History of Our FirmJPMorgan Chase & Co. is one of the oldest, largest and best-known financial institutions in the world. The firm's legacy dates back to 1799 when its earliest predecessor was chartered in New York City.

Our firm is built on the foundation of more than 1200 predecessor institutions. Its major heritage firms J.P. Morgan, Chase Manhattan, Chemical, Manufacturers Hanover (in New York City) and Bank One, First Chicago, and National Bank of Detroit (in the Midwest) were each closely tied, in their time, to innovations in finance and the growth of the United States and global economies. As JPMorgan Chase & Co does today, these firms also made significant contributions to their local communities.

Key mergers that shaped who JPMorgan Chase is today: In 1991, Manufacturers Hanover Corp. merged with Chemical Banking Corp., under the name of Chemical Banking Corp., then the second-largest banking institution in the United States. In 1995, First Chicago Corp. merged with NBD Bancorp., forming First Chicago NBD, the largest banking institution based in the Midwest. In 1996, The Chase Manhattan Corp. merged with Chemical Banking Corp., under the name of The Chase Manhattan Corp., creating what was then the largest bank holding company in the United States. In 1998, Banc One Corp. merged with First Chicago NBD, under the name of Bank One Corp. After a subsequent merger, Bank One became the largest financial services firm in the Midwest, the fourth-largest bank in the U. S. and the world's largest Visa credit card issuer. In 2000, J.P. Morgan & Co. Incorporated merged with The Chase Manhattan Corp., effectively combining four of the largest and oldest money center banking institutions in New York City (J.P. Morgan, Chase, Chemical and Manufacturers Hanover) into one firm under the name of J.P. Morgan Chase & Co. In 2004, Bank One Corp. merged with J.P. Morgan Chase & Co. The New York Times said the merger "would realign the competitive landscape for banks" by uniting the investment and commercial banking skills of J.P. Morgan Chase with the consumer banking strengths of Bank One. In 2008, JPMorgan Chase & Co. acquired The Bear Stearns Companies Inc., strengthening its capabilities across a broad range of businesses, including prime brokerage, cash clearing and energy trading globally. Also in 2008, JPMorgan Chase & Co. acquired the deposits, assets and certain liabilities of Washington Mutual's banking operations. This acquisition expanded Chase's consumer branch network into California, Florida and Washington State and created the nation's second-largest branch network with locations reaching 42% of the U.S. population. In 2010, J.P. Morgan acquired full ownership of its U.K. joint venture, J.P. Morgan Cazenove, one of Britain's premier investment banks.WikipediaPhase 1

The JPMorgan Chase & Co. headquarters at 270 Park Avenue, Manhattan, New York city. New York. US>JPMorgan ChaseThis article is about JPMorgan Chase & Co. For main subsidiaries, see Chase (bank) and J.P. Morgan & Co..JPMorgan Chase & Co. is an American multinational banking and financial services holding company. It is the largest bank in the United States, with total assets of US$2.415 trillion. It is a major provider of financial services, and according to Forbes magazine is the world's third largest public company based on a composite ranking.[4] The hedge fund unit of JPMorgan Chase is the second largest hedge fund in the United States.[5] The company was formed in 2000, when Chase Manhattan Corporation merged with J.P. Morgan & Co.[6]The J.P. Morgan brand, historically known as Morgan, is used by the investment banking, J.P. Morgan Asset Management, private banking, private wealth management and treasury & securities services divisions. Fiduciary activity within private banking and private wealth management is done under the aegis of JPMorgan Chase Bank, N.A.the actual trustee. The Chase brand is used for credit card services in the United States and Canada, the bank's retail banking activities in the United States, and commercial banking. The corporate headquarters are in 270 Park Avenue, Midtown, Manhattan, New York City, New York, U.S.; and the retail and commercial bank is headquartered in Chase Tower, Chicago Loop, Chicago, Illinois, U.S.[6] JPMorgan Chase & Co. is considered to be a universal bank.JPMorgan Chase is one of the Big Four banks of the United States with Bank of America, Citigroup and Wells Fargo.[7][8][9][10][11][12] According to Bloomberg, as of October 2011, JPMorgan Chase surpassed Bank of America as the largest U.S. bank by assets.[13] Its predecessor, the Bank of the Manhattan Company, was the 22nd oldest bank in the world.HistoryJPMorgan Chase, in its current structure, is the result of the combination of several large U.S. banking companies since 1996, including Chase Manhattan Bank, J.P. Morgan & Co., 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.

The JPMorgan Chase logo prior to the 2008 rebranding

As of June 2008, the JPMorgan logo used for the company's Investment Banking, Asset Management, and Treasury & Securities Services units.[14]Chemical Banking CorporationThe 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"). 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).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.Chase Manhattan BankMain article: Chase Manhattan Bank

The logo used by Chase following the merger with the Manhattan Bank in 1954The 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.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: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 enemyand eventual murdererAaron 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.Led by David Rockefeller during the 1970s and 1980s, Chase Manhattan emerged as 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, retaining the Chase name. Before its merger with J.P. Morgan & Co., the new Chase expanded the investment and asset management groups through two acquisitions. In 1999, it acquired San Francisco-based Hambrecht & Quist for $1.35billion. In April 2000, UK-based Robert Fleming & Co. was purchased by the new Chase Manhattan Bank for $7.7billion.J.P. Morgan & CompanyMain article: J.P. Morgan & Co.

The J.P. Morgan & Co. logo before its merger with Chase Manhattan Bank in 2000

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 400The heritage of the House of Morgan traces its roots to the partnership of Drexel, Morgan & Co., which in 1895 was renamed J.P. Morgan & Co. (see also: J. Pierpont Morgan). Arguably the most influential financial institution of its era, J.P. Morgan & Co. 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, J.P. Morgan & Co. supplied the United States government with $62million in gold to float a bond issue and restore the treasury surplus of $100million. 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.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 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.In August 1914, Henry P. Davison, a Morgan partner, traveled to the UK and made a deal with the Bank of England to make J.P. Morgan & Co. the monopoly underwriter of war bonds for the UK 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 Britain and France. Thus, the company profited from the financing and purchasing activities of the two European governments.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 GlassSteagall Act to separate its investment banking from its commercial banking operations. J.P. Morgan & Co. chose to operate as a 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 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, Henry S. Morgan (son of Jack Morgan and grandson of J. Pierpont Morgan) and Harold Stanley, Morgan Stanley was founded on September 16, 1935, with $6.6million of nonvoting preferred stock from J.P. Morgan partners. In order to bolster its position, in 1959, J.P. Morgan merged with the Guaranty Trust Company of New York to form the Morgan Guaranty Trust Company. The bank would continue to operate as Morgan Guaranty Trust until the 1980s, before beginning to migrate back toward the use of the J.P. Morgan brand. In 1984, the group finally purchased the Purdue National Corporation of Lafayette Indiana, uniting a history between the two figures of Salmon Portland Chase and John Purdue. In 1988, the company once again began operating exclusively as J.P. Morgan & CoBank One CorporationMain article: Bank One Corporation

In 2004, JPMorgan Chase merged with Chicago based Bank One Corp., bringing on board current chairman and CEO Jamie Dimon as president and COO and designating him as CEO William B. Harrison, Jr.'s successor. Dimon's pay was pegged at 90% of Harrison's. Dimon quickly made his influence felt by embarking on a cost-cutting strategy, and replaced former JPMorgan Chase executives in key positions with Bank One executivesmany of whom were with Dimon at Citigroup. Dimon became CEO in January 2006 and Chairman in December 2006.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 Dimonrecently ousted as President of Citigrouptook over and reformed the new firm's practicesespecially 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.

The First Chicago Bank logoBank 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 First Chicago NBD merger, adverse financial results led to the departure of CEO John B. McCoy, whose father and grandfather had headed Banc One and predecessors. Dimon was brought in to head the company. JPMorgan Chase completed the acquisition of Bank One in the third quarter of 2004. The former Bank One and First Chicago headquarters in Chicago serve as the headquarters of Chase, JPMorgan Chase's commercial and retail banking subsidiary.Bear StearnsMain article: Bear Stearns

The Bear Stearns logoAt 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.[citation needed]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 stock swap worth $2.00 per share or $240million pending shareholder approval scheduled within 90 days. In the interim, JPMorgan Chase agreed to guarantee all Bear Stearns trades and business process flows.[18] Two days later on March 18, 2008, JPMorgan Chase formally announced the acquisition of Bear Stearns for $236million. The stock swap agreement was signed in the late-night hours of March 18, 2008, with JPMorgan agreeing to exchange 0.05473 of each of its shares upon closure of the merger for one Bear share, valuing the Bear shares at $2 each. [19]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.[citation needed]Washington MutualMain article: Washington Mutual

The Washington Mutual logo prior to its 2008 acquisition by JPMorgan ChaseOn September 25, 2008, JPMorgan Chase bought most of the banking operations of Washington Mutual from the receivership of the Federal Deposit Insurance Corporation. That night, the Office of Thrift Supervision, in what was by far the largest bank failure in American history, had seized Washington Mutual Bank and placed it into receivership. The FDIC sold the bank's assets, secured debt obligations and deposits to JPMorgan Chase & Co for $1.836billion, which re-opened the bank the following day. As a result of the takeover, Washington Mutual shareholders lost all their equity.[20]JPMorgan Chase raised $10billion in a stock sale to cover writedowns and losses after taking on deposits and branches of Washington Mutual.[21] 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.Chief executive Alan H. Fishman received a $7.5million sign-on bonus and cash severance of $11.6million after being CEO for 17 days.[citation needed]2013 settlementOn 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.[22] 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.[23]Other recent acquisitionsIn 2006, JPMorgan Chase purchased Collegiate Funding Services, a portfolio company of private equity firm Lightyear Capital, for $663million. CFS was used as the foundation for the Chase Student Loans, previously known as Chase Education Finance.[24]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 March 2008, JPMorgan acquired the UK-based carbon offsetting company ClimateCare.[25]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 GBP1billion.[26]Acquisition historyThe following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):StructureJPMorgan Chase & Co. owns five bank subsidiaries in the United States:[36] 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.JPMorgan Chase's activities are organized, for management reporting purposes, into five business segments:[37] corporate & investment bank, card services and consumer lending, commercial banking; personal and business banking, home lending, asset management, corporate; including private equity (One Equity Partners) and treasury and corporate functions.[citation needed] 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 Europe, Ltd.Main article: J.P. Morgan in the United KingdomThe company, known previously as Chase Manhattan International Limited, was founded on September 18, 1968.[38][39]In August 2008, the bank announced plans to construct a new European headquarters, based at Canary Wharf, London.[40] 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.[41] 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 regional office is in London with offices in Bournemouth, Glasgow, and Edinburgh for asset management, private banking, and investment.[42]Financial dataThis section is outdated. Please update this article to reflect recent events or newly available information. (September 2013)

Year2004[43]2005[43]2006[43]2007[44]2008[45]2009

Revenue43,09754,53361,43771,37267,252100,434

EBITDA7,14013,74022,218

Net Income4,4668,48314,44415,3655,60511,728

Employees160,968168,847174,360180,667224,961222,316

Asset & Liability

Asset/Liability Ratio

Net IncomeJPMorgan Chase[46] was the biggest bank at the end of 2008 as an individual bank. (not including subsidiaries)OperationsEarlier 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.[47]HistoryThe Bank began operations in Japan in 1924,[48] in Australia during the later part of the nineteenth century,[49] and in Indonesia during the early 1920s.[50] 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.[51] The bank has operated in Saudi Arabia[52] and India[53] since the 1930s. Chase Manhattan Bank opened an office in Korea in 1967.[54] The firm's presence in Greece dates to 1968.[55] An office of JPMorgan was opened in Taiwan in 1970,[56] in Russia (Soviet Union) in 1973,[57] and Nordic operations began during the same year.[58] Operations in Poland began in 1995.[55]ControversiesIn 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.[59]Conflicts of interest on investment researchIn December 2002, Chase paid fines totaling $80million, 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 $1.4billion. The settlement required that the banks separate investment banking from research, and ban any allocation of IPO shares.[60]EnronChase paid out over $2billion 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.[61] In 2003, Chase paid $160million in fines and penalties to settle claims by the Securities and Exchange Commission and the Manhattan district attorneys office. In 2005, Chase paid $2.2billion to settle a lawsuit filed by investors in Enron.[62]WorldComJPMorgan Chase, which helped underwrite $15.4billion of WorldCom's bonds, agreed in March 2005 to pay $2billion; that was 46 percent, or $630million, more than it would have paid had it accepted an investor offer in May 2004 of $1.37billion. J.P. Morgan was the last big lender to settle. Its payment is the second largest in the case, exceeded only by the $2.6billion accord reached in 2004 by Citigroup.[63] In March 2005, 16 of WorldCom's 17 former underwriters reached settlements with the investors.[64][65]Jefferson County, AlabamaIn November 2009, JPMorgan Chase & Co. agreed to a $722million settlement with the U.S. Securities and Exchange Commission to end a probe into sales of derivatives that helped push Alabamas most populous county to the brink of bankruptcy. The settlement came a week after Birmingham, Alabama Mayor Larry Langford was convicted on 60 counts of bribery, money laundering, and tax evasion related to bond swaps for Jefferson County, Alabama. The SEC alleged that J.P. Morgan, which had been chosen by the county commissioners to underwrite the floating-rate sewer bond deals and provide interest-rate swaps, had made undisclosed payments to close friends of the commissioners in exchange for the deal. J.P. Morgan then allegedly made up for the costs by charging higher interest rates on the swaps.[66]Failure to comply with client money rules in the UKIn June 2010, J.P. Morgan Securities was fined a record 33.32million ($49.12million) by the UK Financial Services Authority (FSA) for failing to protect an average of 5.5billion of clients' money from 2002 to 2009.[67][68] FSA requires financial firms to keep clients' funds in separate accounts to protect the clients in case such firm becomes insolvent. The firm had failed to properly segregate client funds from corporate funds following the merger of Chase and J.P. Morgan, resulting in a violation of FSA regulations but no losses to clients. The clients' funds would have been at risk had the firm become insolvent during this period.[69] J.P. Morgan Securities reported the incident to the FSA, corrected the errors, and cooperated in the ensuing investigation, resulting in the fine being reduced 30% from an original amount of 47.6million.[68]Mortgage overcharge of active military personnelIn 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 Servicemembers Civil Relief Act which automatically lowers mortgage rates to 6 percent, and bars foreclosure proceedings of active duty personnel. The overcharges may have never come to light were it not for legal action taken by Captain Jonathan Rowles. Both Captain Rowles and his spouse Julia accused Chase of violating the law and harassing the couple for nonpayment. An official stated that the situation was "grim", and Chase initially stated it would be refunding up to $2,000,000 to those who were overcharged, and that families improperly foreclosed on have gotten or will get their homes back.[70] Chase has acknowledged that as many as 6,000 active duty military personnel were illegally overcharged, and more than 18 military families homes were wrongly foreclosed. In April, Chase agreed to pay a total of $27million in compensation to settle the class-action suit.[71] At the company's 2011 shareholders' meeting, Dimon apologized for the error and said the bank would forgive the loans of any active-duty personnel whose property had been foreclosed. In June 2011, lending chief Dave Lowman was forced out over the scandal.[72][73]Truth in Lending Act litigationIn 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.[74]Alleged manipulation of energy marketIn July 2013, The Federal Energy Regulatory Commission (FERC) approved a stipulation and consent agreement under which JPMorgan Ventures Energy Corporation (JPMVEC), a subsidiary of JPMorgan Chase & Co., agreed to pay $410 million in penalties and disgorgement to ratepayers for allegations of market manipulation stemming from the companys bidding activities in electricity markets in California and the Midwest from September 2010 through November 2012. JPMVEC agreed to pay a civil penalty of $285 million to the U.S. Treasury and to disgorge $125 million in unjust profits. JPMVEC admitted the facts set forth in the agreement, but neither admitted nor denied the violations.[75]The case stemed from multiple referrals to FERC from market monitors in 2011 and 2012 regarding JPMVECs 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.[75]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.[75]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.[75]Criminal investigation into obstruction of justiceFERC's investigation of energy market manipulations led to a subsequent investigation into possible obstruction of justice by employees of JPMorgan Chase.[76] Various newspapers reported in September 2013 that the Federal Bureau of Investigation (FBI) and US Attorney's Office in Manhattan were investigating whether employees withheld information or made false statements during the FERC investigation.[76] The reported impetus for the investigation was a letter from Massachusetts Senators Elizabeth Warren and Edward Markey, in which they asked FERC why no action was taken against people who impeded the FERC investigation.[76] At the time of the FBI investigation, the Senate Permanent Subcommittee on Investigations was also looking into whether JPMorgan Chase employees impeded the FERC investigation.[76] Reuters reported that JPMorgan Chase was facing over a dozen investigations at the time.[76]Sanctions violationsOn August 25, 2011, JPMorgan Chase agreed to settle fines with regard to violations of the sanctions under the Office of Foreign Assets Control (OFAC) regime. The U.S. Department of Treasury released the following civil penalties information under the heading: "JPMorgan Chase Bank N.A. Settles Apparent Violations of Multiple Sanctions Programs":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.[77]Mortgage-backed securities salesIn 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 200708. 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.[78]"Sons and Daughters" hiring programIn 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.[79] The practice is felt to be widespread in the banking industry.[80]Madoff fraudFurther information: Madoff investment scandalJPMorgan Chase and its predecessor, Chemical Bank, had a relationship with Bernard Madoff from 1986 to 2008 when Madoff revealed to the FBI that his investment advisory business was a Ponzi scheme. JPMorgan (and its predecessors) was Madoff's primary bank in the later years of the fraud.[citation needed]In 2010, Irving Picard, the trustee charged with recovering the money stolen by Madoff, sued JPMorgan for failing to prevent Madoff from defrauding his customers. According to the suit, Chase knew or should have known that Madoff's wealth management business was a fraud. However, Chase did not report its concerns to regulators or law enforcement until October 2008 when it told the UK Serious Organised Crime Agency that the performance of Madoff's investments was "too good to be true." The suit also claimed that Chase bankers were making profitable deals with Madoff even as risk management executives expressed concern about the nature of Madoff's business. Almost as seriously, Picard charged that Chemical/Chase's retail bankers failed to perform even basic oversight of Madoff's banking activities, despite several transactions dating as far back as the 1990s that raised the appearance of money laundering or check kiting. Picard argued that even a cursory glance at Madoff's account activity at Chase would have revealed his business could not possibly have been legitimate. He also argued that even after Chase reported its concerns about Madoff's performance to UK officials, it did not put any restrictions on Madoff's banking activities until his arrest two months later.[81]In the fall of 2013, JPMorgan began talks with prosecutors and regulators to settle charges that it turned a blind eye to Madoff's actions. 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 bank signed a deferred prosecution agreement the first ever imposed on a major New York City bank with United States Attorney for the Southern District of New York Preet Bharara. In the agreement, JPMorgan admitted that it and its predecessors failed to report illegal activities on Madoff's part as required by the Bank Secrecy Act as early as 1994. Bharara 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 the largest forfeiture ever imposed on a bank in American history. The government will use that money to help make Madoff's victims whole.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.[82][83][84][85]Corruption investigation in AsiaOn 26 March 2014, the Hong Kong Independent Commission Against Corruption seized computer records and documents after searching the office of Fang Fang, the companys outgoing chief executive officer for China investment banking.[86]OfficesAlthough the old Chase Manhattan Bank's headquarters were located at One Chase Manhattan Plaza in downtown Manhattan, the current world headquarters for JPMorgan Chase & Co. are located at 270 Park Avenue, Chemical's former headquarters.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.Chase, the U.S. and Canada, retail, commercial, and credit card bank is headquartered in Chicago at the Chase Tower, Chicago, Illinois.[6]The Asia Pacific headquarters for JPMorgan is located in Hong Kong at Chater House.Approximately 11,050 employees are located in Columbus at the McCoy Center, the former Bank One offices.The bank moved some of its operations to the JPMorgan Chase Tower in Houston, when it purchased Texas Commerce Bank.

Phase 2Chase (bank)For the buildings, see Chase Tower (Chicago) and Chase Manhattan Bank Building.JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of the multinational banking corporation JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000.[2] Chase Manhattan Bank was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955.[3] The bank is headquartered in Chicago, since its merger with Bank One Corporation in 2004.[4] In 2008, the bank acquired the deposits and most assets of Washington Mutual.Chase offers more than 5,100 branches and 16,100 ATMs nationwide. JPMorgan Chase has 260,965 employees (as of 2012) and operates in more than 85 countries. JPMorgan Chase currently has assets of approximately $2.509 trillion. British magazine The Banker rated Chase as world's best bank in 2009-10.[citation needed]JPMorgan Chase, through its Chase subsidiary, is one of the Big Four banks of the United States.[5][6]JPMorgan Chase Bank, N.A.

Current logo since 2005.

TypeSubsidiary of JPMorgan Chase

IndustryBanking

FoundedSeptember 1, 1799, as Bank of the Manhattan Company

HeadquartersChase Tower, Chicago, Illinois

Key peopleWilliam C. Weldon(Chairman)[1]

ProductsFinancial services

Revenue$99.99 billion (2012)

Net income$20.53 billion (2012)

Employees260,965 (2012)

ParentJPMorgan Chase

DivisionsRetail Financial Services, Card Services, Commercial Banking

WebsiteChase.com

History

Aaron Burr, 3rd Vice President of the United States and founder of The Manhattan Company.

John D. Rockefeller, Jr. and the Rockefeller family were the largest shareholders of Chase National Bank.From September 1, 1799 to 1877, it was called The Bank of The Manhattan Company (New York); from 1877 to 1954, it was called Chase National Bank; and from 1955 to 1976, it was called The Chase Manhattan Bank.[7]

Chase's southwest regional headquarters in Phoenix, Arizona.The Manhattan CompanyMain article: Bank of the Manhattan CompanyChase traces its history back to the founding of The Manhattan Company by Aaron Burr on September 1, 1799, in a house at 40 Wall Street:[2]After an epidemic of yellow fever in 1798, during which coffins had been sold by itinerant vendors on street corners, Aaron Burr established the Manhattan Company, with the ostensible aim of bringing clean water to the city from the Bronx River but in fact designed as a front for the creation of New York's second bank, rivaling Alexander Hamilton's Bank of New York.The Economist[8]Over two centuries after Burr and Hamilton's now-infamous duel that claimed Hamilton's life, it can be said that the Bank of the Manhattan Company ultimately won the "business" side of the rivalry. In 2006, the modern-day Chase bought the retail banking division of the Bank of New York, which then only months later merged with Pittsburgh-based Mellon Financial to form the present-day BNY Mellon.Chase National BankChase National Bank was formed in 1877 by John Thompson.[2] It was named after former United States Treasury Secretary and Chief Justice Salmon P. Chase,[3] although Chase did not have a connection with the bank.[2]The Chase National Bank acquired a number of smaller banks in the 1920s, through its Chase Securities Corporation. In 1926, for instance, it acquired Mechanics and Metals National Bank.

Specimen Stock CertificateHowever, its most significant acquisition was the Equitable Trust Company of New York in 1930, the largest stockholder of which was John D. Rockefeller, Jr.[9] This made Chase the largest bank in America and indeed, in the world.Chase was primarily a wholesale bank, dealing with other prominent financial institutions and major corporate clients, such as General Electric, which had, through its RCA subsidiary, leased prominent space and become a crucial first tenant of Rockefeller Center, rescuing that major project in 1930. The bank is also closely associated with and has financed the oil industry, having longstanding connections with its board of directors to the successor companies of Standard Oil, especially ExxonMobil, which are also Rockefeller holdings.Merger as Chase Manhattan Bank

The September 1, 1799-1877 logo

The 1877-1954 logo

The 19541960 logo

The 19601976 logoIn 1955, Chase National Bank and The Manhattan Company merged to create The Chase Manhattan Bank.[2] As Chase was a much larger bank, it was first intended that Chase acquire the "Bank of Manhattan", as it was nicknamed, but it transpired that Burr's original charter for the Manhattan Company had not only included the clause allowing it to start a bank with surplus funds, but another requiring unanimous consent of shareholders for the bank to be taken over. The deal was therefore structured as an acquisition by the Bank of the Manhattan Company of Chase National, with John J. McCloy becoming chairman of the merged entity. This avoided the need for unanimous consent by shareholders.For Chase Manhattan Bank's new logo, Chermayeff & Geismar designed a stylized octagon in 1961, which remains part of the bank's logo today.[10] The Chase logo is a stylized representation of the primitive water pipes laid by the Manhattan Company, which were made by nailing together wooden planks.[11]Under McCloy's successor, George Champion, the bank relinquished its antiquated 1799 state charter for a modern one. In 1969, under the leadership of David Rockefeller, the bank became part of a bank holding company, the Chase Manhattan Corporation.[3]Merger with Chemical, J.P. Morgan

The 19762005 logoIn July 1996, Chemical Bank of New York purchased Chase Manhattan Bank. Chemical's previous acquisitions included Manufacturers Hanover Corporation, in 1991, and Texas Commerce Bank, in 1987. Although Chemical was the nominal survivor, the merged company retained the Chase name since it was better known (particularly outside the United States).In December 2000, the combined Chase Manhattan completed the acquisition of J.P. Morgan & Co. in one of the largest banking mergers to date. The combined company was renamed JPMorgan Chase. In 2004, the bank acquired Bank One, making Chase the largest credit card issuer in the United States. JPMorgan Chase added Bear Stearns & Co. and Washington Mutual to its acquisitions in 2009. After closing nearly 400 overlapping branches of the combined company, less than 10% of its total, Chase will have approximately 5,410 branches in 23 states as of the closing date of the acquisition.[12][13] According to data from SNL Financial (data as of June 30, 2008), this places Chase third behind Wells Fargo and Bank of America in terms of total U.S. retail bank branches. In October 2010, Chase was named in two lawsuits alleging manipulation of the silver market.[14] The suits allege that by managing giant positions in silver futures and options, the banks influenced the prices of silver on the New York Stock Exchange's Comex Exchange since early 2008.

Chase branch located in Athens, Ohio

Chase bank in Chinatown, Manhattan

Chase offices and branch in One Utah Center tower in Salt Lake CityThe following is an illustration of the company's major mergers and acquisitions and historical predecessors to 1995 (this is not a comprehensive list):

Bank One CorporationMain article: Bank One Corporation

Chase Tower in Chicago is the corporate headquartersIn 2004, JPMorgan Chase merged with Chicago-based Bank One Corp., bringing on board its current chairman and CEO Jamie Dimon as president and COO and designating him as CEO William B. Harrison, Jr.'s successor. Dimon's pay was pegged at 90% of Harrison's. Dimon quickly made his influence felt by embarking on a cost-cutting strategy and replaced former JPMorgan Chase executives in key positions with Bank One executivesmany of whom were with Dimon at Citigroup. Dimon became CEO in January 2006 and Chairman in December 2006 after Harrison's resignation.Bank One Corporation was formed upon the 1998 merger between Banc One of Columbus, Ohio and First Chicago NBD. These two large banking companies were themselves created through the merger of many banks. JPMorgan Chase completed the acquisition of Bank One in Q3 2004. The merger between Bank One and JPMorgan Chase meant that corporate headquarters were now in New York City while the retail bank operations of Chase were consolidated in Chicago.[15]The following is an illustration of the Bank One's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):Washington MutualMain article: Washington MutualOn September 25, 2008, JPMorgan Chase bought most banking operations of Washington Mutual from the receivership of the Federal Deposit Insurance Corporation (FDIC). That night, the Office of Thrift Supervision, in what was by far the largest bank failure in American history, seized Washington Mutual Bank and placed it into receivership. The FDIC sold the bank's assets, secured debt obligations and deposits to JPMorgan Chase Bank, NA for $1.888 billion, which re-opened the bank the following day. As a result of the takeover, Washington Mutual shareholders lost all their equity.[16] Through the acquisition, JPMorgan became owner of the former accounts of Providian Financial, a credit card issuer WaMu acquired in 2005. The company completed rebranding of Washington Mutual branches to Chase in late 2009.Other recent acquisitionsIn the first-quarter of 2006, 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.[17]In April of that same year (2006), Chase acquired the The Bank of New York Co.'s retail and small business banking network. This gave Chase access to 338 additional branches and 700,000 new customers in New York, New Jersey, Connecticut and Indiana.ControversiesPurchase of Nazi Germany's Reichsmarks During WWIIA press release from the National Archives and Records Administration (NARA) in 2004 announced that many of the new Federal Bureau of Investigation (FBI) files had become declassified. This declassification enabled the discovery that before and during the early years of World War II, the German government sold a special kind of Reichsmark, known as Rckwanderer [returnee] Marks, to American citizens of German descent. Chase National Bank, along with other businesses, were involved in these transactions. Through Chase, this allowed Nazi sympathizers to purchase Marks with dollars at a discounted rate. Specifically, "The financial houses understood that the German government paid the commissions (to its agents, including Chase) through the sale of discounted, blocked Marks that came mainly from Jews who had fled Germany." In other words, Nazi Germany was able to offer these Marks below face-value because they had been stolen from migrs fleeing the Nazi regime. Between 1936 and 1941, the Nazis amassed over $20 million, and the businesses enabling these transactions earned $1.2 million in commissions. Of these commissions, over $500,000 went to Chase National Bank and its subagents.These facts were discovered when the FBI began its investigation in October 1940. The purpose of the investigation was to follow German-Americans who had bought the Marks. However, Chase National Banks executives were never federally prosecuted because Chase's lead attorney threatened to reveal FBI, Army, and Navy "sources and methods" in court. Publicly naming the sources and methods could have posed security risks and threatened future intelligence gathering. To avoid such revelations, the executives' violations of the Johnson Act, the Espionage Act, and the Foreign Agents Registration Act were never prosecuted.[18][19][20]Release of Funds for Nazi Germany During WWIIBesides the controversial Rckwanderer Mark Scheme, NARA records also revealed another controversy during the occupation of France by the Nazis. From the late 1930s until June 14, 1941, when President Franklin D. Roosevelt (FDR) issued an Executive Order freezing German assets, Chase National Bank worked with the Nazi government. The order blocking any access to French accounts in the U.S. by anyone, but especially by the Nazis was issued by Secretary of the Treasury, Henry Morgenthau Jr., with the approval of FDR. Unfortunately, within hours of the order, Chase unblocked the accounts and the funds were transferred through South America to Nazi Germany.[20]Refusal to release funds belonging to Jews in Occupied FranceUS Treasury officials wanted an investigation of French subsidiaries of American banks, such as Chase Bank, J.P. Morgan & Co, National City Corporation, Guaranty Bank, Bankers Trust, and American Express. Of these banks, only Chase and Morgan remained open in France during the Nazi occupation. The Chase branch chief in Paris, France, Carlos Niedermann, told his supervisor in New York that there had been an "expansion of deposits". Also, Niedermann was, "very vigorous in enforcing restrictions against Jewish property, even going so far as to refuse to release funds belonging to Jews in anticipation that a decree with retroactive provisions prohibiting such release might be published in the near future by the occupying Nazi authorities".In 1998, Chase general counsel William McDavid, said that Chase did not have control over Niedermann. Whether that claim was true or not, Chase Manhattan Bank acknowledged seizing about 100 accounts during the Vichy regime. Kenneth McCallion, an attorney, led a lawsuit against Barclays Bank for the illegal seizure of assets during WWII and has since turned his attention toward Chase. The World Jewish Congress (WJC), entered into discussions with Chase and a spokesperson for the WJC said, "Nobody at Chase today is guilty. They were not involved in whatever happened, but they do accept that they have an institutional responsibility." A Chase spokesman said, "This is a moral issue that we take very seriously." Chase general counsel McDavid added, "that Chase intends to compensate Jewish account holders whose assets were illegally plundered". In 1999, the French government formed a commission to report findings to Prime Minister Lionel Jospin. Claire Andrieu, a commission member and history professor at the Sorbonne, said that under the Vichy regime, French banks received visits from Nazi officials but U.S. banks did not. At that time, they did not have to report Jewish accounts, but they did just as the French banks did. She goes on to say that an American ambassador protected the U.S. subsidiaries.[21][22] [23] [24]Recent ControversiesJPMorgan Chase has paid $16 billion in fines, settlements and other litigation expenses in just the last four years (2011-2013). Of the $16 billion JPMorgan Chase has shelled out, about $8.5 billion were for fines and settlements resulting from illegal actions taken by bank executives, according to Richard Eskow at the Campaign for Americas Future, who cited a new report from Joshua Rosner of Graham Fisher & Co.The $16 billion total does not include a recent settlement that calls for JPMorgan Chase to pay $100 million to waive $417 million in claims it had made against clients of the firm MF Global.The U.S. Treasurys Office of Foreign Assets Control found that JPMorgan had illegally aided dictatorships in Cuba, Sudan, Liberia and Iran, including transferring 32,000 ounces of gold bullion for an Iranian bank.Among its other transgressions, JPMorgan has been found to have misled investors engaged in fictitious trades collected illegal flood insurance commissions wrongfully foreclosed on soldiers, charged veterans hidden fees for refinancing violated the Federal Trade commission Act by making false statements to people seeking automobile loans illegally increased their collection of overdraft fees by processing large transactions before smaller ones helped drive Jefferson County, Alabama, into bankruptcy by switching its fixed-rate debt to variable violated antitrust provision of the Sherman Act relating to bid rigging.[25][26][27][28][29][30Phase 3J.P. Morgan & Co.From Wikipedia, the free encyclopedia"House of Morgan" redirects here. For the building, see 23 Wall Street. For the Welsh dynasty descended from Morgan Hen, see kings of Morgannwg.See also: JPMorgan Chaseand J. P. MorganJ.P. Morgan & Co.

TypeSubsidiary

IndustryInvestment banking

FateAcquired by Chase Manhattan Bank in 2000

Founded1871

Founder(s)J. P. Morgan

HeadquartersNew York City, New York, US

Employees26,314 (2010)

ParentJPMorgan Chase

WebsiteJPMorgan.com

J.P. Morgan & Co. was a commercial and investment banking institution based in the United States founded by J. Pierpont Morgan and commonly known as the House of Morgan or simply Morgan.Today, J.P. Morgan is the wholesale banking arm of JPMorgan Chase.The firm is a direct predecessor of two of the largest banking institutions in the United States and globally, JPMorgan Chase and Morgan Stanley.In 2000, J.P. Morgan was acquired by Chase Manhattan Bank to form JPMorgan Chase & Co., one of the largest global banking institutions. Today, the J.P. Morgan brand is used to market certain JPMorgan Chase wholesale businesses, including investment banking, commercial banking and asset management. The J.P. Morgan branding was revamped in 2008 to return to its more traditional appearance after several years of depicting the "Chase symbol to the right of a condensed and modernized "JPMorgan".Between 1959 and 1989, J.P. Morgan operated as the Morgan Guaranty Trust, following its merger with the Guaranty Trust Company of New York.

HistoryEarly history

23 Wall Street. Former headquarters of J.P. Morgan & Co.The origins of the firm date back to 1854 when Junius S. Morgan joined George Peabody & Co. (which became Peabody, Morgan & Co.), a London-based banking business headed by George Peabody. Junius took control of the firm, changing its name to J.S. Morgan & Co. in 1864 on Peabody's retirement. Junius's son, J. Pierpont Morgan, first apprenticed at Duncan, Sherman and Company in New York City, then founded his own firm with a cousin, J. Pierpont Morgan & Company, in 1862. J. Pierpont Morgan & Company traded in government bonds and foreign exchange. It also acted as an agent for Peabodys. Junius, however, considered some of Pierponts ventures to be highly speculative. So, Pierpont took on a more senior partner and the firm was known first as Dabney, Morgan and Company (beginning in 1864), then Drexel, Morgan & Co. (in 1871). In these firms, Pierpont used his Peabody connection to bring British financial capital together with rapidly growing U.S. industrial firms, such as railroads, who needed financial capital.[1] The Drexel of Drexel, Morgan & Co. was Philadelphia banker Anthony J. Drexel, founder of what is now Drexel University.[2]The House of MorganOn Junius death in 1890, Pierpont Morgan took his place at J.S. Morgan and Company. After Drexels death, Drexel, Morgan reorganized in 1895 and became J.P. Morgan and Company, eventually becoming one of the most powerful banking companies in the world and helping to transform the United States from an economic novice into the strongest industrial power in the world at that time.[1] 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.

September 16, 1920: a bomb exploded in front of the headquarters of J.P. Morgan Inc. at 23 Wall Street, injuring 400 and killing 38 people.Built in 1914, 23 Wall Street was known as "The Corner" and "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, an anarchist bomb exploded in front of the bank, killing 38 and injuring 400. Shortly before the bomb went off, an unknown person placed a warning note 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 of investigation the FBI rendered the file inactive in 1940 without ever finding the perpetrators.In August 1914, Henry P. Davison, a Morgan partner, traveled to the United Kingdom and made a deal with the Bank of England to make J.P. Morgan & Co. the sole underwriter of war bonds for the UK 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 Britain and France, thus profiting from the financing and purchasing activities of the two European governments.During the early 1920s, J.P. Morgan & Co. was active in promoting banks in the southern hemisphere, including the Bank of Central and South America.GlassSteagall and Morgan StanleyIn 1933, the provisions of the GlassSteagall Act forced J.P. Morgan & Co. to separate its investment banking from its commercial banking operations. J.P. Morgan & Co. chose to operate as a commercial bank, because after the stock market crash of 1929, investment banking was in some disrepute and commercial lending was perceived to be more the profitable and prestigious business. Additionally, many within J.P. Morgan believed that a change in the political climate would allow the company to resume its securities businesses but that it would be nearly impossible to reconstitute the bank if it were disassembled.In 1935, after being barred from securities business for over a year, the heads of J.P. Morgan made the decision to spin off its investment banking operations. Two J.P. Morgan partners, Henry S. Morgan (son of Jack Morgan and grandson of J. Pierpont Morgan) and Harold Stanley, founded Morgan Stanley on September 16, 1935 with $6.6 million of nonvoting preferred stock from J.P. Morgan partners. At the beginning, Morgan Stanley's headquarters were at 2 Wall Street, just down the street from J.P. Morgan, and Morgan Stanley bankers routinely used 23 Wall Street when closing transactions.

Morgan Guaranty logo ca. 1976Morgan Guaranty TrustIn the years following the spin-off of Morgan Stanley, the securities business proved robust, while the parent firm, which incorporated in 1940,[3] was a little sleepy. By the 1950s J.P. Morgan was only a mid-size bank. In order to bolster its position, in 1959, J.P. Morgan merged with the Guaranty Trust Company of New York to form the Morgan Guaranty Trust Company. The two banks already had numerous relationships between them and had complementary characteristics as J.P. Morgan brought a prestigious name and high quality clients and bankers while Guaranty Trust brought a significant amount of capital. Although Guaranty Trust was nearly four times the size of J.P. Morgan at the time of the merger in 1959, J.P. Morgan was considered the buyer and nominal survivor and former J.P. Morgan employees were the primary managers of the merged company.Return of J.P. Morgan & Co.

J.P. Morgan & Co. logo prior to its merger with Chase Manhattan Bank in 2000Ten years after the merger, Morgan Guaranty established a bank holding company called J.P. Morgan & Co. Incorporated, but continued to operate as Morgan Guaranty through the 1980s before beginning to migrate back to use of the J.P. Morgan brand. In 1988, the company once again began operating exclusively as J.P. Morgan & Co.Also in the 1980s, J.P. Morgan along with other commercial banks pushed the envelope of product offerings toward investment banking, beginning with the issuance of commercial paper. In 1989, the Federal Reserve permitted J.P. Morgan to be the first commercial bank to underwrite a corporate debt offering[4] In the 1990s, J.P. Morgan moved quickly to rebuild its investment banking operations and by the late 1990s would emerge as a top-five player in securities underwriting.JPMorgan Chase

JPMorgan logo prior to its 2008 rebrandingBy the late 1990s, J.P. Morgan had emerged as a large but not dominant commercial and investment banking franchise with an attractive brand name and a strong presence in debt and equity securities underwriting. Beginning in 1998, J.P. Morgan openly discussed the possibility of a merger, and speculation of a pairing with banks including Goldman Sachs, Chase Manhattan Bank, Credit Suisse and Deutsche Bank AG was prevalent.[5] Chase Manhattan had emerged as one of the largest and fastest growing commercial banks in the United States through a series of mergers over the previous decade. In 2000 Chase, which was looking for yet another transformational merger to improve its position in investment banking, merged with J.P. Morgan to form JPMorgan Chase & Co.[6][7]The combined JPMorgan Chase would become one of the largest banks both in the United States and globally offering a full complement of investment banking, commercial banking, retail banking, asset management, private banking and private equity businesses. In 2011, JPMorgan Asset Management was ranked number two in Institutional Investor's Hedge Fund 100 ranking, with $54.2 billion in assets under management.[8]2012 Trading lossesMain article: 2012 JPMorgan Chase trading lossExecutives from JP Morgan Chase & Co were embroiled in the 2012 London Whale scandal, facing potential charges over a trading debacle that cost the bank more than $6.2 billion. The firms two former traders, Javier Martin-Artajo and Julien Grout, were accused of deliberately understating losses on trades in the firms books.[9]

Phase 4J. P. MorganFrom Wikipedia, the free encyclopediaThis article is about the 18371913 American financier. For the modern company, see JPMorgan Chase. For the historical banking institution, see J.P. Morgan & Co.. For other people of the same name, see J. P. Morgan (disambiguation).John Pierpont "J. P." Morgan (April 17, 1837 March 31, 1913) was an American financier, banker, philanthropist and art collector who dominated corporate finance and industrial consolidation during his time. In 1892 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric. After financing the creation of the Federal Steel Company, he merged in 1901 with the Carnegie Steel Company and several other steel and iron businesses, including Consolidated Steel and Wire Company owned by William Edenborn, to form the United States Steel Corporation.Morgan died in Rome, Italy, in his sleep in 1913 at the age of 75, leaving his fortune and business to his son, John Pierpont "Jack" Morgan, Jr., and bequeathing his mansion and large book collections to The Morgan Library & Museum in New York.At the height of Morgan's career during the early 1900s, he and his partners had financial investments in many large corporations and had significant influence over the nation's high finance. He directed the banking coalition that stopped the Panic of 1907. He was the leading financier of the Progressive Era, and his dedication to efficiency and modernization helped transform American businessChildhood and educationJ. P. Morgan was born and raised in Hartford, Connecticut, to Junius Spencer Morgan (18131890) and Juliet Pierpont (18161884) of Boston, Massachusetts. Pierpont, as he preferred to be known, had a varied education due in part to interference by his father, Junius. In the fall of 1848, Pierpont transferred to the Hartford Public School and then to the Episcopal Academy in Cheshire, Connecticut, (now called Cheshire Academy), boarding with the principal. In September 1851, Morgan passed the entrance exam for the English High School of Boston, a school specializing in mathematics to prepare young men for careers in commerce.In the spring of 1852, illness that was to become more common as his life progressed struck; rheumatic fever left him in so much pain that he could not walk. Junius sent Pierpont to the Azores in order for him to recover. After convalescing for almost a year, Pierpont returned to the English High School in Boston to resume his studies. After graduating, his father sent him to Bellerive, a school near the Swiss village of Vevey. When Morgan had attained fluency in French, his father sent him to the University of Gttingen in order to improve his German. Attaining a passable level of German within six months and also a degree in art history, Morgan traveled back to London via Wiesbaden, with his education complete.[1CareerEarly years and life

J. P. Morgan in his earlier yearsMorgan went into banking in 1857 at the London branch of merchant banking firm, Peabody, Morgan & Co., a partnership between his father and George Peabody founded three years earlier. In 1858 he moved to New York City to join the banking house of Duncan, Sherman & Company, the American representatives of George Peabody and Company. During the American Civil War, Morgan purchased five thousand defective rifles from an army arsenal at $3.50 each[2] and then resold them to a field general for $22 each.[2] Morgan had avoided serving during the war by paying a substitute $300 to take his place.[2] From 1860 to 1864, as J. Pierpont Morgan & Company, he acted as agent in New York for his father's firm, renamed "J.S. Morgan & Co." upon Peabody's retirement in 1864. From 1864 to 1872, he was a member of the firm of Dabney, Morgan, and Company. In 1871, he partnered with the Drexels of Philadelphia to form the New York firm of Drexel, Morgan & Company. Anthony J. Drexel became Pierpont's mentor at the request of Junius Morgan.J.P. Morgan & CompanyMain article: J.P. Morgan & Co.After the 1893 death of Anthony Drexel, the firm was rechristened "J. P. Morgan & Company" in 1895, and retained close ties with Drexel & Company of Philadelphia, Morgan, Harjes & Company of Paris, and J.S. Morgan & Company (after 1910 Morgan, Grenfell & Company), of London. By 1900, it was one of the most powerful banking houses of the world, carrying through many deals especially reorganizations and consolidations. Morgan had many partners over the years, such as George W. Perkins, but remained firmly in charge.[3]Modernizing managementMorgan's process of taking over troubled businesses to reorganize them was known as "Morganization".[4] Morgan reorganized business structures and management in order to return them to profitability. His reputation as a banker and financier also helped bring interest from investors to the businesses he took over.[5]NewspapersIn 1896, Adolph Simon Ochs, who owned the Chattanooga Times, secured financing from Morgan to purchase the financially struggling New York Times. It became the standard for American journalism by cutting prices, investing in news gathering, and insisting on the highest quality of writing and reporting.[6]Treasury goldIn 1895, at the depths of the Panic of 1893, the Federal Treasury was nearly out of gold. President Grover Cleveland accepted Morgan's offer to join with the Rothschilds and supply the U.S. Treasury with 3.5million ounces of gold[7] to restore the treasury surplus in exchange for a 30-year bond issue. The episode saved the Treasury[8] but hurt Cleveland with the agrarian wing of the Democratic Party and became an issue in the election of 1896, when banks came under a withering attack from William Jennings Bryan. Morgan and Wall Street bankers donated heavily to Republican William McKinley, who was elected in 1896 and reelected in 1900.SteelAfter the death of his father in 1890, Morgan took control of J. S. Morgan & Co. which was renamed Morgan, Grenfell & Company in 1910. Morgan began talks with Charles M. Schwab, president of Carnegie Co., and businessman Andrew Carnegie in 1900. The goal was to buy out Carnegie's steel business and merge it with several other steel, coal, mining and shipping firms to create the United States Steel Corporation. His goal was almost completed in late 1900 while negotiating a deal with Robert D. Tobin and Theodore Price III, but was then retracted immediately. In 1901 U.S. Steel was the first billion-dollar company in the world, having an authorized capitalization of $1.4 billion, which was much larger than any other industrial firm and comparable in size to the largest railroads.U.S. Steel aimed to achieve greater economies of scale, reduce transportation and resource costs, expand product lines, and improve distribution.[9] It was also planned to allow the United States to compete globally with Britain and Germany. U.S. Steel's size was claimed by Charles M. Schwab and others to allow the company to pursue distant international markets-globalization.[9] U.S. Steel was regarded as a monopoly by critics, as the business was attempting to dominate not only steel but also the construction of bridges, ships, railroad cars and rails, wire, nails, and a host of other products. With U.S. Steel, Morgan had captured two-thirds of the steel market, and Schwab was confident that the company would soon hold a 75 percent market share.[9] However, after 1901 the businesses' market share dropped. Schwab resigned from U.S. Steel in 1903 to form Bethlehem Steel, which became the second largest U.S. producer on the strength of such innovations as the wide flange "H" beamprecursor to the I-beamwidely used in construction.

Morgan's role in the economy was denounced as overpowering in this hostile political cartoonLabor policy was a contentious issue. U.S. Steel was non-union and experienced steel producers, led by Schwab, wanted to keep it that way with aggressive tactics to identify and root out "trouble makers". The lawyers and bankers who had organized the merger, notably Morgan and the CEO Elbert "Judge" Gary were more concerned with long-run profits, stability, good public relations, and avoiding trouble. The bankers' views generally prevailed, and the result was a paternalistic labor policy. U.S. Steel was finally unionized in the late 1930s.[10]Panic of 1907The Panic of 1907 was a financial crisis that almost crippled the American economy. Major New York banks were on the verge of bankruptcy and there was no mechanism to rescue them until Morgan stepped in personally and took charge, resolving the crisis.[11][12] Treasury Secretary George B. Cortelyou earmarked $35 million of federal money to quell the storm but had no easy way to use it. Morgan now took personal charge, meeting with the nation's leading financiers in his New York mansion; he forced them to devise a plan to meet the crisis. James Stillman, president of the National City Bank, also played a central role. Morgan organized a team of bank and trust executives which redirected money between banks, secured further international lines of credit, and bought plummeting stocks of healthy corporations. A delicate political issue arose regarding the brokerage firm of Moore and Schley, which was deeply involved in a speculative pool in the stock of the Tennessee Coal, Iron and Railroad Company. Moore and Schley had pledged over $6 million of the Tennessee Coal and Iron (TCI) stock for loans among the Wall Street banks. The banks had called the loans, and the firm could not pay. If Moore and Schley should fail, a hundred more failures would follow and then all Wall Street might go to pieces. Morgan decided they had to save Moore and Schley. TCI was one of the chief competitors of U.S. Steel and it owned valuable iron and coal deposits. Morgan controlled U.S. Steel and he decided it had to buy the TCI stock from Moore and Schley. Judge Gary, head of U.S. Steel, agreed, but was concerned there would be antitrust implications that could cause grave trouble for U.S. Steel, which was already dominant in the steel industry. Morgan sent Gary to see President Theodore Roosevelt, who promised legal immunity for the deal. U.S. Steel thereupon paid $30 million for the TCI stock and Moore and Schley was saved. The announcement had an immediate effect; by November 7, 1907, the panic was over. Vowing to never let it happen again, and realizing that in a future crisis there was not likely to be another Morgan, banking and political leaders, led by Senator Nelson Aldrich devised a plan that became the Federal Reserve System in 1913.[13] The crisis underscored the need for a powerful mechanism, and Morgan supported the move to create the Federal Reserve System.CriticsWhile conservatives in the Progressive Era hailed Morgan for his civic responsibility, his strengthening of the national economy, and his devotion to the arts and religion, the left wing viewed him as one of the central figures in the system it rejected.[14] Morgan redefined conservatism in terms of financial prowess coupled with strong commitments to religion and high culture.[15]Enemies of banking attacked Morgan for the terms of his loan of gold to the federal government in the 1895 crisis and for the financial resolution of the Panic of 1907. They also attempted to attribute to him the financial ills of the New York, New Haven and Hartford Railroad. In December 1912, Morgan testified before the Pujo Committee, a subcommittee of the House Banking and Currency committee. The committee ultimately concluded that a small number of financial leaders was exercising considerable control over many industries. The partners of J.P. Morgan & Co. and directors of First National and National City Bank controlled aggregate resources of $22.245billion, which Louis Brandeis, later a U.S. Supreme Court Justice, compared to the value of all the property in the twenty-two states west of the Mississippi River.[16]Unsuccessful venturesMorgan did not always invest well, as several failures demonstrated.Tesla and WardenclyffeIn 1900 Morgan invested $150,000 in inventor Nikola Tesla's Wardenclyffe Tower, a high power transatlantic wireless communication project. By 1903 Tesla had spent the initial investment without completing the project, and with Guglielmo Marconi already making regular transatlantic radio transmissions with far less expensive equipment, Morgan declined to fund Tesla any further. Tesla tried to generate more interest in Wardenclyffe by revealing its ability to transmit wireless electricity, but the loss of Morgan as a backer, and the 1903 "rich man's panic" on Wall Street, dried up any further investment.[17][18][19]London SubwaysMorgan suffered a rare business defeat in 1902 when he attempted to enter the London Underground field. Transit magnate Charles Tyson Yerkes thwarted Morgan's effort to obtain parliamentary authority to build an underground road that would have competed with "Tube" lines controlled by Yerkes. Morgan called Yerkes' coup "the greatest rascality and conspiracy I ever heard of".[20]International Mercantile MarineIn 1902, J.P. Morgan & Co. financed the formation of International Mercantile Marine Company, an Atlantic shipping combine which absorbed several major American and British lines. IMM was a holding company that controlled subsidiary corporations that had their own operating subsidiaries. Morgan hoped to dominate transatlantic shipping through interlocking directorates and contractual arrangements with the railroads, but that proved impossible because of the unscheduled nature of sea transport, American antitrust legislation, and an agreement with the British government. One of IMM's subsidiaries was the White Star Line, which owned the RMS Titanic. The ship's famous sinking in 1912, the year before Morgan's death, was a financial disaster for IMM, which was forced to apply for bankruptcy protection in 1915. Analysis of financial records shows that IMM was overleveraged and suffered from inadequate cash flow that caused it to default on bond interest payments. Saved by World War I, IMM eventually reemerged as the United States Lines, which itself went bankrupt in 1986.[21][22]

J. P. Morgan Quotes Go as far as you can see; when you get there, you'll be able to see farther. (J. P. Morgan) A man always has two reasons for doing anything: a good reason and the real reason.(J. P. Morgan) When you expect things to happen - strangely enough - they do happen. (J. P. Morgan ) No problem can be solved until it is reduced to some simple form. The changing of a vague difficulty into a specific, concrete form is a very essential element in thinking.(J. P. Morgan) If you have to ask how much it costs, you can't afford it. Well, I don't know as I want a lawyer to tell me what I cannot do. I hire him to tell how to do what I want to do.(J. P. Morgan)