Thursday, February 21, 2008

JP Morgan Chase Profile
JPMorgan Chase Annual Report

CEO: Jamie Dimon (2007 - present)
Notable Prior CEOs: William B. Harrison, Jr. (2000 - 2006)

Stock Symbol: JPM (NYSE)

Recent Close: Yahoo! Finance: JPM

Business Principles: JPMorgan's Business Principles
  1. Aspire to be the best
  2. Execute superbly
  3. Build a great team and a winning culture

Why Our Bank? Undergraduate Opportunities
  • History: Legacy of success, which reaches back more than 200 years
  • Business Lines: Operate in six distinct lines of business and offer a vast array of wholesale and retail financial products. This provides exposure to many different types of products and transactions.
  • Perspectives: Diverse work place where people bring their unique perspective to business life and how to succeed in the global marketplace.

Culture: Our Culture
    JPMorgan has been helping its clients do business for more than 200 years. To describe our firm and our people we can find no better phrase than that of one of our founders: “at all times the idea of doing only first-class business, and that in a first-class way“.

    J.P. Morgan, Jr., first used this phrase in 1933 when he spoke to the banking and currency sub-committee of the U.S. Senate. He believed a banker's role was to provide clients with exceptional service coupled with outstanding execution and unquestioned integrity. More than 70 years later, his statement is as relevant now as it was then.

    JPMorgan's mission is to be the best financial services company in the world. To achieve this goal, we focus relentlessly on carrying out our business principles, which are fundamental to everything we do. They are to:
    1. Aspire to be the best
      • Develop a world-class franchise in every business we operate
      • Be client-drive, consistently delivering the best products and services in a cost-effective way
      • Innovate, test, and learn
      • Create powerful brands that carry a commitment of quality and integrity

    2. Execute superbly
      • Demand and maintain strong financial discipline, building for good times and bad
      • Create and maintain a fortress balance sheet
      • Design and maintain the best systems and operations
      • Eliminate waste and bureaucracy
      • Maintain a strong system of internal governance and controls
      • Measure performance through a complete and balanced scorecard

    3. Build a great team and a winning culture
      • Operate with the highest standards of integrity
      • Train and retain great managers
      • Be open and honest with ourselves, our colleagues, our shareholders and our communities
      • Get incentives right
      • Foster an environment of respect and inclusiveness
      • Give back to our communities

    Being a first-class firm also means doing "good", not just doing well. JPMorgan has a proud tradition of being a good corporate citizen around the world. We dedicate significant financial and human capital to supporting issues and causes important to our business and our people.

Notable Deals:
  • Upcoming IPOs as Lead Manager: Apple Creek Acquisition; BlueArc; Current Media; Global Energy; IdleAire Technologies; INFONXX; LogMeln; Omneon, Inc.; RAI Acquisition; RHI Entertainment; SS&C Technologies Holdings; Stewart & Stevenson; Symetra Financial; Talecris BioTherapeutics; Varolii; ViewSonic; Visa; Wells Real Estate Investment Trust; XDx

The History(s):
    JPMorgan: Our History and Heritage

    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, the company acquired the Chase Manhattan Corporation and took the Chase name. In 2000, the company acquired J.P. Morgan & Co. and changed its name to J.P. Morgan Chase & Co. JPMorgan Chase retains Chemical Bank's headquarters and stock history.

    Chase Manhattan Bank

    The Chase Manhattan Bank was formed upon the 1978 purchase of Chase National Bank (established in 1877) by the Bank of the Manhattan Company (established in 1799), the company's oldest predecessor institution. Led by David Rockefeller during the 1970s and the 1980s, Chase Manhattan was one of the largest and most prestigious banking concerns, with leadership positions in syndicated lending, treasury and securities services, credit cards, mortgages, and retail financial services. Weakened by the real estate collapse in the early 1990s, it was acquired by Chemical Bank in 1996.

    The Bank of the Manhattan Company was the creation of Aaron Burr, who transformed The Manhattan Company from a water carrier into a bank.

    Bank One Corporation

    Bank One Corporation was formed upon the 1998 merger between Banc One of Ohio and First Chicago NBD. These two large banking companies had themselves been created through the merger of many banks.

    The bank traces its roots to First Bancgroup of Ohio, founded as a holding company for City National Bank of Columbus, Ohio and several other banks in that state, all of which were renamed "Bank One" when the holding company was renamed Banc One Corporation. With the beginning of interstate banking they spread into other states, always renaming acquired banks "Bank One", though for a long time they resisted combining them into one bank. After the NBD merger, adverse financial results led to the departure of CEO John B. McCoy, whose father and grandfather had headed Banc One and predecessors. Jamie Dimon, a former key executive of Citigroup, was brought in to head the company.

    J.P. Morgan & Company

    In 1895, Drexel, Morgan & Co. became J.P. Morgan & Co. (see also: John Pierpont Morgan). It financed the formation of the United States Steel Corporation, which took over the business of Andrew Carnegie and others and was the world's first billion-dollar corporation. In 1895, it supplied the United States government with $62 million in gold to float a bond issue and restore the treasury surplus of $100 million. In 1892, the company began to finance the New York, New Haven and Hartford Railroad and led it through a series of acquisitions that made it the dominant railroad transporter in New England.

    Its primary competitor, Kuhn, Loeb & Co., was a more successful adviser and financier to production companies and J.P. Morgan lost its first place in market cap and the league tables. Kuhn, Loeb & Co. would, through a series of mergers and divestitures, eventually become publicly held Lehman Brothers.

    Built in 1914, 23 Wall Street was known as the "House of Morgan," and for decades the bank's headquarters was the most important address in American finance. At noon, on September 16, 1920, a terrorist bomb exploded in front of the bank, injuring 400 and killing 38.[citation needed] Shortly before the bomb went off, a warning note was placed in a mailbox at the corner of Cedar Street and Broadway. The warning read: "Remember we will not tolerate any longer. Free the political prisoners or it will be sure death for all of you. American Anarchists Fighters." While theories abound about who was behind the Wall Street bombing and why they did it, after twenty years investigating the matter, the FBI rendered the file inactive in 1940 without ever finding the perpetrators.

    In August 1914, Henry P. Davison, a Morgan partner, traveled to the UK and made a deal with the Bank of England to make J.P. Morgan & Co. the monopoly underwriter of war bonds for UK and France. The Bank of England became a "fiscal agent" of J.P. Morgan & Co. and vice versa. The company also invested in the suppliers of war equipment to England and France. Thus, the company profited from the financing and buying activities of the two European governments.

    In the 1930s, J.P. Morgan & Co. was forced by the Glass-Steagall Act to choose either commercial banking or investment banking. J.P. Morgan & Co. chose to operate as a commercial bank, because it was perceived to be more profitable in the post depression era. Faced with this new paradigm shift, many Morgan partners, along with some Drexel partners, sought to begin what is now called Morgan Stanley. It is a common misconception that the "Morgan" in Morgan Stanley is the last name of John Pierpont Morgan, but, in fact, it is the last name of Henry Morgan, who was a J.P. Morgan partner. J.P. Morgan & Co. incorporated in 1940, and, in 1959, merged with the Guaranty Trust Company of New York to form the Morgan Guaranty Trust Company. Ten years later, it established a bank holding company called J.P. Morgan & Co. Incorporated as its parent. By the late 1990s, it was acquired by Chase Manhattan and the new company's name became JPMorgan Chase & Co. The Gramm-Leach-Bliley Act repealed the restrictions of Glass-Stegall and allowed Morgan to turn itself into an investment bank, too. Besides investment banking, it also offered private banking and private equity services.

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