Jp Morgan&Co./ Chase Manhattan Bank Merger

JP Morgan&Co. / tag Manhattan bank building Merger 1. excogitation The combining of deuce or more companies, generally by crack the stockholders of one company securities in the acquiring company in supervene upon for the surrender of their stock. (referenca 1) Mergers argon a common practice in the assembly line world because they enable increased efficiency and market sh are. 2. History 2. 1. JP Morgan&Co. J. P. Morgan & Co. , was founded in impertinent York in 1871 as Drexel, Morgan & Co. by J. Pierpont Morgan and Philadelphia imprecateer Anthony Drexel.The firm made its first offly big splash in 1879 when it sold financier William Vanderbilts New York Central Railroad stock without driving down the share price. (referenca 4) During the latterly 19th century and early 20th century J. P. Morgan & Co. financed a dress circle of engineering and innovative projects. Some examples funded by it are the Brooklyn Bridge and the waterman Canal construction. Besides these proje cts it was also present at the birth of aviation, providing banking run to the pioneering Wright br new(prenominal)s from the early years through their invention of the worlds first successful airplane. referenca 4)During the years of World War I r, J. P. Morgan & Co. aided the British and French, arranging a $500 million loan r, J. P. Morgan & Co. aided the British and French, arranging a $500 million loan. In 1959 Morgan merged with guarantee Trust Co. (commercial and investment banking) to create Morgan Guaranty Trust Co. of New York, afterwards forming a holding company that restored the famous J. P. Morgan & Co. parent. (referenca 4) 2. 2. result Manhattan Bank imitate Manhattan Bank was formed in the year 1955 with the fusion of succeed field of study Bank and the Bank of the Manhattan Company. referenca 2) In the 1970s, drop behind added nearly 40 invigorated branches, representative offices, affiliates, subsidiaries and joint ventures outside the United States. In 1973 Chase exposed a representative office in Moscow, which was the first presence for a U. S. bank in the Soviet Union since the 1920s. It also became the first U. S. similar to the Bank of China since Chinese Revolution . (referenca 4) During the 1970s and 1980s the Chase Manhattan Bank was led by David Rockefeller, and it emerged as one of the largest and most reputable banking concerns.It had leadership positions in syndicated lending, treasury and securities go, credit cards, mortgages, and retail fiscal services. (referenca3) The Chase Money Card was the first Visa debit card offered by a bank in New York. In 1985 Spectrum was launched, which is an electronic fellowship banking service that not only permitted banking transactions but also allowed customers to spoil and sell stocks through a discount broker affiliated with Chase. (referenca 4) Chase Manhattan Bank is the product of two megadeals that came earlier, its mergers with Manufacturers Hanover and Chemical. In 1 991, Manufacturers Hanover Corp. erged with Chemical Banking Corp. , under the lift of Chemical Banking Corp. , then the second-largest banking institution in the United States. (referenca5) Then in 1996 Thomas G. Labrecque merged the Chase Manhattan Bank with the Chemical Banking Corp. (referenca2) This merger created the largest bank holding company in the United States at that time, and it was prior to the merger with JP Morgan&Co. 3. JP&Morgan Chase & Co. On December 31 of year 2000 the two banks J. P. Morgan &Co. and Chase Manhattan Bank united to create the name of J. P. Morgan Chase & Co. keeping two of the most established names in U.S. banking. This merger created a financial services powerhouse and became a strong rival of firms such are Merrill Lynch, Goldman Sachs and Morgan Stanley Dean Witter. (refernca 6) Before the merger the CEO of the Chase Manhattan Bank was William Harrison, and of the J. P. Morgan & Co. was Douglas Warner. afterwards the creation of the have company, J. P. Morgan Chase & Co. the Chief Executive and president was appoint William Harrison while Douglas Warner was retained as a chairman. (referenca 7) The merger was approved by the Federal Reserve Board on December 11 and by the New York Banking Board on December 14, 2000. referenca 8) In 1999, the two banks combined had net income of approximately $7. 5 billion and revenue of approximately $31 billion. With the settlement of the deal, valued $36 billion, it acquired $660 billion of additions. (referenca 6) Under the deal J. P. Morgan stockholders reliable 3. 7 shares of Chase. The newly created company is a financial holding company, a global financial services firm and a banking institution in the United States of America. It operates worldwide, in more than 60 countries to provide corporate banking solutions to clients. referenca 3) It is sedulous in different kinds of activities such are in investment banking, financial services for consumers and small line of wor kes, commercial banking, financial transaction processing, asset focus and private equity. (referenca 9) After the merger of the year 2000 came more mergers and acquisitions of the Company with other institutions that would shape it to its final form. Below are listed some of the most classical ones * In 2004, Bank One Corp. merged with J. P. Morgan Chase & Co. , keeping the name JPMorgan Chase & Co. by uniting the investment and commercial banking skills of J. P.Morgan Chase with the consumer banking strengths of Bank One. (referenca 5) * In 2008, J. P. Morgan Chase & Co. acquired The Bear Stearns Companies Inc. , strengthening its capabilities across a free range of occupationes, including prime brokerage, cash clearing and energy trading globally. (referenca 4) * In 2008, J. P. Morgan Chase & Co. paid $1. 9 billion to the F. D. I. C. to acquire all of WaMus assets, branches and deposits. With WaMu, J. P. Morgan had $905 billion in deposits and 5,400 branches nationwide, rival ing Bank of America in size and reach. (referenca 9) The major(ip) businesses of the J. P.Morgan are * Investment Banking- The firm serves 8,000 clients in more than 60 countries. Clients includecorporations,financial institutions, governments andinstitutional investors. (referenca 10) It offers a full range of investment banking products and services in all major capital markets. * Card Services- The company has 94 million cards in circulation and $135 billion in managed loans. (referenca 10) They are distributed and designed to satisfy the needs individual consumers, small businesses and partner companies. * retail Financial Services-It is formed to help consumers and businesses with their financial needs.This sector includesconsumer banking, small business banking, auto, education, insurance and home finance. * Commercial Banking-Serves its clients with activities like lending, treasury services, investment banking and asset management. (referenca 5) * Treasury & Securities Serv ices- Is one of the largest cash management providers in the world to admit the CFOs, treasurers, issuers andinvestors. (referenca 10) * Asset Management- A global leader in managing investments and wealth for its clients. References 1. http//www. investopedia. com/ wrong/m/merger. aspaxzz2IEmsQoNR 2. http//www. ndb. com/company/684/000052528/ 3. http//en. wikipedia. org/wiki/JPMorgan_ChaseControversies 4. http//www. jpmorganchase. com/corporate/About-JPMC/document/shorthistory. pdf 5. http//www. jpmorganchase. com/corporate/About-JPMC/jpmorgan-history. htm 6. http//www. forbes. com/2000/10/18/1016topdeals_2. html 7. http//cnnfn. cnn. com/2000/09/13/deals/chase_morgan/ 8. http//www. innercitypress. org/jpmcmb1. html 9. http//topics. nytimes. com/top/news/business/companies/morgan_j_p_chase_and_company/index. html? offset=10&s=newest 10. http//www. marketswiki. com/mwiki/JPMorgan_Chase_%26_Co.