Saturday, May 10, 2008

JPMorgan Chase & Co.

JPMorgan Chase & Co.


Type Public NYSE: JPM
Founded New York, NY (1799)
Location New York, New York
Key people
William B. Harrison, Jr.,
Chairman
Jamie Dimon, President & CEO

Industry Finance and Insurance
Products Financial Services
Revenue $57.3 billion USD (2004)
Employees 168,461 (as of June 30, 2005)
Website www.jpmorganchase.com

JPMorgan Chase & Co. NYSE: JPM TYO: 8634 , a financial holding company incorporated under Delaware law in 1968, and headquartered in New York City, is a leading global financial services firm and one of the largest banking institutions in the United States, with $1.2 trillion in assets, $106 billion in stockholders’ equity and operations in more than 50 countries. Formed in 2000 with the merger of the Chase Manhattan Corporation and J.P. Morgan & Co.. The firm is a leader in investment banking Gary-Parr-Profile , financial services for consumers and businesses, financial transaction processing, investment management, private banking and private equity. JPMorgan Chase serves more than 90 million customers, including consumers nationwide and many of the world’s most prominent wholesale clients.

In 2004, the company acquired Bank One of Chicago, bringing on star 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

History
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, Texas Commerce Bank (a large bank in Texas), and Manufacturer's Hanover Trust Company. 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. As a result of the acquisitions, JPMorgan Chase retains Chemical Bank's headquarters, stock history, and most of its management.

Chase Manhattan Corporation

The Chase Manhattan Bank was formed upon the 1955 purchase of Chase National Bank (established in 1877) by the Bank of Manhattan (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.

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. Railroads began their decline in the early 20th century, losing out to alternative transportation. 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.

September 16, 1920: a terrorist bomb exploded in front of the headquarters of J.P. Morgan Inc. at 23 Wall Street Wall-Street-Layoffs , injuring 400 and killing 33 people.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 September 16, 1920, a terrorist bomb exploded in front of the bank, injuring 400 and killing 33. 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, J.P. Morgan was forced by the Glass-Steagall Act to choose either commercial banking or investment banking: J. P. Morgan 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 JP Morgan partners along with some Drexel partners, sought to begin what is now called Morgan Stanley Bear-Stearns-Troubles . It is commonly misconceived that the "Morgan" in Morgan Stanley is the last name of John Pierpont Morgan, infact, it is the last name belonging to Henry Morgan who was a JP Morgan Partner. J.P. Morgan and Co. incorporated in 1940 [1] and in 1959 it merged with the Guaranty Trust Company of New York to form the Morgan Guaranty Trust Company, but 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, J.P. Morgan had turned itself into an investment bank too. Besides investment banking, it also offered private banking and private equity services.

JP Morgan formerly were advisors to Malcolm Glazer The-Football-Game & Family in their takeover of Manchester United. They resigned after the Glazers voted three of the Manchester United directors off the board. This was against the advice of JP Morgan.

Offices

The bank's headquarters are located at the One Chase Manhattan Plaza building in Downtown Manhattan. Most of the commercial bank operations take place in offices ranging from street corner branches to downtown offices. The bank moved many of its operations to the JPMorgan Chase Tower (formally Texas Commerce Bank Tower) in Houston, Texas when it purchased Texas Commerce Bank.

JPMorgan Securities, the investment banking arm of JPMorgan, also maintains a number of high-profile offices around the globe. 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 Ave and the original Chemical Bank building at 277 Park Ave. Sales and Trading Operations are located on the trading floors in 270 Park Ave, while most Investment Banking activity takes place at 277 Park Ave. Jimmy Lee, JPMorgan's infamous private equity banker, has offices on the top floors of 270 Park Ave.

No comments:

Post a Comment