July 7, 2010
JP Morgan is one of the oldest and financial firms with its leading financial Services.
In order to understand how JP Morgan/Chase came to be one of the oldest financial service firms in the world we need to understand the background of the banking institution. The commercial banking started in the revolutionary war and played a major role in the growth of the nation’s economy. One of the first banks was The bank of New York in 1784 and really had no other competition until 1799 when Aaron Burr founded The Manhattan Co. In 1863 the United States created a dual system of federal and state chartered banks and one of the institutions was The first national bank of Chicago in which in 1863 received federal charter number eight. Following the economic recession of the Civil War John Thompson a Wall Street publisher and banker founded Chase National Bank by 1877 and named it in honor of his friend Salmon P. Chase. It is said that by 1930 it was the world’s largest bank and by then had assets of over two point seven billion. Chase National by 1955 merged with The Manhattan Co becoming The Chase Manhattan Company. (www.jpmorganchase.com)
John Pierpont Morgan started banking in 1857 at his father London branch when he moved to New York City; he worked at the banking house of Duncan, Sherman & Company, the American representatives of George Peabody & Company. J. Pierpont Morgan & Company was an agent in New York for his father's firm between1860 to 1864. Between1864–1872, he was a member of Dabney, Morgan & Company. By 1871 they were partners with Drexels of Philadelphia. In 1893 Mr. Anthony Drexel past away and the firm was renamed as “J.P. Morgan & Company but still remained close with Drexel &Company, Morgan Haries & Company and JS Morgan & Company. Morgan financed the purchase and upgrading of old Hall carbines. Morgan received $5400 and later the company that had originally bought the riffle sued and won and Mr. Morgan was accused by socialist for falsely selling defective gun. The enemies of the banking industries attacked Morgan for his loan of gold in the federal government crisis of 1895 and the panic of 1907. (www.financial-inspiration.com) “The Panic of 1907” almost impaired the economy in America. Bankruptcy was strengthening major banks in New York until Morgan got involved. Morgan got a team of executives and they redirected money between banks and secure international lines of credit and bought stocks that had dropped as long as they were healthy corporation. Morgan met with President Theodore Roosevelt and was able to get legal immunity on the US Steel and paid $30 million and even supported the move to create the Federal Reserve System. J. Pierpont Morgan started his career working at his father private bank JP Morgan Jr. then took over when his father died. Mr. JP Morgan before passing away was “becoming one of American’s most powerful and influential bankers, heading what became the nations pre-eminent private bank” The History of JP Morgan & Co (www.jpmorganchase.) The 1900’s was very important because all the major mergers happened. Chemical Bank of New York merged with Corn Exchange bank in 1986 and then with Hanover Trust Company in 1991. By the 1980’ and early 1900’s Chemical emerged as
“One of the leaders in the financing of leveraged buyouts transactions”
In 1195 First Chicago merged with NBD Bancorp. By 1996, Chase Manhattan had been weakened by the real state collapse so Chemical bank obtain it. In 1998Bank One Corp merged with First Chicago and stayed with the name of Bank One Corp. JP Morgan merged with Guaranty Trust Company of New York in order to strengthen its position by 2000. The then the largest and the oldest banking institutions combined renaming it JP Morgan Chase & Co. By 2004 JP Morgan Chase merged with Bank One and decided to remain with its name....