JPMorgan Chase
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| JPMorgan Chase & Co. | |
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| Type | Public (NYSE: JPM, TYO: 8634 ) |
|---|---|
| Founded | 1799 |
| Headquarters |  New York City, USA |
| Key people | Jamie Dimon, Chairman, President & CEO |
| Industry | Finance and Insurance |
| Products | Financial Services |
| Revenue |  US$61.437 billion +14% FY '05 to '06) |
| Operating income | US$37.584 billion (2005) |
| Net income | US$14.444 billion +70% FY '05 to '06) |
| Employees | 174,350 (2006) |
| Website | www.jpmorganchase.com www.jpmorgan.com |
JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. The company, headquartered in New York City, is a leader in investment banking, financial services, asset and wealth management and private equity. With assets of $1.3 trillion, JPMorgan Chase is currently the 3rd largest banking institution in the United States [1], behind Citigroup and Bank of America. The hedge fund unit of JPMorgan Chase is the second largest hedge fund in the United States with $28.8 billion in assets as of 2006 [2]. Formed in 2000 with the merger of the Chase Manhattan Corporation and J.P. Morgan & Co., the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and governmental clients.
In 2004, the company merged with Bank One of Chicago, bringing on board Bank One CEO Jamie Dimon as president and COO of the merged firm and designating him as CEO William B. Harrison, Jr.'s future successor. Dimon quickly made his influence felt by embarking on a cost-cutting strategy and placing some former Bank One executives in key ranks at the new company. Dimon became CEO in January 2006, and also became chairman in December 2006.
JPMorgan Chase operates as the brand for the holding company. Chase is used as the brand for credit card services and the bank's retail banking activities in the United States:
- Checking
- Credit Cards
- Savings
- CDs
- Online Banking & Bill Pay
- Home Equity
- Mortgages
- Auto/Vehicle loans
- Student Loans
- Business and Commercial Banking
- Insurance
- Investments
- Retirement Planning
JPMorgan & Co. is used as the brand for the bank's:
- Investment Bank
- Worldwide Securities Services
- Private Bank
- Asset Management
- One Equity Partners
- Private Client Services
Contents |
[edit] History
[edit] Chemical Banking Corporation
The New York Chemical Manufacturing Company was founded in 1823 as a maker of various chemicals. In 1824, the company amended its charter to perform banking activities and created the Chemical Bank of New York. After 1851, the bank was separated from its parent and grew organically and through a series of mergers, most notably with Corn Exchange Bank in 1954, Texas Commerce Bank (a large bank in Texas) in 1986, and Manufacturer's Hanover Trust Company in 1991 (The first major bank merger "among equals.") At many points throughout this history, Chemical Bank was the largest bank in the United States (either in terms of assets or deposit market share).
In 1996, the company acquired the Chase Manhattan Corporation but kept that name. In 2000, the company acquired J.P. Morgan & Co. and changed its name to J.P. Morgan Chase & Co. JPMorgan Chase retains Chemical Bank's headquarters and stock history.
[edit] Chase Manhattan Bank
The Chase Manhattan Bank was formed upon the 1955 purchase of Chase National Bank (established in 1877) by the Bank of the Manhattan Company (established in 1799), the company's oldest predecessor institution. Led by David Rockefeller during the 1970s and the 1980s, Chase Manhattan was one of the largest and most prestigious banking concerns, with leadership positions in syndicated lending, treasury and securities services, credit cards, mortgages, and retail financial services. Weakened by the real estate collapse in the early 1990s, it was acquired by Chemical Bank in 1996.
The Bank of Manhattan was the creation of Aaron Burr, who transformed the Manhattan Company from a water carrier into a bank.
[edit] Bank One Corporation
Bank One Corporation was formed upon the 1998 merger between Banc One of Ohio and First Chicago NBD. These two large banking companies had themselves been created through the merger of many banks.
The bank traces its roots to First Bancgroup of Ohio, founded as a holding company for City National Bank of Columbus, Ohio and several other banks in that state, all of which were renamed "Bank One" when the holding company was renamed Banc One Corporation. With the beginning of interstate banking they spread into other states, always renaming acquired banks "Bank One", though for a long time they resisted combining them into one bank. After the NBD merger, adverse financial results led to the departure of CEO John B. McCoy, whose father and grandfather had headed Banc One and predecessors. Jamie Dimon, a former key executive of Citigroup, was brought in to head the company.
[edit] J.P. Morgan & Company
In 1895, Drexel, Morgan & Co. became J.P. Morgan & Co. (see also: John Pierpont Morgan). It financed the formation of the United States Steel Corporation, which took over the business of Andrew Carnegie and others and was the world's first billion-dollar corporation. In 1895, it supplied the United States government with $62 million in gold to float a bond issue and restore the treasury surplus of $100 million. In 1892, the company began to finance the New York, New Haven and Hartford Railroad and led it through a series of acquisitions that made it the dominant railroad transporter in New England.
Its primary competitor, Kuhn, Loeb & Co., was a more successful adviser and financier to production companies and J.P. Morgan lost its first place in market cap and the league tables. Kuhn, Loeb & Co. would, through a series of mergers and divestitures, eventually become publicly held Lehman Brothers.
Built in 1914, 23 Wall Street was known as the "House of Morgan", and, for decades, the bank's headquarters was the most important address in American finance. At noon, on 16 September 1920, a terrorist bomb exploded in front of the bank, injuring 400 and killing 38. Shortly before the bomb went off, a warning note was placed in a mailbox at the corner of Cedar Street and Broadway. The warning read: Remember we will not tolerate any longer. Free the political prisoners or it will be sure death for all of you. American Anarchists Fighters. While theories abound about who was behind the Wall Street bombing and why they did it, after twenty years investigating the matter, the FBI rendered the file inactive in 1940 without ever finding the perpetrators.
In August 1914, Henry P. Davison, a Morgan partner, traveled to England and made a deal with the Bank of England to make J. P. Morgan & Co. the monopoly underwriter of war bonds for England and France. The Bank of England became a "fiscal agent" of J. P. Morgan & Co. and vice versa. The company also invested in the suppliers of war equipment to England and France. Thus, the company profited from the financing and buying activities of the two European governments.
In the 1930s, JPMorgan was forced by the Glass-Steagall Act to choose either commercial banking or investment banking. JPMorgan chose to operate as a commercial bank, because it was perceived to be more profitable in the post depression era. Faced with this new paradigm shift, many JPMorgan partners along with some Drexel partners, sought to begin what is now called Morgan Stanley. It is a common misconception that the "Morgan" in Morgan Stanley is the last name of John Pierpont Morgan, but in fact, it is the last name of Henry Morgan who was a J.P. Morgan partner. J.P. Morgan and Co. incorporated in 1940 [3], and, in 1959, merged with the Guaranty Trust Company of New York to form the Morgan Guaranty Trust Company. Ten years later, it established a bank holding company called J.P. Morgan & Co. Incorporated as its parent. By the late 1990s when it was acquired by Chase Manhattan, amendments to the Glass-Steagall Act allowed JPMorgan to turn itself into an investment bank, too. Besides investment banking, it also offered private banking and private equity services.
JPMorgan were advisors to Malcolm Glazer & Family in their takeover of Manchester United but resigned this position after the Glazers voted three of the Manchester United directors off the board, against the advice of JPMorgan.
In 2006, JPMorgan Chase purchased Collegiate Funding Services, LLC, and created Chase Education Finance.
On 7 April 2006, JPMorgan Chase announced it would be swapping its corporate trust unit for Bank of New York Co.'s retail and small business banking network. The swap values the Bank of New York business at $3.1 billion and JPMorgan's trust unit at $2.8 billion and gives Chase access to 338 additional branches and 700,000 new customers in the New York, New Jersey, and Connecticut Tri-State area.
[edit] Offices
Although Chase Manhattan Bank's headquarters were once located at the One Chase Manhattan Plaza building in downtown Manhattan, the current world headquarters for JPMorgan Chase & Co. are located at 270 Park Avenue. The bank moved some of its operations to the JPMorgan Chase Tower (formerly Texas Commerce Bank Tower) in Houston, Texas, when it purchased Texas Commerce Bank. Since merging with Bank One in 2004, retail services (branded as "Chase") are headquartered in Chicago. The Card Services division has its headquarters in Wilmington, DE. There are also large operations centers in Brooklyn, NY, Columbus, OH, Dallas, TX, Fort Worth, TX, Indianapolis, IN, Newark, DE, Phoenix, AZ, Glasgow, United Kingdom and Bournemouth, United Kingdom. The backoffice and Technology operations offices based in Mumbai and Bangalore, India are currently being aggressively staffed.
JPMorgan Securities, the investment banking arm of JPMorgan, also maintains a number of high-profile offices around the globe, with the largest concentrations in London, Hong Kong, Singapore, and Tokyo. The bulk of North American operations, however, take place in two buildings located on both sides of Park Avenue in New York City: the former Union Carbide Building at 270 Park Avenue, the hub of sales and trading operations, and the original Chemical Bank building at 277 Park Avenue, where most investment banking activity takes place.
[edit] Banking Subsidiaries
JPMorgan Chase & Co. owns five banking subsidiaries in the United States[4]:
- Chase Bank USA, National Association
- JPMorgan Chase Bank, National Association
- JPMorgan Chase Bank, Dearborn
- J.P. Morgan Trust Company, National Association
- Pier 1 National Bank
[edit] Naming rights
- JPMorgan Chase owns the venue sponsorship of Chase Field in Phoenix, Arizona, home of Arizona Diamondbacks. Before the Bank One buyout, it was called Bank One Ballpark (nicknamed the B.O.B.).
- JPMorgan Chase is an official sponsor of Major League Soccer.
- Chase Auditorium (Formerly Bank One Auditorium) in Chicago, is the home of the nationally syndicated NPR program, "Wait, Wait, Don't Tell Me."
- The JPMorgan Chase Corporate Challenge, owned and operated by JPMorgan Chase, is the largest corporate road racing Series in the world with over 200,000 participants in 12 cities in six countries on five continents. It has been held annually since 1977 and the races range in size from 4,000 entrants to more than 60,000.
[edit] Notable employees
[edit] Business
- Andrew Crockett - General Manager of the Bank for International Settlements (1994-2003)
- Pierre Danon - chairman of eircom
- Dina Dublon - company director
- Maria Elena Lagomasino - company director
- Thomas W. Lamont - acting head of J.P. Morgan & Co. on Black Tuesday
- Lewis Reford - Canadian political candidate
- Jan Stenbeck - former owner of Investment AB Kinnevik
[edit] Politics and public service
- William M. Daley - U.S. Secretary of Commerce (1997-2000)
- Michael Forsyth, Baron Forsyth of Drumlean - Secretary of State for Scotland (1995-97)
- Thomas S. Gates, Jr. - U.S. Secretary of Defense (1959-61)
- Rick Lazio - Member of the U.S. House of Representatives (1993-2001)
- Antony Leung - Financial Secretary of Hong Kong (2001-03)
- Frederick Ma - Hong Kong Secretary for Financial Services and the Treasury (2002-present)
- Dwight Morrow - U.S. Senator (1930-31)
- Margaret Ng - Member of the Hong Kong Legislative Council
- George P. Shultz - U.S. Secretary of Labor (1969-70), U.S. Secretary of Treasury (1972-74), U.S. Secretary of State (1982-89)
[edit] Others
- Jay Akselrud
- Douglas Cliggott - economist
- Henry P. Davison - philanthropist
- David Dodd - economist
- Samuel Gottesman - philanthropist
- Corliss Lamont - humanist
- Sacha Baron Cohen - actor
[edit] See also
- Bank One Corporation
- The Bank of New York
- Chase Manhattan Corporation
- Rockefeller family
- David Rockefeller
- John J. McCloy
- Chemical Banking Corporation
- Manufacturer's Hanover Trust Company
- Texas Commerce Bank
- JPMorgan Chase Tower
[edit] Competitors
- ABN AMRO
- Bear Stearns
- Banc of America Securities
- Citigroup
- Credit Suisse
- Deutsche Bank
- Goldman Sachs
- Lehman Brothers
- Merrill Lynch
- Morgan Stanley
- UBS
[edit] References
- ^ http://www.ffiec.gov/nicpubweb/nicweb/Top50Form.aspx
- ^ http://money.cnn.com/2006/10/05/news/companies/banks_hedgefunds/index.htm?postversion=2006100607
- ^ http://www.scripophily.com/nybankhistoryj.htm
- ^ http://www.ffiec.gov/nicpubweb/nicweb/OrgHierarchyResultForm.aspx?parID_RSSD=1039502&parDT_END=99991231
[edit] External links
- JPMorgan Chase & Co. website
- JPMorgan Chase Annual Report 2005, from shareholder.com
- JPMorgan Chase 4Q06 Earnings Press Release
- JPMorgan Chase Corporate Challenge
Categories: Companies listed on the New York Stock Exchange | Companies listed on the Tokyo Stock Exchange | Dow Jones Industrial Average | Registered Historic Places in Manhattan | 1799 establishments | Companies based in New York City | Banks of the United States | Investment banks | JPMorgan Chase
