The JPMorgan Chase & Co. is an American bank based in New York City, New York. Based on the total assets of more than 2.3 trillion. USD it is the largest bank in the U.S. and according to Forbes the world's second largest, is listed on a stock exchange company. Based on revenues sparked JPMorgan Chase, Citigroup in 2007 as the largest U.S. bank, and is, according to the Forbes Global 2000 list 2010, the largest bank in the world. In terms of equity it was classified by the British magazine The Banker as the second largest bank in the world in 2012. The hedge fund unit of JPMorgan Chase is one of the largest U.S. hedge funds. It was built in 2000, when Chase Manhattan Corporation, JP Morgan & Co. merged
The Bank is one of the 28 major banks, which by the Financial Stability Board (FSB) as " systemically important financial institution" ( systemically important financial institution) were classified. Therefore it is subject to special monitoring and stringent requirements on the level of equity. Due to the international integration a failure of the bank is considered so risky that their failure is considered to have a particularly high risk to the international financial markets. It must therefore have the highest so far in addition to the HSBC required surcharge of 2.5 percentage points in the equity by the standards of Basel III.
Chemical Banking Corporation
The New York Chemical Manufacturing Company was founded in 1823 as a manufacturer of various chemicals. In 1824 the Company changed its statutes to allow the business as a bank, and thus created the Chemical Bank of New York. After 1851, the bank was separated from its parent and grew organically and through a series of acquisitions. Among the most famous acquisitions include the Corn Exchange Bank, Texas Commerce Bank and Manufacturer's Hanover Trust Company. At various times in its history was the Chemical Bank of the United States ( either assets or market share in bank deposits ) largest bank.
1996 bought the Chemical Bank, Chase Manhattan Corporation and took the name of the acquired company. In 2000, they also acquired the J. P. Morgan & Co. and changed its name to J. P. Morgan Chase & Co. During these mergers, JPMorgan Chase retained the headquarters and the majority of the management of the Chemical Bank.
Chase Manhattan Bank
The Chase Manhattan Bank was the result of a merger of the Chase National Bank ( established in 1877 ) by the Bank of the Manhattan Company ( founded 1799) in 1955. Cited by David Rockefeller in the 1970s and 1980s, Chase Manhattan was one of the largest and prestigious banking corporations in the United States with a leading position in the areas of " Syndicated Lending" and " Treasury" as well as in the investment services, credit cards, mortgages and financial services. With the collapse of the housing market weakened in the early 1990s, it was bought in 1996 by the Chemical Bank.
J. P. Morgan & Company
In 1895, Drexel, Morgan & Co. appointed JP Morgan & Co. to (see also: John Pierpont Morgan ). These were financed in 1901 the founding of the United States Steel Corporation, which took over the business of Andrew Carnegie and others and the then largest corporation in the world was with a market value of over one billion dollars. 1895 lent JP Morgan & Co. of the U.S. government $ 62 million dollars in gold to finance the issuance of bonds and bring the state surplus back to 100 million U.S. dollars.
In the 1930s, JP Morgan was forced by the Glass- Steagall Act, organizationally separate investment banking from other banking operations. Then founded - together with a number of partners from Drexel - Henry Sturgis Morgan, son of JP Morgan and Harold Stanley, both of whom had previously worked for JP Morgan & Co., the investment bank named after them. 1940 amended the existing partnership JP Morgan, the legal form to corporation. 1959 merged it 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.
Later J. P. changed Morgan was their business and investment bank before it was acquired in the late 1990s by the Chase Manhattan Bank. Besides JP Morgan also offered private banking and private equity services.
Takeover of Bear Stearns and action of the New York Attorney
Bear Stearns was in crisis due to the collapse of two hedge funds, the collapse of the two funds was a result of the global financial crisis. In March 2008, JP Morgan took over, which was experiencing financial difficulties investment bank and saved them so prior to the bankruptcy. JP Morgan guaranteed for all financial obligations of Bear Stearns and was supported by the Fed, which in turn has given a guarantee over 30 billion U.S. dollars to JP Morgan. The first bid was $ 2 per share and was considered junk price, after protests from the Bear Stearns shareholders were offered increased to $ 10 per share.
Beginning in October 2012 filed the Prosecutor's Office of New York against JP Morgan. Before the collapse of Bear Stearns in 2008 and its acquisition by JPMorgan Chase had occurred in 2006 and 2007 to massive fraud in the sale of mortgage-backed securities. Bear Stearns investors have left the faith that covered with real estate mortgage-backed securities would be carefully assessed and continually reviewed, but these did actually based on bad real estate loans. According to the prosecutor investors lost so far 22.5 billion U.S. dollars (about 17.5 billion euro ).
Acquisition of Washington Mutual
In the wake of the global financial crisis, the then largest U.S. savings and loan Washington Mutual was acquired by JPMorgan on September 25, 2008. The demise of Washington Mutual, short WaMu was the largest bank failure in U.S. history. JPMorgan subsequently received by the FDIC for 1.9 billion U.S. dollars about 188 billion in deposits, about 5400 branches and 307 billion dollars in assets. According to the FDIC, there came from the middle of the month to large cash outflows of $ 16.7 billion and alleged liquidity problems. These are doubted by Washington Mutual and therefore a lawsuit against the FDIC were prosecuted for unlawful seizure in connection with the subsequent sale.
Acquisition of Cazenove
As announced in November 2009, JPMorgan would take an additional 50 % on the London investment bank Cazenove. JPMorgan offers the owners of the shares they do not already have, 5.35 pounds per share. The transaction therefore has a volume of around one billion pounds.
Negotiations with U.S. authorities over penalty (2013 )
The "Wall Street Journal " reported in mid October 2013 on its website, citing insiders, JP Morgan had the charge of the U.S. housing market supervisory authority FHFA ( Federal Housing Finance Agency ) reached a preliminary agreement on the matter and be willing to take a penalty of 4 billion U.S. dollars to pay.
JP Morgan will be - set shenanigans on the sale of securities and real estate loans before the financial crisis a burden - like many other large banks also. After the U.S. housing market had collapsed (see sub-prime crisis ), lost most mortgage-backed securities a large part of its value; their owner suffered heavy losses. Many of them made thereafter claim damages, because they saw themselves deliberately deceived.
The end of October it was announced that JP Morgan has agreed to a payment of $ 13 billion as a lump penalty in connection with the financial crisis starting in 2007, to reach the setting of numerous procedures.
JPMorgan Chase Corporate Challenge
JPMorgan Chase held at numerous corporate sites (including those in New York City, London, Frankfurt and Sydney ) annual JPMorgan Chase Corporate Challenge ( JPMCCC ), a running event over a distance of 5.6 km ( 3.5 miles ) specifically for companies and their staff at the respective location. A special feature of this is that there is no central official time loss, but measure the respective runners their time itself.
In June 2010, the UK's Financial Services, Financial Services Authority ( FSA) imposed on JPMorgan fined 33.3 million pounds ( 39.3 million euros ), because the division JP Morgan Securities for years had not sufficiently out client funds separately on each account.
In addition, the Bank influence is being accused on the peaceful protests in New York. She donated the fall of 2011 4.6 million U.S. dollars to the New York City Police Foundation. This is the largest donation in the history of the Foundation was, according to officials employed to increase the security in the "Big Apple".
Early May 2012 gave the Bank announced that it had speculated for risky transactions and two billion dollars had to write off (approx. 1.54 billion Euros ) within six weeks. The portfolio had JPMorgan originally intended to protect against risks associated with financial transactions. Cause was the London Chief Investment Office (CIO ) of the JPMorgan dealer Bruno Iksil who acted with the express support of CEO James Dimon. Mid- April 2012 emerging criticism of these practices had rejected Dimon. The rating agency Fitch downgraded the creditworthiness of the bank then one notch from AA - minus to A -plus. At the same time, the Institute lost on May 12th at the New York Stock Exchange 15 billion U.S. dollars in market value. Mid- July 2012 corrected the Bank the sum of the loss for the second quarter of 2012 to 4.4 billion U.S. dollars for the first quarter, it was a loss of 1.4 billion U.S. dollars known. Cumulatively, this results in a loss of 5.8 billion U.S. dollars, with more risks than 1.7 billion U.S. dollars are open. As an upper limit for the possible loss of the bank was to 7.5 billion U.S. dollars. Nevertheless, it ended the second quarter thanks to special effects, with a net profit of 4.96 billion U.S. dollars, just less than last year.