Jp Morgan Chase

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  • Topic: JPMorgan Chase, Washington Mutual, Chemical Bank
  • Pages : 30 (9136 words )
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  • Published : February 27, 2010
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JPMorgan Chase & Co. (NYSE: JPM) is one of the oldest financial services firms in the world. It is a leader in financial services with assets of $2.3 trillion., and the largest market capitalization and deposit base of any U.S. banking institution. The hedge fund unit of JPMorgan Chase is the largest hedge fund in the United States with $34 billion in assets as of 2007. Formed in 2000 when Chase Manhattan Corporation acquired J.P. Morgan & Co., the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and governmental clients. (1,2) The JPMorgan brand is used by the Investment Bank as well as the 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. (1,2) JP Morgan Chase is one of the Big Four Banks of United States as well as Bank of America, Citigroup and Wells Fargo. (1,2)


JPMorgan Chase’s activities are organized, for management reporting purposes, into six business segments: • Investment Bank
o Investment banking: advisory; debt and equity underwriting • Market making and trading: Fixed income, Equity
o Corporate lending
o Principal investing
• Retail Financial Services
o Regional banking: consumer and business banking; home lending; education lending o Mortgage banking
o Auto finance
• Card Services
o Credit cards
o Merchant acquiring
• Commercial Banking
o Middle market banking
o Mid-corporate banking
o Real estate banking
o Chase business credit
o Chase equipment leasing
o Chase Capital Corporation
• Treasury & Securities Services
• Asset Management
o Investment management
o Private bank
o Private client services
• Corporate - Includes the company's private equity (One Equity Partners, Treasury and Corporate functions. (1)

Key financial data

|Financial data in $ millions |

Year |2004 |2005 |2006 |2007 | |Revenue |43,097 |54,533 |61,437 |71,372 | |EBITDA |7,140 |13,740 |22,218 | | |Net Income |4,466 |8,483 |14,444 |15,365 | |Employees |160,968 |168,847 |174,360 |180,667 | |(1)



JPMorgan Chase, as it exists in 2008, is the result of the combination of several large U.S. banking companies over the last decade 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. (1)

Chemical Banking Corporation


The 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"). 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 acquired the Chase Manhattan Corporation taking the more prominent Chase name. In 2000, the combined company acquired J.P. Morgan & Co. and combined the two names to form...
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