The firm's early history can be traced to 1799, with the founding of what became the Chase Manhattan Company. In 1871, J.P. Morgan & Co. was founded by J. P. Morgan who launched the House of Morgan on 23 Wall Street as a national purveyor of commercial, investment, and private banking services. The present company was formed after the two predecessor firms merged in 2000, creating a diversified holding entity. It is a major provider of investment banking services, through corporate advisory, mergers and acquisitions, sales and trading, and public offerings. Their private banking franchise and asset management division are among the world's largest in terms of total assets. Its retail banking and credit card offerings are provided via the Chase brand in the U.S. and United Kingdom.
With $3.9trillion in total assets,[8] JPMorgan Chase is the fifth largest bank in the world by assets. The firm operates the largest investment bank in the world by revenue.[9][10] It occupies the 24th spot on the Fortune 500 list of the largest U.S. corporations by revenue. In 2023, JPMorgan Chase was ranked #1 in the Forbes Global 2000 ranking.[11] The company's balance sheet, geographic footprint, and thought leadership have yielded a substantial market share in banking and a high level of brand loyalty. Alternatively, it receives routine criticism for its risk management, broad financing activities, and large-scale legal settlements.
History
The JPMorgan Chase logo prior to the 2008 rebrandingAs of June 2008, the JPMorgan logo used for the company's Investment Banking, Asset Management, and Treasury & Securities Services units
The logo used by Chase following the merger with the Manhattan Bank in 1954
The Chase Manhattan Bank was formed upon the 1955 purchase of Chase National Bank (established in 1877) by The Bank of the Manhattan Company (established in 1799),[14] the company's oldest predecessor institution. The Bank of the Manhattan Company was the creation of Aaron Burr, who transformed the company from a water carrier into a bank.[15]
According to page 115 of An Empire of Wealth by John Steele Gordon, the origin of this strand of JPMorgan Chase's history runs as follows:
At the turn of the nineteenth century, obtaining a bank charter required an act of the state legislature. This, of course, injected a powerful element of politics into the process and invited what today would be called corruption but then was regarded as business as usual. Hamilton's political enemy—and eventual murderer—Aaron Burr was able to create a bank by sneaking a clause into a charter for a company called The Manhattan Company to provide clean water to New York City. The innocuous-looking clause allowed the company to invest surplus capital in any lawful enterprise. Within six months of the company's creation, and long before it had laid a single section of water pipe, the company opened a bank, the Bank of the Manhattan Company. Still in existence, it is today JPMorgan Chase, the largest bank in the United States.[16]
Led by David Rockefeller during the 1970s and 1980s, Chase Manhattan emerged as one of the largest and most prestigious banks, 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, retaining the Chase name.[17][18] Before its merger with J.P. Morgan & Co., the new Chase expanded the investment and asset management groups through two acquisitions. In 1999, it acquired San Francisco–based Hambrecht & Quist for $1.35billion.[19] In April 2000, UK-based Robert Fleming & Co. was purchased by the new Chase Manhattan Bank for $7.7billion.[20]
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"). In the 1980s and early 1990s, Chemical emerged as one of the leaders in the financing of leveraged buyout transactions. In 1984, Chemical launched Chemical Venture Partners to invest in private equity transactions alongside various financial sponsors. By the late 1980s, Chemical developed its reputation for financing buyouts, building a syndicated leveraged finance business and related advisory businesses under the auspices of the pioneering investment banker, Jimmy Lee.[21][22] 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).[citation needed]
In 1996, Chemical Bank acquired Chase Manhattan. Although Chemical was the nominal survivor, it took the better-known Chase name.[17][18] To this day, JPMorgan Chase retains Chemical's pre-1996 stock price history, as well as Chemical's former headquarters site at 270 Park Avenue (the current building was demolished and a larger replacement headquarters is being built on the same site).
The J.P. Morgan & Co. logo before its merger with Chase Manhattan Bank in 2000Influence of J.P. Morgan in Large Corporations, 1914The J.P. Morgan headquarters in New York City following the September 16, 1920, bomb explosion that took the lives of 38 people and injured over 400 more
Built in 1914, 23 Wall Street was the bank's headquarters for decades.[27] On September 16, 1920, a terrorist bomb exploded in front of the bank, injuring 400 and killing 38.[28] Shortly before the bomb went off, a warning note was placed in a mailbox at the corner of Cedar Street and Broadway. The case has never been solved, and was rendered inactive by the FBI in 1940.[29]
In August 1914, Henry P. Davison, a Morgan partner, made a deal with the Bank of England to make J.P. Morgan & Co. the monopoly underwriter of war bonds for the UK and France. The Bank of England became a "fiscal agent" of J.P. Morgan & Co., and vice versa.[30] The company also invested in the suppliers of war equipment to Britain and France. The company profited from the financing and purchasing activities of the two European governments.[30] Since the U.S. federal government withdrew from world affairs under successive isolationistRepublican administrations in the 1920s, J.P. Morgan & Co. continued playing a major role in global affairs since most European countries still owed war debts.[31]
In the 1930s, J.P. Morgan & Co. and all integrated banking businesses in the United States were required by the provisions of the Glass–Steagall Act to separate their investment banking from their commercial banking operations. J.P. Morgan & Co. chose to operate as a commercial bank.[32]
In 1935, after being barred from the securities business for over a year, the heads of J.P. Morgan spun off its investment-banking operations. Led by J.P. Morgan partners, Henry S. Morgan (son of Jack Morgan and grandson of J. Pierpont Morgan) and Harold Stanley, Morgan Stanley was founded on September 16, 1935, with $6.6million of nonvoting preferred stock from J.P. Morgan partners.[bettersourceneeded] To bolster its position, in 1959, J.P. Morgan merged with the Guaranty Trust Company of New York to form the Morgan Guaranty Trust Company.[23] The bank would continue to operate as Morgan Guaranty Trust until the 1980s, before migrating back to the use of the J.P. Morgan brand. In 1984, the group purchased the Purdue National Corporation of Lafayette, Indiana. In 1988, the company once again began operating exclusively as J.P. Morgan & Co.[33]
The Bank began operations in Japan in 1924,[34] in Australia during the later part of the nineteenth century,[35] and in Indonesia during the early 1920s.[36] An office of the Equitable Eastern Banking Corporation (one of J.P. Morgan's predecessors) opened a branch in China in 1921 and Chase National Bank was established there in 1923.[37] The bank has operated in Saudi Arabia[38] and India[39] since the 1930s. Chase Manhattan Bank opened an office in South Korea in 1967.[40] The firm's presence in Greece dates to 1968.[41] An office of JPMorgan was opened in Taiwan in 1970,[42] in Russia (Soviet Union) in 1973,[43] and Nordic operations began during the same year.[44] Operations in Poland began in 1995.[41]
In 2004, JPMorgan Chase merged with Chicago-based Bank One Corp., bringing on board current chairman and CEO Jamie Dimon as president and COO.[45] He succeeded former CEO William B. Harrison Jr.[46] Dimon introduced new cost-cutting strategies, and replaced former JPMorgan Chase executives in key positions with Bank One executives—many of whom were with Dimon at Citigroup. Dimon became CEO in December 2005 and chairman in December 2006.[47]Bank One Corporation was formed with the 1998 merger of Banc One of Columbus, Ohio and First Chicago NBD.[48] This merger was considered a failure until Dimon took over and reformed the new firm's practices. Dimon effected changes to make Bank One Corporation a viable merger partner for JPMorgan Chase.[49]
Bank One Corporation, formerly First Bancgroup of Ohio, was 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.[50] With the beginning of interstate banking they spread into other states, always renaming acquired banks "Bank One." After the First Chicago NBD merger, adverse financial results led to the departure of CEO John B. McCoy, whose father and grandfather had headed Banc One and predecessors. JPMorgan Chase completed the acquisition of Bank One in the third quarter of 2004.[50]
At the end of 2007, Bear Stearns was the fifth largest investment bank in the United States but its market capitalization had deteriorated through the second half of the year.[51] On Friday, March 14, 2008, Bear Stearns lost 47% of its equity market value as rumors emerged that clients were withdrawing capital from the bank. Over the following weekend, it emerged that Bear Stearns might prove insolvent, and on March 15, 2008, the Federal Reserve engineered a deal to prevent a wider systemic crisis from the collapse of Bear Stearns.[52]
On March 16, 2008, after a weekend of intense negotiations between JPMorgan, Bear, and the federal government, JPMorgan Chase announced its plans to acquire Bear Stearns in a stock swap worth $2.00 per share or $240million pending shareholder approval scheduled within 90 days.[52] In the interim, JPMorgan Chase agreed to guarantee all Bear Stearns trades and business process flows.[53] On March 18, 2008, JPMorgan Chase formally announced the acquisition of Bear Stearns for $236million.[51] The stock swap agreement was signed that night.[54]
On March 24, 2008, after public discontent over the low acquisition price threatened the deal's closure, a revised offer was announced at approximately $10 per share.[51] Under the revised terms, JPMorgan also immediately acquired a 39.5% stake in Bear Stearns using newly issued shares at the new offer price and gained a commitment from the board, representing another 10% of the share capital, that its members would vote in favor of the new deal. With sufficient commitments to ensure a successful shareholder vote, the merger was completed on May 30, 2008.[55]
The Washington Mutual logo prior to its 2008 acquisition by JPMorgan Chase
On September 25, 2008, JPMorgan Chase bought most of the banking operations of Washington Mutual from the receivership of the Federal Deposit Insurance Corporation. That night, the Office of Thrift Supervision, in what was by far the largest bank failure in American history, had seized Washington Mutual Bank and placed it into receivership. The FDIC sold the bank's assets, secured debt obligations, and deposits to JPMorgan Chase & Co for $1.836billion, which re-opened the bank the following day.
However, Chase did not purchase any mortgages in the FDIC receivership as the loans had already been sold off into Washington Mutual-branded mortgage-backed securities long before the receivership happened on September 25, 2008. If Chase wanted ownership of any Washington Mutual mortgages, they had to purchase them from the FDIC by way of a Receiver's Deed or Bill of Sale. This could not occur, as there were no mortgages on Washington Mutual Bank's books at time of receivership. Any recorded Assignments of Mortgage claiming that Chase was "successor in interest" and that the transfer occurred "by operation of law," would be incorrect. The FDIC was "successor in interest" to Washington Mutual Bank. Chase's purchase of the bank from the FDIC was for Washington Mutual Bank only and it occurred by a Purchase & Assumption Agreement[56] and not "by operation of law" from the receivership.
As a result of the takeover, Washington Mutual shareholders lost all their equity.[57]
JPMorgan Chase raised $10billion in a stock sale to cover writedowns and losses after taking on deposits and branches of Washington Mutual.[58] Through the acquisition, JPMorgan now owns the former accounts of Providian Financial, a credit card issuer WaMu acquired in 2005. The company announced plans to complete the rebranding of Washington Mutual branches to Chase by late 2009.[citation needed] Chief executive Alan H. Fishman received a $7.5million sign-on bonus and cash severance of $11.6million after being CEO for 17 days.[59][importance?]
On May 1, 2023, in what was now the second largest bank failure behind JPMorgan's acquisition of Washington Mutual fifteen years earlier, the company acquired "the substantial majority of assets" and inherited the deposits of First Republic Bank. Under terms disclosed by JPMorgan Chase, it will make a $10.6billion payment to the Federal Deposit Insurance Corporation, return $25billion in funds that other banks deposited with First Republic in March in a lifeline negotiated with the US Department of Treasury at that time, and will eliminate a $5billion deposit it had made with First Republic.[60] As a result of the takeover, First Republic Bank shareholders lost all their equity.[61] The FDIC estimates that the cost to the Deposit Insurance Fund will be about $13billion.[62]
In 2006, JPMorgan Chase purchased Collegiate Funding Services, a portfolio company of private equity firm Lightyear Capital, for $663million. CFS was used as the foundation for the Chase Student Loans, previously known as Chase Education Finance.[63]
On October 28, 2008, $25billion in funds were transferred from the U.S. Treasury Department to JPMorgan Chase, under the Troubled Asset Relief Program (TARP).[67] This was the fifth largest amount transferred under Section A of TARP[68] to help troubled assets related to residential mortgages. It has been widely reported[69] that JPMorgan Chase was in much better financial shape than other banks and did not need TARP funds but accepted the funds because the government did not want to single out only the banks with capital issues. JPMorgan Chase stated in February 2009 that it would be using its capital-base monetary strength to acquire new businesses.[70]
By February 2009, the U.S. government had not moved forward in enforcing TARP's intent of funding JPMorgan Chase with $25billion.[67] In the face of the government's lack of action, Jamie Dimon was quoted during the week of February 1, 2009, as saying:
JPMorgan would be fine if we stopped talking about the damn nationalization of banks. We've got plenty of capital. To policymakers, I say where were they?... They approved all these banks. Now they're beating up on everyone, saying look at all these mistakes, and we're going to come and fix it.[71][72]
JPMorgan Chase was arguably the healthiest of the nine largest U.S. banks and did not need to take TARP funds. To encourage smaller banks with troubled assets to accept this money, Treasury Secretary Henry Paulson allegedly coerced the CEOs of the nine largest banks to accept TARP money under short notice.[73]
In November 2009, J.P. Morgan announced it would acquire the balance of J.P. Morgan Cazenove, an advisory and underwriting joint venture established in 2004 with the Cazenove Group.[74] Earlier in 2011, the company announced that by the use of field-programmable gate array-based supercomputers, the time taken to assess risk had been greatly reduced, from arriving at a conclusion within hours to what is now minutes.[75] In 2013, J.P. Morgan acquired Bloomspot, a San Francisco-based startup. Shortly after the acquisition, the service was shut down and Bloomspot's talent was left unused.[76][77]
2013
In 2013, after teaming up with the Bill and Melinda Gates Foundation, GlaxoSmithKline and Children's Investment Fund, JPMorgan Chase, under Dimon launched a $94 Million fund with a focus on "late-stage healthcare technology trials". The "$94 million Global Health Investment Fund will give money to final-stage drug, vaccine, and medical device studies that are otherwise stalled at companies because of their relatively high failure risk and low consumer demand. Examples of problems that could be addressed by the fund include malaria, tuberculosis, HIV/AIDS, and maternal and infant mortality, according to the Gates and JPMorgan Chase led-group".[78]
2014
The 2014 JPMorgan Chase data breach, disclosed in September 2014, compromised the JPMorgan Chase accounts of over 83 million customers. The attack was discovered by the bank's security team in late July 2014, but not completely halted until the middle of August.[79][80]
In October 2014, J.P. Morgan sold its commodities trader unit to Mercuria for $800million, a quarter of the initial valuation of $3.5billion, as the transaction excluded some oil and metal stockpiles and other assets.[81]
2016
In March 2016, J.P. Morgan decided not to finance coal mines and coal power plants in wealthy countries.[82] In October 2016, J.P.Morgan unveiled its permissioned blockchain called Quorum,[83] based on Ethereum's GO programming language.[84] In December 2016, 14 former executives of the Wendel investment company faced trial for tax fraud while JPMorgan Chase was to be pursued for complicity. Jean-Bernard Lafonta was convicted December 2015 for spreading false information and insider trading, and fined 1.5million euros.[85]
2017
In March 2017, Lawrence Obracanik, a former JPMorgan Chase & Co. employee, pleaded guilty to criminal charges that he stole more than $5million from his employer to pay personal debts.[86] In June 2017, Matt Zames, then-COO of the bank, decided to leave the firm.[87] In December 2017, J.P. Morgan was sued by the Nigerian government for $875million, which Nigeria alleges was transferred by J.P. Morgan to a corrupt former minister.[88] Nigeria accused J.P. Morgan of being "grossly negligent".[89]
2019
In February 2019, J.P. Morgan announced the launch of JPM Coin, a digital token that will be used to settle transactions between clients of its wholesale payments business.[90] It would be the first cryptocurrency issued by a United States bank.[91]
2021
On April 19, 2021, JP Morgan pledged $5billion towards the European Super League.[92][93] a controversial breakaway group of football clubs seeking to create a monopolistic structure where the founding members would be guaranteed entry to the competition in perpetuity. They funded the failed attempt to create the league, which, if successful, would have ended the meritocratic European pyramid soccer system. J.P. Morgan's role in the creation of the Super League was instrumental; the investment bank was reported to have worked on it for several years.[94] After a strong backlash, the owners/management of the teams that proposed creating the league pulled out of it.[95] After the attempt to end the European football hierarchy failed, J.P. Morgan apologized for its role in the scheme.[94] JPMorgan Chase CEO Jamie Dimon said the company "kind of missed" that football supporters would respond negatively to the Super League.[96] While the absence of promotion and relegation is a common sports model in the US, this is an antithesis to the European competition-based pyramid model and has led to widespread condemnation from Football federations internationally as well as at government level.[97] However, even at the time, JPMorgan had been involved in European football for almost 20 years. In 2003, they advised the Glazer ownership of Manchester United. It also advised Rocco Commisso, the owner of Mediacom, to purchase ACF Fiorentina, and Dan Friedkin on his takeover of A.S. Roma. Moreover, It aided Inter Milan and A.S. Roma to sell bonds backed by future media revenue, and Spain's Real Madrid CF to raise funds to refurbish their Santiago Bernabeu Stadium.[98]
In September 2021, JPMorgan Chase entered the UK retail banking market by launching an app-based current account under the Chase brand. This is the company's first retail banking operation outside of the United States.[99][100][101] In 2021, the company made more than over 30 acquisitions including OpenInvest and Nutmeg.[102][103] In March 2022, JPMorgan Chase announced that would acquire Global Shares, a cloud-based provider of share plan software management.[104][105] In November 2021, JPMorgan Chase acquired restaurant recommendation website and owner of Zagat, The Infatuation.[106][107]
In June 2021, JPMorgan Chase invested in Brazilian digital bank C6, acquiring 40% of the company. The amount of investment was not disclosed, but 6 months before the deal C6 was valued at 2.28 billion dollars.[108]
2022
In 2022, JPMorgan Chase was ranked 24 on the Fortune 500 rankings of the largest U.S. corporations by total revenue.[109] In March 2022, JPMorgan Chase announced to wind down its business in Russia in compliance with regulatory and licensing requirements.[110]
On May 20, 2022, JPMorgan Chase used blockchain for collateral settlements, the latest Wall Street experimentation with the technology in the trading of traditional financial assets.[111]
In September 2022, the company announced it was acquiring California-based Renovite Technologies to expand its payments processing business amid heavy competition from fintech firms like Stripe and Adyen. This comes on top of previous, similar moves of buying a 49% stake in fintech Viva Wallet and a majority sake in Volkswagen's payments business, among many other acquisitions in other areas of finance.[112][113][114]
In November 2022, JPMorgan Chase sent COO Daniel Pinto to the Global Financial Leaders' Investment Summit in Hong Kong.[115] The attendance of US financial executives drew heavy criticism from some US lawmakers, who had previously urged the US financial executives to cancel their attendance to the summit.[116][117]
2023
In May 2023, CNBC reported JPMorgan Chase was developing a new tool for investment advisers using artificial intelligence called IndexGPT. Via trademark filing, this would rely on a "disruptive form of artificial intelligence" and cloud computing software to select investments for customers. This move was a sign the bank intended to launch a product in the near term, given the requirements around filing, and it came amid a flurry of development around ChatGPT and this technology from financial institutions. This came amid a period of job cuts, including for technology roles, even as the company emphasize its commitment to AI and created a model to detect potential changes in Federal Reserve policy.[118][119][120][121]
JP increased its stake in Brazilian digital bank C6 to 46% in 2023: the bank has increased the number of customers from 8 million to 25 million since 2021 and its loan portfolio from R$9.5 billion (about $2 billion) to R$40 billion ($8.2 billion).[108]
Chase paid out over $2billion in fines and legal settlements for their role in financing Enron Corporation with aiding and abetting Enron Corp.'s securities fraud, which collapsed amid a financial scandal in 2001.[122] In 2003, Chase paid $160million in fines and penalties to settle claims by the Securities and Exchange Commission and the Manhattan district attorney's office. In 2005, Chase paid $2.2billion to settle a lawsuit filed by investors in Enron.[123]
2002
In December 2002, Chase paid fines totaling $80million, with the amount split between the states and the federal government. The fines were part of a settlement involving charges that ten banks, including Chase, deceived investors with biased research. The total settlement with the ten banks was $1.4billion. The settlement required that the banks separate investment banking from research, and ban any allocation of IPO shares.[124]
2005
JPMorgan Chase, which helped underwrite $15.4billion of WorldCom's bonds, agreed in March 2005 to pay $2billion; that was 46 percent, or $630million, more than it would have paid had it accepted an investor offer in May 2004 of $1.37billion. J.P. Morgan was the last big lender to settle. Its payment is the second largest in the case, exceeded only by the $2.6billion accord reached in 2004 by Citigroup.[125] In March 2005, 16 of WorldCom's 17 former underwriters reached settlements with the investors.[126][127] In 2005, JPMorgan Chase acknowledged that its two predecessor banks had received ownership of thousands of slaves as collateral prior to the Civil War. The company apologized for contributing to the "brutal and unjust institution" of slavery.[128][129] The bank paid $5million in reparations in the form of a scholarship program for Black students.[130][131][132]
2009
In 2008 and 2009, 14 lawsuits were filed against JPMorgan Chase in various district courts on behalf of Chase credit card holders claiming the bank violated the Truth in Lending Act, breached its contract with the consumers, and committed a breach of the implied covenant of good faith and fair dealing. The consumers contended that Chase, with little or no notice, increased minimum monthly payments from 2% to 5% on loan balances that were transferred to consumers' credit cards based on the promise of a fixed interest rate. In May 2011, the United States District Court for the Northern District of California certified the class action lawsuit. On July 23, 2012, Chase agreed to pay $100million to settle the claim.[133]
In November 2009, a week after Birmingham, Alabama Mayor Larry Langford was convicted for financial crimes related to bond swaps for Jefferson County, Alabama,[importance?] JPMorgan Chase & Co. agreed to a $722million settlement with the U.S. Securities and Exchange Commission to end a probe into the sales of derivatives that allegedly contributed to the near-bankruptcy of the county. JPMorgan had been chosen by the county commissioners to refinance the county's sewer debt, and the SEC had alleged that JPMorgan made undisclosed payments to close friends of the commissioners in exchange for the deal and made up for the costs by charging higher interest rates on the swaps.[134]
2010
In June 2010, J.P. Morgan Securities was fined a record £33.32million ($49.12million) by the UK Financial Services Authority (FSA) for failing to protect an average of £5.5billion of clients' money from 2002 to 2009.[135][136] FSA requires financial firms to keep clients' funds in separate accounts to protect the clients in case such a firm becomes insolvent. The firm had failed to properly segregate client funds from corporate funds following the merger of Chase and J.P. Morgan, resulting in a violation of FSA regulations but no losses to clients. The clients' funds would have been at risk had the firm become insolvent during this period.[137] J.P. Morgan Securities reported the incident to the FSA, corrected the errors, and cooperated in the ensuing investigation, resulting in the fine being reduced 30% from an original amount of £47.6million.[136]
2011
In January 2011, JPMorgan Chase admitted that it wrongly overcharged several thousand military families for their mortgages. The bank also admitted it improperly foreclosed on more than a dozen military families; both actions were in clear violation of the Servicemembers Civil Relief Act which automatically lowers mortgage rates to 6 percent, and bars foreclosure proceedings of active-duty personnel. The overcharges may have never come to light were it not for legal action taken by Captain Jonathan Rowles. Both Captain Rowles and his spouse Julia accused Chase of violating the law and harassing the couple for nonpayment. An official stated that the situation was "grim" and Chase initially stated it would be refunding up to $2,000,000 to those who were overcharged, and that families improperly foreclosed on have gotten or will get their homes back.[138] Chase has acknowledged that as many as 6,000 active duty military personnel were illegally overcharged, and more than 18 military families homes were wrongly foreclosed. In April, Chase agreed to pay a total of $27million in compensation to settle the class-action suit.[139] At the company's 2011 shareholders' meeting, Dimon apologized for the error and said the bank would forgive the loans of any active-duty personnel whose property had been foreclosed. In June 2011, lending chief Dave Lowman was forced out over the scandal.[140][141]
On August 25, 2011, JPMorgan Chase agreed to settle fines with regard to violations of the sanctions under the Office of Foreign Assets Control (OFAC) regime.[undue weight?–discuss] The U.S. Department of Treasury released the following civil penalties information under the heading: "JPMorgan Chase Bank N.A. Settles Apparent Violations of Multiple Sanctions Programs":[importance?]
JPMorgan Chase Bank, N.A, New York, NY ("JPMC") has agreed to remit $88,300,000 to settle a potential civil liability for apparent violations of the Cuban Assets Control Regulations ("CACR"), 31 C.F.R. part 515; the Weapons of Mass Destruction Proliferators Sanctions Regulations ("WMDPSR"), 31 C.F.R. part 544; Executive Order 13382, "Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters;" the Global Terrorism Sanctions Regulations ("GTSR"), 31 C.F.R. part 594; the Iranian Transactions Regulations ("ITR"), 31 C.F.R. part 560; the Sudanese Sanctions Regulations ("SSR"), 31 C.F.R. part 538; the Former Liberian Regime of Charles Taylor Sanctions Regulations ("FLRCTSR"), 31 C.F.R. part 593; and the Reporting, Procedures, and Penalties Regulations ("RPPR"), 31 C.F.R. part 501, that occurred between December 15, 2005, and March 1, 2011.
—U.S. Department of the Treasury Resource Center, OFAC Recent Actions. Retrieved June 18, 2013.[142]
2012
On February 9, 2012, it was announced that the five largest mortgage servicers (Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo) agreed to a historic settlement with the federal government and 49 states.[143] The settlement, known as the National Mortgage Settlement (NMS), required the servicers to provide about $26billion in relief to distressed homeowners and in direct payments to the states and federal government. This settlement amount makes the NMS the second largest civil settlement in U.S. history, only trailing the Tobacco Master Settlement Agreement.[144] The five banks were also required to comply with 305 new mortgage servicing standards. Oklahoma held out and agreed to settle with the banks separately.
In July 2013, The Federal Energy Regulatory Commission (FERC) approved a stipulation and consent agreement under which JPMorgan Ventures Energy Corporation (JPMVEC), a subsidiary of JPMorgan Chase & Co., agreed to pay $410million in penalties and disgorgement to ratepayers for allegations of market manipulation stemming from the company's bidding activities in electricity markets in California and the Midwest from September 2010 through November 2012.[undue weight?–discuss] JPMVEC agreed to pay a civil penalty of $285million to the U.S. Treasury and to disgorge $125million in unjust profits. JPMVEC admitted the facts set forth in the agreement, but neither admitted nor denied the violations.[146] The case stemmed from multiple referrals to FERC from market monitors in 2011 and 2012 regarding JPMVEC's bidding practices. FERC investigators determined that JPMVEC engaged in 12 manipulative bidding strategies designed to make profits from power plants that were usually out of the money in the marketplace. In each of them, the company made bids designed to create artificial conditions that forced California and Midcontinent Independent System Operators (ISOs) to pay JPMVEC outside the market at premium rates.[146] FERC investigators further determined that JPMVEC knew that the California ISO and Midcontinent ISO received no benefit from making inflated payments to the company, thereby defrauding the ISOs by obtaining payments for benefits that the company did not deliver beyond the routine provision of energy. FERC investigators also determined that JPMVEC's bids displaced other generation and altered day ahead and real-time prices from the prices that would have resulted had the company not submitted the bids.[146] Under the Energy Policy Act of 2005, Congress directed FERC to detect, prevent, and appropriately sanction the gaming of energy markets. According to FERC, the Commission approved the settlement as in the public interest.[146]
FERC's investigation of energy market manipulations led to a subsequent investigation into possible obstruction of justice by employees of JPMorgan Chase.[147] Various newspapers reported in September 2013 that the Federal Bureau of Investigation (FBI) and US Attorney's Office in Manhattan were investigating whether employees withheld information or made false statements during the FERC investigation.[147] The reported impetus for the investigation was a letter from Massachusetts Senators Elizabeth Warren and Edward Markey, in which they asked FERC why no action was taken against people who impeded the FERC investigation.[147] At the time of the FBI investigation, the Senate Permanent Subcommittee on Investigations was also looking into whether JPMorgan Chase employees impeded the FERC investigation.[147]Reuters reported that JPMorgan Chase was facing over a dozen investigations at the time.[147]
Bernie Madoff opened a business account at Chemical Bank in 1986 and maintained it until 2008, long after Chemical acquired Chase.[undue weight?–discuss] In 2010, Irving Picard, the SIPC receiver appointed to liquidate Madoff's company, alleged that JPMorgan Chase failed to prevent Madoff from defrauding his customers. According to the suit, Chase "knew or should have known" that Madoff's wealth management business was a fraud. However, Chase did not report its concerns to regulators or law enforcement until October 2008, when it notified the UK Serious Organised Crime Agency. Picard argued that even after Morgan's investment bankers reported its concerns about Madoff's performance to UK officials, Chase's retail banking division did not put any restrictions on Madoff's banking activities until his arrest two months later.[148] The receiver's suit against JPMorgan Chase was dismissed by the Court for failing to set forth any legally cognizable claim for damages.[149] In the fall of 2013, JPMorgan Chase began talks with prosecutors and regulators regarding compliance with anti-money-laundering and know-your-customer banking regulations in connection with Madoff.[citation needed]
In August 2013, JPMorgan Chase announced that it was being investigated by the United States Department of Justice over its offerings of mortgage-backed securities leading up to the financial crisis of 2007–08. The company said that the Department of Justice had preliminarily concluded that the firm violated federal securities laws in offerings of subprime and Alt-A residential mortgage securities during the period 2005 to 2007.[150] On November 19, 2013, the Justice Department announced that JPMorgan Chase agreed to pay $13billion to settle investigations into its business practices pertaining to mortgage-backed securities.[151] Of that amount, $9billion was penalties and fines, and the remaining $4billion was consumer relief. This was the largest corporate settlement to date. Conduct at Bear Stearns and Washington Mutual prior to their 2008 acquisitions accounted for much of the alleged wrongdoing. The agreement did not settle criminal charges.[152]
2014
On January 7, 2014, JPMorgan Chase agreed to pay a total of $2.05billion in fines and penalties to settle civil and criminal charges related to its role in the Madoff scandal.[undue weight?–discuss] The government filed a two-count criminal information charging JPMorgan Chase with Bank Secrecy Act violations, but the charges would be dismissed within two years provided that JPMorgan Chase reforms its anti-money laundering procedures and cooperates with the government in its investigation. The bank agreed to forfeit $1.7billion. The lawsuit, which was filed on behalf of shareholders against chief executive Jamie Dimon and other high-ranking JPMorgan Chase employees, used statements made by Bernie Madoff during interviews conducted while in prison in Butner, North Carolina claiming that JPMorgan Chase officials knew of the fraud. The lawsuit stated that "JPMorgan was uniquely positioned for 20 years to see Madoff's crimes and put a stop to them ... But faced with the prospect of shutting down Madoff's account and losing lucrative profits, JPMorgan – at its highest level – chose to turn a blind eye."[153][neutrality is disputed] JPMorgan Chase also agreed to pay a $350million fine to the Office of the Comptroller of the Currency and settle the suit filed against it by Picard for $543million.[154][155][156][157]
2016
In November 2016, JPMorgan Chase agreed to pay $264million in fines to settle civil and criminal charges involving a systematic bribery scheme spanning 2006 to 2013 in which the bank secured business deals in Hong Kong by agreeing to hire hundreds of friends and relatives of Chinese government officials, resulting in more than $100million in revenue for the bank.[158]
2017
In January 2017, the United States sued the company, accusing it of discriminating against "thousands" of black and Hispanic mortgage borrowers between 2006 and at least 2009.[159][160]
2018
On December 26, 2018, as part of an investigation by the U.S. Securities and Exchange Commission (SEC) into abusive practices related to American depositary receipts (ADRs), JPMorgan agreed to pay more than $135million to settle charges of improper handling of "pre-released" ADRs without admitting or denying the SEC's findings. The sum consisted of $71million in ill-gotten gains plus $14.4million in prejudgment interest and an additional penalty of $49.7million.[161]
2020
On May 14, 2020, Financial Times, citing a report which revealed how companies are treating employees, their supply chains and other stakeholders, during the COVID-19 pandemic, documented that J.P. Morgan Asset Management alongside Fidelity Investments and Vanguard have been accused of paying lip services to cover human rights violations. The UK based media also referenced that a few of the world's biggest fund houses took the action to lessen the impact of abuses, such as modern slavery, at the companies they invest in. J.P. Morgan, in responding to the report, said that it took "human rights violations very seriously" and "any company with alleged or proven violations of principles, including human rights abuses, is scrutinized and may result in either enhanced engagement or removal from a portfolio."[162]
On November 24, 2022, two women who accused Jeffrey Epstein of sex trafficking and sexual abuse also sued JPMorgan and Deutsche Bank, accusing them of benefiting and closing their eyes to Epstein's sex trafficking operations. According to the lawsuits, banks knew that Epstein's accounts were used to finance sex trafficking crimes.[164][165] In June 2023, after the allegations reached class-action status, the parties reached a settlement, with JPMorgan agreeing to pay $290million.[166]
In September 2023, JPMorgan agreed to a $75million settlement with the United States Virgin Islands Department of Justice for its alleged facilitation and failure to notify law enforcement of Epstein's illegal activities.[167]
2024
On April 24, 2024, after Russian state-owned VTB Bank filed suit against JPMorgan to recoup assets frozen under international sanctions during the Russian invasion of Ukraine, a Russian court ordered the seizure of JPMorgan funds totalling $439.5million.[168] JPMorgan launched a countersuit the following day, citing its inability to reclaim VTB’s stranded US funds. On April 26, a Russian court authorized the seizure of $13.34million of assets held in Russia by a European subsidiary of JPMorgan and Commerzbank.[169]
In July 2024, JPMorgan Chase & Co. and its affiliates became substantial holders in Telix Pharmaceuticals Ltd., acquiring a 5.04% voting power with 16,881,167 ordinary shares.[170]
On Oct 31 , 2024, JPMorgan Chase agreed to pay $151 million to resolve five U.S. SEC enforcement cases, including allegations of misleading brokerage disclosures[171]
Note: Financial data in billions of US dollars and employee data in thousands. For years 1998, 1999, and 2000 figures are combined for Chase Manhattan and J.P. Morgan & Co., for consistency, pre-dating their official merger in 2000. The data is sourced from the company's SEC Form 10-K from 1998 to 2020.[172][173][174][175][176][177][178][179][180]
Structure
The corporate structure of JPMorgan Chase & Co. has changed throughout its history through various mergers and acquisitions as well as geographic expansion. In the United States, it owns and operates two key legal subsidiaries:[181]
The company, known previously as Chase Manhattan International Limited, was founded on September 18, 1968.[183][184] In August 2008, the bank announced plans to construct a new European headquarters at Canary Wharf, London.[185] These plans were subsequently suspended in December 2010, when the bank announced the purchase of a nearby existing office tower at 25 Bank Street for use as the European headquarters of its investment bank.[186] 25 Bank Street had originally been designated as the European headquarters of Enron and was subsequently used as the headquarters of Lehman Brothers International.[importance?] The regional office is in London with offices in Bournemouth, Glasgow, and Edinburgh for asset management, private banking, and investment banking.[187]
Acquisition history
The following is an illustration of the company's major mergers and acquisitions and historical predecessors, although this is not a comprehensive list:
JPMorgan Chase's PAC and its employees contributed $2.6million to federal campaigns in 2014 and financed its lobbying team with $4.7million in the first three-quarters of 2014. JPMorgan's giving has been focused on Republicans, with 62 percent of its donations going to GOP recipients in 2014. 78 House Democrats received campaign cash from JPMorgan's PAC in the 2014 cycle at an average of $5,200 and a total of 38 of the Democrats who voted for the 2015 spending bill took money from JPMorgan's PAC in 2014. JPMorgan Chase's PAC made maximum donations to the Democratic Congressional Campaign Committee and the leadership PACs of Steny Hoyer and Jim Himes in 2014.[197]
Climate change
JPMorgan has come under criticism for investing in new fossil fuels projects since the Paris climate change agreement. From 2016 to the first half of 2019 it provided $75billion (£61billion) to companies expanding in sectors such as fracking and Arctic oil and gas exploration.[198] According to Rainforest Action Network its total fossil fuel financing was $64billion in 2018, $69billion in 2017 and $62billion in 2016.[199] From 2015, which is when the Paris Agreement was adopted, until 2021, JP Morgan Chase provided $317billion in fossil fuel financing; 33% more than any other bank.[200] On October 21, 2021, JP Morgan Chase joined the Net-Zero Banking Alliance,[201] which supports "the global transition of the real economy to net-zero emissions."[202]
An internal study, 'Risky business: the climate and macroeconomy', by bank economists David Mackie and Jessica Murray was leaked in early‑2020.[importance?] The report, dated 14January 2020, states that under our current unsustainable trajectory of climate change "we cannot rule out catastrophic outcomes where human life as we know it is threatened". JPMorgan subsequently distanced itself from the content of the study.[203]
The old Chase Manhattan Bank's headquarters were at One Chase Manhattan Plaza (now 28 Liberty Street) in Lower Manhattan, the current temporary world headquarters for JPMorgan Chase & Co. are located at 383 Madison Avenue. In 2018, JPMorgan announced they would demolish the current headquarters building at 270 Park Avenue, which was also Union Carbide's former headquarters, to make way for a newer building at 270 Park Avenue that will be 681 feet (208m) taller than the previous building. Demolition was completed in the spring of 2021, and the new building will be completed in 2025. The replacement 1,388 feet (423m) and 70-story headquarters will contain 2,500,000 square feet (230,000m2), and will be able to fit 15,000 employees, whereas the current headquarters fits 6,000 employees in a space that has a capacity of 3,500. The new headquarters is part of the East Midtown rezoning plan.[7] When construction is completed in 2025, the headquarters will then move back into the new building at 270 Park Avenue. As the new headquarters is replaced, the bulk of North American operations take place in five nearby buildings on or near Park Avenue in New York City: the former Bear Stearns Building at 383 Madison Avenue (just south of 270 Park Avenue), the former Chemical Bank Building at 277 Park Avenue just to the east, 237 Park Avenue, and 390 Madison Avenue. The bank entered into an agreement to purchase 250 Park Avenue in July 2024.[210]
Approximately 11,050 employees are located in Columbus at the McCoy Center, the former Bank One Corporation offices. The building is the largest JPMorgan Chase & Co. facility in the world and the second-largest single-tenant office building in the United States behind The Pentagon.[211] The bank moved some of its operations to the JPMorgan Chase Tower in Houston, when it purchased Texas Commerce Bank.[citation needed] The Global Corporate Bank's main headquarters are in London, with regional headquarters in Hong Kong, New York and São Paulo.[212]
Operations centers in the United Kingdom are located in Bournemouth, Edinburgh, Glasgow, London, Liverpool, and Swindon. The London location also serves as the European headquarters.
The derivatives team at JPMorgan, led by Blythe Masters, was a pioneer in the invention of credit derivatives such as the credit default swap. The first CDS was created to allow Exxon to borrow money from JPMorgan while JPMorgan transferred the risk to the European Bank of Reconstruction and Development. JPMorgan's team later created the 'BISTRO', a bundle of credit default swaps that was the progenitor of the Synthetic CDO.[214][215] As of 2013 JPMorgan had the largest credit default swap and credit derivatives portfolio by total notional amount of any US bank.[216][217]
In April 2012, hedge fund insiders became aware that the market in credit default swaps was possibly being affected by the activities of Bruno Iksil, a trader for JPMorgan Chase & Co., referred to as "the London whale" in reference to the huge positions he was taking. Heavy opposing bets to his positions are known to have been made by traders, including another branch of J.P. Morgan, who purchased the derivatives offered by J.P. Morgan in such high volume.[218][219] Early reports were denied and minimized by the firm in an attempt to minimize exposure.[220] Major losses, $2billion, were reported by the firm in May 2012, in relation to these trades and updated to $4.4billion on July 13, 2012.[221] The disclosure, which resulted in headlines in the media, did not disclose the exact nature of the trading involved, which remained in progress as of June 28, 2012, and continued to produce losses which could total as much as $9billion under worst-case scenarios.[222][223] In the end, the trading produced actual losses of only $6billion. The item traded, possibly related to CDX IG 9, an index based on the default risk of major U.S. corporations,[224][225] has been described as a "derivative of a derivative".[226][227] On the company's emergency conference call, JPMorgan Chase chairman and CEO Jamie Dimon said the strategy was "flawed, complex, poorly reviewed, poorly executed, and poorly monitored".[228] The episode was investigated by the Federal Reserve, the SEC, and the FBI.[229]
Fines levied regarding the 2012 JPMorgan Chase trading loss[230]
On September 18, 2013, JPMorgan Chase agreed to pay a total of $920million in fines and penalties to American and UK regulators for violations related to the trading loss and other incidents. The fine was part of a multiagency and multinational settlement with the Federal Reserve, Office of the Comptroller of the Currency and the Securities and Exchange Commission in the United States and the Financial Conduct Authority in the UK. The company also admitted breaking American securities law.[231] The fines amounted to the third biggest banking fine levied by US regulators, and the second-largest by UK authorities.[230]As of September19,2013[update], two traders face criminal proceedings.[230] It is also the first time in several years that a major American financial institution has publicly admitted breaking the securities laws.[232]
A report by the SEC was critical of the level of oversight from senior management on traders, and the FCA said the incident demonstrated "flaws permeating all levels of the firm: from portfolio level right up to senior management."[230] On the day of the fine, the BBC reported from the New York Stock Exchange that the fines "barely registered" with traders there, the news had been an expected development, and the company had prepared for the financial hit.[230]
The collection was begun in 1959 by David Rockefeller,[233] and comprises over 30,000 objects, of which over 6,000 are photographic-based,[234] as of 2012 containing more than one hundred works by Middle Eastern and North African artists.[235] The One Chase Manhattan Plaza building was the original location at the start of collection by the Chase Manhattan Bank, the current collection containing both this and also those works that the First National Bank of Chicago had acquired prior to assimilation into the JPMorgan Chase organization.[236] L. K. Erf has been the director of acquisitions of works since 2004 for the bank,[237] whose art program staff is completed by an additional three full-time members and one registrar.[238] The advisory committee at the time of the Rockefeller initiation included A. H. Barr, and D. Miller, and also J. J. Sweeney, R. Hale, P. Rathbone and G. Bunshaft.[239]
Chase Auditorium (formerly Bank One Auditorium) inside of Chase Tower in Chicago, Illinois (formerly Bank One Tower)
The JPMorgan Chase Corporate Challenge, owned and operated by JPMorgan Chase, is the largest corporate road racing series in the world with over 200,000 participants in 12 cities in six countries on five continents. It has been held annually since 1977 and the races range in size from 4,000 entrants to more than 60,000.
JPMorgan Chase is the official sponsor of the US Open
JPMorgan Chase is mainly owned by institutional investors, with over 70% of shares held. The 10 largest shareholder of the bank in December 2023 were:[240]
Jamie Dimon is the chairman and CEO of JPMorgan Chase. The acquisition deal of Bank One in 2004, was designed in part to recruit Dimon to JPMorgan Chase. He became chief executive at the end of 2005.[241] Dimon has been recognized for his leadership during the 2008 financial crisis.[242] Under his leadership, JPMorgan Chase rescued two ailing banks during the crisis.[243]
Dina Dublon – member of the board of directors of Microsoft, Accenture and PepsiCo and former executive vice president and chief financial officer of JPMorgan Chase
George P. Shultz – U.S. Secretary of Labor (1969–70), U.S. Secretary of Treasury (1972–74), U.S. Secretary of State (1982–89)
John J. McCloy – president of the World Bank, U.S. High Commissioner for Germany, chairman of Chase Manhattan Bank, chairman of the Council on Foreign Relations, a member of the Warren Commission, and a prominent United States adviser to all presidents from Franklin D. Roosevelt to Ronald Reagan
Mahua Moitra – investment banker at JPMorgan Chase, Indian Member of Parliament, Lok Sabha
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 41 countries and more than 90,000 employees, the firm's clients include corporations, governments, institutions, and individuals. Morgan Stanley ranked No. 61 in the 2023 Fortune 500 list of the largest United States corporations by total revenue and in the same year ranked #30 in Forbes Global 2000.
Chemical Bank, headquartered in New York City, was the principal operating subsidiary of Chemical Banking Corporation, a bank holding company. In 1996, it acquired Chase Bank, adopted the Chase name, and became the largest bank in the United States. Prior to the 1996 merger, Chemical was the third-largest bank in the U.S., with $182.9 billion in assets and more than 39,000 employees. In addition to operations in the U.S., it had a major presence in Japan, Germany, and the United Kingdom. It was active in both corporate banking as well as retail banking as well as investment banking and underwriting corporate bonds and equity.
The Bank of America Corporation is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina, with investment banking and auxiliary headquarters in Manhattan. The bank was founded by the merger of NationsBank and Bank of America in 1998. It is the second-largest banking institution in the United States and the second-largest bank in the world by market capitalization, both after JPMorgan Chase. Bank of America is one of the Big Four banking institutions of the United States. It serves about 10 percent of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup, and Wells Fargo. Its primary financial services revolve around commercial banking, wealth management, and investment banking.
JPMorgan Chase Bank, N.A., doing business as Chase, is an American national bank headquartered in New York City that constitutes the consumer and commercial banking subsidiary of the U.S. multinational banking and financial services holding company, JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000. Chase Manhattan Bank was formed by the merger of the Chase National Bank and the Manhattan Company in 1955. The bank merged with Chemical Bank New York in 1996 and later merged with Bank One Corporation in 2004 and in 2008 acquired the deposits and most assets of Washington Mutual. In May 2023, it acquired the assets of First Republic Bank.
James Dimon is an American banker and businessman. He has been the Chairman and chief executive officer (CEO) of JPMorgan Chase since 2006.
The Bear Stearns Companies, Inc. was an American investment bank, securities trading, and brokerage firm that failed in 2008 during the 2007–2008 financial crisis and the Great Recession. After its closure it was subsequently sold to JPMorgan Chase. The company's main business areas before its failure were capital markets, investment banking, wealth management, and global clearing services, and it was heavily involved in the subprime mortgage crisis.
William B. Harrison Jr.,, in Rocky Mount, North Carolina, is the former CEO and chairman of JPMorgan Chase. He attended high school at Virginia Episcopal School, where he was a basketball star. He attended the University of North Carolina at Chapel Hill, where he was admitted to the Zeta Psi fraternity. Having risen through the ranks of Chemical Bank before succeeding Walter V. Shipley during the Chemical Bank merger with the Chase Manhattan Corporation in 1995, which kept the Chase name. As Chairman and CEO of Chase, he and Douglas A. Warner III, then CEO of J.P. Morgan & Co., were the principal architects of the US$30.9 billion acquisition by Chase of J.P. Morgan & Co. in 2000, to form JPMorgan Chase & Co. Harrison has been a director of the Firm or a predecessor institution since 1991. Harrison is also a director of Merck & Co., Inc.
J.P. Morgan & Co. is an American financial institution specialized in investment banking, asset management and private banking founded by financier J. P. Morgan in 1871. Through a series of mergers and acquisitions, the company is now a subsidiary of JPMorgan Chase, one of the largest banking institutions in the world. The company has been historically referred to as the "House of Morgan" or simply Morgan.
CCMP Capital Advisors, LP is an American private equity investment firm that focuses on leveraged buyout and growth capital transactions. Formerly known as JP Morgan Partners, the investment professionals of JP Morgan Partners separated from JPMorgan Chase on July 31, 2006. CCMP has invested approximately $12 billion in leveraged buyout and growth capital transactions since inception. In 2007, CCMP was ranked #17 among the world's largest private equity funds.
The government interventions during the subprime mortgage crisis were a response to the 2007–2009 subprime mortgage crisis and resulted in a variety of government bailouts that were implemented to stabilize the financial system during late 2007 and early 2008.
One Equity Partners is a private equity firm with over $10 billion in assets under management which primarily deals with the industrial, healthcare and technology sectors in North America and Europe. One Equity Partners was the merchant banking arm of JPMorgan Chase, focused on leveraged buyout and growth capital investments in middle-market companies. Formed by Bank One in 2001, the group has offices in New York City, Chicago, São Paulo, Vienna, Hong Kong and Frankfurt.
Blythe Sally Jess Masters is a British private equity executive and former financial services and fintech executive. She is a former executive at JPMorgan Chase, where she was widely credited for developing the credit default swap as a financial instrument.
James Edward "Jes" Staley is an American banker, and the former group chief executive of Barclays. He stepped down as CEO on November 1, 2021, and was succeeded by C. S. Venkatakrishnan. Staley has nearly four decades of experience in banking and financial services. He spent 34 years at J.P. Morgan's investment bank, ultimately becoming CEO. In 2013, he moved to BlueMountain Capital, and in December 2015, became CEO of Barclays. In November 2021, Staley resigned amid a regulatory probe into whether he mischaracterized his relationship with the financier, human trafficker, and sex offender Jeffrey Epstein.
JPMorgan Chase is an American multinational banking corporation with a large presence in the United Kingdom. The corporation's European subsidiaries J.P. Morgan Europe Limited, J.P. Morgan International Bank Limited and J.P. Morgan Securities plc are headquartered in London.
In April and May 2012, large trading losses occurred at JPMorgan's Chief Investment Office, based on transactions booked through its London branch. The unit was run by Chief Investment Officer Ina Drew, who later stepped down. A series of derivative transactions involving credit default swaps (CDS) were entered, reportedly as part of the bank's "hedging" strategy. Trader Bruno Iksil, nicknamed the London Whale, accumulated outsized CDS positions in the market. An estimated trading loss of $2 billion was announced. However, the loss amounted to more than $6 billion for JPMorgan Chase.
Viswas ("Vis") Raghavan is the Head of Banking for Citigroup. Prior to his current role, he co-led investment banking with Jim Casey since 2020 and was briefly the sole head of global investment banking at JPMorgan Chase.
Alayne Fleischmann, a lawyer formerly employed by JPMorgan Chase, provided evidence resulting in a $13 billion settlement by JPMorgan Chase to the United States Federal Government. The case has been called one of the most significant white-collar crime cases in US history.
Frank J. Bisignano is an American businessman and the president and CEO of Fiserv. He previously was the CEO of First Data, and the COO of JPMorgan Chase.
Marianne Lake is a senior British-American banker.
Jennifer Piepszak is an American financial executive and co-head of J.P. Morgan’s Commercial & Investment Bank. Her appointment was announced on January 25, 2024. Prior to this, Piepszak served as co-chief executive officer (CEO) of Consumer and Community Banking at Chase. Barron's named Piepszak one of the 100 Most Influential Women in U.S. Finance. Crain's New York named Piepszak the No. 2 Most Powerful Women in New York in 2019. American Banker named Piepszak the No. 4 Woman to Watch in 2018. She was ranked 24th on Fortune's list of Most Powerful Women in 2023.
↑ On March 18, 2008, JPMorgan Chase announced the acquisition of Bear Stearns for $236million, $2.00 per share. On March 24, 2008, a revised offer was announced at approximately $10 per share
↑ On September 25, 2008, JPMorgan Chase announced the acquisition of Washington Mutual for $1.8billion.
↑ Zuckerman, Gregory; Burne, Katy (April 6, 2012). "'London Whale' Rattles Debt Market". The Wall Street Journal. Archived from the original on November 25, 2020. Retrieved August 12, 2017.
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US$158.1 billion (2023)
