J.P. Morgan Chase & Co.
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J.P. Morgan Chase & Co. Template:Nyse Template:Tyo, a Delaware corporation that uses the brand name JPMorgan Chase for its corporate image advertising and communications and JPMorgan as a brand for the investment bank business, is a global financial services firm with operations in more than 50 countries. Its "corporate dna" is from the company Chemical Bank, which took over Chase Manhattan then later JP Morgan. It retains Chemical's bank headquarters, stock history, and most of its management.
In 2004, the company acquired Bank One of Chicago, bringing on star Bank One CEO Jamie Dimon as president and COO of the merged firm and designating him as CEO William B. Harrison, Jr.'s future successor. Dimon quickly made his influence felt by embarking on a cost-cutting strategy and placing some former Bank One executives in key ranks at the new company.
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History
The company was founded in 1823 as "New York Chemical Manufacturing Company", a maker of various chemicals. The next year its charter was amended to perform banking activities. It changed its name to the "Chemical Bank of New York" and ceased manufacturing chemicals by 1851. The company grew through both organic growth and a series of mergers, most notably with Corn Exchange Bank, Texas Commerce Bank (a large bank in Texas), and Manufactures Hanover Trust. 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 1934, representitives of J.P. Morgan, Goodyear, and DuPont were implicated by General Smedley Butler in the Business Plot to overthrow the U.S government and set up a fascist dictatorship.
In 1996 the company acquired Chase Manhattan bank but kept that name. In 2000, the company acquired JPMorgan and again changed their name to JP Morgan Chase & Co. The company then acquired Bank One in 2004.
Chase Manhattan Corporation
At the time of the merger, Chase was a worldwide banker to corporations, a national credit card provider, and a retail bank in three states. It especially was noted in its cash management, securities custody, and cash management businesses, some of which it helped invent. It was weakened by the collapse of the commercial property market and losses in international loans. This led it to being acquired by Chemical bank.
J.P. Morgan & Company
In 1895 Drexel, Morgan & Co. became J. P. Morgan & Co.. It financed the formation of the United States Steel Corporation, which took over the business of Andrew Carnegie and others and was the world's first billion-dollar corporation. In 1895 it supplied the United States government with $62 million in gold to float a bond issue and restore the treasury surplus of $100 million.
In 1892 the company began to finance the New York, New Haven and Hartford Railroad and led it through a series of acquisitions that made it the dominant railroad transporter in New England. Railroads began their decline in the early 20th century, losing alternative transportation. Its primary competitor Kuhn, Loeb & Co. was a more successful adviser and financier to production companies and J.P. Morgan lost its first place in market cap and the league tables.
In August 1914 Henry P. Davison, a Morgan partner, traveled to England and made a deal with the Bank of England to make J. P. Morgan & Co. the monopoly underwriter of "war bonds" for England and France. The Bank of England became a "fiscal agent" of J. P. Morgan & Co. and vice versa. The company was also invested in the suppliers of war equipment to England and France. And through that made money from the financing and buying activities of the two European governments.
In the 1930's, JP Morgan was forced by the Glass-Steagall act to split into two companies: JP Morgan (a commercial bank) and Morgan Stanley (an Investment Bank). However, by the 90's and when it was acquired by Chase Manhattan, JP Morgan had turned itself into an Investment Bank too. It had three major activities: investment banking, private banking (providing financial services to wealthy people throughout the world), and private equity.
Business segments
- Asset & Wealth Management (AWM)
- Card Services (CS)
- Corporate
- Commercial Bank (CB)
- Investment Bank (IB)
- Retail Financial Services (RFS)
- Treasury & Securities Services (TSS)
Before the merger with Bank One
Before the merger with Bank One, the company's wholesale businesses was comprised of four segments:
- Investment Bank (IB), which provides investment banking and commercial banking products and services.
- Treasury & Securities Services (TSS), whose three businesses provide debt servicing, securities custody and related functions, and treasury and cash management services to corporations, financial institutions and governments.
- Investment Management & Private Banking (IMPB) which provides investment management services to institutional investors, high net worth individuals and retail customers.
- JPMorgan Partners (JPMP), which is the Company's private equity business.
External links
- 9-Nov-04 10-Q (http://finance.yahoo.com/q/sec?s=jpm) (NOTE 20BUSINESS SEGMENTS)
Legal proceedings
J. P. Morgan Chase, which helped underwrite $15.4 billion of WorldCom's bonds, agreed in the middle of March of 2005 to pay $2 billion; that was 46 percent, or $630 million, more than it would have paid had it accepted an investor offer in May of $1.37 billion. J. P. Morgan was the last big lender to settle. Its payment is the second largest in the case, exceeded only by the $2.6 billion accord reached in Q4 2004 by Citigroup ([1] (http://www.nytimes.com/2005/03/22/business/22worldcom.html)).
In March of 2005, 16 of WorldCom's 17 former underwriters reached settlements with the investors ([2] (http://quote.bloomberg.com/apps/news?pid=10000103&sid=auybDoZIEQTg&refer=news_index)).
Management
- CEO: William B. Harrison, Jr.
- COO: Jamie Dimon
Former
- CEO investment bank (- May 23, 2002): Geoffrey T. Boisi (co-CEO with Donald Layton) (replaced by David Coulter)
Conference calls
Investor presentations (http://www.shareholder.com/jpmorganchase/medialist.cfm)
- Jan 27, 2005 12:15 PM ET - JPMorgan Presents at Citigroup Smith Barney Financial Services (audio) (slides (http://www.shareholder.com/jpmorganchase/downloads/SSB_JDimon.pdf)) (Pru Sec First Call Note (http://www.cm1.prusec.com/rschrpts.nsf/$$rschidxw/687194B6693EC02C85256F96006D9A02/$FILE/JPM0127.PDF))
- Jan 15, 2004 - JPMorgan Chase and Bank One to merge (video (http://mfile.akamai.com/8080/asf/btnagovt.download.akamai.com/8080/br_011504_100.asx), audio, presentation (http://www.shareholder.com/jpmorganchase/medialist.cfm))
Quarterly earnings
- Jan 19, 2005 - Q4 2004 Earnings Review (press release and slides (http://www.shareholder.com/JPMorganChase/earningsDetail.cfm?ReleaseID=152923)) (audio (http://play.rbn.com/play.asx?url=shareholder/shareholder/wmdemand/050119one.wma&proto=mms?mswmext=.asx))
- October 20, 2004 - Q3 2004 Earnings Update (press release and slides (http://www.shareholder.com/JPMorganChase/earningsDetail.cfm?ReleaseID=145542)) (audio (http://play.rbn.com/play.asx?url=shareholder/shareholder/wmdemand/041020one.asf&proto=mms?mswmext=.asx))
- Jul 21, 2004 - Q2 2004 Earnings Review and Merger Update (press release and slides (http://www.shareholder.com/JPMorganChase/earningsDetail.cfm?ReleaseID=139326)) (audio (http://us.rd.yahoo.com/finance/confcall/streetevents/SIG=13c5bmppa/*http%3a//web.servicebureau.net/conf/meta?i=1112471457&c=2343&m=was&u=/w_ccbn.xsl&date_ticker=7_21_2004_JPM))
- April 21, 2004 - Q1 2004 earnings (press release and slides (http://www.jpmorganchase.com/cm/cs?pagename=Chase/Href&urlname=jpmc/ir/financial/earnings/2004-1q)) (audio (http://web.servicebureau.net/conf/meta?i=1112428747&c=2343&m=was&u=/w_ccbn.xsl&date_ticker=4_21_2004_JPM))
SEC filings
See [3] (http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000019617&owner=exclude)
- 2004-11-09 - 10-Q Q3 2004 ([4] (http://www.sec.gov/Archives/edgar/data/19617/000095012304013301/0000950123-04-013301-index.htm))
Diversity
JP Morgan Chase received a 100 percent rating on the first Corporate Equality Index released by the Human Rights Campaign in 2002. They have maintained this rating in 2003 and 2004.
JP Morgan Chase is one of the top 10 companies for working mothers in 2004 (http://www.workingwoman.com/top10.html) according to Working Mother Media.
See also
External links
- Corporate website (http://www.jpmorganchase.com/)
- JP Morgan admits US slavery links (http://news.bbc.co.uk/2/hi/business/4193797.stm)
Data
- Yahoo! – J.P. Morgan Chase & Co. Company Profile (http://biz.yahoo.com/ic/10/10322.html)
Articles
- Forbes.com: JP Morgan - derivatives concentration small threat - 03.31.04 (http://www.forbes.com/reuters/newswire/2004/03/31/rtr1318534.html)
History
- Murray Rothbard - Why did America get into World War I? (http://www.mises.org/rothspeak/murray.asp)