JP Morgan, which finances around 95% of Hollywood's films, combines traditional risk management with its swanky financial database model to bankroll blockbusters.

In Hollywood, John W Miller of JP Mor gan is a celebrity of a different kind. While he may lack the glitz and glamor of the mainstream stars, he is the most sought after banker by movie makers to bankroll their films.

Movies such as Ray, The Aviator and Million Dollar Baby, which were nominees at this year's Oscars, were financed by JP Morgan Securities' entertainment division. JP Morgan has financed most of the box office hits of Hollywood. It has a chequered history of bankrolling blockbusters like Gladiator, American Beauty, A Beautiful Mind, all of which were runaway hits at the box office and three of the five best Oscar movies. JP Morgan has also financed many of the Bond movies.

Financing of films is a risky terrain. Both filmmakers and bankers find it well nigh impossible to predict the success of movies. Film production, in general, is prone to indefinite delays, which results in budget overruns and increases the cost of the film. Most importantly, production companies are single purpose vehicles with no real assets, except the rights in the potential film.

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