The Full Wiki

Chase (bank): Wikis

Advertisements
  
  

Note: Many of our articles have direct quotes from sources you can cite, within the Wikipedia article! This article doesn't yet, but we're working on it! See more info or our list of citable articles.

Encyclopedia

From Wikipedia, the free encyclopedia

Chase
Type Subsidiary
Founded 1799[1]
Headquarters Chicago, Illinois,
United States 
Industry Banking
Products Financial services
Parent JPMorgan Chase
Website Chase.com
Chase.mobi

Chase is the consumer and commercial banking division of JPMorgan Chase.[2] The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000.[1] Chase Manhattan Bank was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955.[3] The bank is headquartered in Chicago.

Contents

History

Aaron Burr, 3rd Vice President of the United States and founder of The Manhattan Company.
John D. Rockefeller, Jr. and the Rockefeller family were the largest shareholders of Chase National Bank.
Advertisements

The Manhattan Company

Chase traces its history back to the founding of The Manhattan Company by Aaron Burr on September 1, 1799, in a house at 40 Wall Street:[1]

After an epidemic of yellow fever in 1798, in which coffins had been sold by itinerant vendors on street corners, Aaron Burr established the Manhattan Company, with the ostensible aim of bringing clean water to the city from the Bronx River but in fact designed as a front for the creation of New York's second bank, rivaling Alexander Hamilton's Bank of New York.
—The Economist[4]

In addition to being fierce political and personal rivals, Aaron Burr and Alexander Hamilton competed in business, with Burr's Bank of the Manhattan Company competing against Hamilton's Bank of New York. In 1804, their rivalry erupted into a duel, leading to the death of Alexander Hamilton. The dueling pistols are owned by the successor company of Chase Manhattan. They are currently on display on the executive conference floor of the JP Morgan Chase building at 277 Park Avenue in New York City.

Chase National Bank

Chase National Bank was formed in 1877 by John Thompson.[1] It was named for former United States Treasury Secretary and Chief Justice Salmon P. Chase,[3] although Chase did not have a connection with the bank.[1]

The Chase National Bank acquired a number of smaller banks in the 1920s, through its Chase Securities Corporation. In 1926, for instance, it acquired Mechanics and Metals National Bank.

Its most significant acquisition though was the Equitable Trust Company of New York in 1930, the largest stockholder of which was John D. Rockefeller, Jr.[5] This made it the largest bank in America and indeed the world.

Chase was primarily a wholesale bank, dealing with other prominent financial institutions and major corporate clients, such as General Electric, which had, through its RCA affiliate, leased prominent space and become a crucial first tenant of Rockefeller Center, rescuing that major project in 1930. The bank also is closely associated with and has financed the oil industry, having longstanding connections with its board of directors to the successor companies of Standard Oil, especially ExxonMobil, which are also Rockefeller holdings.

Merger as Chase Manhattan Bank

Logo used by Chase following the merger with the Manhattan Bank in 1955.

In 1955, Chase National Bank and The Manhattan Company merged to create Chase Manhattan Bank.[1] As Chase was a much larger bank, it was first intended that Chase acquire the "Bank of Manhattan", as it was nicknamed, but it transpired that Burr's original charter for the Manhattan Company had not only included the clause allowing it to start a bank with surplus funds, but another requiring unanimous consent of shareholders for the bank to be taken over. The deal was therefore structured as an acquisition by the Bank of the Manhattan Company of Chase National, with John J. McCloy becoming chairman of the merged entity. This avoided the requirement of unanimous consent by shareholders.

Under McCloy's successor, George Champion, the antiquated 1799 state charter was relinquished for a modern one. In 1969, under the leadership of David Rockefeller, the bank became part of a bank holding company, the Chase Manhattan Corporation.[3]

Merger with Chemical, J.P. Morgan

Logo used by Chase prior to its rebranding and merger with J.P. Morgan & Co.

In July 1996, the Chase Manhattan Bank was purchased by Chemical Bank of New York, which had acquired Manufacturers Hanover Corporation several years earlier. The name Chase Manhattan Corporation was retained, as the name was better known globally, although the state charter remained that of Chemical Bank.

In December 2000, the combined Chase Manhattan completed the acquisition of J.P. Morgan & Co., one of the largest banking mergers to date. The combined company was renamed JPMorgan Chase & Co. In 2004 the bank also acquired Bank One, making Chase the largest credit card issuer in the US and JPMorgan Chase also acquired Bear Stearns & Co. and Washington Mutual in 2008. After closing around 400 branches of the combined company (less than 10% of the branches), Chase will have around 5,410 branches in 23 states as of the closing date of the acquisition.[6][7] According to data from SNL Financial (data as of June 30, 2008), this places Chase third behind Wells Fargo and Bank of America in terms of total U.S. retail bank branches.

Acquisition history

Typical Chase branch located in Athens, Ohio.

The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):

Logo used by Chase prior to rebranding and its merger with J.P. Morgan & Co.
Chase Manhattan Bank

(merged 1995)
Chemical Bank logo.png
Chemical Bank

(merged 1991)
Chemical Bank logo.png
Chemical Bank

The Chemical Bank
of New York

(est. 1823)


Manufacturers Hanover logo.png
Manufacturers Hanover

(merged 1961)

Manufacturers
Trust Company

(est. 1905)



Hanover Bank
(est. 1873)




Chase logo pre historical.jpg
Chase Manhattan Bank

(merged 1955)

Bank of the
Manhattan Company

(est. 1799)



Chase National Bank
of the City of New York

(est. 1877)




References

  1. ^ a b c d e f "History of JPMorgan Chase: 1799 to present". JPMorgan Chase & Co.. http://www.jpmorganchase.com/cm/BlobServer?blobtable=Document&blobcol=urlblob&blobkey=name&blobheader=application/pdf&blobwhere=jpmc/about/history/shorthistory.pdf. Retrieved 2007-11-04. 
  2. ^ "About JPMorgan Chase". JPMorgan Chase & Co.. http://www.jpmorganchase.com/cm/cs?pagename=Chase/Href&urlname=jpmc/about. Retrieved 2007-11-04. 
  3. ^ a b c "J.P. Morgan Chase & Co.". International Directory of Company Histories. St. James Press. 2001. http://www.fundinguniverse.com/company-histories/JP-Morgan-Chase-amp;-Co-Company-History.html. Retrieved 2007-11-04. 
  4. ^ "Soaking the poor", The Economist, March 16, 2000
  5. ^ David Rockefeller, Memoirs, New York: Random House, 2002. (pp.124-25)
  6. ^ "WaMu lists debt of $8B in bankruptcy filing." Associated Press/International Herald Tribune. September 28, 2008.
  7. ^ "Q&A What former WaMu customers can expect." Seattle Post-Intelligencer/Houston Chronicle. September 26, 2008. Accessed September 29, 2008.

Further reading

External links


Advertisements






Got something to say? Make a comment.
Your name
Your email address
Message