J.P. MORGAN

J.P. Morgan



J.P. Morgan

Company Overview

J.P. Morgan Chase is one of the top four bank holding companies in the United States, based on assets. It is the top corporate syndicated lender and operates banking offices globally. It is also a large investment bank specializing in debt markets, and it operates large units focused on securities custody, credit cards, asset management, and cash flow servicing. The operating profit of the company was $24,859 million during FY2010, an increase of 54.7% over FY2009.The net profit was $17,370 million during FY2010, an increase of 48.1% over FY2009 (Annual Report, 2010).

Business Description

JPMorgan Chase & Company (JPMC) is a financial holding company. It is a leading global financial services firm and one of the largest banking institutions in the US. The company is a leader in investment banking, financial transaction processing, asset management, and private equity. The company operates through seven segments: investment bank, retail financial services, card services, asset management, treasury and securities services, commercial banking, and corporate. Investment bank JPMC operates in the investment banking sector through JPMorgan, a subsidiary. JPMorgan is one of the world's leading investment banks.

History

JPMC was founded in New York in 1871 as Drexel, Morgan & Co, by J Pierpont Morgan and Anthony Drexel (a Banker from Philadelphia).This merchant banking partnership served, initially, as an agent for Europeans investing in the US. The company was considered as the leading American Depositary Receipt (ADR) depositary bank in 1927. In 1933, JPMC investigated the causes of the 1929 stock market crash. JPMC was chosen by the British and French governments to sell publicly traded securities, valued at $1.5 billion, in the New York market in 1939. During the 1950s all four of JPMC's major New York City heritage firms grew through mergers. JPMC merged with Guaranty Trust Company in 1959 to create Morgan Guaranty Trust Company. The merger created one of the world's largest trust operations.The company established international operations as well. By 1965, JPMC was among only twelve US banks to have opened branches outside the US. During the early 1980s, JPMC focused on developing its investment banking capability. In 2000, JPMC merged with Chase Manhattan Corporation. In effect, the merger combined four of the largest and oldest money center banking institutions in New York City (Morgan, Chase, Chemical and Manufacturers Hanover) into one firm called JP Morgan Chase & Co. JPMorgan Chase Bank, a principal banking subsidiary of JPMC, acquired APEX Property Exchange's Like-Kind Exchange business in 2002.

This transaction helped JPMC in expanding its global servicing capabilities. In the same year, JPMC also acquired Systems & Services Technologies, a leading third-party service provider. The year 2004 began with the merger between JP Morgan and Bank One. The merger established the second largest banking franchise in the US (based on core deposits). The combined company had assets of $1.1 trillion and approximately 2,300 branches in 17 states (Annual Report, 2010). JPMC reached a settlement with insurers relating to its involvement with Enron in ...