JP Morgan&Co./ Chase Manhattan Bank Merger
The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.(referenca 1) Mergers are a common practice in the business world because they enable increased efficiency and market share. 2.History
J.P.Morgan & Co., was founded in New York in 1871 as Drexel, Morgan & Co. by J. Pierpont Morgan and Philadelphia banker Anthony Drexel. The firm made its first big splash in 1879 when it sold financier William Vanderbilt’s New York Central Railroad stock without driving down the share price.(referenca 4) During the late 19th century and early 20th century J.P.Morgan & Co. financed a lot of engineering and innovative projects. Some examples funded by it are the Brooklyn Bridge and the Panama Canal construction. Besides these projects it was also present at the birth of aviation, providing banking services to the pioneering Wright brothers from the early years through their invention of the world’s 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 Guaranty Trust Co. (commercial and investment banking) to create Morgan Guaranty Trust Co. of New York, later forming a holding company that restored the famous J.P.Morgan & Co.name.(referenca 4) 2.2. Chase Manhattan Bank
Chase Manhattan Bank was formed in the year 1955 with the merger of Chase National Bank and the Bank of the Manhattan Company.(referenca 2) In the 1970s, Chase added nearly 40 new branches, representative offices, affiliates, subsidiaries and joint ventures outside the United States. In 1973 Chase opened a representative office in Moscow, which was the first presence for a...
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