largest Investment Banks by Revenue, Jan. 2017

Table – Largest Investment Banks by Revenue, Jan. 2017 Rev Share Bank $m % JPMorgan 5,920 8 Goldman Sachs 4,888 6.6 Bank of America Merrill Lynch 4,463 6.1 Morgan Stanley 4,205 5.7 Citi 3,597 4.9 Credit Suisse 3,175 4.3 Barclays 3,099 4.2 Deutsche Bank 2,674 3.6 Wells Fargo Securities 1,825 2.5 UBS 1,637 2.2 RBC Capital Markets 1,610 2.2 HSBC 1,295 1.8 BNP Paribas 1,080 1.5 Jefferies LLC 1,032 1.4 Mizuho 999 1.4 Lazard 933 1.3 Nomura 841 1.1 Evercore Partners Inc 792 1.1 BMO Capital Markets 671 0.9 Mitsubishi UFJ Financial Group 661 0.9 Subtotal 45,397 61.5 Total 73,766 100 Source:Dealogic, http://fn.dealogic.com/fn/IBRank.htm

DCM (% of Rev) 25% 21% 31% 24% 34% 21% 32% 32% 43% 28% 29% 58% 45% 7% 45% 0% 25% 0% 20% 44% 28% 29%

ECM (% of Rev) 23% 13% 28% 10% 20% 29% 25% 28% 28% 12% 28% 24% 29% 23% 28% 0% 13% 0% 29% 49% 21% 20%

Loans (% of Rev) 18% 16% 14% 20% 17% 18% 12% 17% 12% 22% 19% 8% 9% 16% 19% 0% 30% 4% 30% 6% 16% 19%

M&A (% of Rev) 34% 50% 26% 46% 29% 32% 31% 23% 17% 38% 24% 10% 16% 54% 8% 100% 31% 96% 21% 2% 34% 33%

Table 6 – Global Investment Banking Ranking, 2015-2016

Table – Global Investment Banking Ranking, 2015-2016 FY 2016 FY 2015 Bank Revenue $m % share Rank Revenue $m % share JPMorgan 5,957.10 8 1 6,069.90 7.9 Goldman Sachs 4,871.50 6.6 2 5,534.20 7.2 BofA Merrill Lynch 4,483.10 6.1 3 4,830.40 6.3 Morgan Stanley 4,235.50 5.7 4 4,610.90 6 Citi 3,590.40 4.8 5 3,916.00 5.1 Credit Suisse 3,144.10 4.2 7 3,171.10 4.1 Barclays 3,090.10 4.2 8 3,120.00 4 Deutsche Bank 2,707.00 3.7 6 3,366.70 4.4 Wells Fargo Securities 1,819.70 2.5 10 1,792.20 2.3 UBS 1,648.60 2.2 9 1,975.80 2.6 Subtotal 35,547.20 48 38,387.00 49.8 Total 74,058.30 100 77,140.10 100 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/ Table 7 – Global M&A Advisor Ranking, 2015-2016

Table – Global M&A Advisor Ranking, 2015-2016 FY 2016 FY 2015 Advisor Value $bn # Rank Value $bn Goldman Sachs 986.6 326 1 1,562.50 Morgan Stanley 929.5 298 2 1,245.30 JPMorgan 832.5 340 3 1,216.80 BofA Merrill Lynch 801.3 250 4 1,034.70 Citi 593.3 238 5 799 Credit Suisse 549.4 238 6 711.9 Barclays 527.3 203 8 646.8 UBS 387.3 178 10 437.3 Lazard 352.6 249 7 709.5 Deutsche Bank 349 149 9 609.2 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

# 404 372 339 250 283 210 197 187 249 226

Bite the hand that feeds, you are fired! The JP Morgan Chase Case Table 8 – Top 10 Global Deals in M&A, 2016

Table – Top 10 Global Deals in M&A, 2016 Acquiror

Target

Announced

Value $m

AT&T Inc Time Warner Inc 22-Oct 107,887.80 Bayer AG Monsanto Co 23-May 66,340.60 British American Tobacco plc - BAT Reynolds American Inc 21-Oct 58,072.70 China National Chemical Corp - ChemChina Syngenta AG 03-Feb 46,940.50 Qualcomm Inc NXP Semiconductors NV 27-Oct 46,990.10 Praxair Inc Linde AG 20-Dec 42,503.20 General Electric Co Baker Hughes Inc 31-Oct 32,202.00 SoftBank Group Corp ARM Holdings plc 18-Jul 31,645.00 Enbridge Inc Spectra Energy Corp 06-Sep 42,962.10 Microsoft Corp LinkedIn Corp 13-Jun 28,119.90 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

Value $m (ex-debt) 85,724.80 56,969.60 46,852.70 44,341.80 39,177.10 34,977.20 32,202.00 31,645.00 28,443.10 28,119.90

Table 9 – Global ECM (Equity Capital Market) Bookrunner Ranking, 2015-2016

Table – Global ECM (Equity Capital Market) Bookrunner Ranking, 2015-2016 FY 2016 FY 2015 Bookrunner Value $bn # Rank Value $bn JPMorgan 57.43 343 3 65.84 Goldman Sachs 48.82 274 1 72.62 Morgan Stanley 48.01 270 2 67.5 Citi 34.51 257 6 47.41 BofA Merrill Lynch 34 225 4 53.73 Credit Suisse 31.31 231 7 44.62 Deutsche Bank 30.14 168 8 41.94 UBS 24.33 194 5 53.33 Barclays 21.11 151 9 32.95 CITIC Securities 17.8 76 10 17.96 Subtotal 347.45 1,250 497.87 Total 724.73 5,302 913.09 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

# 387 342 387 305 318 295 243 267 213 71 1,463 5,555

Table 10 – Global Top 10 Deals in ECM FY 2016

Table – Global Top 10 Deals in ECM FY 2016 Priced Type Issuer Value $m Exchange 21-Sep IPO Postal Savings Bank of China Co Ltd 7,625.30 Hong Kong 01-Jun CONV SoftBank Group Corp (Mandatory 6,600.00 New York Exchangeable Trust) 06-Oct IPO innogy SE 5,204.30 Frankfurt Prime 16-Nov CONV Bayer Capital Corp BV 4,300.80 Frankfurt Prime 17-Oct IPO JR Kyushu 3,993.60 Tokyo 11-Feb FO Saipem SpA 3,944.30 Milan 15-Apr FO China Yangtze Power Co Ltd 3,733.80 Shanghai 07-Oct FO Air Liquide SA 3,672.50 Paris 17-Mar FO TransCanada Corp 3,315.00 Toronto 04-Apr FO ArcelorMittal SA 3,163.80 Amsterdam, Luxembourg, New York Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

Sando Sasako Table 11 – Global IPOs Bookrunner Ranking, 2015-2016

Table – Global IPOs Bookrunner Ranking, 2015-2016 FY 2016 FY 2015 Bookrunner Value $bn # Rank Value $bn JPMorgan 8.55 67 3 9.82 Morgan Stanley 8.17 61 1 14.35 Goldman Sachs 6.46 55 2 11.12 Citi 6.38 65 6 9.1 Deutsche Bank 5.66 50 5 9.11 Credit Suisse 5.28 52 8 5.94 BofA Merrill Lynch 4.83 43 7 8.81 UBS 4.36 35 4 9.48 Nomura 3.42 30 11 3.57 China Securities Co Ltd 3.34 19 53 0.78 Subtotal 56.46 226 82.07 Total 135.78 1,149 194.27 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

# 73 91 87 81 72 65 70 57 43 9 304 1,304

Table 12 – Global Top 10 Deals in IPO FY 2016

Table – Global Top 10 Deals in IPO FY 2016 Priced Type Issuer Value $m Exchange 21-Sep IPO Postal Savings Bank of China Co Ltd 7,625.30 Hong Kong 06-Oct IPO innogy SE 5,204.30 Frankfurt Prime 17-Oct IPO JR Kyushu 3,993.60 Tokyo 09-Jun IPO Dong Energy A/S 3,006.10 Copenhagen 23-Sep IPO Nets A/S 2,356.40 Copenhagen 28-Oct IPO Samsung BioLogics Co Ltd 1,968.50 Korea 21-Oct IPO China Resources Pharmaceutical Group Ltd 1,941.40 Hong Kong 26-Oct IPO ConvaTec Group plc 1,939.10 London 21-Mar IPO China Zheshang Bank Co Ltd 1,937.80 Hong Kong 11-Oct IPO Bank of Shanghai Co Ltd 1,598.80 Shanghai Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

Table 13 – Global DCM (Debt Capital Market) Bookrunner Ranking, 2015-2016

Table – Global DCM (Debt Capital Market) Bookrunner Ranking, 2015-2016 FY 2016 FY 2015 Bookrunner Value $bn # Rank Value $bn JPMorgan 433.7 2,139 1 412.34 Citi 409.01 1,940 3 366.4 BofA Merrill Lynch 388.59 1,914 2 376.11 Barclays 340.35 1,343 4 345.82 Goldman Sachs 299.9 1,274 7 273.82 Morgan Stanley 281.93 1,782 6 274.26 HSBC 273.2 1,229 8 241.51 Deutsche Bank 257.15 1,096 5 276.16 Wells Fargo Securities 247.59 1,717 10 216.2 BNP Paribas 172.36 735 11 148.56 Subtotal 3,103.80 9,475 2,931.20 Total 6,701.40 25,072 6,136.20 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

# 1,831 1,668 1,674 1,329 1,094 1,811 1,192 1,295 1,534 702 8,696 21,729

Bite the hand that feeds, you are fired! The JP Morgan Chase Case Table 14 – Global Investment Grade DCM Bookrunner Ranking, 2015-2016

Table – Global Investment Grade DCM Bookrunner Ranking, 2015-2016 FY 2016 FY 2015 Bookrunner Value $bn # Rank Value $bn JPMorgan 201.14 732 1 213.49 BofA Merrill Lynch 190.49 729 2 197.73 Citi 183.74 830 3 175.47 Morgan Stanley 162.76 701 4 155.46 Goldman Sachs 145.03 621 5 151.5 HSBC 133.62 567 8 114 Barclays 117.2 426 6 123.84 Deutsche Bank 113.64 386 7 123.09 Wells Fargo Securities 103.46 422 9 98.96 BNP Paribas 84.33 389 12 73.73 Subtotal 1,435.40 3,210 1,427.30 Total 3,265.10 10,356 3,011.30 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

# 792 724 777 665 579 550 506 479 365 367 3,251 9,181

Table 15 – Global Top 10 Deals of Investment Grade DCM, 2016

Table – Global Top 10 Deals of Investment Grade DCM, 2016 Priced Issuer Value $m Sector Nationality 13-Jan Anheuser-Busch InBev Finance Inc 46,000 FOOD BEL 17-May Dell Inc 20,000 TECH USA 01-Aug Microsoft Corp 19,750 TECH USA 17-Nov Abbott Laboratories 15,100 HEAL USA 18-Jul Teva Pharmaceutical Finance Netherlands III BV 15,000 HEAL ISR 16-Mar Anheuser-Busch InBev SA/NV 14,748 FOOD BEL 29-Jun Oracle Corp 14,000 TECH USA 02-Jun Aetna Inc 13,000 HEAL USA 19-Sep Shire Acquisitions Investments Ireland DAC 12,100 HEAL GBR 16-Feb Apple Inc 12,000 TECH USA Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

Table 16 – Global High Yield DCM Bookrunner Ranking, 2015-2016

Table – Global High Yield DCM Bookrunner Ranking, 2015-2016 FY 2016 FY 2015 Bookrunner Value $bn # Rank Value $bn JPMorgan 32.2 263 1 37.57 BofA Merrill Lynch 28.24 209 3 30.23 Goldman Sachs 27.83 181 4 29.65 Deutsche Bank 27.33 186 2 30.33 Barclays 25.86 174 6 23.8 Citi 25.78 191 5 25.82 Credit Suisse 21.08 163 7 22.78 Morgan Stanley 14.15 137 8 22.13 Wells Fargo Securities 13.34 115 10 14.2 RBC Capital Markets 10.72 111 9 14.49 Subtotal 226.5 530 251 Total 339.7 655 371.6 Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/

# 241 219 189 197 165 170 149 145 124 108 534 671

Sando Sasako Table 17 – Global Top 10 Deals in High Yield DCM, 2016

Table – Global Top 10 Deals in High Yield DCM, 2016 Priced Issuer Value $m Sector Nationality 17-May Petrobras Global Finance BV 6,750 OILG BRA 30-Mar Western Digital Corp 5,225 TECH USA 06-Apr Numericable-SFR 5,190 TELE NLD 29-Apr Ardagh Packaging Finance plc 4,496 CPRO IRL 08-Sep Schaeffler Verwaltung Zwei GmbH 4,030 MACH DEU 16-Sep Ziggo Secured Finance BV 3,496 TELE GBR 08-Jun EMC Corp 3,250 TECH USA 20-Apr Prime Security Services Borrower LLC 3,140 SERV USA 07-Jul Petrobras Global Finance BV 3,000 OILG BRA 13-Jun Reynolds Group Issuer LLC 2,900 FRES NZL Source: Dealogic Investment Banking Scorecard, http://graphics.wsj.com/investment-banking-scorecard/