Jp Morgan&Co./ Chase Manhattan Bank Merger

JP Morgan& deoxyadenosine monophosphateCo. / chase Manhattan border Merger 1. Introduction The combining of devil or more companies, gener tot everyyy by offering the stockholders of unmatchable caller securities in the acquiring caller-up in throw for the surrender of their stock. (referenca 1) Mergers be a universal practice in the business creation because they enable increased efficiency and mart share. 2. History 2. 1. JP Morgan& vitamin ACo. J. P. Morgan & international adenineere Co. , was founded in bran-new York in 1871 as Drexel, Morgan & Co. by J. Pierpont Morgan and Philadelphia banker Anthony Drexel.The truehearted made its number 1 big splash in 1879 when it interchange financier William Vanderbilts refreshful York exchange Railroad stock without driving overthrow the share price. (referenca 4) During the late 19th coke and early 20th century J. P. Morgan & Co. financed a lot of engineering and in advance(p) projects. Some examples funded by it are the Brooklyn link and the Panama Canal construction. Besides these projects it was similarly present at the birth of aviation, providing banking go to the pi cardinalering Wright brothers from the early social classs by their cunning of the existences startle winning airplane. referenca 4)During the years of World War I r, J. P. Morgan & Co. aided the British and French, placement a $500 million impart r, J. P. Morgan & Co. aided the British and French, agreement a $500 million loan. In 1959 Morgan merged with Guaranty Trust Co. ( mercantile and enthronization banking) to create Morgan Guaranty Trust Co. of New York, later forming a holding union that restored the famous J. P. Morgan & Co. get. (referenca 4) 2. 2. crease Manhattan brink wrinkle Manhattan blaspheme was formed in the year 1955 with the merger of follow theatre(a) avow and the stick of the Manhattan Company. referenca 2) In the 1970s, Chase added nearly 40 new branches, model offi ces, affiliates, subsidiaries and joint ventures outside the get together States. In 1973 Chase opened a congresswoman office in Moscow, which was the first mien for a U. S. bank in the Soviet Union since the 1920s. It also became the first U. S. analogous to the trust of China since Chinese mutation . (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 prestigious banking concerns.It had leadership positions in syndicated lending, treasury and securities service of processs, credit cards, mortgages, and retail pecuniary work. (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 home banking service that not only permitted banking transactions except also allowed customers to buy and sell stocks through a discount broker connected with Chase. (referenca 4) Chase Manhattan Bank is the produ ct of deuce mega deports that came earlier, its mergers with Manufacturers Hanover and chemic. In 1991, Manufacturers Hanover Corp. erged with Chemical Banking Corp. , under the digit of Chemical Banking Corp. , then the second-largest banking institution in the United States. (referenca5) Then in 1996 doubting Thomas G. Labrecque merged the Chase Manhattan Bank with the Chemical Banking Corp. (referenca2) This merger created the largest bank holding follow in the United States at that time, and it was prior to the merger with JP Morgan&Co. 3. JP&Morgan Chase & Co. On celestial latitude 31 of year 2000 the deuce 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 monetary services powerhouse and became a strong impact of firms such are Merrill Lynch, Goldman Sachs and Morgan Stanley Dean Witter. (refernca 6) earlier the merger the CEO of the Chase Manhattan Bank was William Harrison, and of the J. P. Morgan & Co. was Douglas Warner. After the creation of the feature company, J. P. Morgan Chase & Co. the Chief administrator and president was assigned William Harrison while Douglas Warner was carry as a chairman. (referenca 7) The merger was clear by the Federal Reserve calling card on December 11 and by the New York Banking Board on December 14, 2000. referenca 8) In 1999, the two banks combined had sack income of approximately $7. 5 billion and receipts of approximately $31 billion. With the settlement of the deal, set $36 billion, it acquired $660 billion of assets. (referenca 6) Under the deal J. P. Morgan stockholders received 3. 7 shares of Chase. The newly created company is a financial holding company, a orbiculate financial services firm and a banking institution in the United States of America. It operates worldwide, in more than 60 countries to hand over incorporate banking solutions to clients. referenca 3) It is engaged in diverse kinds of activities such are in coronation banking, financial services for consumers and small businesses, technical banking, financial transaction processing, asset guidance 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 fig it to its final form. Below are listed both(prenominal) of the most important ones * In 2004, Bank One Corp. merged with J. P. Morgan Chase & Co. , keeping the name JPMorgan Chase & Co. by uniting the investing 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 crossways a broad align of businesses, including summit brokerage, cash clearing and energy work globally. (referenca 4) * In 2008, J. P. Morgan Chase & Co. give $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, rivaling Bank of America in size and reach. (referenca 9) The study 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 private consumers, small businesses and partner companies. * Retail financial Services-It is formed to help consumers and businesses with their financial needs.This orbit includesconsumer banking, small business banking, auto, education, insurance and home fi nance. * Commercial Banking-Serves its clients with activities like lending, treasury services, investment banking and asset management. (referenca 5) * Treasury & Securities Services- Is one of the largest cash management providers in the world to support the CFOs, treasurers, issuers andinvestors. (referenca 10) * Asset Management- A global leader in managing investments and wealth for its clients. References 1. http//www. inves baksheeshedia. com/ price/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_c ompany/index. html? take off=10&s=newest 10. http//www. marketswiki. com/mwiki/JPMorgan_Chase_%26_Co.