JPMorgan Chase facts for kids
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| Public | |
| Traded as | |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=US46625H1005 US46625H1005] |
| Industry | Financial services |
| Predecessors |
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| Founded | December 1, 2000 |
| Headquarters | 383 Madison Avenue,
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United States
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Area served
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Worldwide |
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Key people
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| Revenue |  US$158.1 billion (2023) |
| US$49.55 billion (2023) |
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| AUM | US$3.422 trillion (2023) |
| Total assets | US$3.875 trillion (2023) |
| Total equity | US$327.9 billion (2023) |
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Number of employees
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309,926 (2023) |
| Subsidiaries |
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| Capital ratio | Tier 1 16.6% (2023) |
JPMorgan Chase & Co. is a huge American company that offers many financial services. It's based in New York City and is one of the biggest banks in the United States. In fact, as of 2023, it's the largest bank in the world based on its market value!
This company is so big and important that it's considered "systemically important." This means its health is vital to the entire financial system. Because of its size, it has special rules and keeps a very strong financial base. Its main office is currently at 383 Madison Avenue in Midtown Manhattan. It plans to move to a new building at 270 Park Avenue in 2025.
JPMorgan Chase has a long history, starting way back in 1799. The famous J. P. Morgan founded J.P. Morgan & Co. in 1871. This company helped businesses with loans, investments, and managing money. The current company was formed in 2000 when two big banks merged. Today, it helps large companies with investments and manages money for wealthy clients. It also offers regular banking services and credit cards through its Chase brand in the U.S. and United Kingdom.
With trillions of dollars in assets, JPMorgan Chase is one of the top banks globally. It's also known as the largest investment bank in the world by how much money it makes. The company is often listed among the biggest U.S. corporations by revenue. In 2023, Forbes magazine ranked it as the #1 company in its Global 2000 list.
Contents
- How JPMorgan Chase Started
- Recent Company History
- Important Legal Settlements
- Financial Information
- How JPMorgan Chase is Organized
- Climate Change and the Environment
- Where JPMorgan Chase Has Offices
- =Images for kids
- Credit Derivatives and Trading
- Art Collection
- Major Sponsorships
- Company Ownership
- Company Leadership
- Notable Former Employees
- See also
How JPMorgan Chase Started
JPMorgan Chase as we know it today is the result of many large U.S. banks joining together since 1996. These include Chase Manhattan Bank, J.P. Morgan & Co., and Bank One. The company also took over parts of Bear Stearns, Washington Mutual, and First Republic.
Some of its very old roots go back to The Bank of the Manhattan Company. This bank was started on September 1, 1799, by Aaron Burr. It was one of the oldest banks in the United States.
The Story of Chase Manhattan Bank
The Chase Manhattan Bank was created in 1955. This happened when Chase National Bank (started in 1877) bought The Bank of the Manhattan Company (started in 1799). The Bank of the Manhattan Company was first set up by Aaron Burr. He changed it from a water company into a bank.
In the 1970s and 1980s, Chase Manhattan became a very important bank. It was a leader in many areas like loans, credit cards, and home loans. In 1996, another bank called Chemical Bank bought Chase Manhattan. But they decided to keep the more famous "Chase" name.
Before merging with J.P. Morgan & Co., the new Chase bank grew even more. It bought two other companies to expand its investment and money management services.
The Story of Chemical Bank
The New York Chemical Manufacturing Company began in 1823. It made different chemicals. In 1824, the company changed its rules to also do banking. This led to the creation of the Chemical Bank of New York.
After 1851, the bank became separate from its original company. It grew by itself and by joining with other banks. One big merger was with Manufacturer's Hanover Trust Company in 1991. Chemical Bank was known for helping to fund large company buyouts.
In 1996, Chemical Bank bought Chase Manhattan. Even though Chemical Bank was the one that survived, it took the name Chase. Today, JPMorgan Chase still uses Chemical Bank's old stock history. Its main office is also on the site of Chemical Bank's former headquarters.
The Story of J.P. Morgan and Company
The "House of Morgan" started as Drexel, Morgan & Co. In 1895, it changed its name to J.P. Morgan & Co.. This company was founded by J. P. Morgan. J.P. Morgan & Co. helped create the United States Steel Corporation. This was the world's first company worth a billion dollars. It took over the business of Andrew Carnegie.
In 1895, J.P. Morgan & Co. even helped the U.S. government. They provided $62 million in gold to help the country's finances. The bank's headquarters for many years was at 23 Wall Street. On September 16, 1920, a bomb exploded there. It injured 400 people and killed 38. The mystery of who did it was never solved.
During the 1930s, new laws made banks separate their investment banking from their regular banking. J.P. Morgan & Co. chose to focus on regular banking. In 1935, some of J.P. Morgan's partners started a new company called Morgan Stanley for investment banking.
J.P. Morgan & Co. continued to grow. In 1959, it merged with Guaranty Trust Company of New York. This formed Morgan Guaranty Trust Company. The bank later went back to using the J.P. Morgan brand.
The bank also expanded around the world. It started operations in Japan in 1924 and in China in 1921. It has been in Saudi Arabia and India since the 1930s.
The Story of Bank One Corporation
In 2004, JPMorgan Chase merged with Bank One Corp., a bank from Chicago. This merger brought Jamie Dimon to JPMorgan Chase. He became the company's president and later its CEO.
Bank One Corporation was formed in 1998. This happened when Banc One of Columbus, Ohio merged with First Chicago NBD. Jamie Dimon helped make Bank One a strong company before it joined with JPMorgan Chase.
How JPMorgan Chase Acquired Bear Stearns
In 2007, Bear Stearns was a very large investment bank. But its value started to drop. In March 2008, rumors spread that clients were taking their money out of the bank. Bear Stearns was in danger of failing. To prevent a bigger financial crisis, the U.S. government stepped in.
On March 16, 2008, JPMorgan Chase announced it would buy Bear Stearns. This deal was made to help stabilize the financial system. JPMorgan Chase agreed to buy Bear Stearns for a very low price at first. But after some public concern, the offer was increased. The merger was completed on May 30, 2008.
How JPMorgan Chase Acquired Washington Mutual
On September 25, 2008, JPMorgan Chase bought most of the banking operations of Washington Mutual. This was the largest bank failure in American history. The government took over Washington Mutual Bank and then sold its assets and deposits to JPMorgan Chase. JPMorgan Chase paid $1.836 billion for it. The bank reopened the next day under Chase's ownership.
Because of this takeover, Washington Mutual shareholders lost all their money invested in the company. JPMorgan Chase then started changing all Washington Mutual branches to the Chase brand.
How JPMorgan Chase Acquired First Republic Bank
On May 1, 2023, JPMorgan Chase acquired most of the assets and deposits of First Republic Bank. This was the second-largest bank failure in U.S. history, after Washington Mutual. JPMorgan Chase paid $10.6 billion to the government for this. First Republic Bank shareholders also lost all their investment.
Recent Company History
JPMorgan Chase in the 2000s
In 2006, JPMorgan Chase bought Collegiate Funding Services. This became the basis for Chase Student Loans. In April 2006, Chase also bought the retail banking network of Bank of New York Mellon. This added 339 branches in New York, New Jersey, and Connecticut.
During the 2008 financial crisis, JPMorgan Chase was considered one of the strongest banks. The U.S. government transferred $25 billion to JPMorgan Chase under a program called TARP. This was to help troubled banks, even though JPMorgan Chase was in good shape. The government wanted to encourage other banks to accept the funds.
In 2009, J.P. Morgan acquired the rest of J.P. Morgan Cazenove, a joint venture in the UK.
JPMorgan Chase in the 2010s
In 2013, JPMorgan Chase teamed up with the Bill & Melinda Gates Foundation and others. They launched a $94 million fund. This fund aimed to support new healthcare technologies. It focused on treatments for diseases like malaria, tuberculosis, and HIV/AIDS.
In September 2014, JPMorgan Chase announced a data breach. This affected the accounts of over 83 million customers. The bank's security team found the attack in July 2014. They stopped it by mid-August.
In March 2016, J.P. Morgan decided not to fund new coal mines and coal power plants in wealthy countries. In October 2016, J.P.Morgan introduced Quorum. This is a special type of blockchain technology. In February 2019, J.P. Morgan launched JPM Coin. This is a digital token to help clients settle transactions. It was the first cryptocurrency issued by a U.S. bank.
JPMorgan Chase in the 2020s
On April 19, 2021, JP Morgan promised $5 billion to the European Super League. This was a controversial plan by some football clubs. The league aimed to create a system where founding members would always be in the competition. This would have changed the traditional European football system. After a lot of public anger, the teams pulled out of the league. J.P. Morgan later apologized for its role.
In September 2021, JPMorgan Chase started offering retail banking in the UK. This was its first retail banking operation outside the U.S. It launched an app-based bank account under the Chase brand. In 2021, the company made over 30 acquisitions. These included OpenInvest and Nutmeg.
In 2022, JPMorgan Chase was ranked 24th on the Fortune 500 list. This list ranks the largest U.S. companies by revenue. In March 2022, JPMorgan Chase announced it would stop its business in Russia. This was to follow new rules and licenses.
In September 2022, the company announced it was buying Renovite Technologies. This was to expand its payments business. It faces strong competition from other financial technology companies.
In May 2023, CNBC reported that JPMorgan Chase was developing a new tool. This tool uses artificial intelligence (AI) to help investment advisers. It's called IndexGPT. This shows the bank's interest in using new technologies.
Important Legal Settlements
JPMorgan Chase has been involved in several legal cases over the years. These often involve large financial settlements.
- 2001: Chase paid over $2 billion in fines for its role in financing Enron Corporation. Enron collapsed due to a financial scandal.
- 2002: Chase paid $80 million in fines. This was part of a settlement with ten banks. They were accused of misleading investors with biased research.
- 2005: JPMorgan Chase agreed to pay $2 billion related to WorldCom's bonds. WorldCom was a telecommunications company that had a major accounting scandal. In 2005, JPMorgan Chase also apologized for its past involvement in slavery. Its predecessor banks had received thousands of enslaved people as collateral before the Civil War. The bank paid $5 million for a scholarship program for Black students.
- 2009: Chase agreed to pay $100 million to settle a lawsuit with credit card holders. They claimed the bank unfairly increased minimum monthly payments. JPMorgan Chase also agreed to a $722 million settlement with the U.S. Securities and Exchange Commission (SEC). This was about bond deals that led to problems for Jefferson County, Alabama.
- 2010: J.P. Morgan Securities was fined £33.32 million ($49.12 million) by the UK's Financial Services Authority. This was for not properly protecting clients' money from 2002 to 2009.
- 2011: JPMorgan Chase admitted it wrongly overcharged military families for their mortgages. It also improperly took homes from some military families. This was against a law called the Servicemembers Civil Relief Act. The bank apologized and agreed to pay $27 million in compensation.
- 2012: JPMorgan Chase and four other large mortgage companies agreed to a $26 billion settlement. This was to help homeowners in trouble and make payments to states and the federal government. This settlement was about how mortgages were handled.
- 2013: JPMorgan Ventures Energy Corporation agreed to pay $410 million in penalties. This was for claims of manipulating electricity markets in California and the Midwest. JPMorgan Chase also faced investigations related to Bernie Madoff's fraud scheme. The bank agreed to pay $13 billion to settle investigations into its mortgage-backed securities.
- 2014: JPMorgan Chase agreed to pay $2.05 billion in fines related to the Madoff scandal. The bank agreed to improve its anti-money laundering procedures.
- 2016: JPMorgan Chase agreed to pay $264 million in fines. This was for a bribery scheme in Hong Kong. The bank hired friends and relatives of Chinese government officials to get business deals.
- 2017: The United States sued the company. It accused JPMorgan Chase of discriminating against Black and Hispanic mortgage borrowers.
- 2020: The company admitted it manipulated precious metals futures and government bond markets. It settled with U.S. government agencies for $920 million.
- 2023: JPMorgan agreed to a $290 million settlement related to allegations that reached class-action status. It also agreed to a $75 million settlement with the United States Virgin Islands Department of Justice. This was for its alleged role in facilitating illegal activities.
- 2024: A Russian court ordered the seizure of JPMorgan funds. This was in response to a lawsuit from a Russian state-owned bank. JPMorgan launched a countersuit.
Financial Information
| 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.'
How JPMorgan Chase is Organized
JPMorgan Chase & Co. has changed its structure over time. This is due to many mergers and expanding into new places. In the United States, it has two main legal parts:
- Chase Bank
- JPMorgan Securities, LLC.
The modern JPMorgan Chase is divided into four main business areas:
- Asset and Wealth Management (under the J.P. Morgan brand)
- Consumer and Community Banking (under the Chase brand)
- Corporate and Investment banking (under the J.P. Morgan brand)
- Commercial Banking (under the Chase brand)
JPMorgan Europe, Ltd.
This part of the company was founded on September 18, 1968. It was first known as Chase Manhattan International Limited. In August 2008, the bank planned a new European headquarters in London. These plans were later changed. The bank bought an existing office tower at 25 Bank Street. This building became the European headquarters for its investment bank. The regional office is in London. It also has offices in Bournemouth, Glasgow, and Edinburgh. These offices handle asset management, private banking, and investment banking.
Climate Change and the Environment
JPMorgan has faced criticism for investing in new fossil fuel projects. This is since the Paris climate change agreement. From 2016 to mid-2019, it provided $75 billion to companies that expand in areas like fracking and Arctic oil and gas exploration.
From 2015 to 2021, JP Morgan Chase provided $317 billion in fossil fuel financing. This was 33% more than any other bank. On October 21, 2021, JP Morgan Chase joined the Net-Zero Banking Alliance. This group supports the world's move towards net-zero emissions.
In May 2023, JPMorgan Chase announced it would buy $200 million in carbon credits. These credits represent 800,000 metric tons of carbon dioxide removal (CDR). This shows the company's efforts to reduce its carbon footprint.
Where JPMorgan Chase Has Offices
The main world headquarters for JPMorgan Chase & Co. is currently at 383 Madison Avenue. In 2018, JPMorgan announced plans to build a new, taller headquarters. This new building will be at 270 Park Avenue. It will be completed in 2025. The new building will be 1,388 feet tall and have 70 stories. It will hold 15,000 employees.
Many North American operations are in five buildings near Park Avenue in New York City. These include 383 Madison Avenue and 277 Park Avenue.
About 11,050 employees work in Columbus, Ohio. Their office, the McCoy Center, is the largest JPMorgan Chase & Co. facility in the world. The bank also has operations in the JPMorgan Chase Tower in Houston.
The Card Services division is based in Wilmington, Delaware. It has offices in places like Elgin, Illinois; San Antonio, Texas; and Mumbai, India. Other large operation centers are in Phoenix, Arizona; Los Angeles, California; and Dallas, Texas. In Canada, offices are in Burlington, Ontario and Toronto, Ontario.
The company also has offices and technology centers in Manila, Philippines; Hyderabad, India; Buenos Aires, Argentina; and Mexico City, Mexico. In late 2017, JPMorgan Chase opened a new center in Warsaw, Poland. Its Asia Pacific headquarters is in Hong Kong.
In the United Kingdom, operations centers are in Bournemouth, Edinburgh, Glasgow, London, Liverpool, and Swindon. The London office is also the European headquarters.
=Images for kids
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JPMorgan Chase World Headquarters
383 Madison Avenue
New York City -
JPMorgan Chase World Headquarters (under construction)
270 Park Avenue
New York City -
277 Park Avenue
New York City -
28 Liberty Street
New York City -
Chase Tower
Chicago, Illinois -
JPMorgan Chase Building
San Francisco, California -
Chase Tower
Dallas, Texas -
Chase Tower
Phoenix, Arizona -
JPMorgan Chase Tower
Houston, Texas -
25 Bank Street
London, United Kingdom
Credit Derivatives and Trading
JPMorgan's team helped create credit derivatives. These are financial tools that allow banks to transfer risk. One example is the credit default swap. This allowed Exxon to borrow money while JPMorgan transferred the risk to another bank.
The 2012 Trading Loss
In April 2012, people in the financial world noticed unusual trading activity. This was linked to a trader at JPMorgan Chase. He was called "the London whale" because of the huge bets he was making. JPMorgan Chase initially downplayed the situation.
However, in May 2012, the company reported major losses of $2 billion. This was related to these trades. The losses later increased to $4.4 billion. The trading involved complex financial products. JPMorgan Chase's CEO, Jamie Dimon, said the strategy was "flawed, complex, poorly reviewed, poorly executed, and poorly monitored." The incident was investigated by several government agencies. In the end, the trading caused actual losses of $6 billion.
In September 2013, JPMorgan Chase agreed to pay $920 million in fines. This was to American and UK regulators for problems related to this trading loss. The company also admitted breaking American securities law.
Art Collection
JPMorgan Chase has a large art collection. It was started in 1959 by David Rockefeller. The collection has over 30,000 art pieces. More than 6,000 of these are photographs. The collection includes works by artists from the Middle East and North Africa.
Major Sponsorships
JPMorgan Chase sponsors many well-known places and events:
- Chase Field in Phoenix, Arizona (home of the Arizona Diamondbacks baseball team)
- Chase Center in San Francisco, California (home of the Golden State Warriors basketball team)
- Major League Soccer
- Chase Auditorium inside Chase Tower in Chicago, Illinois
- The JPMorgan Chase Corporate Challenge: This is the largest corporate road racing series in the world. Over 200,000 people participate in races in 12 cities across six countries.
- JPMorgan Chase is the official sponsor of the US Open tennis tournament.
- J.P. Morgan Asset Management sponsors the English Premiership Rugby 7s Series.
- Sponsor of the Jessamine Stakes, a horse race in Lexington, Kentucky.
- Chase Center on the Riverfront in Wilmington, Delaware.
Company Ownership
JPMorgan Chase is mostly owned by large investment groups. Over 70% of its shares are held by these groups. The top 10 largest shareholders in December 2023 included:
- The Vanguard Group
- BlackRock
- State Street Corporation
- Morgan Stanley
- Geode Capital Management
- Fidelity Investments
- Bank of America
- Capital International Investors
- Wellington Management Company
- Norges Bank
Company Leadership
Jamie Dimon is the chairman and CEO of JPMorgan Chase. He joined the company when it acquired Bank One in 2004. He became CEO at the end of 2005. Dimon is known for his leadership during the 2008 financial crisis. Under his guidance, JPMorgan Chase helped rescue two struggling banks during that time.
Board of Directors
As of May 1, 2023, the board includes:
- 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
Senior Leadership
- Chairman: Jamie Dimon (since January 2007)
- Chief Executive: Jamie Dimon (since January 2006)
Former Chairmen
- William B. Harrison Jr. (2000–2006)
Former Chief Executives
- William B. Harrison Jr. (2000–2005)
Notable Former Employees
Many people who worked at JPMorgan Chase have gone on to achieve other important roles:
- Winthrop Aldrich – son of Senator Nelson Aldrich
- Andrew Crockett – former general manager of the Bank for International Settlements
- Dina Dublon – board member for Microsoft, Accenture, and PepsiCo
- Maria Elena Lagomasino – board member for The Coca-Cola Company
- Jacob A. Frenkel – Governor of the Bank of Israel
- Thomas W. Lamont – acting head of J.P. Morgan & Co. during the Black Tuesday
- Charles Li – former CEO of Hong Kong Exchanges and Clearing
- Henry S. Morgan – co-founder of Morgan Stanley
- David Rockefeller – a leader 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
- C. S. Venkatakrishnan – current CEO of Barclays
- Ed Woodward – executive vice-chairman of Manchester United F.C.
See also
In Spanish: JP Morgan Chase para niños
