JPMorgan Chase

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JPMorgan Chase & Co.

logo
legal form Corporation
ISIN US46625H1005
founding 2000
Seat 270 Park Avenue , New York City , United StatesUnited StatesUnited States 
management James Dimon ( Chairman & CEO )
Number of employees 256.981
sales 115,630,000,000 USD
Branch Banks
Website jpmorganchase.com
As of December 31, 2019

London JPMorgan Chase & Co. Headquarters, 25 Bank Street , Canary Wharf , London , United Kingdom
JPMorgan Chase Tower, 270 Park Avenue , New York City

The JPMorgan Chase & Co. is a US American bank based in New York City . With total assets of over $ 2,600 billion, it is the largest bank in the United States and, according to Forbes, the third largest publicly traded company in the world. It was created in 2000 when Chase Manhattan Bank and JP Morgan & Co. merged. In terms of earnings, JPMorgan Chase replaced Citigroup as the largest US bank in 2007 and was the third largest bank in the world according to the Forbes Global 2000 ranking in 2018 . With a market capitalization of $ 306.6 billion, JPMorgan Chase was the most publicly capitalized bank in the world in early 2017. Its hedge fund division is one of the largest US hedge funds. In 2019, JP Morgan posted its highest annual profit ever of $ 36.4 billion.

The bank is one of the 30 systemically important major banks according to the classification by the Financial Stability Board (FSB). It is therefore subject to special monitoring and stricter requirements for the endowment with equity . Due to its strong international ties, a failure would be associated with a particularly high risk for the international financial markets, which is why it is the only bank to have the highest equity surcharge of 2.5 percentage points required to date under Basel III .

history

Chemical Banking Corporation

New York Chemical Manufacturing Company security dated 1824

The New York Chemical Manufacturing Company was founded in 1823 as a manufacturer of various chemicals. In 1824 the company amended its articles of association to allow it to operate as a bank, creating the Chemical Bank of New York . After 1851 the bank was separated from its parent company and grew both organically and through a series of acquisitions. Its best-known acquisitions include Corn Exchange Bank, Texas Commerce Bank, and Manufacturer's Hanover Trust Company . At various points in its history, Chemical Bank was the largest bank in the United States (either by assets or by market share in bank deposits).

In 1996, Chemical Bank bought Chase Manhattan Bank and took the name of the company it acquired. In 2000, it also acquired JP Morgan & Co. and changed its company to JP Morgan Chase & Co. During these mergers, JPMorgan Chase retained the headquarters and most of the management of Chemical Bank.

Chase Manhattan Bank

The Chase Manhattan Bank was the result of a takeover of the Chase National Bank (founded in 1877) by the Bank of the Manhattan Company (founded in 1799) in 1955. Led by David Rockefeller in the 1970s and 1980s, was Chase Manhattan one of the largest and well-known banking groups in the USA with a leading position in the areas of “Syndicated Lending” and “Treasury” as well as in securities services, credit cards, mortgages and financial services. Weakened by the collapse of the real estate market in the early 1990s, it was bought by Chemical Bank in 1996.

JP Morgan & Company

In 1895 the bank Drexel, Morgan & Co. was renamed JP Morgan & Co. (see also: John Pierpont Morgan ). This funded the formation of the United States Steel Corporation in 1901 , which took over the business of Andrew Carnegie and others and became the largest public company in the world at the time, with a market value of over a billion dollars. In 1895, JP Morgan & Co. loaned the US government $ 62 million in gold to fund the issuance of bonds and bring the state surplus back to $ 100 million.

September 16, 1920: A bomb explodes in front of the then headquarters of JP Morgan Inc., 23 Wall Street, injuring 400 people and killing 38.

In the 1930s, JP Morgan was forced by the Glass-Steagall Act to separate investment banking from the rest of the banking business. Then - together with some Drexel partners - Henry Sturgis Morgan, a son of JP Morgan, and Harold Stanley, who both previously worked for JP Morgan & Co, founded the investment bank named after them. In 1940 the previous partnership, JP Morgan, changed its legal form and became a stock corporation. In 1959 this merged with the Guaranty Trust Company of New York to form the Morgan Guaranty Trust Company. Ten years later, Morgan Guaranty Trust Company formed a holding company, JP Morgan & Co., which served as the parent company for Morgan Guaranty Trust.

JP Morgan later changed operations and became an investment bank before being acquired by Chase Manhattan Bank in the late 1990s . In addition, JP Morgan also offered private banking and private equity services.

Merger of Chase Manhattan and JP Morgan & Co

JPMorgan was acquired by Chase Manhattan Bank in 2001 and the two companies merged on November 10, 2001 to form JP Morgan Chase & Co. The merger was announced in September 2000 after Chase had submitted a bid for US $ 36 billion.

Takeover of Bank One

JPMorgan took over Bank One , the sixth largest banking group in the United States , in 2004 . The purchase price was $ 58 billion.

Bear Stearns acquired and New York Attorney General sued

Bear Stearns was in a crisis when two hedge funds collapsed, the two funds collapsing as a result of the global financial crisis . In March 2008, JPMorgan Chase took over the troubled investment bank, saving it from bankruptcy . JPMorgan Chase has guaranteed all of Bear Stearns’s financial obligations with the assistance of the Fed , which in turn has guaranteed JPMorgan Chase for $ 30 billion. The first takeover offer was $ 2 a share and was considered a junk price, after protests by Bear Stearns shareholders, the offer was increased to $ 10 per share.

In early October 2012, the New York District Attorney filed a lawsuit against JPMorgan Chase. Prior to the collapse of Bear Stearns in 2008 and its takeover by JPMorgan Chase, there was massive fraud in the sale of mortgage securities in 2006 and 2007 . Bear Stearns made investors believe that real estate mortgage-backed securities were carefully valued and reviewed, but in fact they were based on bad real estate loans. According to the public prosecutor's office, investors have so far lost 22.5 billion US dollars (approx. 17.5 billion euros).

Acquisition of Washington Mutual

In the wake of the global financial crisis , the then largest US savings bank Washington Mutual was taken over by JPMorgan on September 25, 2008. The downfall of Washington Mutual was the largest bank failure in US history. JPMorgan then received from the Federal Deposit Insurance Corporation (FDIC) approximately $ 188 billion in deposits, approximately 5400 branches and $ 307 billion in assets for $ 1.9 billion. According to the FDIC, there had been large outflows of $ 16.7 billion from mid-September 2008 and alleged liquidity problems. These were questioned by Washington Mutual. Washington Mutual filed a lawsuit against the FDIC in 2009 for unlawful seizure in connection with the subsequent sale, demanding payments of $ 13 billion.

Takeover of Cazenove

In November 2009 it was announced that JPMorgan wanted to take over another 50% of the London investment bank Cazenove. JPMorgan offered £ 5.35 per share to the 1,500 owners of the remaining shares who were not already in their possession. The transaction thus had a volume of around one billion pounds. In 2004 JPMorgan entered into a joint venture with Cazenove . In connection with the joint venture, JPMorgan received a purchase option that expired in February 2010. Cazenove specializes in corporate broking. After the merger, Cazenove lost four important customers in 2005: HBOS , ITV , Diageo and Group 4 Securior . Cazenove Investment was renamed JP Morgan Cazenove after the full takeover in 2010.

Negotiations with US authorities about payment of fines (2013)

The "Wall Street Journal" reported on its website in mid-October 2013, citing insiders, that JP Morgan had reached a preliminary agreement with the FHFA (Federal Housing Finance Agency) responsible for the US housing market and was ready to impose a penalty of $ 4 billion to pay.

JP Morgan are - like many other big banks - accused of trickery in selling securities and real estate loans before the financial crisis . After the US housing market collapsed (see subprime crisis ), most mortgage- backed securities lost a large part of their value; their owners suffered heavy losses. Many of them then claimed compensation because they felt deliberately deceived.

In late October, it was announced that JP Morgan agreed to pay $ 13 billion as a flat-rate fine in connection with the 2007 financial crisis in order to have numerous lawsuits suspended. In an interview with US magazine Rolling-Stone on November 6, 2014, lawyer Alayne Fleischmann made serious allegations against her former employer JPMorgan Chase and the US Department of Justice. The agreed amount of $ 13 billion should be adjusted by $ 4 billion.

Sale of the raw materials division

JPMorgan announced in 2013 that it would sell its raw materials business to the Swiss Mercuria Energy Group by September 2014 . The purchase price was $ 3.5 billion.

Own cryptocurrency: JPM Coin

In February 2019, JPMorgan Chase announced that it would launch its own cryptocurrency. The JPM Coin is intended to make it possible for customers to complete transactions without delay. The JPM COIN is a stablecoin : each of the tokens is covered by one US dollar and can be exchanged at any time.

Business figures

Business and employee development (respective fiscal year)
year Total assets
in US $ million 		Sales
in US $ million 		Balance sheet profit
in million US $ 		Price per share
in US $ 		Employees
2005 1,198,942 79,768 8,470 36.07
2006 1,351,520 99,864 14,440 43.93
2007 1,562,147 116.353 14,924 47.75
2008 2,175,052 101,491 4,742 39.83
2009 2,031,989 115,632 8,774 35.49
2010 2,117,605 115,475 15,764 40.35
2011 2,265,792 110,838 17,568 39.36
2012 2,359,141 108.074 19,877 39.22
2013 2,415.689 106,717 16,557 51.88 251.196
2014 2,572,274 103.009 20,077 58.17 241,359
2015 2,351,698 101.006 22,651 63.83 234,598
2016 2,490,972 105,486 22,834 65.62 243,355
2017 2,533,600 113,899 22,567 92.01 252,539
2018 2,622,532 131,412 30,709 110.72 256.105

Germans in management (selection)

Dorothee Blessing is Vice Chairman Investment Banking EMEA and has also headed the Germany, Austria and Switzerland (DACH) region since 2015. Martin Wiesmann is Vice Chairman Investment Banking EMEA.

JP Morgan Corporate Challenge

JPMorgan Chase Tower in Houston

JPMorgan Chase organizes the JP Morgan Corporate Challenge (JPMCC), a running event over the distance of 5.6 km (3.5 miles) especially for companies , at numerous company locations (including New York City, London , Frankfurt am Main and Sydney ) and their employees at the respective location. A special feature is that there is no central official time control, but the respective runners measure their time themselves.

criticism

In June 2010, the UK's Financial Services Authority (FSA) fined JPMorgan Chase £ 33.3 million for failing to segregate customer funds in individual accounts for years .

According to a February 13, 2010 report in the New York Times , JP Morgan - like Goldman Sachs - had helped Greece over the past decade to hide the extent of its national debt .

The bank is also accused of influencing the peaceful protests in New York . In the fall of 2011, she donated $ 4.6 million to the New York City Police Foundation . According to official information, this largest donation in the history of the foundation was used to increase security in the “ Big Apple ”.

In early May 2012, the bank announced that it had speculated about risky deals and that it would have to write off two billion US dollars (approx. 1.54 billion euros) within six weeks. The portfolio was originally intended to hedge JPMorgan against financial risks. The cause was the London Chief Investment Office (CIO) of JP Morgan trader Bruno Iksil, who acted with the express support of CEO James Dimon . Dimon rejected criticism of these practices that came up in mid-April 2012. The rating agency Fitch then downgraded the bank's creditworthiness by one notch from AA− to A +. At the same time, the stock market price of JPMorgan collapsed , the institute lost 15 billion US dollars in market value on the New York Stock Exchange on May 12 . In mid-July 2012, the bank corrected the total of the loss for the second quarter of 2012 to 4.4 billion US dollars, for the first quarter it announced a loss of 1.4 billion US dollars. This results in a cumulative loss of 5.8 billion US dollars, with additional risks of 1.7 billion US dollars open. As an upper limit for the possible loss, the bank gave 7.5 billion US dollars. Nevertheless, thanks to special effects, the second quarter ended with a net profit of 4.96 billion US dollars, slightly less than last year.

In 2014, Chase was criticized for resigning all clients who were active as porn stars.

In November 2016, JPMorgan Chase was fined $ 264 million for hiring family members of Chinese officials to seek benefits for JPMorgan. This "sons-and-daughters" campaign was viewed by the US Department of Justice as a bribe .

See also

Web links

Commons : JPMorgan Chase & Co.  - Collection of pictures, videos and audio files

Individual evidence

  1. ↑ JPMorgan Chase & Co .: About Us
  2. ^ JPMorgan Chase & Co .: Chairman & CEO
  3. ↑ a b Annual Report 2019 , accessed on June 9, 2020
  4. ^ History of Our Firm . JPMorganChase. Retrieved April 14, 2013.
  5. ↑ BofA Swings to Profit in Quarter Muddled . In: The Wall Street Journal , October 19, 2011. Retrieved April 14, 2013. 
  6. ^ The World's Biggest Companies . In: Forbes , April 18, 2012. Retrieved July 17, 2011. 
  7. ↑ JPMorgan Chase replaces Citigroup as the largest US bank , SPIEGEL ONLINE
  8. ↑ Special Report: The Forbes 2000 . April 22, 2008 (English).
  9. ^ The World's Largest Public Companies . In: Forbes . ( forbes.com [accessed August 1, 2018]).
  10. ↑ World's Largest Hedge Funds . In: Market Folly . Retrieved April 14, 2013.
  11. ↑ America's largest bank writes record numbers for the Frankfurter Allgemeine Zeitung. January 14, 2020, accessed January 15, 2020.
  12. ^ Policy Measures to Address Systemically Important Financial Institutions. In: Financial Stability Board (FSB) of November 4, 2011 ( financialstabilityboard.org , PDF; 105 kB).
  13. ↑ 2017 list of global systemically important banks (G-SIBs) ( English , PDF) Secretariat to the Financial Stability Board Bank for International Settlements. November 21, 2017. Retrieved November 21, 2017.
  14. ^ New York Bank History ( Memento of May 10, 2006 in the Internet Archive )
  15. ↑ Annual Report 2001. (PDF) JP Morgan AG, June 7, 2002, accessed on September 24, 2017 .
  16. ↑ Foreign exchange trading: Chase Manhattan takes over JP Morgan . In: Der Tagesspiegel Online . September 12, 2000, ISSN  1865-2263 ( tagesspiegel.de [accessed September 24, 2017]).
  17. ^ By Andreas Oldag, Lothar Gries: US megafusion drives German bank shares . In: sueddeutsche.de . 2010, ISSN  0174-4917 ( sueddeutsche.de [accessed on October 3, 2017]).
  18. ↑ Two years of the financial crisis: How the world fell apart. In: manager magazin . June 30, 2009, accessed May 26, 2016 .
  19. ↑ Central bank cuts discount rate again: JP Morgan Chase takes over Bear Stearns | NZZ . In: Neue Zürcher Zeitung . March 16, 2008, ISSN  0376-6829 ( nzz.ch [accessed October 3, 2017]).
  20. ^ Bear Stearns: JP Morgan quintupled price. In: manager magazin . March 24, 2008, accessed May 26, 2016 .
  21. ↑ Public prosecutor sues major US bank for fraud: Bad home loans could be expensive for JPMorgan at tagesschau.de , October 2, 2012 (accessed October 2, 2012).
  22. ↑ By David Ellis and Jeanne Sahadi, CNNMoney.com staff writers: JPMorgan to buy WaMu - Sep. 25, 2008. Retrieved October 3, 2017 .
  23. ^ Washington Mutual sues FDIC for over $ 13 billion . In: Reuters . March 21, 2009 ( reuters.com [accessed November 23, 2017]).
  24. ↑ Cazenove: JP Morgan takes over traditional broker. In: manager magazin . November 19, 2009, accessed May 26, 2016 .
  25. ↑ Dealbook: JPMorgan to Take Over Cazenove for $ 1.7 Billion . In: DealBook . ( dealbook.nytimes.com [accessed November 21, 2017]).
  26. ↑ Investment house Cazenove has to replace lost company mandates after takeover by JP Morgan: The Queen's broker is fighting for customers . ( handelsblatt.com [accessed November 21, 2017]).
  27. ↑ JP Morgan Cazenove | JP Morgan. Retrieved November 21, 2017 .
  28. ^ Dan Fitzpatrick And Devlin Barrett: JP Morgan, Housing Regulator Reach $ 4 Billion Deal . In: Wall Street Journal . October 18, 2013, ISSN  0099-9660 ( wsj.com [accessed November 5, 2019]).
  29. ↑ spiegel.de: Mortgage dispute: JP Morgan should pay a four billion dollar fine
  30. ↑ Flat-rate fine for the financial crisis (WSJ via AFP)
  31. ↑ FAZ.net October 26, 2013: JP Morgan pays $ 5 billion in the real estate dispute - Reuters via FAZ, October 26, 2013
  32. ↑ Matt Taibbi : The $ 9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare. Rolling-Stone , November 6, 2014, accessed on November 8, 2014 (English): “But the idea that Holder had cracked down on Chase was a carefully contrived fiction ... Because most of the settlement monies were specifically not called fines or penalties, Chase was allowed to treat some $ 7 billion of the settlement as a tax write-off. "
  33. ↑ n-tv news television: JP Morgan sells raw materials business . In: n-tv.de . ( n-tv.de [accessed on October 6, 2017]).
  34. ↑ JPMorgan Chase: Largest bank in the US issues its own cryptocurrency - competition for Ripple? February 14, 2019, accessed November 5, 2019 .
  35. ↑ JPMorgan Chase Total Assets 2006-2018 | JPM. Retrieved October 22, 2018 .
  36. ↑ Company profile . Retrieved October 22, 2018 .
  37. ↑ Dorothee Blessing is promoted to JP Morgan. Retrieved November 5, 2019 .
  38. ↑ Financial supervision: JP Morgan gets a record fine. In: Handelsblatt . June 3, 2010, accessed May 26, 2016 .
  39. ^ Sabine Müller: Report on deals with Greece. Finished public finances thanks to US banks? ( tagesschau.de February 15, 2010. As of March 4, 2015)
  40. ↑ Archive link ( Memento from October 6, 2011 in the Internet Archive )
  41. ↑ JPMorgan gambled away two billion dollars ( Memento from May 11, 2012 in the Internet Archive ) at tagesschau.de, May 11, 2012 (accessed on May 11, 2012).
  42. ↑ Missing speculation by JP Morgan "Lord Voldemort" destroys $ 2 billion ( Memento from May 13, 2012 in the Internet Archive ) at ftd.com, May 11, 2012 (accessed on May 12, 2012).
  43. ↑ After failed Zockerei: Fitch credit rating ranks of JPMorgan down at tagesschau.de 12 June 2012 (accessed on 12 May 2012).
  44. ^ JPMorgan's share price at Smartestfinance.com (accessed February 20, 2014).
  45. ↑ Two billion dollar trade scandal: rating agency downgrades JP Morgan at faz.net, May 12, 2012 (accessed May 12, 2012).
  46. ↑ JP Morgan surprises with a profit of 5 billion ( memento from July 15, 2012 in the Internet Archive ) at boerse.ard.de, July 13 (accessed on July 13, 2012).
  47. ↑ JP Morgan reports good quarterly figures thanks to special effects. In: Neue Zürcher Zeitung of July 13, 2012
  48. ↑ Lila Gray: Chase Bank Slams the Door on More Porn Stars. (No longer available online.) XBIZ , April 22, 2014, archived from the original on February 19, 2016 ; accessed on February 19, 2016 .
  49. ↑ Dubious hiring practices: JP Morgan pays millions in fine . In: Spiegel Online . November 18, 2016 ( spiegel.de [accessed December 5, 2017]).

Coordinates: 40 ° 45 ′ 20.9 "  N , 73 ° 58 ′ 31.4"  W.