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JPMorgan Chase

JPMorgan Chase & Co.
Public
Traded as NYSE: JPM
Dow Jones Industrial Average Component
S&P 500 Component
Industry Banking, financial services
Predecessor Bank of the Manhattan Company
Founded December 1, 2000 (2000-12-01)
Headquarters 270 Park Avenue
New York, NY 10017
U.S.
Area served
Worldwide
Key people
Jamie Dimon
(Chairman, CEO & President)[1][2]
Products Asset management, brokerage services, commercial banking, commodities, commodity trading, consumer banking, corporate banking, credit cards, consumer finance, equities trading, finance and insurance, foreign currency exchange, foreign exchange trading, futures and options trading, global banking, insurance, investment banking, money market trading, mortgage loans, private banking, retail banking, risk management, treasury and security services, underwriting, wealth management
Revenue Increase US$ 97.90 billion (2014)[3]
Increase US$ 29.79 billion (2014)[3]
Increase US$ 21.76 billion (2014)[3]
Total assets Increase US$ 2.6 trillion (2014)[3]
Total equity Increase US$ 232.0 billion (2014)[3]
Number of employees
265,359 (2015)[3]
Divisions J.P. Morgan Asset Management
Subsidiaries One Equity Partners
Website .com.jpmorganchasewww
The JPMorgan Chase & Co. headquarters at 270 Park Avenue in Midtown Manhattan, New York City, U.S.

JPMorgan Chase & Co. is an American


    • Business data for JPMorgan Chase & Co.:
  • Hoover's
  • Reuters
  • SEC filings
  • Official website

External links

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  15. ^ Jimmy Lee's Global Chase. The New York Times, April 14, 1997
  16. ^ Kingpin of the Big-Time Loan. The New York Times, August 11, 1995
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  21. ^ Ellis, David. "JPMorgan buys WaMu", CNNMoney.com, September 25, 2008.
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  24. ^ JPMorgan agrees to $13 billion mortgage settlement. CNN. November 19, 2013.
  25. ^ JPMorgan to pay $13 billion in deal with US. MSN Money. October 22, 2013.
  26. ^ Chase to Acquire Collegiate Funding Services. Business Wire, December 15, 2005
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  29. ^ The History of JPMorgan Chase & Co.: 200 Years of Leadership in Banking, company-published booklet, 2008, p. 19. Retrieved July 15, 2010.
  30. ^ The History of JPMorgan Chase & Co.: 200 Years of Leadership in Banking, company-published booklet, 2008, p. 6. Union National Bank and National Bank of Commerce in Houston were predecessor banks to TCB. Retrieved July 15, 2010.
  31. ^ The History of JPMorgan Chase & Co.: 200 Years of Leadership in Banking, company-published booklet, 2008, p. 3. New York Manufacturing Co. began in 1812 as a manufacturer of cotton processing equipment and switched to banking five years later. Retrieved July 15, 2010.
  32. ^ The History of JPMorgan Chase & Co.: 200 Years of Leadership in Banking, company-published booklet, 2008. Founder John Thompson named the bank in honor of his late friend, Salmon P. Chase. Retrieved July 15, 2010.
  33. ^ Other Successors to the break-up of The House of Morgan: Morgan, Grenfell & Co.
  34. ^ The History of JPMorgan Chase & Co.: 200 Years of Leadership in Banking, company-published booklet, 2008, p. 5. Predecessor to J.P. Morgan & Co. was J. S. Morgan & Co.
  35. ^ The History of JPMorgan Chase & Co.: 200 Years of Leadership in Banking, company-published booklet, 2008, p. 3. The Marine Corp. was merged in 1988 with BancOne. George Smith founded the Wisconsin Marine and Fire Insurance Co. in 1839, the predecessor company. Retrieved July 15, 2010.
  36. ^ On March 18, 2008, JPMorgan Chase announced the acquisition of Bear Stearns for $236 million, $2.00 per share. On March 24, 2008, a revised offer was announced at approximately $10 per share
  37. ^ On September 25, 2008, JPMorgan Chase announced the acquisition of Washington Mutual for $1.8 billion.
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  41. ^ "Company Overview of J.P. Morgan Europe Limited". Bloomberg Businessweek. Retrieved June 7, 2012.
  42. ^ "J.P. Morgan Europe Limited". Companies in the U.K. Retrieved June 7, 2012
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  45. ^ CYLEX Business Directory U.K. Retrieved June 7, 2012
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  50. ^ A Nguyen reporting December 15, 2011, in Computer World UK. Retrieved June 7, 2012
  51. ^ "JPMorgan (Japan)". Retrieved June 8, 2012.
  52. ^ "Australia & New Zealand". JPMorgan Chase. Retrieved June 8, 2012.
  53. ^ "Indonesia". JPMorgan Chase. Retrieved June 8, 2012.
  54. ^ "History in China". JPMorgan Chase. Retrieved June 8, 2012.
  55. ^ "J.P. Morgan in Saudi Arabia". Retrieved June 8, 2012.
  56. ^ "JPMorgan Chase Bank". info2india. Retrieved June 8, 2012.
  57. ^ "History in Korea". JPMorgan Chase. Retrieved June 8, 2012.
  58. ^ a b "Central & Eastern Europe". JPMorgan Chase. Retrieved June 8, 2012.
  59. ^ "Taiwan". JPMorgan Chase. Retrieved June 8, 2012.
  60. ^ "J.P. Morgan in Russia". JPMorgan Chase. Retrieved June 8, 2012.
  61. ^ "Nordic Region". JPMorgan Chase. Retrieved July 7, 2012.
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  64. ^ New York Times, Mortgage Plan Gives Billions to Homeowners, but With Exceptions, February 9, 2012
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  69. ^ The New York Times. Retrieved July 28, 2010
  70. ^ Rovella, David E. & Baer, Justin (March 16, 2005), "JPMorgan to Pay $2 Bln to Settle WorldCom Fraud Suit", Bloomberg L.P.. Retrieved July 28, 2010
  71. ^ KCCLCC.net
  72. ^ Braun, Martin Z. & Selway, William (November 4, 2009), "JPMorgan Ends SEC Alabama Swap Probe for $722 million", Bloomberg L.P.. Retrieved July 28, 2010
  73. ^
  74. ^ a b "UK fines JPMorgan record $49 mln, warns other banks", FinanzNachrichten.de, Reuters, June 3, 2010
  75. ^
  76. ^ "No. 2 bank overcharged troops on mortgages", MSNBC, January 17, 2011
  77. ^ Mui, Ylan Q. (April 23, 2011), "J.P. Morgan Chase to pay $27 million to settle lawsuit over military mortgages", The Washington Post, p. 9. Retrieved April 24, 2011
  78. ^ "JPMorgan Chase Mortgage Chief Leaving After Military Scandal", Real Estate Journal Online. June 15, 2011. Retrieved June 16, 2011 Archived June 19, 2011 at the Wayback Machine
  79. ^ "JPMorgan dismisses mortgage head David Lowman", The Economic Times Delhi. Reuters. June 14, 2011. Retrieved June 16, 2011
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  85. ^ Hired China's Elite. Retrieved December 29, 2013
  86. ^ Sons and Daughters hiring program, Dealbook, The New York Times, December 7, 2013
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  90. ^ JPMorgan to pay $1.7bn to victims of the Madoff fraud BBC January 7, 2014
  91. ^ Text of deferred prosecution agreement in Madoff case Archived January 8, 2014 at the Wayback Machine
  92. ^ Protess, Ben; Silver-Greenberg, Jessica. JPMorgan Faces Possible Penalty in Madoff Case, The New York Times, October 23, 2013.
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  97. ^ Fool's Gold, by Gillian Tett, Free Press, 2009.
  98. ^ Structured Finance and Collateralized Debt Obligations 2nd ed, Janet Tavakoli, 2008, Wiley
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  111. ^ "Two Billion Dollar Hedge" Financial Times. ()
  112. ^ "More Bad News as FBI gets involved" Forbes.
  113. ^ a b c d e
  114. ^ JPMorgan Pays $920 Million to Settle London Whale Probes. Bloomberg. Retrieved December 6, 2013.
  115. ^ Gandel, Stephen. Did the SEC let JPMorgan off the hook?. Fortune, September 20, 2013.
  116. ^ jpmorganchase - July 31, 2007 release id :257378 - about/art & About-JPMC. Retrieved February 3, 2012
  117. ^ La Lettre (de la photographie) entries/4727. Retrieved February 4, 2012
  118. ^ MENA. Retrieved February 3, 2012
  119. ^
  120. ^ August 15, 2011 christies. Retrieved February 3, 2012
  121. ^ L. Nicholson - January 1, 2008 - High Beam Research (Cengage Learning) firstly sourced at Apollo Magazine, 22 Old Queen Street, London, SW1H 9HP.. Retrieved February 4, 2012
  122. ^
  123. ^
  124. ^ "Tony Blair starts $1M bank job". CNN. January 10, 2008.
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References

  • JPMorgan EMBI
  • JPMorgan GBI-EM Index

Index products

See also

  • [126][125]

Other

Politics and public service

Business

Notable former employees

  • Chase Field, (formerly Bank One Ballpark) Phoenix, Arizona, – Arizona Diamondbacks, MLB.
  • Major League Soccer
  • Chase Auditorium (formerly Bank One Auditorium) in Chicago.
  • 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.
  • JPMorgan Chase is the official sponsor of the US Open.
  • English Premiership Rugby 7s Series.

Major sponsorships

[122], and also J. J. Sweeney, R. Hale, P. Rathbone and G. Bunshaft.D. Miller, and A. H. Barr The advisory committee at the time of the Rockefeller initiation included [121] whose art program staff is completed by an additional three full-time members and one registrar.[120] L. K. Erf has been the director of acquisitions of works since 2004 for the bank,[119] The collection was begun in 1959 by

Art collection

On the day of the fine, the BBC reported from the New York Stock Exchange that the fines "barely registered" with traders there, the news having been an expected development and the company having prepared for the financial hit.[113]

A report by the SEC was critical of the level of oversight from senior management on traders, and the FCA said the incident demonstrated "flaws permeating all levels of the firm: from portfolio level right up to senior management."[113]

On September 18, 2013, JPMorgan Chase agreed to pay a total of $920 million in fines and penalties to American and UK regulators for violations related to the trading loss and other incidents. The fine was part of a multiagency and multinational settlement with the Federal Reserve, Office of the Comptroller of the Currency and the Securities and Exchange Commission in the United States and the Financial Conduct Authority in the UK. The company also admitted breaking American securities law.[114] The fines amounted to the third biggest banking fine levied by US regulators, and the second largest by UK authorities.[113] As of September 19, 2013, two traders face criminal proceedings.[113] It is also the first time in several years that a major American financial institution has publicly admitted breaking the securities laws.[115]

Fines levied regarding the 2012 JPMorgan Chase trading loss[113]
Regulator Nation Fine
Office of the Comptroller of the Currency US $300m
Securities and Exchange Commission $200m
Federal Reserve $200m
Financial Conduct Authority UK £138m ($221m US)
[112] The episode is being investigated by the Federal Reserve, the SEC, and the FBI.[111] In April 2012, hedge fund insiders became aware that the market in credit default swaps was possibly being affected by the activities of

Multibillion-dollar trading loss

[100][99] The derivatives team at JPMorgan (including

Credit derivatives

Additional offices and technology operations are located in Manila, Philippines; Cebu, Philippines; Mumbai, India; Bangalore, India; Hyderabad, India; New Delhi, India; Buenos Aires, Argentina; Sao Paulo, Brazil; Mexico City, Mexico, and Jerusalem, Israel.

Operations centers in the United Kingdom are located in Bournemouth, Glasgow, London, Liverpool, and Swindon. The London location also serves as the European headquarters.

Operation centers in Canada are located in Burlington, Ontario; and Toronto, Ontario.

Additional large operation centers are located in Phoenix, Arizona; Los Angeles, California, Newark, Delaware; Orlando, Florida; Tampa, Florida; Indianapolis, Indiana; Louisville, Kentucky; Brooklyn, New York; Rochester, New York; Columbus, Ohio; Dallas, Texas; Fort Worth, Texas; and Milwaukee, Wisconsin.

The Card Services division has its headquarters in Wilmington, Delaware, with Card Services offices in Elgin, Illinois; Springfield, Missouri; San Antonio, Texas; Mumbai, India; and Cebu, Philippines.

The Global Corporate Bank leverages the wider firm's operations in 100 countries to provide corporate banking solutions to clients in the locations in which they operate. The main headquarters are in London, with regional headquarters in Hong Kong, New York and Sao Paulo.[96]

The bank moved some of its operations to the Houston, when it purchased Texas Commerce Bank.

Approximately 11,050 employees are located in Columbus at the McCoy Center, the former Bank One offices.

The Asia Pacific headquarters for JPMorgan is located in Hong Kong at Chater House.

Chase, the U.S. and Canada, retail, commercial, and credit card bank is headquartered in Chicago at the Chase Tower, Chicago, Illinois.[6]

The bulk of North American operations take place in four buildings located adjacent to each other on 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 took place. Asset and wealth management groups are located at 245 Park Avenue and 345 Park Avenue. Other groups are located in the former Bear Stearns building at 383 Madison Avenue.

Although the old 270 Park Avenue, Chemical Bank's former headquarters.

Offices

[95][94] A

September 2014 cyber-attack

On March 26, 2014, the Hong Kong Independent Commission Against Corruption seized computer records and documents after searching the office of Fang, the company’s outgoing chief executive officer for China investment banking.[93]

Corruption investigation in Asia

JPMorgan also agreed to pay a $350 million fine to the Office of the Comptroller of the Currency and settle the suit filed against it by Picard for $543 million.[89][90][91][92]

In the fall of 2013, JPMorgan began talks with prosecutors and regulators regarding compliance with anti-money-laundering and know-your-customer banking regulations in connection with Madoff. On January 7, 2014, JPMorgan agreed to pay a total of $2.05 billion in fines and penalties to settle civil and criminal charges related to its role in the Madoff scandal. The government filed a two-count criminal information charging JPMorgan with Bank Secrecy Act violations, but the charges will be dismissed within two years provided that JPMorgan reforms its anti-money laundering procedures and cooperates with the government in its investigation. The bank agreed to forfeit $1.7 billion.

[88] In 2010,

Bernie Madoff opened a business account at Chemical Bank in 1986 and maintained it until 2008, long after Chemical acquired Chase.

Madoff fraud

In 2013, the SEC began an investigation of the bank's hiring practices in China. The bank allegedly made a practice of hiring the children of the Chinese ruling elite. Spreadsheets kept a record of how the hires led to business deals. The bank viewed this as a gateway to doing deals with state-owned companies.[85] The practice is felt to be widespread in the banking industry.[86]

"Sons and Daughters" hiring program

In August 2013, JPMorgan Chase announced that it is being investigated by the United States Department of Justice over its offerings of mortgage-backed securities leading up to the financial crisis of 2007–08. The company said that the Department of Justice had preliminarily concluded that the firm violated federal securities laws in offerings of subprime and Alt-A residential mortgage securities during the period 2005 to 2007.[84]

Mortgage-backed securities sales

JPMorgan Chase Bank, N.A, New York, NY ("JPMC") has agreed to remit $88,300,000 to settle potential civil liability for apparent violations of: the Cuban Assets Control Regulations ("CACR"), 31 C.F.R. part 515; the Weapons of Mass Destruction Proliferators Sanctions Regulations ("WMDPSR"), 31 C.F.R. part 544; Executive Order 13382, "Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters;" the Global Terrorism Sanctions Regulations ("GTSR"), 31 C.F.R. part 594; the Iranian Transactions Regulations ("ITR"), 31 C.F.R. part 560; the Sudanese Sanctions Regulations ("SSR"), 31 C.F.R. part 538; the Former Liberian Regime of Charles Taylor Sanctions Regulations ("FLRCTSR"), 31 C.F.R. part 593; and the Reporting, Procedures, and Penalties Regulations ("RPPR"), 31 C.F.R. part 501, that occurred between December 15, 2005, and March 1, 2011.
— U.S. Department of the Treasury Resource Center, OFAC Recent Actions. Retrieved June 18, 2013.[83]

On August 25, 2011, JPMorgan Chase agreed to settle fines with regard to violations of the sanctions under the

Sanctions violations

[82] Various newspapers reported in September 2013 that the [82] FERC's investigation of energy market manipulations led to a subsequent investigation into possible obstruction of justice by employees of JPMorgan Chase.

Criminal investigation into obstruction of justice

Under the Energy Policy Act of 2005, Congress directed FERC to detect, prevent and appropriately sanction the gaming of energy markets. According to FERC, the Commission approved the settlement as in the public interest.[81]

FERC investigators further determined that JPMVEC knew that the California ISO and Midcontinent ISO received no benefit from making inflated payments to the company, thereby defrauding the ISOs by obtaining payments for benefits that the company did not deliver beyond the routine provision of energy. FERC investigators also determined that JPMVEC's bids displaced other generation and altered day ahead and real-time prices from the prices that would have resulted had the company not submitted the bids.[81]

The case stemmed from multiple referrals to FERC from market monitors in 2011 and 2012 regarding JPMVEC’s bidding practices. FERC investigators determined that JPMVEC engaged in 12 manipulative bidding strategies designed to make profits from power plants that were usually out of the money in the marketplace. In each of them, the company made bids designed to create artificial conditions that forced California and Midcontinent Independent System Operators (ISOs) to pay JPMVEC outside the market at premium rates.[81]

[81] In July 2013, The

Alleged manipulation of energy market

In 2008 and 2009, 14 lawsuits were filed against JPMorgan Chase in various district courts on behalf of Chase credit card holders claiming the bank violated the Truth in Lending Act, breached its contract with the consumers and committed a breach of implied covenant of good faith and fair dealing. The consumers contended that Chase, with little or no notice, increased minimum monthly payments from 2% to 5% on loan balances that were transferred to consumers' credit cards based on the promise of a fixed interest rate. In May 2011, the United States District Court for the Northern District of California certified the class action lawsuit. On July 23, 2012, Chase agreed to pay $100 million to settle the claim.[80]

Truth in Lending Act litigation

[79][78] In January 2011, JPMorgan Chase admitted that it wrongly overcharged several thousand military families for their mortgages, including active duty personnel in Afghanistan. The bank also admitted it improperly foreclosed on more than a dozen military families; both actions were in clear violation of the

Mortgage overcharge of active military personnel

[74] In June 2010, J.P. Morgan Securities was fined a record

Failure to comply with client money rules in the UK

[72] In November 2009, JPMorgan Chase & Co. agreed to a $722 million settlement with the

Jefferson County, Alabama

JPMorgan Chase, which helped Citigroup.[69] In March 2005, 16 of WorldCom's 17 former underwriters reached settlements with the investors.[70][71]

WorldCom

Chase paid out over $2 billion in fines and legal settlements for their role in financing Enron Corporation with aiding and abetting Enron Corp.'s securities fraud, which collapsed amid a financial scandal in 2001.[67] In 2003, Chase paid $160 million in fines and penalties to settle claims by the Securities and Exchange Commission and the Manhattan district attorney’s office. In 2005, Chase paid $2.2 billion to settle a lawsuit filed by investors in Enron.[68]

Enron

In December 2002, Chase paid fines totaling $80 million, with the amount split between the states and the federal government. The fines were part of a settlement involving charges that ten banks, including Chase, deceived investors with biased research. The total settlement with the ten banks was $1.4 billion. The settlement required that the banks separate investment banking from research, and ban any allocation of IPO shares.[66]

Conflicts of interest on investment research

In 2012, JPMorgan Chase & Co was charged for misrepresenting and failing to disclose that the CIO had engaged in extremely risky and speculative trades that exposed JPMorgan to significant losses.[65]

Speculative trading

On February 9, 2012, it was announced that the five largest mortgage servicers (Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo) agreed to a historic settlement with the federal government and 49 states.[63] The settlement, known as the National Mortgage Settlement (NMS), required the servicers to provide about $26 billion in relief to distressed homeowners and in direct payments to the states and federal government. This settlement amount makes the NMS the second largest civil settlement in U.S. history, only trailing the Tobacco Master Settlement Agreement.[64] The five banks were also required to comply with 305 new mortgage servicing standards. Oklahoma held out and agreed to settle with the banks separately.

National Mortgage Settlement

Controversies

JP Morgan Chase's PAC and its employees contributed $2.6 million to federal campaigns in 2014 and financed its lobbying team with $4.7 million in the first three quarters of 2014. JP Morgan’s giving has been focused on Republicans, with 62 percent of its donations going to GOP recipients in 2014. Still, 78 House Democrats received campaign cash from JPMorgan’s PAC in the 2014 cycle at an average of $5,200 and a total of 38 of the Democrats who voted for the 2015 spending bill took money from JPMorgan’s PAC in 2014. JP Morgan Chase's PAC made maximum donations to the Democratic Congressional Campaign Committee and the leadership PACs of Steny Hoyer and Jim Himes in 2014.[62]

Lobbying

The Bank began operations in Japan in 1924,[51] in Australia during the later part of the nineteenth century,[52] and in Indonesia during the early 1920s.[53] An office of the Equitable Eastern Banking Corporation (one of J.P. Morgan's predecessors) opened a branch in China in 1921 and Chase National Bank was established there in 1923.[54] The bank has operated in Saudi Arabia[55] and India[56] since the 1930s. Chase Manhattan Bank opened an office in Korea in 1967.[57] The firm's presence in Greece dates to 1968.[58] An office of JPMorgan was opened in Taiwan in 1970,[59] in Russia (Soviet Union) in 1973,[60] and Nordic operations began during the same year.[61] Operations in Poland began in 1995.[58]

History

Earlier in 2011 the company announced that by the use of supercomputers, the time taken to assess risk had been greatly reduced, from arriving at a conclusion within hours to what is now minutes. The banking corporation uses for this calculation Field-Programmable Gate Array technology.[50]

Operations

JPMorgan Chase[49] was the biggest bank at the end of 2008 as an individual bank. (not including subsidiaries)

Financial data in $ millions
Year 2004[46] 2005[46] 2006[46] 2007[47] 2008[48] 2009 2010 2011 2012 2013
Revenue 43,097 54,533 61,437 71,372 67,252 100,434 102,694 97,234 97,031 96,606
EBITDA 7,140 13,740 22,218
Net Income 4,466 8,483 14,444 15,365 5,605 11,728
Employees 160,968 168,847 174,360 180,667 224,961 222,316

Financial data

The regional office is in London with offices in Bournemouth, Glasgow, and Edinburgh for asset management, private banking, and investment.[45]

In August 2008, the bank announced plans to construct a new European headquarters, based at Canary Wharf, London.[43] These plans were subsequently suspended in December 2010, when the bank announced the purchase of a nearby existing office tower at 25 Bank Street for use as the European headquarters of its investment bank.[44] 25 Bank Street had originally been designated as the European headquarters of Enron and was subsequently used as the headquarters of Lehman Brothers International (Europe).

The company, known previously as Chase Manhattan International Limited, was founded on September 18, 1968.[41][42]

JPMorgan Europe, Ltd.

For management reporting purposes, JPMorgan Chase's activities are organized into a corporate/private equity segment and four business segments; consumer and community banking, corporate and investment bank, commercial banking, and asset management.[40] The investment banking division at J.P. Morgan is divided by teams: industry, M&A and capital markets. Industry teams include consumer and retail, healthcare, diversified industries and transportation, natural resources, financial institutions, metals and mining, real estate and technology, media and telecommunications.

JPMorgan Chase & Co. owns five bank subsidiaries in the United States:[39] JPMorgan Chase Bank, National Association; Chase Bank USA, National Association; Custodial Trust Company; JPMorgan Chase Bank, Dearborn; and J.P. Morgan Bank and Trust Company, National Association.

Structure

In October 2014, JP Morgan sold its commodities trader unit to Mercuria for $800 million - a quarter of the initial valuation of $3.5 billion, as the transaction excluded some oil and metal stockpiles and other assets.[38]

Recent News

JPMorgan Chase & Co.
JPMorgan Chase
(merged 2000)
Chase Manhattan Bank
(merged 1996)[29]
Chemical Bank
(merged 1991)
Chemical Bank
(reorganized 1988)

The Chemical Bank
of New York

(est. 1823)


Citizens National Bank
(est. 1851, acq. 1920)


Corn Exchange Bank
(est. 1852, acq. 1954)


New York Trust Company
(acq. 1959)


Texas Commerce Bank
(est. 1866, acq. 1986)[30]


Manufacturers Hanover
(merged 1961)

Manufacturers
Trust Company

(est. 1905)[31]


Hanover Bank
(est. 1873)



Chase Manhattan Bank
(merged 1955)

Bank of the
Manhattan Company

(est. 1799)


Chase National Bank
of the City of New York
(est. 1877)[32]



J.P. Morgan & Co.
(formerly Morgan Guaranty Trust)
(merged 1959)

Guaranty Trust Company
of New York
(est. 1866)


J.P. Morgan & Co.
("The House of Morgan")[33]
(est. 1895)[34]



Bank One
(acq. 2004)
Banc One Corp.[35]
(merged 1968)

City National Bank
& Trust Company


Farmers Saving
& Trust Company


First Chicago NBD
(merged 1995)

First Chicago Corp.
(est. 1863)


NBD Bancorp.
(formerly
National Bank of Detroit)
(est. 1933)


  Louisiana’s First
Commerce Corp.


Bear Stearns
(est. 1923;
acq. 2008
)[36]
 

Washington Mutual
(acq. 2008)[37]
  Washington Mutual
(founded 1889)

  Great Western Bank
(acq. 1997)

  H. F. Ahmanson & Co.
(acq. 1998)

  Bank United of Texas
(acq. 2001)

  Dime Bancorp, Inc.
(acq. 2002)

  Providian Financial
(acq. 2005)



The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):

Acquisition history

In November 2009, JPMorgan announced it would acquire the balance of JPMorgan Cazenove, an advisory and underwriting joint venture established in 2004 with the Cazenove Group, for GBP1 billion.[28]

In March 2008, JPMorgan acquired the UK-based carbon offsetting company ClimateCare.[27]

In April 2006, JPMorgan Chase acquired The Bank of New York Co.'s retail and small business banking network. The acquisition gave Chase access to 338 additional branches and 700,000 new customers in New York, New Jersey, and Connecticut.

In 2006, JPMorgan Chase purchased Collegiate Funding Services, a portfolio company of private equity firm Lightyear Capital, for $663 million. CFS was used as the foundation for the Chase Student Loans, previously known as Chase Education Finance.[26]

Other recent acquisitions

On November 19, 2013, the Justice Department announced that JPMorgan Chase agreed to pay $13 billion to settle investigations into its business practices pertaining to mortgage-backed securities.[24] Of that, $9 billion was penalties and fines and the remaining $4 billion was consumer relief. This was the largest corporate settlement to date. Much of the alleged wrongdoing stemmed from its 2008 acquisitions of Bear Sterns and Washington Mutual. The agreement did not settle criminal charges.[25]

2013 settlement

Chief executive Alan H. Fishman received a $7.5 million sign-on bonus and cash severance of $11.6 million after being CEO for 17 days.[23]

JPMorgan Chase raised $10 billion in a stock sale to cover writedowns and losses after taking on deposits and branches of Washington Mutual.[22] Through the acquisition, JPMorgan now owns the former accounts of Providian Financial, a credit card issuer WaMu acquired in 2005. The company announced plans to complete the rebranding of Washington Mutual branches to Chase by late 2009.

On September 25, 2008, JPMorgan Chase bought most of the banking operations of equity.[21]

The Washington Mutual logo prior to its 2008 acquisition by JPMorgan Chase

Washington Mutual

On March 24, 2008, after considerable public discontent by Bear Stearns shareholders over the low acquisition price threatened the deal's closure, a revised offer was announced at approximately $10 per share. Under the revised terms, JPMorgan also immediately acquired a 39.5% stake in Bear Stearns (using newly issued shares) at the new offer price and gained a commitment from the board (representing another 10% of the share capital) that its members would vote in favor of the new deal. With sufficient commitments to ensure a successful shareholder vote, the merger was completed on June 2, 2008.

[20] On March 16, 2008, after a weekend of intense negotiations between JPMorgan, Bear, and the federal government, JPMorgan Chase announced that it had plans to acquire Bear Stearns in a

At the end of 2007, Bear Stearns & Co. Inc. was the fifth largest investment bank in the United States but its market capitalization had deteriorated through the second half of 2007. On Friday, March 14, 2008, Bear Stearns lost 47% of its equity market value to close at $30.00 per share as rumors emerged that clients were withdrawing capital from the bank. Over the following weekend it emerged that Bear Stearns might prove insolvent, and on or around March 15, 2008, the Federal Reserve engineered a deal to prevent a wider systemic crisis from the collapse of Bear Stearns.[18]

The Bear Stearns logo

Bear Stearns

Bank One Corporation traced 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

The First Chicago Bank logo

Bank One Corporation was formed upon the 1998 merger between Banc One of Columbus, Ohio and First Chicago NBD. These two large banking companies had themselves been created through the merger of many banks. This merger was largely considered a failure until Dimon—recently ousted as President of Citigroup—took over and reformed the new firm's practices—especially its disastrous technology mishmash inherited from the many mergers prior to this one. Dimon effected changes more than sufficient to make Bank One Corporation a viable merger partner for JPMorgan Chase.

In 2004, JPMorgan Chase merged with Chicago-based Citigroup. Dimon became CEO in January 2006 and Chairman in December 2006.

Bank One Corporation

In 1935, after being barred from securities business for over a year, the heads of J.P. Morgan spun off its investment-banking operations. Led by J.P. Morgan partners, Salmon Portland Chase and John Purdue. In 1988, the company once again began operating exclusively as J.P. Morgan & Co.

In the 1930s, all of J.P. Morgan & Co. along with all integrated banking businesses in the United States, was required by the provisions of the commercial bank, because at the time commercial lending was perceived as more profitable and prestigious. Additionally, many within J.P. Morgan believed that a change in political climate would eventually allow the company to resume its securities businesses but it would be nearly impossible to reconstitute the bank if it were disassembled.

In August 1914, war equipment to Britain and France. Thus, the company profited from the financing and purchasing activities of the two European governments.

Built in 1914, 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 there are many hypotheses regarding who was behind the bombing and why they did it, after 20 years of investigation the FBI rendered the case inactive without ever finding the perpetrators.

The heritage of 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.

The J.P. Morgan headquarters in New York City following the September 16, 1920 bomb explosion that took the lives of 38 and injured over 400
Influence of J.P. Morgan in Large Corporations, 1914
The J.P. Morgan & Co. logo before its merger with Chase Manhattan Bank in 2000

J.P. Morgan & Company

Led by Hambrecht & Quist for $1.35 billion. In April 2000, UK-based Robert Fleming & Co. was purchased by the new Chase Manhattan Bank for $7.7 billion.

At the turn of the nineteenth century, obtaining a bank charter required an act of the state legislature. This of course injected a powerful element of politics into the process and invited what today would be called corruption but then was regarded as business as usual. Hamilton's political enemy—and eventual murderer—Aaron Burr was able to create a bank by sneaking a clause into a charter for a company, called the Manhattan Company, to provide clean water to New York City. The innocuous-looking clause allowed the company to invest surplus capital in any lawful enterprise. Within six months of the company's creation, and long before it had laid a single section of water pipe, the company opened a bank, the Bank of the Manhattan Company. Still in existence, it is today J. P. Morgan Chase, the largest bank in the United States.

According to page 115 of An Empire of Wealth by John Steele Gordon, the origin of this strand of JPMorgan Chase's history runs as follows:

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),[17] the company's oldest predecessor institution. The Bank of the Manhattan Company was the creation of Aaron Burr, who transformed The Manhattan Company from a water carrier into a bank.

The logo used by Chase following the merger with the Manhattan Bank in 1954

Chase Manhattan Bank

In 1996, Chemical Bank acquired Chase Manhattan. Although Chemical was the nominal survivor, it took the better-known Chase name. To this day, JPMorgan Chase retains Chemical's pre-1996 stock price history, as well as Chemical's former headquarters at 270 Park Avenue.

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 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"). In the 1980s and early 1990s, Chemical emerged as one of the leaders in the financing of leveraged buyout transactions. In 1984, Chemical launched Chemical Venture Partners to invest in private equity transactions alongside various financial sponsors. By the late 1980s, Chemical developed its reputation for financing buyouts, building a syndicated leveraged finance business and related advisory businesses under the auspices of pioneering investment banker, Jimmy Lee.[15][16] 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).

Chemical Banking Corporation

JPMorgan Chase, in its current structure, is the result of the combination of several large U.S. banking companies since 1996, including Bank One, Bear Stearns and Washington Mutual. Going back further, its predecessors include major banking firms among which are Chemical Bank, Manufacturers Hanover, First Chicago Bank, National Bank of Detroit, Texas Commerce Bank, Providian Financial and Great Western Bank. Its original predecessor, the Bank of the Manhattan Company, was the second oldest banking corporation in the United States, and the 31st oldest bank in the world, having been established on September 1, 1799 by Aaron Burr.

As of June 2008, the JPMorgan logo used for the company's Investment Banking, Asset Management, and Treasury & Securities Services units.[14]
The JPMorgan Chase logo prior to the 2008 rebranding

History

Contents

  • History 1
    • Chemical Banking Corporation 1.1
    • Chase Manhattan Bank 1.2
    • J.P. Morgan & Company 1.3
    • Bank One Corporation 1.4
    • Bear Stearns 1.5
    • Washington Mutual 1.6
    • 2013 settlement 1.7
    • Other recent acquisitions 1.8
    • Acquisition history 1.9
    • Recent News 1.10
  • Structure 2
    • JPMorgan Europe, Ltd. 2.1
  • Financial data 3
  • Operations 4
    • History 4.1
  • Lobbying 5
  • Controversies 6
    • National Mortgage Settlement 6.1
    • Speculative trading 6.2
    • Conflicts of interest on investment research 6.3
    • Enron 6.4
    • WorldCom 6.5
    • Jefferson County, Alabama 6.6
    • Failure to comply with client money rules in the UK 6.7
    • Mortgage overcharge of active military personnel 6.8
    • Truth in Lending Act litigation 6.9
    • Alleged manipulation of energy market 6.10
    • Criminal investigation into obstruction of justice 6.11
    • Sanctions violations 6.12
    • Mortgage-backed securities sales 6.13
    • "Sons and Daughters" hiring program 6.14
    • Madoff fraud 6.15
    • Corruption investigation in Asia 6.16
    • September 2014 cyber-attack 6.17
  • Offices 7
  • Credit derivatives 8
    • Multibillion-dollar trading loss 8.1
  • Art collection 9
  • Major sponsorships 10
  • Notable former employees 11
    • Business 11.1
    • Politics and public service 11.2
    • Other 11.3
  • See also 12
    • Index products 12.1
  • References 13
  • External links 14

[13] JPMorgan Chase is one of the

The J.P. Morgan brand, historically known as Morgan, is used by the universal bank.

[6]

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