JPMorgan Chase facts for kids

Quick facts for kids
JPMorgan Chase & Co.

Future JPMorgan Chase headquarters at 270 Park Avenue in Midtown Manhattan, which is currently under construction
Type	Public
Traded as	NYSE: JPM DJIA component S&P 100 component S&P 500 component
ISIN	ISIN: [https://isin.toolforge.org/?language=en&isin=US46625H1005 US46625H1005]
Industry	Financial services
Predecessors	Bank of the Manhattan Company (founded 1799) Chemical Bank (founded 1824) J.P. Morgan & Co. (founded 1871) Chase National Bank (founded 1877)
Founded	December 1, 2000; 23 years ago (2000-12-01)
Headquarters	383 Madison Avenue New York City, U.S.
Area served	Worldwide
Key people	Jamie Dimon (Chairman & CEO) Daniel E. Pinto (President & COO)
Products	Asset management Banking Commodities Credit cards Equities trading Insurance Investment management Mortgage loans Mutual funds Exchange-traded funds Index funds Private equity Risk management Wealth management
Revenue	US$158.1 billion (2023)
Net income	US$49.55 billion (2023)
AUM	US$3.422 trillion (2023)
Total assets	US$3.875 trillion (2023)
Total equity	US$327.9 billion (2023)
Number of employees	309,926 (2023)
Divisions	Asset and Wealth Management Consumer and Community Banking Commercial Banking Corporate and Investment Banking
Subsidiaries	Chase Bank J.P. Morgan & Co. One Equity Partners First Republic Bank
Capital ratio	Tier 1 16.6% (2023)

JPMorgan Chase & Co. is an American multinational finance company headquartered in New York City and incorporated in Delaware. It is the largest bank in the United States and the world's largest bank by market capitalization as of 2023. As the largest of Big Four banks, the firm is considered systemically important by the Financial Stability Board. Its size and scale have often led to enhanced regulatory oversight as well as the maintenance of an internal "Fortress Balance Sheet". The firm is headquartered at 383 Madison Avenue in Midtown Manhattan and is set to move into the under-construction JPMorgan Chase Building at 270 Park Avenue in 2025.

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 US$3.9 trillion in total assets, JPMorgan Chase is the fifth-largest bank in the world by assets. The firm operates the largest investment bank in the world by revenue. It occupies 24th place 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. It receives routine criticism for its risk management, broad financing activities, and large-scale legal settlements.

History

JPMorgan Chase, in its current structure, is the result of the combination of several large U.S. banking companies that merged since 1996, combining Chase Manhattan Bank, J.P. Morgan & Co., and Bank One, as well as asset assumptions of Bear Stearns, Washington Mutual, and First Republic. Predecessors included additional historic, major banking firms, among which are Chemical Bank, Manufacturers Hanover, First Chicago Bank, National Bank of Detroit, Texas Commerce Bank, Providian Financial and Great Western Bank. The company's oldest predecessor institution, The Bank of the Manhattan Company, was the third oldest banking corporation in the United States, and the 31st oldest bank in the world, having been established on September 1, 1799, by Aaron Burr.

Chase Manhattan Bank

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), 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.

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.

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. 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 $1.35 billion. In April 2000, UK-based Robert Fleming & Co. was purchased by the new Chase Manhattan Bank for $7.7 billion.

Chemical Banking Corporation

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. 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).

In 1996, Chemical Bank acquired Chase Manhattan. Although Chemical was the nominal survivor, it took the better-known Chase name. 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).

J.P. Morgan and Company

The House of Morgan was born out of the partnership of Drexel, Morgan & Co., which in 1895 was renamed J.P. Morgan & Co. (see also: J. Pierpont Morgan). J.P. Morgan & Co. financed the formation of the United States Steel Corporation, which took over the business of Andrew Carnegie and others and was the world's first billion dollar corporation. In 1895, J.P. Morgan & Co. supplied the United States government with $62 million in gold to float a bond issue and restore the treasury surplus of $100 million. In 1892, the company began to finance the New York, New Haven and Hartford Railroad and led it through a series of acquisitions that made it the dominant railroad transporter in New England.

Built in 1914, 23 Wall Street was the bank's headquarters for decades. On September 16, 1920, a terrorist bomb exploded in front of the bank, injuring 400 and killing 38. 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.

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. 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. Since the U.S. federal government withdrew from world affairs under successive isolationist Republican administrations in the 1920s, J.P. Morgan & Co. continued playing a major role in global affairs since most European countries still owed war debts.

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.

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 $6.6 million of nonvoting preferred stock from J.P. Morgan partners. 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. 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.

The Bank began operations in Japan in 1924, in Australia during the later part of the nineteenth century, and in Indonesia during the early 1920s. 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. The bank has operated in Saudi Arabia and India since the 1930s. Chase Manhattan Bank opened an office in South Korea in 1967. The firm's presence in Greece dates to 1968. An office of JPMorgan was opened in Taiwan in 1970, in Russia (Soviet Union) in 1973, and Nordic operations began during the same year. Operations in Poland began in 1995.

Bank One Corporation

In 2004, JPMorgan Chase merged with Chicago-based Bank One Corp., bringing on board current chairman and CEO Jamie Dimon as president and COO. He succeeded former CEO William B. Harrison Jr. 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. Bank One Corporation was formed with the 1998 merger of Banc One of Columbus, Ohio and First Chicago NBD. 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.

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. 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.

Bear Stearns

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. 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.

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 $240 million pending shareholder approval scheduled within 90 days. In the interim, JPMorgan Chase agreed to guarantee all Bear Stearns trades and business process flows. On March 18, 2008, JPMorgan Chase formally announced the acquisition of Bear Stearns for $236 million. The stock swap agreement was signed that night.

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. 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.

Washington Mutual

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 $1.836 billion, 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 and not "by operation of law" from the receivership.

As a result of the takeover, Washington Mutual shareholders lost all their equity.

JPMorgan Chase raised $10 billion in a stock sale to cover writedowns and losses after taking on deposits and branches of Washington Mutual. 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. Chief executive Alan H. Fishman received a $7.5 million sign-on bonus and cash severance of $11.6 million after being CEO for 17 days.

First Republic Bank

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 & Co., it will make a $10.6 billion payment to the Federal Deposit Insurance Corporation, return $25 billion 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 $5 billion deposit it had made with First Republic. As a result of the takeover, First Republic Bank shareholders lost all their equity.

The FDIC estimates that the cost to the Deposit Insurance Fund will be about $13 billion.

Recent history

2006

In 2006, JPMorgan Chase purchased Collegiate Funding Services, a portfolio company of private equity firm Lightyear Capital, for $663 million. CFS was used as the foundation for the Chase Student Loans, previously known as Chase Education Finance.

In April 2006, JPMorgan Chase acquired Bank of New York Mellon's retail and small business banking network. The acquisition gave Chase access to 339 additional branches in New York, New Jersey, and Connecticut. In 2008, J.P. Morgan acquired the UK-based carbon offsetting company ClimateCare. JPMorgan Chase was the biggest bank at the end of 2008 as an individual bank (exclusive of its subsidiaries) during the 2008 financial crisis.

2008–2009

On October 28, 2008, $25 billion in funds were transferred from the U.S. Treasury Department to JPMorgan Chase, under the Troubled Asset Relief Program (TARP). This was the fifth largest amount transferred under Section A of TARP to help troubled assets related to residential mortgages. It has been widely reported 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.

By February 2009, the U.S. government had not moved forward in enforcing TARP's intent of funding JPMorgan Chase with $25 billion. 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 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.

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.

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. 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. 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.

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".

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.

In October 2014, J.P. Morgan sold its commodities trader unit to Mercuria for $800 million, a quarter of the initial valuation of $3.5 billion, as the transaction excluded some oil and metal stockpiles and other assets.

2016

In March 2016, J.P. Morgan decided not to finance coal mines and coal power plants in wealthy countries. In October 2016, J.P.Morgan unveiled its permissioned blockchain called Quorum, based on Ethereum's GO programming language. 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 1.5 million euros.

2017

In March 2017, Lawrence Obracanik, a former JPMorgan Chase & Co. employee, pleaded guilty to criminal charges that he stole more than $5 million from his employer to pay personal debts. In June 2017, Matt Zames, then-COO of the bank, decided to leave the firm. In December 2017, J.P. Morgan was sued by the Nigerian government for $875 million, which Nigeria alleges was transferred by J.P. Morgan to a corrupt former minister. Nigeria accused J.P. Morgan of being "grossly negligent".

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. It would be the first cryptocurrency issued by a United States bank.

2021

On April 19, 2021, JP Morgan pledged $5 billion towards the European Super League, 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. After a strong backlash, the owners/management of the teams that proposed creating the league pulled out of it. After the attempt to end the European football hierarchy failed, J.P. Morgan apologized for its role in the scheme. JPMorgan Chase CEO Jamie Dimon said the company "kind of missed" that football supporters would respond negatively to the Super League. 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. 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.

In September 2021, JPMorgan Chase entered the UK retail banking market by launched an app-based current account under the Chase brand. This is the company's first retail banking operation outside of the United States. In 2021, the company made more than over 30 acquisitions including OpenInvest and Nutmeg. In March 2022, JPMorgan Chase announced that would acquire Global Shares, a cloud-based provider of share plan software management. In November 2021, JPMorgan Chase acquired restaurant recommendation website and owner of Zagat, The Infatuation.

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.

2022

In 2022, JPMorgan Chase was ranked 24 on the Fortune 500 rankings of the largest U.S. corporations by total revenue. In March 2022, JPMorgan Chase announced to wind down its business in Russia in compliance with regulatory and licensing requirements.

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.

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.

In November 2022, JPMorgan Chase sent COO Daniel Pinto to the Global Financial Leaders' Investment Summit in Hong Kong. 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.

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.

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).

Financial data

Year	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Revenue	25.87	31.15	33.19	29.34	29.61	33.19	42.74	54.25	62.00	71.37	67.25	100.4	102.7	97.23	97.03	96.61	94.21	93.54	95.67	99.62	109.03	115.40	119.54	121.65	128.69
Net income	4.745	7.501	5.727	1.694	1.663	6.719	4.466	8.483	14.44	15.37	5.605	11.73	17.37	18.98	21.28	17.92	21.76	24.44	24.73	24.44	32.47	36.43	29.13	48.33	37.68
Assets	626.9	667.0	715.3	693.6	758.8	770.9	1,157	1,199	1,352	1,562	2,175	2,032	2,118	2,266	2,359	2,416	2,573	2,352	2,491	2,534	2,623	2,687	3,386	3,743	3,666
Equity	35.10	35.06	42.34	41.10	42.31	46.15	105.7	107.2	115.8	123.2	166.9	165.4	176.1	183.6	204.1	210.9	231.7	247.6	254.2	255.7	256.5	261.3	279.4	294.1	292.3
Capitalization						75.03	138.7	138.4	167.2	147.0	117.7	164.3	165.9	125.4	167.3	219.7	232.5	241.9	307.3	366.3	319.8	429.9	387.5
Headcount						96.37	161.0	168.8	174.4	180.7	225.0	222.3	239.8	260.2	259.0	251.2	241.4	234.6	243.4	252.5	256.1	257.0	255.4	271.0	293.7

'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.'

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:

• Chase Bank
• JPMorgan Securities, LLC.

The modern JPMorgan Chase is broken up into the following four business segments:

• Asset and Wealth Management (J.P. Morgan)
• Consumer and Community Banking (Chase)
• Corporate and Investment banking (J.P. Morgan)
• Commercial Banking (Chase)

JPMorgan Europe, Ltd.

The company, known previously as Chase Manhattan International Limited, was founded on September 18, 1968. In August 2008, the bank announced plans to construct a new European headquarters at Canary Wharf, London. 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. 25 Bank Street had originally been designated as the European headquarters of Enron and was subsequently used as the headquarters of Lehman Brothers International. The regional office is in London with offices in Bournemouth, Glasgow, and Edinburgh for asset management, private banking, and investment banking.

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:

Political contributions

JPMorgan Chase's PAC and its employees contributed $2.6 million to federal campaigns in 2014 and financed its lobbying team with $4.7 million 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.

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 $75 billion (£61 billion) to companies expanding in sectors such as fracking and Arctic oil and gas exploration. According to Rainforest Action Network its total fossil fuel financing was $64 billion in 2018, $69 billion in 2017 and $62 billion in 2016. From 2015, which is when the Paris Agreement was adopted, until 2021, JP Morgan Chase provided $317 billion in fossil fuel financing; 33% more than any other bank. On October 21, 2021, JP Morgan Chase joined the Net-Zero Banking Alliance, which supports "the global transition of the real economy to net-zero emissions."

An internal study, 'Risky business: the climate and macroeconomy', by bank economists David Mackie and Jessica Murray was leaked in early‑2020. The report, dated 14 January 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.

In May 2023, JPMorgan Chase announced that it would purchase $200 million in carbon credits representing 800,000 metric tons of carbon dioxide removal (CDR) from multiple companies (including Climeworks and Charm Industrial) after announcing the previous month that it would join the Frontier CDR initiative formed by Alphabet Inc., McKinsey & Company, Meta Platforms, Shopify, and Stripe, Inc. under a $925 million advance market commitment to the CDR industry the previous year.

Offices

Although 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 Union Carbide's former headquarters, to make way for a newer building at 270 Park Avenue that will be 681 feet (208 m) 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 (423 m) and 70-story headquarters will contain 2,500,000 square feet (230,000 m²), and will be able to fit 15,000 employees, whereas the current building 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. 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.

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. The bank moved some of its operations to the JPMorgan Chase Tower in Houston, when it purchased Texas Commerce Bank. The Global Corporate Bank's main headquarters are in London, with regional headquarters in Hong Kong, New York and São Paulo.

The Card Services division has its headquarters in Wilmington, Delaware, with Card Services offices in Elgin, Illinois; Springfield, Missouri; San Antonio, Texas; Mumbai, India; and Cebu, Philippines. Additional large operation centers are located in Phoenix, Arizona; Los Angeles, California, Newark, Delaware; Orlando, Florida; Tampa, Florida; Jacksonville, Florida; Brandon, Florida; Indianapolis, Indiana; Louisville, Kentucky; Brooklyn, New York; Rochester, New York; Columbus, Ohio; Dallas, Texas; Fort Worth, Texas; Plano, Texas; and Milwaukee, Wisconsin. Operation centers in Canada are located in Burlington, Ontario; and Toronto, Ontario.

Additional offices and technology operations are located in Manila, Philippines; Cebu, Philippines; Mumbai, India; Bangalore, India; Hyderabad, India; New Delhi, India; Buenos Aires, Argentina; São Paulo; Mexico City, Mexico, and Jerusalem, Israel. In late 2017, JPMorgan Chase opened a new global operations center in Warsaw, Poland. The Asia Pacific headquarters for JPMorgan is located in Hong Kong at Chater House.

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.

Gallery

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  JPMorgan Chase World Headquarters
  383 Madison Avenue
  New York City

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  JPMorgan Chase World Headquarters (under construction)
  270 Park Avenue
  New York City

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  277 Park Avenue
  New York City

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  28 Liberty Street
  New York City

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  Chase Tower
  Chicago, Illinois

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  JPMorgan Chase Building
  San Francisco, California

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  Chase Tower
  Dallas, Texas

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  Chase Tower
  Phoenix, Arizona

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  JPMorgan Chase Tower
  Houston, Texas

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  25 Bank Street
  London, United Kingdom

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  JPMorgan Chase & Co. Tower
  Hyderabad, Telangana, India

Credit derivatives

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. As of 2013 JPMorgan had the largest credit default swap and credit derivatives portfolio by total notional amount of any US bank.

2012 CDS trading loss

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. Early reports were denied and minimized by the firm in an attempt to minimize exposure. Major losses, $2 billion, were reported by the firm in May 2012, in relation to these trades and updated to $4.4 billion on July 13, 2012. 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 $9 billion under worst-case scenarios. In the end, the trading produced actual losses of only $6 billion. The item traded, possibly related to CDX IG 9, an index based on the default risk of major U.S. corporations, has been described as a "derivative of a derivative". 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". The episode was investigated by the Federal Reserve, the SEC, and the FBI.

Fines levied regarding the 2012 JPMorgan Chase trading loss

Regulator	Nation	Fine
Office of the Comptroller of the Currency	US	$300m
Securities and Exchange Commission		$200m
Federal Reserve		$200m
Financial Conduct Authority	UK	£138m ($220m US)

On September 18, 2013, JPMorgan Chase agreed to pay a total of $920 million 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. The fines amounted to the third biggest banking fine levied by US regulators, and the second-largest by UK authorities. As of September 19,  2013 (2013 -09-19)^[update], two traders face criminal proceedings. It is also the first time in several years that a major American financial institution has publicly admitted breaking the securities laws.

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." 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.

Art collection

The collection was begun in 1959 by David Rockefeller, and comprises over 30,000 objects, of which over 6,000 are photographic-based, as of 2012 containing more than one hundred works by Middle Eastern and North African artists. 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. L. K. Erf has been the director of acquisitions of works since 2004 for the bank, whose art program staff is completed by an additional three full-time members and one registrar. 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.

Major sponsorships

• Chase Field (formerly Bank One Ballpark), Phoenix, Arizona – Arizona Diamondbacks, MLB
• Chase Center, San Francisco, California – Golden State Warriors, NBA
• Major League Soccer
• 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
• J.P. Morgan Asset Management is the Principal Sponsor of the English Premiership Rugby 7s Series
• Sponsor of the Jessamine Stakes, a two-year-old fillies horse race at Keeneland, Lexington, Kentucky since 2006.
• Chase Center on the Riverfront in Wilmington, Delaware where Joe Biden accepted his election as President of the United States in 2020.
• European Super League (now-defunct)

Ownership

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:

• The Vanguard Group (9.46%)
• BlackRock (6.66%)
• State Street Corporation (4.35%)
• Morgan Stanley (2.25%)
• Geode Capital Management (1.92%)
• Fidelity Investments (1.83%)
• Bank of America (1.77%)
• Capital International Investors (1.44%)
• Wellington Management Company (1.38%)
• Norges Bank (1.23%)

Leadership

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. Dimon has been recognized for his leadership during the 2008 financial crisis. Under his leadership, JPMorgan Chase rescued two ailing banks during the crisis.

Although Dimon has publicly criticized the American government's strict immigration policies, as of July 2018, his company has $1.6 million worth of stocks in Sterling Construction (the company contracted to build a massive wall on the U.S.-Mexico border).

Board of directors

As of May 1, 2023:

• Jamie Dimon, chairman and CEO of JPMorgan Chase
• Linda Bammann, former JPMorgan and Bank One executive
• Steve Burke, chairman of NBCUniversal
• Todd Combs, CEO of GEICO
• James Crown, president of Henry Crown and Company
• Alicia Boler Davis, CEO of Alto Pharmacy
• Timothy Flynn, former chairman and CEO of KPMG
• Alex Gorsky, former CEO and chairman of Johnson & Johnson
• Mellody Hobson, CEO of Ariel Investments
• Michael Neal, CEO of GE Capital
• Phebe Novakovic, chairwoman and CEO of General Dynamics
• Virginia Rometty, Executive Chairwoman of IBM, former chairwoman, president and CEO of IBM

Senior leadership

• Chairman: Jamie Dimon (since January 2007)
• Chief Executive: Jamie Dimon (since January 2006)

List of former chairmen

1. William B. Harrison Jr. (2000–2006)

List of former chief executives

1. William B. Harrison Jr. (2000–2005)

Notable former employees

Business

• Winthrop Aldrich – son of the late Senator Nelson Aldrich
• Andrew Crockett – former general manager of the Bank for International Settlements (1994–2003)
• Pierre Danon – chairman of Eircom
• Ina Drew – former CIO of JP Morgan Chase
• 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
• Maria Elena Lagomasino – member of the board of directors of The Coca-Cola Company and former CEO of JPMorgan Private Bank
• Jacob A. Frenkel – Governor of the Bank of Israel
• Thomas W. Lamont – acting head of J.P. Morgan & Co. on Black Tuesday
• Charles Li – former CEO of Hong Kong Exchanges and Clearing
• Robert I. Lipp – former CEO of The Travelers Companies
• Marjorie Magner – chairman of Gannett Company
• Henry S. Morgan – co-founder of Morgan Stanley, son of J. P. Morgan Jr. and grandson of financier J. P. Morgan
• Lewis Reford – Canadian political candidate
• David Rockefeller – patriarch of the Rockefeller family
• Charlie Scharf – current CEO of Wells Fargo
• Harold Stanley – former JPMorgan partner, co-founder of Morgan Stanley
• Jes Staley – former CEO of Barclays
• Barry F. Sullivan – former CEO of First Chicago Bank and deputy mayor of New York City
• C. S. Venkatakrishnan – current CEO of Barclays
• Don M. Wilson III – former chief risk officer (CRO) of J. P. Morgan and current member of the board of directors at Bank of Montreal
• Ed Woodward – executive vice-chairman of Manchester United F.C.

Politics and public service

• Frederick Ma – Hong Kong Secretary for Commerce and Economic Development (2007–08)
• Tony Blair – Prime Minister of the United Kingdom (1997–2007)
• William M. Daley – U.S. Secretary of Commerce (1997–2000), U.S. White House Chief of Staff (2011–2012)
• Michael Forsyth, Baron Forsyth of Drumlean – Secretary of State for Scotland (1995–97)
• Thomas S. Gates Jr. – U.S. Secretary of Defense (1959–61)
• David Laws – UK Chief Secretary to the Treasury (May 2010) Minister of State for Schools
• Rick Lazio – member of the U.S. House of Representatives (1993–2001)
• Antony Leung – Financial Secretary of Hong Kong (2001–03)
• Dwight Morrow – U.S. Senator (1930–31)
• Margaret Ng – member of the Hong Kong Legislative Council
• Azita Raji – former United States ambassador to Sweden (2016–2017)
• 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 – former vice president of JPMorgan Chase, Indian Member of Parliament, Lok Sabha

Other

• R. Gordon Wasson – ethnomycologist and former JPMorgan vice president

See also

In Spanish: JP Morgan Chase para niños

• History of the credit default swap
• History of banking in the United States
• J.P. Morgan Reserve Card (Palladium Card)
• Big Four banks

Index products

• JPMorgan EMBI
• JPMorgan GBI-EM Index