Chad E. Russell
JP Morgan Chase & Co. Assessment
The firm’s legacy which started in New York City in 1799 started thanks to a long list or predecessors. JP Morgan Chase & Co. was built on more than 1200 predecessor institutions. The highest and most regarded predecessor firms were JP Morgan, Chase Manhattan, Chemical, Manufactures Hanover (in New York City), Bank One, First Chicago, and National Bank of Detroit (in the Midwest). As they did in years past and as JP Morgan continues to do, is contribute significant amounts to local communities around the county. In 1968 JP Morgan built the frame work for the financial holding company that they are today. The company in 1968 as they do now is a global financial service firm and a banking institution in United States of America. The key mergers that shaped JP Morgan started in the 1990s are as follows. In 1991 Manufacturers Hanover Corporation merged with Chemical Banking Corporation under its new name Chemical Banking and became the second-largest banking institution in the United States of America. In 1995 Frist Chicago Corporation merged with NBD Bancorp. NDB Bancorp was originally First Chicago NBD and was one of the largest banking institutions in the Midwest. Just a year later in 1997 the Chase Manhattan Corporation merged with Chemical Banking Corporation, these two corporations formed under a new name of The Chase Manhattan Corporation. This newly formed corporation became the largest bank holding company in the United States of America in 1996. Two years later in 1998 Bank One Corporation merged with First Chicago NBD. These two corporations merged in to what was Bank One and was the largest banking system in the Midwest. Then from 2000 to 2010 is when JP Morgan Chase & Co. grow to what we know them as now. In 2000 JP Morgan & Co. merged with The Chase Manhattan Corporation. This was a monumental moment for the history of JP Morgan Chase & Co. because of the successful combination of four of the largest and oldest firm nationwide. But this massive combination of the largest banks was not enough for JP Morgan Chase & Co. In 2004 they then merged with Bank One Corporation, which The New York Times state, “Would realign the competitive landscape for banks.” Moving four years forward JP Morgan Chase & Co. acquired The Bear Stearns Companies Incorporated. This acquisition heavily strengthened JP Morgan Chase & Co. capabilities in a broad rand of businesses, including prime brokerage, cash clearing, and energy trading globally. Which problems have aroused from all these areas which will be communicated in a later portion of this memo. Also in 2008 JP Morgan Chase & Co. acquired assets and certain liabilities form Washington Mutual’s Banking Operations which extended Chase’s branch network into California, Florida, and Washington State creating the second-largest branch network and reaching 42% of the United States population. Last but not least there most recent key merger was in 2010, where JP Morgan Chase & Co. acquired full ownership of its United Kingdom joint venture, JP Morgan Cazenove, one of the Britain’s premier investment banks. This also caused problems in the recent history of JP Morgan. Board of Directors
Currently, in 2012, JP Morgan has 11 members on their board of directors, their names and board committees are as follows: James A. Bell, audit Committee; Crandall C. Bowles, audit committee and public responsibility committee (chairman); Stephen B. Burke, Compensation & management development committee and corporate governance & nominating committee; David M. Cote, public responsibility committee and risk policy committee; James S. Crown, Risk policy committee (chairman); James Dimon, Chairman of the board and CEO of JP Morgan Chase & Co.; Timothy P. Flynn, Risk policy committee; Ellen V. Futter, public...