JPMorgan Chase & Co. (NYSE: JPM) is an American global securities, investment banking and retail banking firm. It is a major provider of financial services, with assets of $2 trillion, and is the U.S. banking institution having the second largest market capitalization[2] and third largest domestic deposit base (behind Wells Fargo and Bank of America). The hedge fund unit of JPMorgan Chase is the largest hedge fund in the United States with $53.5 billion in assets as of the end of 2009.[3] It was formed in 2000, when Chase Manhattan Corporation merged with J.P. Morgan & Co.
The J.P. Morgan 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. The corporate headquarters are in New York City and the retail and commercial bank is headquartered in Chicago.[4]
JPMorgan Chase is one of the Big Four banks of the United States with Bank of America, Citigroup and Wells Fargo.

JPMorgan Chase & Co. (JPMorgan Chase), incorporated in 1968, is a financial holding company. JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association (JPMorgan Chase Bank, N.A.), a national bank with United States branches in 23 states, and Chase Bank USA, National Association (Chase Bank USA, N.A.), a national bank that is the Firm’s credit card-issuing bank. JPMorgan Chase’s principal nonbank subsidiary is J.P. Morgan Securities LLC (JPMorgan Securities), the Firm’s United States investment banking firm. The bank and nonbank subsidiaries of JPMorgan Chase operate nationally, as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Company's activities are organized into six business segments: Investment Bank, Retail Financial Services (RFS), Card Services (CS), Commercial Banking (CB), Treasury & Securities Services (TSS) and Asset Management (AM). Its wholesale businesses comprise the Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management segments. Its consumer businesses comprise the Retail Financial Services and Card Services segments. It also has a corporate segment, which includes Private Equity, Treasury and Corporate operations. In July 2010, Sempra Energy and Royal Bank of Scotland Group plc completed the sale of select operations of their RBS Sempra Commodities joint venture to J.P. Morgan, the investment banking arm of JPMorgan Chase & Co.
Investment Bank
The Investment Bank’s clients are corporations, financial institutions, governments and institutional investors. JPMorgan Chase offers a range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, sophisticated risk management, market-making in cash securities and derivative instruments, prime brokerage, and research.
Retail Financial Services
RFS serves consumers and businesses through personal service at bank branches and through automated teller machines (ATMs), online banking and telephone banking, as well as through auto dealerships and school financial-aid offices. Customers can use more than 5,200 bank branches and 16,100 ATMs, as well as online and mobile banking around-the-clock. More than 28,900 branch salespeople assist customers with checking and savings accounts, mortgages, home equity and business loans, and investments across the 23-state footprint from New York and Florida to California. Consumers also can obtain loans through more than 16,200 auto dealerships and 2,200 schools and universities nationwide.
Card Services
CS is a credit card issuer. Chase cards to meet more than $313 billion of their spending needs in during the year ended December 31, 2010. The Company offers products and services, such as Blueprint, Chase Freedom, Ultimate Rewards, Chase Sapphire and Ink from Chase. Through its merchant acquiring business, Chase Paymentech Solutions, CS is engaged in payment processing and merchant acquiring.
Commercial Banking
CB serves nearly 24,000 clients nationally, including corporations, municipalities, financial institutions, not-for-profit entities and nearly 35,000 real estate investors/owners. CB partners with the Company’s other businesses to provide solutions, including lending, treasury services, investment banking and asset management to meet its clients’ domestic and international financial needs.
Treasury & Securities Services
TSS is engaged in providing transaction, investment and information services. TSS is cash management provider and a global custodian. Treasury Services (TS) provides cash management, trade, wholesale card and liquidity products and services to small and mid-sized companies, multi-national corporations, financial institutions and government entities. TS partners with IB, CB, RFS and Asset Management businesses to serve clients. Worldwide Securities Services holds, values, clears and services securities, cash and alternative investments for investors and broker-dealers, and manages depositary receipt programs globally.
Asset Management
AM offers investment and wealth management. AM clients include institutions, retail investors and high-net-worth individuals in markets throughout the world. AM offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity products, including money-market instruments and bank deposits. AM also provides trust and estate, banking and brokerage services to high-net-worth clients, and retirement services for corporations and individuals. The majority of AM’s client assets are in actively managed portfolios.


The famous House of Morgan traces its roots back to 1838 and the founding in London of a merchant banking firm by George Peabody. Junius S. Morgan became Peabody's partner in 1854, soon taking over the firm and renaming it J.S. Morgan & Co. in 1864. In the meantime, Junius's son, John Pierpont (J.P.) Morgan, had established a New York sales and distribution office called J.P. Morgan & Co. in 1861. J.P. Morgan inherited his father's businesses upon his death in 1890 and consolidated them five years later under J.P. Morgan & Co. Morgan played a key role in financing many of the businesses that turned the United States into an industrial power around that time, including General Electric Company, U.S. Steel, and AT & T. Taking on the role later played by the chairman of the Federal Reserve, Morgan was instrumental in pulling a group of bankers together to stave off the 1907 financial crisis. There was much criticism, however, for the power wielded by Morgan and his bank, particularly from the system of interlocking directorships that led Morgan partners to hold 72 directorships on the boards of 47 corporations--corporations that were worth $10 billion. A 1912 investigation into these interrelationships led to the passage of the Federal Reserve Act of 1913 and the Clayton Antitrust Act of 1914, the latter of which ended reciprocal directorships.
Following J.P. Morgan's death in 1913, his son, J.P. (Jack) Morgan, Jr., became the firm's senior partner. The company continued to thrive but the disastrous business practices of banks during the 1920s, which played a key role in the subsequent 1929 stock market crash, led to the enactment of new banking regulations in the early 1930s that changed the course of J.P. Morgan's history. The Banking Act of 1933, better known as the Glass-Steagall Act, separated commercial and investment banking. J.P. Morgan & Co. elected to pursue commercial banking and spun off its investment banking business as Morgan Stanley & Co. Incorporated in 1935.
In 1940 J.P. Morgan & Co. Incorporated was incorporated under New York State law. Two years later, the firm went public. Needing more capital and higher lending limits, J.P. Morgan merged with Guaranty Trust Company in 1959 to form Morgan Guaranty Trust Company of New York. Ten years later, a new bank holding company was formed called J.P. Morgan & Co. Incorporated, which had Morgan Guaranty as its principal subsidiary.
During the late 1960s and 1970s J.P. Morgan began venturing back into the investment banking sector but only outside the United States, where Glass-Steagall did not hold sway. Eventually, by the late 1980s, U.S. regulators began loosening the restrictions. The Federal Reserve gave J.P. Morgan permission to underwrite corporate debt securities in 1989, followed one year later by permission to underwrite equities. But J.P. Morgan's move back into investment banking progressed at a slow pace compared to its rivals, who were busily gobbling each other up. Working to build up a new investment banking operation from scratch, J.P. Morgan largely missed out on the great high-tech IPO boom of the late 1990s. At the same time, the company's asset management arm continued to focus on its traditional customers--the elite--meaning that it for the most part missed another boom of the 1990s: individual investing by the masses. Trying to make up for this shortfall, J.P. Morgan in 1997 purchased a 45 percent stake in American Century Investments, the fourth largest direct distributor of mutual funds in the United States.
The J.P. Morgan Chase Era Begins
At the end of 2000, Chase Manhattan acquired J.P. Morgan in a deal valued at about $32 billion. The newly named J.P. Morgan Chase & Co. boasted assets totaling $660 billion, ranking it behind only Citigroup and Bank of America Corporation among financial services firms. Douglas A. Warner III, the head of J.P. Morgan, was named chairman of J.P. Morgan Chase, while Harrison, Chase's head, was named president and CEO. The new banking giant had two main units: J.P. Morgan, comprising global commercial banking services, including investment banking, wealth management, institutional asset management, and private equity; and Chase, the consumer banking operations, including the bank branches in the New York area and in Texas, credit cards, mortgage banking, and consumer lending. Comparing the old Chase with the new J.P. Morgan Chase, the merger greatly reduced the relative size of the consumer operations, from which only about 27 percent of the revenue and 19 percent of the pretax earnings would now be derived. Looking to generate annual cost savings of $3 billion, J.P. Morgan Chase announced that it would be eliminating 5,000 jobs from its workforce, would consolidate the processing systems of its two predecessor firms, and would sell off $500 million in real estate. There was also speculation that, with the heart of the firm clearly on the commercial side, J.P. Morgan Chase might eventually divest some of its consumer businesses, such as credit cards and auto loans, which were being increasingly viewed as noncore operations.
Principal Operating Units: J.P. Morgan; Chase.
Principal Competitors: American Express Company; Bank One Corporation; Bank of America Corporation; The Bank of New York Company, Inc.; The Bear Stearns Companies Inc.; Capital One Financial Corporation; Citigroup Inc.; Credit Suisse First Boston; Deutsche Bank AG; Dime Bancorp, Inc.; First Union Corporation; FleetBoston Financial Corporation; General Electric Capital Corporation; Goldman Sachs Group Inc.; HSBC Holdings plc; Household International, Inc.; KeyCorp; Lehman Brothers Holdings Inc.; MBNA Corporation; Merrill Lynch & Co., Inc.; Morgan Stanley Dean Witter & Co.; UBS AG; Wells Fargo & Company.


OVERALL
Beta: 1.14
Market Cap (Mil.): $178,656.91
Shares Outstanding (Mil.): 3,973.69
Annual Dividend: 1.00
Yield (%): 2.22
FINANCIALS
JPM.N Industry Sector
P/E (TTM): 9.99 14.42 25.03
EPS (TTM): 74.95 -- --
ROI: -- 0.00 4.72
ROE: 10.89 3.46 9.21

Statistics:
Public Company
Incorporated: 1968 as Chemical New York Corporation
Employees: 90,000
Total Assets: $705 billion (2001 est.)
Stock Exchanges: New York London
Ticker Symbol: JPM
NAIC: 522110 Commercial Banking; 522190 Other Depository Credit Intermediation; 522210 Credit Card Issuing; 522291 Consumer Lending; 523110 Investment Banking and Securities Dealing; 523120 Securities Brokerage; 523210 Securities and Commodity Exchanges; 523920 Portfolio Management; 523991 Trust, Fiduciary, and Custody Activities; 551111 Offices of Bank Holding Companies

Key Dates:

1799: The Bank of Manhattan Company is founded.
1824: Chemical Bank is established.
1838: George Peabody forms a merchant bank in London.
1851: Hanover Bank begins business.
1853: Manufacturers National Bank is founded.
1854: Junius S. Morgan becomes a partner of Peabody in the London merchant bank and soon takes it over.
1861: Junius's son, J.P. Morgan, founds a New York sales and distribution office called J.P. Morgan & Co.
1864: J.S. Morgan renames the London merchant bank J.S. Morgan & Co.
1877: Chase National Bank is formed.
1895: J.P. Morgan consolidates his father's businesses under J.P. Morgan & Co.
1914: Manufacturers mergers with Citizens Trust Company and subsequently changes its name to Manufacturers Trust Company.
1929: Hanover merges with Central Trust Company to form the Central Hanover Bank and Trust Company.
1930: Chase acquires Equitable Trust Company, owned by John D. Rockefeller.
1933: The Glass-Steagall Act separates commercial and investment banking.
1935: J.P. Morgan spins off its investment banking arm as Morgan Stanley.
1954: Chemical merges with Corn Exchange Bank and Trust Company.
1955: Bank of Manhattan and Chase National merge to form Chase Manhattan Bank.
1959: J.P. Morgan merges with Guaranty Trust Company to form Morgan Guaranty Trust Company of New York.
1961: Manufacturers and Hanover merge to form Manufacturers Hanover Trust Company.
1968: Chemical New York Corporation is established as a bank holding company for Chemical Bank.
1969: Chase Manhattan Corporation is formed as a bank holding company, with Chase Manhattan Bank, N.A. becoming its main subsidiary; Manufacturers Hanover Corporation is created as a bank holding company, with Manufacturers Hanover Trust as its subsidiary; J.P. Morgan & Co. Incorporated is formed as a bank holding company, with Morgan Guaranty Trust as its principal subsidiary.
1987: Chemical acquires Texas Commerce Bankshares.
1989: The Federal Reserve grants J.P. Morgan permission to underwrite corporate debt securities, marking the firm's return to the U.S. investment banking sector.
1991: Chemical merges with Manufacturers Hanover, creating Chemical Banking Corporation.
1996: Chemical Banking acquires Chase Manhattan and adopts the Chase name.
1997: J.P. Morgan purchases 45 percent stake in American Century Investments.
1999: Chase acquires Hambrecht & Quist Group Inc.
2000: Chase acquires Robert Fleming Holdings Ltd.; Chase merges with J.P. Morgan to form J.P. Morgan Chase & Co.

Name Age Since Current Position
Dimon, James 54 2006 Chairman of the Board, President, Chief Executive Officer
Braunstein, Douglas 49 2010 Chief Financial Officer
Cavanagh, Michael 44 2010 Chief Executive Officer - Treasury & Securities Services
Miller, Heidi 57 2010 President - International
Scharf, Charles 45 2006 Chief Executive Officer - Retail Financial Services
Staley, James 54 2009 Chief Executive Officer - Investment Bank
Smith, Gordon 52 2007 Chief Executive Officer - Card Services
Erdoes, Mary 43 2009 Chief Executive Officer - Asset Management
Bisignano, Frank 51 2005 Chief Administrative Officer
Drew, Ina 54 2005 Chief Investment Officer
Cutler, Stephen 49 2007 General Counsel
Donnelly, John 54 2009 Director - Human Resources
Maclin, Samuel 54 2009 Chief Executive Officer - Commercial Banking
Mandelbaum, Jay 48 Head - Strategy and Business Development
Zubrow, Barry 57 2007 Chief Risk Officer
Futter, Ellen 61 2001 Independent Director
Gray, William 69 2001 Independent Director
Raymond, Lee 72 2001 Independent Director
Burke, Stephen 53 2004 Independent Director
Crown, James 57 2004 Independent Director
Jackson, Laban 68 2004 Independent Director
Novak, David 58 2004 Independent Director
Weldon, William 62 2005 Independent Director
Bowles, Crandall 63 2006 Independent Director
Cote, David 58 2007 Independent Director


Address:
270 Park Avenue
New York, New York 10017-2070
U.S.A.
 
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