content  

In their words
Quotes to Ponder


"What's important is delivering on a brand promise. Our brand is character, intelligence and strength... if you go back to the heritage of this company that is what J.P. Morgan himself stood for."
Jamie Dimon, Chairman & CEO, JPMorgan Chase, 2008

"Scale, leadership, culture and globality will produce the winners in the future."
Bill Harrison (former Chairman and CEO, JPMorgan Chase), 1999

"J.P. Morgan is all about serving our clients exceptionally well, providing them with products and services they need to grow, and continuing to develop the quality, experience and integrity of our people. At the end of each day, we aim to distinguish ourselves in these three areas."
Douglas "Sandy" Warner, III (former Chairman, JPMorgan Chase & Co.; former Chairman and CEO, J.P. Morgan & Co.), 2000

"JPMorgan Chase today is the result of a number of great institutions coming together based on the philosophy that together they were better than any of the preceding institutions. There were no winners or losers in that process, just a better resulting institution."
Walter Shipley (former Chairman of the Board, Chase Manhattan Corporation), 2000

"What hasn't changed is that we change to fit the needs of our customers. That's the essence of Morgan as a bank."
Sir Dennis Weatherstone (former Chairman and CEO, J.P. Morgan & Co.), 1990

"I hope that at this time people don't look on this as a US bank or as an international bank. There are possibilities for advancement that are not based on nationality."
Lewis T. Preston (former Chairman and CEO, J.P. Morgan & Co.), 1982

"I thought we could not afford to go on indefinitely having no contact with a country with a billion people."
— David Rockefeller, former Chairman and CEO, Chase Manhattan Bank, late 1960s
statement made in reference to China

"When it comes to trusts and investments, we have the largest business in the world... The responsibility there is extremely great. If you do a bad job in that area, you don't live it down for a generation."
— Henry Clay Alexander (former Chairman and CEO, Morgan Guaranty Trust Company of New York; former Chairman and CEO, J.P. Morgan & Co.), 1959

"We all feel that ways and means will be found to get us back into the securities business, either through the amendment of the existing laws or through some separate corporate plan or otherwise. We are considering all these matters now, but have by no means accepted the idea that we are to be eliminated from the security business."
— Thomas W. Lamont (former Chairman of J.P. Morgan), 1934
statement made in reference to the Glass Steagall Act of 1933

"I should state that at all times the idea of doing only first-class business, and that in a first-class way, has been before our minds."
— J.P. Morgan, Jr., 1933
statement made before the Sub-Committee of the Committee on Banking and Currency of the U.S. Senate

...The first thing is character...before money or anything else. Money cannot buy it...because a man I do not trust could not get money from me on all the bonds in Christendom."
— J. Pierpont Morgan, 1912

“My father told me to follow my own bent in business, but whatever that business, to work hard. One thing he said I shall always remember, not to discount the future of America. 'Remember, my son,’ he said, 'that any man who is a bear on the future of this country will go broke. There may be times when things are dark and cloudy in America, when uncertainty will cause some to distrust and others to think there is too much production, too much building of railroads, and too much development in other enterprises. In such times, and at all times, remember that the great growth of that vast country will take care of all.' "
— J. Pierpont Morgan, 1908

https://www.jpmorgan.com/country/US/EN/jpmorgan/about/history/quotes

Bios
J P Morgan

Big enough to bail out the US, buy in a President & build the first billion dollar company. Meet JP Morgan.

His millionaire father, Junius, made his fortune by investing other people’s money and helped found modern investment banking. When John Pierpont, or JP, is a child, Junius has him handle a million dollars in cash so he knows what it feels like. JP Morgan is taught early to avoid risk.

Morgan escapes military service during the Civil War by paying $300 to a substitute to fight for him. During the war he buys five thousand rifles at $3.50 each and sells them on at $22 apiece. The rifles are defective and some shoot off the thumbs of the soldiers firing them. Later, a congressional committee notes this but a federal judge upholds the deal and Morgan is exonerated.

Dominated by his father, JP is 40 before he ignores his father’s business lessons. He wants to be synonymous with an industry, like Rockefeller is with oil, and Carnegie is with steel.

LET THERE BE LIGHT

Like the discovery of fire and the invention of the wheel, electric light will revolutionise mankind and Morgan believes, make him rich, and crucially, richer than his rivals. Morgan hires Thomas Edison, a telegraph boy turned inventor, to install electricity in his 5th avenue Manhattan mansion. Morgan’s home becomes a lab for Edison’s experiments and a small generator is installed to power the home’s 400 light bulbs.

Though his father Junius believes it a fad, electric light becomes a must have modern utility for the city’s elite. Against his father’s advice, Morgan invests everything in Edison to form the Edison Electricity Company. They create the world’s first power station and soon half of Manhattan’s connected. But every home and business lit electrically is a lost customer to Rockefeller who supplies kerosene to the oil powered lamps. So he starts planting scare stories in the press.

AC/DC

An apprentice of Edison, Tesla, creates alternating current, or AC, but Edison believes its higher voltage unsafe, so sticks to direct current, or DC. But electrical pioneer George Westinghouse invests in Tesla. And to disprove suggestions that AC is dangerous, Tesla stages magical light shows where electricity harmlessly crackles around him. Orders for Westinghouse power stations pour in. Edison tries to discredit AC by using it in his new creation, the electric chair. The first execution goes horribly wrong and instead of killing the man quickly, it slowly roasts him alive. The resultant publicity damages Edison, not Tesla.

WHO WILL LIGHT AMERICA?

The Niagara Falls contract opens for bids. It could light the entire North East and the only real choice is between Morgan and Westinghouse. And Morgan desperately wanted to replace Rockefeller as the man who lit America.

In 1890, Morgan’s father dies after a horse carriage accident. It instantly quadruples Morgan’s wealth. The 1893 World Fair is to be held in Chicago and organisers want the entire event lit with electricity. Westinghouse underbids at a quarter of the cost offered by Morgan. Over 27 million people flock to see the 200,000 light bulbs that illuminate the event, powered by Westinghouse generators. And in 1895, it’s the Westinghouse AC electric generating plant that is built at Niagara. It seems it will be him, not Morgan who will light America. In 1897, Tesla tears up his patent claim on his AC design, reducing his rights to profits which immediately attracts investment into the Westinghouse/Tesla Company.

So Morgan threatens Westinghouse with patent infringement. Few could afford to fight a lengthy lawsuit with Morgan. Westinghouse, stretched to breaking point is forced to sign over Tesla’s patents. Morgan’s consolidated electric company (minus Edison and operating on AC) General Electric, will become one of America’s biggest corporations.

Morgan now heads the biggest investment bank in America, and has consolidated both the electricity and rail-road industries. By 1900, Morgan controls 100,000 miles of railroad, half the country’s mileage.

When, after a two year depression, the US Treasury becomes desperate, Morgan, a private individual guarantees them a $100m ($3bn today) and bails out the federal government, effectively bailing out the country from collapse. Morgan virtually single handily saves the US economy in both 1895 and 1907.

MORGANISATION

The process of creating a monopoly through the elimination of competition and the maximisation of profits by slashing the workforce and reducing their wages is named after JP Morgan.

But as profits soar, working conditions sink. Pay reduces so that the average worker earns barely a dollar a day, Over 90% of Americans survive on less than $100 per month. Working hours and workplace fatalities increase.

In a single year, more men die inside a steel mill than died at the Battle of Gettysburg.

Monopolies, cartels and trusts dominate everyday life. Popular disgust at such unregulated capitalism leads to the rise of politicians such as Democrat Williams Jennings Bryan. He promises an end to the excesses of big business characterising the bosses as ‘robber barons’.

WALL ST V MAIN STREET

Sensing a common threat, Morgan, Carnegie, and Rockefeller, put aside their bitter rivalry to ensure their man, William McKinley sits in the White House. Bryan criss-crosses the country in the nation’s first press tour giving over 500 speeches. But he can’t compete against the robber barons contributions. McKinley outspends Bryan by a factor of five to one.

In the 1896 election, 90% of the electorate vote, double today’s turnouts. But back then voting was a public affair and workers know they may be fired if seen to be voting for Bryan. McKinley wins. He rolls back regulations.

THE FIRST BILLION DOLLAR COMPANY

Carnegie agrees to sell out to Morgan for the equivalent of four hundred billion dollars nowadays (or $480 back then). This is more than the entire budget of the US federal government. It gives Carnegie the largest private fortune the world has ever seen.

It allows Morgan, in 1901, to create US Steel, the first billion dollar company in history. It will dominate the steel business for almost a hundred years. At his peak Morgan will sit on the board of 48 corporations.

ROOSEVELT: THE ROBBER BARON BUSTER

But Morgan’s power drew the attention of New York City police commissioner turned politician, Theodore Roosevelt. Born into a wealthy family, Roosevelt entered public life after an image makeover from New York aristocrat to man of the people. He joins the army and serves during Spanish-American war. Back in New York as governor, he clamps down on the abuses of big business. The Robber Barons hope making Roosevelt into the Vice President will silence him.

"The vice presidency in those days was a place where people went to disappear. They became vice president, were never heard from again. It was almost like a modern witness protection program."

H.W. BRANDS , Historian

But in 1901, President McKinley is shot by Leon Czolgosz, a factory worker who lost his job in a JP Morgan takeover. Czolgosz had joined the growing anarchist movement and McKinley’s big business ties made him a target.

Roosevelt, impotent as McKinley’s number two, now becomes President. Just five months into office he targets the Morgan owned railroad consortium. Morgan is furious. He sees the President of the United States as just another business rival to be bested, or bought off. The Government sues the rail consortium in the first antitrust case filed against a major consortium. The case goes to the Supreme Court. Roosevelt wins and JP Morgan’s rail monopoly is broken.

MORGAN MONEY MAKES OCEANS MEET

Undaunted, Morgan invests in the new canal project in Panama that hopes to link the Atlantic and Pacific Oceans. Morgan acts as the middle man for the government and raises $40m ($70billion today) to get the project started. Over 75,000 workers labour in brutal heat, under the threat of deadly diseases, digging a 51 mile long canal. But in 1913, a year before it’s completed, Morgan dies in his sleep aged 75. The New York Stock Exchange shuts down for 2 hours in remembrance; an honour normally reserved for the passing of a president.

https://www.history.co.uk/biographies/j-p-morgan

Company History

With a legacy dating back to 1799, we have a history of demonstrating leadership during times of both economic growth and financial instability.

At J.P. Morgan, we have been helping our clients to do first-class business for more than 200 years. Throughout that period, we have taken a long-term approach to client solutions – providing committed, innovative and consistent advice and execution to our clients at all times. We look forward to providing our clients with first-class service over the next 200 years.

As a firm, we have a history of showing leadership, especially during times of financial crisis. We continue to build on that legacy. From our earliest days, we have contributed to business, society and world affairs. Our actions have always been driven by the desire to do the right thing for today and tomorrow.

Key Moments in J.P. Morgan History

2011  J.P. Morgan celebrates the 90th anniversary of the firm’s presence in China.

2010  J.P. Morgan Cazenove becomes a wholly-owned part of J.P. Morgan, having originally operated as a joint venture between J.P. Morgan and the U.K. investment bank Cazenove.

2008  JPMorgan Chase & Co. acquires The Bear Stearns Companies Inc., strengthening its capabilities across a broad range of businesses, including prime brokerage, cash clearing and energy trading globally.

2000 J.P. Morgan merges with The Chase Manhattan Corporation and is named JPMorgan Chase and Co. Four years later, the company merges with Bank One, creating a global financial services leader.

1996  The firm jointly leads the first “century” bond for a sovereign borrower – a 100-year, $100 million issue for the People’s Republic of China.

1990  J.P. Morgan plays an active role in the negotiations with Mexico to restructure nearly $50 billion in medium- and long-term commercial bank debt. A first in the market, the new bonds become known as Brady Bonds.

1989  J.P. Morgan ranks among Fortune’s 50 Best Companies for Minorities. The firm is regularly recognized as a leading employer of women, minorities, and LGBT employees.

1980  Predecessor firm Hambrecht & Quist (H&Q) takes Apple Computer public.

1973  Chase opens a representative office in Moscow, the first Russian presence for a U.S. bank since the 1920s; Chase also becomes the first U.S. correspondent to the Bank of China since the 1949 Chinese revolution.

1968   The firm launches Euroclear, a system for the orderly settlement of transactions in Eurobonds.

1955  Chase National Bank merges with The Bank of the Manhattan Company to form Chase Manhattan Bank.

1929   Two Ohio institutions merge to form City National Bank & Trust, a predecessor of Bank One.

1927  Guaranty Trust Company, a predecessor firm of J.P. Morgan, pioneers the concept of American Depositary Receipts (ADRs), which enables Americans to invest in foreign securities directly on U.S. exchanges.

1915  J.P. Morgan arranges the biggest foreign loan in history – a $500 million Anglo/French loan.

1907  During the financial panic of 1907, J. Pierpont Morgan saves several trust companies and a leading brokerage house from insolvency, bails out New York City, and rescues the New York Stock Exchange.

1906  J.P. Morgan is central to the creation of U.S. Steel, GE and AT&T.

1903  J.P. Morgan & Co. was appointed as fiscal agent for the newly independent Republic of Panama in 1903 and was subsequently selected by the U.S. Treasury Secretary to arrange the transfer of $40 million from the U.S. government to the French Panama Canal Co. This was the largest real estate deal at the time.

1901  J.P. Morgan creates the world’s first billion-dollar corporation by buying out industrialist Andrew Carnegie and combining some 33 companies to create United States Steel.

1895  J. Pierpont Morgan, Sr. becomes senior partner. The New York firm is renamed J.P. Morgan & Co.

1893  J.P. Morgan is primary financier of U.S. railroads.

1871  J. Pierpont Morgan and Philadelphia banker Anthony Drexel form a private merchant banking partnership in New York called Drexel, Morgan & Co. This is the earliest partnership that evolves into J.P. Morgan.


1848  The Waterbury Bank opens, a predecessor of the Chase Manhattan Bank.

1824  The Chemical Bank is established.

1799
The Manhattan Company, the firm’s earliest predecessor institution, is chartered.
https://careers.jpmorganchase.com/pages/company-history

J.P. MORGAN IN RUSSIA
CB "J.P. Morgan Bank International" (LLC) is a part of the JPMorgan Chase & Co. group which has been present in the Russian market since the early Seventies: Chase opened a representative office in Moscow in 1973.

Commercial Bank Chase Manhattan Bank International was created as a limited liability company in 1993 and registered with the Bank of Russia under No. 2629.

In 2001, the bank changed its name to the current one.

At present, Commercial Bank "J.P. Morgan Bank International" (Limited Liability Company) has its office in Moscow and offers a broad range of financial and banking services to legal entities, including currency conversion operations, money market transactions, securities and derivatives transactions.

The bank does not provide its services to retail customers.

The bank is one of the leading players on the Russian financial market and continues to develop new business lines for the benefit of its clients.

James Dimon, Chairman and CEO of JPMorgan Chase & Co., is a member of the International Advisory Board on creation and development of an international financial centre in Russian Federation under the Russian President.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.4 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers globally and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

http://www.jpmorgan.ru/pages/jpmorgan/russia/en/home

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FEDERAL RESERVE SYSTEM
JPMorgan Chase & Co. New York, New York
Order Approving Notice to Engage in
Activities Complementary to a Financial Activity
JPMorgan Chase & Co. (“JPM Chase”), a financial holding company (“FHC”) within the meaning of the Bank Holding Company Act (“BHC Act”), has requested the Board’s approval under section 4 of the BHC Act1 and the Board’s Regulation Y (12 CFR Part 225) to trade in physical commodities.
Regulation Y authorizes bank holding companies (“BHCs”) to engage as principal in derivative contracts based on financial and nonfinancial assets (“Commodity Derivatives”). Under Regulation Y, a BHC may conduct Commodity Derivatives activities subject to certain restrictions that are designed to limit the BHC’s activity to trading and investing in financial instruments rather than dealing directly in physical nonfinancial commodities.2 Under these restrictions, a BHC generally is not allowed to take or make delivery of nonfinancial commodities underlying Commodity Derivatives. In addition, BHCs generally are not permitted to purchase or sell nonfinancial commodities in the spot market.
1 12 U.S.C. § 1843.
2 Commodity Derivatives permissible for BHCs under Regulation Y are hereinafter referred to as “BHC-permissible Commodity Derivatives.”
- 2 -
The BHC Act, as amended by the Gramm-Leach-Bliley Act (“GLB Act”), permits a BHC to engage in activities that the Board had determined were closely related to banking, by regulation or order, prior to November 12, 1999. 3 The BHC Act permits an FHC to engage in a broad range of activities that are defined in the statute to be financial in nature.4 Moreover, the BHC Act allows FHCs to engage in any activity that the Board determines, in consultation with the Secretary of the Treasury, to be financial in nature or incidental to a financial activity.5
In addition, the BHC Act permits FHCs to engage in any activity that the Board (in its sole discretion) determines is complementary to a financial activity and does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally. 6 This authority is intended to allow the Board to permit FHCs to engage, on a limited basis, in an activity that appears to be commercial rather than financial in nature but that is meaningfully connected to a financial activity such that it complements the financial activity.7 The BHC Act provides that any FHC seeking to engage
3 12 U.S.C. § 1843(c)(8).
4 The Board determined by regulation before November 12, 1999, that engaging
as principal in Commodity Derivatives, subject to certain restrictions, was closely
related to banking. Accordingly, engaging as principal in BHC-permissible
Commodity Derivatives is a financial activity for purposes of the BHC Act.
See 12 U.S.C. § 1843(k)(4)(F).
5 12 U.S.C. § 1843(k)(1)(A).
6 12 U.S.C. § 1843(k)(1)(B).
7 See 145 Cong. Rec. H11529 (daily ed. Nov. 4, 1999) (Statement of Chairman Leach) (“It is expected that complementary activities would not be significant relative to the overall financial activities of the organization.”).
- 3 -
in a complementary activity must obtain the Board’s prior approval under section 4(j) of the BHC Act.8
Through its indirect subsidiary, JPMorgan Ventures Energy Corporation (“JPMVEC”), JPM Chase engages as principal in BHC-permissible Commodity Derivatives and plans to expand those activities to include physical commodity transactions, with a principal focus on energy-related commodities. JPM Chase has, therefore, requested that the Board permit it to engage in physical commodity trading activities, including physical transactions in energy-related commodities, such as natural gas, crude oil, and emissions allowances,9 and to take and make delivery of physical commodities to settle BHC-permissible Commodity Derivatives in which JPM Chase currently engages (“Commodity Trading Activities”). The Board previously has determined that Commodity Trading Activities involving a particular commodity complement the financial activity of engaging regularly as principal in BHC-permissible Commodity Derivatives based on that commodity.10 In light of the foregoing and all other
8 12 U.S.C. § 1843(j).
9 An emission allowance is an intangible right to emit certain pollutants during a given year or any year thereafter that is granted by the U.S. Environmental Protection Agency or comparable foreign regulatory authority to an entity, such as a power plant or other industrial concern, affected by environmental regulation aimed at reducing emission of pollutants. An allowance can be bought, sold, or exchanged by individuals, brokers, corporations, or government entities that establish an account at the relevant governmental authority. Emissions allowances are stored and tracked on the records of the relevant government authority. Accordingly, there are no transportation, environmental, storage, or insurance risks associated with ownership of emissions allowances.
10 Barclays Bank, PLC, 90 Federal Reserve Bulletin 511 (2004); UBS AG, 90 Federal Reserve Bulletin 215 (2004); and Citigroup Inc., 89 Federal Reserve Bulletin 508 (2003). For example, Commodity Trading Activities involving
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facts of record, the Board believes that the Commodity Trading Activities are complementary to the Commodity Derivatives activities of JPM Chase.
To authorize JPM Chase to engage in Commodity Trading Activities as a complementary activity under the GLB Act, the Board also must determine that the activities do not pose a substantial risk to the safety or soundness of depository institutions or the U.S. financial system generally.11 In addition, the Board must determine that the performance of Commodity Trading Activities by JPM Chase “can reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices.”12
Approval of the proposal likely would benefit JPM Chase’s customers by enhancing the company’s ability to provide efficiently a full range of commodity-related services. Approving Commodity Trading Activities for JPM Chase also would enable the company to improve its understanding of physical commodity and commodity derivatives markets and its ability to serve as an effective competitor in those markets.
JPM Chase has established and maintains policies for monitoring, measuring, and controlling the credit, market, settlement, reputational, legal, and operational risks involved in its Commodity Trading Activities. These policies address key areas, such as counterparty-credit risk, value-at-risk methodology,
all types of crude oil would be complementary to engaging regularly as principal in BHC-permissible Commodity Derivatives based on Brent crude oil.
11 12 U.S.C. § 1843(k)(1)(B).
12 12 U.S.C. § 1843(j)(2)(A).
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and internal limits with respect to commodity trading, new business and new product approvals, and identification of transactions that require higher levels of internal approval. The policies also describe critical internal control elements, such as reporting lines, and the frequency and scope of internal audits of Commodity Trading Activities. Based on the above and all the facts of record, the Board believes that JPM Chase has the managerial expertise and internal control framework to manage adequately the risks of taking and making delivery of physical commodities as proposed.
As a condition of this order, to limit the potential safety and soundness risks of Commodity Trading Activities, the market value of commodities held by JPM Chase as a result of Commodity Trading Activities must not exceed 5 percent of JPM Chase’s consolidated tier 1 capital.13 JPM Chase also must notify the Federal Reserve Bank of New York if the market value of commodities held by JPM Chase as a result of its Commodity Trading Activities exceeds 4 percent of its tier 1 capital.
In addition, JPM Chase may take and make delivery only of physical commodities for which derivative contracts have been authorized for trading on a U.S. futures exchange by the Commodity Futures Trading Commission (“CFTC”) (unless specifically excluded by the Board) or that have been specifically approved by the Board.14 This requirement is designed
13 JPM Chase would be required to include in this 5 percent limit the market value of any commodities held by JPM Chase as a result of a failure of its reasonable efforts to avoid taking delivery under section 225.28(b)(8)(ii)(B) of Regulation Y.
14 The particular commodity derivative contract that JPM Chase takes to physical settlement need not be exchange traded, but (in the absence of specific Board approval) futures or options on futures on the commodity underlying the derivative contract must have been authorized for exchange trading by the CFTC.
- 6 -
to prevent JPM Chase from becoming involved in dealing in finished goods and other items, such as real estate, that lack the fungibility and liquidity of exchange-traded commodities.
To minimize the exposure of JPM Chase to additional risks, including storage risk, transportation risk, and legal and environmental risks, JPM Chase would not be authorized (i) to own, operate, or invest in facilities for the extraction, transportation, storage, or distribution of commodities; or (ii) to process, refine, or otherwise alter commodities. In conducting its Commodity Trading Activities, JPM Chase has committed to use appropriate storage and transportation facilities owned and operated by third parties.15
JPM Chase and its Commodity Trading Activities also remain subject to the general securities, commodities, and energy laws and the rules and regulations (including the antifraud and antimanipulation rules and regulations) of the Securities and Exchange Commission, the CFTC, and the Federal Energy Regulatory Commission.
The CFTC publishes annually a list of the CFTC-authorized commodity contracts. See Commodity Futures Trading Commission, FY 2004 Annual Report to Congress 109. With respect to granularity, the Board intends this requirement to permit Commodity Trading Activities involving all types of a listed commodity. For example, Commodity Trading Activities involving any type of coal or coal derivative contract would be permitted, even though the CFTC has authorized only Central Appalachian coal.
15 Approving Commodity Trading Activities as a complementary activity, subject to limits and conditions, would not in any way restrict the existing authority of JPM Chase to deal in foreign exchange, precious metals, or any other bank-eligible commodity.
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Permitting JPM Chase to engage in the limited amount and types of Commodity Trading Activities described above, on the terms described in this order, would not appear to pose a substantial risk to JPM Chase, depository institutions, or the U.S. financial system generally. Through its existing authority to engage in Commodity Derivatives, JPM Chase already may incur the price risk associated with commodities. Permitting JPM Chase to buy and sell commodities in the spot market or physically settle Commodity Derivatives would not appear to increase significantly the organization’s potential exposure to commodity-price risk.
For these reasons, and based on JPM Chase’s policies and procedures for monitoring and controlling the risks of Commodity Trading Activities, the Board concludes that consummation of the proposal does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally and can reasonably be expected to produce benefits to the public that outweigh any potential adverse effects.
Based on all the facts of record, including the representations and commitments made to the Board by JPM Chase in connection with the notice, and subject to the terms and conditions set forth in this order, the Board has determined that the notice should be, and hereby is, approved. The Board’s determination is subject to all the conditions set forth in Regulation Y, including those in section 225.7 (12 CFR 225.7), and to the Board’s authority to require modification or termination of the activities of a BHC or any of its subsidiaries as the Board finds necessary to ensure compliance with, or to prevent evasion of, the provisions and purposes of the BHC Act and the Board’s regulations and orders issued thereunder. The Board’s decision is specifically conditioned on compliance with all the commitments made to the Board in connection with the
- 8 -
notice, including the commitments and conditions discussed in this order. The commitments and conditions relied on in reaching this decision shall be deemed to be conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be enforced in proceedings under applicable law.
By order of the Board of Governors,16 effective November 18, 2005.
(signed)
_____________________________
Robert deV. Frierson
Deputy Secretary of the Board
16

http://www.federalreserve.gov/boarddocs/press/orders/2005/20051118/attachment.pdf

Company History


With a legacy dating back to 1799, we have a history of demonstrating leadership during times of both economic growth and financial instability.




At J.P. Morgan, we have been helping our clients to do first-class business for more than 200 years. Throughout that period, we have taken a long-term approach to client solutions – providing committed, innovative and consistent advice and execution to our clients at all times. We look forward to providing our clients with first-class service over the next 200 years.

As a firm, we have a history of showing leadership, especially during times of financial crisis. We continue to build on that legacy. From our earliest days, we have contributed to business, society and world affairs. Our actions have always been driven by the desire to do the right thing for today and tomorrow.

Key Moments in J.P. Morgan History


2011

J.P. Morgan celebrates the 90th anniversary of the firm’s presence in China.


2010

J.P. Morgan Cazenove becomes a wholly-owned part of J.P. Morgan, having originally operated as a joint venture between J.P. Morgan and the U.K. investment bank Cazenove.


2008
JPMorgan Chase & Co. acquires The Bear Stearns Companies Inc., strengthening its capabilities across a broad range of businesses, including prime brokerage, cash clearing and energy trading globally.

2000

J.P. Morgan merges with The Chase Manhattan Corporation and is named JPMorgan Chase and Co. Four years later, the company merges with Bank One, creating a global financial services leader.


1996
The firm jointly leads the first “century” bond for a sovereign borrower – a 100-year, $100 million issue for the People’s Republic of China.

1990

J.P. Morgan plays an active role in the negotiations with Mexico to restructure nearly $50 billion in medium- and long-term commercial bank debt. A first in the market, the new bonds become known as Brady Bonds.


1989

J.P. Morgan ranks among Fortune’s 50 Best Companies for Minorities. The firm is regularly recognized as a leading employer of women, minorities, and LGBT employees.


1980
Predecessor firm Hambrecht & Quist (H&Q) takes Apple Computer public.

1973

Chase opens a representative office in Moscow, the first Russian presence for a U.S. bank since the 1920s; Chase also becomes the first U.S. correspondent to the Bank of China since the 1949 Chinese revolution.


1968
The firm launches Euroclear, a system for the orderly settlement of transactions in Eurobonds.

1955
Chase National Bank merges with The Bank of the Manhattan Company to form Chase Manhattan Bank.

1929
Two Ohio institutions merge to form City National Bank & Trust, a predecessor of Bank One.

1927

Guaranty Trust Company, a predecessor firm of J.P. Morgan, pioneers the concept of American Depositary Receipts (ADRs), which enables Americans to invest in foreign securities directly on U.S. exchanges.


1915
J.P. Morgan arranges the biggest foreign loan in history – a $500 million Anglo/French loan.

1907

During the financial panic of 1907, J. Pierpont Morgan saves several trust companies and a leading brokerage house from insolvency, bails out New York City, and rescues the New York Stock Exchange.


1906
J.P. Morgan is central to the creation of U.S. Steel, GE and AT&T.

1903

J.P. Morgan & Co. was appointed as fiscal agent for the newly independent Republic of Panama in 1903 and was subsequently selected by the U.S. Treasury Secretary to arrange the transfer of $40 million from the U.S. government to the French Panama Canal Co. This was the largest real estate deal at the time.


1901

J.P. Morgan creates the world’s first billion-dollar corporation by buying out industrialist Andrew Carnegie and combining some 33 companies to create United States Steel.


1895
J. Pierpont Morgan, Sr. becomes senior partner. The New York firm is renamed J.P. Morgan & Co.

1893
J.P. Morgan is primary financier of U.S. railroads.

1871

J. Pierpont Morgan and Philadelphia banker Anthony Drexel form a private merchant banking partnership in New York called Drexel, Morgan & Co. This is the earliest partnership that evolves into J.P. Morgan.


1848
The Waterbury Bank opens, a predecessor of the Chase Manhattan Bank.

1824
The Chemical Bank is established.

1799
The Manhattan Company, the firm’s earliest predecessor institution, is chartered.

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https://www.jpmorgan.com/country/US/en/company-history

Welcome to J.P. Morgan | Bahrain

With a legacy dating back to 1799, we have a history of demonstrating leadership during times of both economic growth and financial instability.
J.P. Morgan has a committed and long-standing history of serving clients in the Middle East and North Africa (MENA) region dating back to the 1930s when our predecessor firm, Morgan Guaranty Trust Company, helped U.S.-based oil companies strengthen their operations in Saudi Arabia.

Major milestones in the firm's history in the Middle East:
• 2011: J.P. Morgan opens office in Doha, Qatar.
• 2010: J.P. Morgan opens office in Abu Dhabi.
• 2007: J.P. Morgan opens office in the Dubai International Financial Centre.
• 2006: J.P. Morgan opens office in Riyadh, Saudi Arabia.
• 1993: J.P. Morgan & Co. advises the Qatargas Consortium on a multibillion-dollar financing plan for a liquefied natural gas project in Qatar to develop the largest known gas field outside the former Soviet Union.
• 1990: J.P. Morgan & Co. is instrumental in arranging a US$5.5 billion loan to help rebuild Kuwait after the Gulf War.
• 1977: Chase Manhattan Bank is a 20% shareholder in Saudi Investment Banking Corporation, a new investment bank dedicated exclusively to strengthening the Kingdom’s economic, industrial and agricultural development.
• 1976: David Rockefeller, Chase Manhattan Bank chairman, meets with Sheikh Rashid Al Maktoum in Dubai.
• 1975: ◦ Chemical Bank opens representative offices in Saudi Arabia, Dubai, Qatar, Bahrain, Oman
◦ Chase Manhattan Bank and Chemical Bank open representative offices in Tehran.
◦ Chase Manhattan Bank forms joint venture with state-owned Industrial Credit Bank to create the International Iran Bank, promoting Tehran as a major financial center.
◦ Chase Manhattan Bank establishes Chase National Bank, a joint venture with the National Bank of Egypt.
◦ The Saudi Arabian Monetary Agency appoints Chase to organize, staff and manage the newly created Saudi Industrial Development Fund that provides interest-free and subsidized loans to local businesses.

• 1974: ◦ David Rockefeller, Chase Manhattan Bank chairman, visits President Anwar Sadat in Egypt as part of his tour to build the firm's relationships in the Middle East.
◦ Chase Manhattan Bank and Manufacturers Hanover Corporation both open representative offices in Egypt, marking the return of American banks since 1956.

• 1971: Chase Manhattan Bank opens branch office in Manama, Bahrain, which becomes the hub for all business in the Middle East.
• 1970: Chase Manhattan Bank is the only foreign bank to operate a free-zone branch in Egypt.
• 1965: Morgan Guaranty Trust Company opens representative office in Lebanon.
• 1962: David Rockefeller, Chase Manhattan Bank chairman, visits political leaders and banking officials in Lebanon, Kuwait, Saudi Arabia, Bahrain and Iran, increasing the firm’s presence throughout the Middle East.
• 1955: Chase Manhattan Bank opens branch in Beirut, Lebanon, its first in the region.
• 1958: John Meyer Jr., future Morgan Guaranty Trust Company chairman, serves on the Saudi Arabian Monetary Agency's senior advisory committee, resulting in Morgan Guaranty becoming the major Saudi depository.
• 1950: Winthrop Aldrich is the first top Chase Manhattan Bank executive to travel to the Middle East to meet rulers, senior government officials and businessmen in Jeddah, Dhahran, Cairo, Kuwait, Abadan and Tehran.
• 1933: Morgan Guaranty Trust Company helps U.S.-based oil companies strengthen operations in Saudi Arabia.

Copyright © 2020 JPMorgan Chase & Co. All rights reserved.

https://www.jpmorgan.com/country/BH/EN/company-history

COMPANY HISTORY
With a legacy dating back to 1799, we have a history of demonstrating leadership during times of both economic growth and financial instability.

At J.P. Morgan, we have been helping our clients to do first-class business for more than 200 years. Throughout that period, we have taken a long-term approach to client solutions – providing committed, innovative and consistent advice and execution to our clients at all times. We look forward to providing our clients with first-class service over the next 200 years.

As a firm, we have a history of showing leadership, especially during times of financial crisis. We continue to build on that legacy. From our earliest days, we have contributed to business, society and world affairs. Our actions have always been driven by the desire to do the right thing for today and tomorrow.

KEY MOMENTS IN J.P. MORGAN HISTORY
2011 J.P. Morgan celebrates the 90th anniversary of the firm’s presence in China.

2010 J.P. Morgan Cazenove becomes a wholly-owned part of J.P. Morgan, having originally operated as a joint venture between J.P. Morgan and the U.K. investment bank Cazenove.

2008 JPMorgan Chase & Co. acquires The Bear Stearns Companies Inc., strengthening its capabilities across a broad range of businesses, including prime brokerage, cash clearing and energy trading globally.
2000 J.P. Morgan merges with The Chase Manhattan Corporation and is named JPMorgan Chase and Co. Four years later, the company merges with Bank One, creating a global financial services leader.

1996 The firm jointly leads the first “century” bond for a sovereign borrower – a 100-year, $100 million issue for the People’s Republic of China.
1990 J.P. Morgan plays an active role in the negotiations with Mexico to restructure nearly $50 billion in medium- and long-term commercial bank debt. A first in the market, the new bonds become known as Brady Bonds.

1989 J.P. Morgan ranks among Fortune’s 50 Best Companies for Minorities. The firm is regularly recognized as a leading employer of women, minorities, and LGBT employees.

1980 Predecessor firm Hambrecht & Quist (H&Q) takes Apple Computer public.
1973 Chase opens a representative office in Moscow, the first Russian presence for a U.S. bank since the 1920s; Chase also becomes the first U.S. correspondent to the Bank of China since the 1949 Chinese revolution.

1968 The firm launches Euroclear, a system for the orderly settlement of transactions in Eurobonds.
1955 Chase National Bank merges with The Bank of the Manhattan Company to form Chase Manhattan Bank.
1929 Two Ohio institutions merge to form City National Bank & Trust, a predecessor of Bank One.
1927 Guaranty Trust Company, a predecessor firm of J.P. Morgan, pioneers the concept of American Depositary Receipts (ADRs), which enables Americans to invest in foreign securities directly on U.S. exchanges.

1915 J.P. Morgan arranges the biggest foreign loan in history – a $500 million Anglo/French loan.
1907 During the financial panic of 1907, J. Pierpont Morgan saves several trust companies and a leading brokerage house from insolvency, bails out New York City, and rescues the New York Stock Exchange.

1906 J.P. Morgan is central to the creation of U.S. Steel, GE and AT&T.
1903 J.P. Morgan & Co. was appointed as fiscal agent for the newly independent Republic of Panama in 1903 and was subsequently selected by the U.S. Treasury Secretary to arrange the transfer of $40 million from the U.S. government to the French Panama Canal Co. This was the largest real estate deal at the time.

1901 J.P. Morgan creates the world’s first billion-dollar corporation by buying out industrialist Andrew Carnegie and combining some 33 companies to create United States Steel.

1895 J. Pierpont Morgan, Sr. becomes senior partner. The New York firm is renamed J.P. Morgan & Co.
1893 J.P. Morgan is primary financier of U.S. railroads.
1871 J. Pierpont Morgan and Philadelphia banker Anthony Drexel form a private merchant banking partnership in New York called Drexel, Morgan & Co. This is the earliest partnership that evolves into J.P. Morgan.

1848 The Waterbury Bank opens, a predecessor of the Chase Manhattan Bank.
1824 The Chemical Bank is established.
1799 The Manhattan Company, the firm’s earliest predecessor institution, is chartered.
United States

https://www.jpmorgan.com/country/US/EN/company-history

Aaron Burr opens earliest predecessor firm water pipesIn September 1799, The Bank of The Manhattan Company was established, becoming the second commercial bank formed in New York City.

The earliest predecessor of JPMorgan Chase, the Manhattan Company was founded by Aaron Burr in April of that year. Burr led a group of prominent New Yorkers, including Alexander Hamilton, in obtaining a charter from the New York State Legislature for a company to supply "pure and wholesome" water to the residents of New York City, whose inferior water was thought to be the cause of frequent epidemics of yellow fever.

The unusual charter included a clause allowing the company to employ its excess capital in any activity “not inconsistent with the Constitution and laws of the United States.” This provision enabled the company to engage in banking activities. The establishment of The Bank of The Manhattan Company represented the end of the Federalist's banking monopoly in New York City. Within a few years, The Bank of The Manhattan Company was well established as a vital New York financial institution.

https://www.jpmorgan.com/country/US/en/jpmorgan/about/history/month/sept       

Our firm's presence in India dates back to 1922, when J.P. Morgan & Co. in New York and Morgan Grenfell, its affiliated partnership in London, took an ownership interest in the merchant banking firm of Andrew Yule & Co. Ltd. in Calcutta. J.P. Morgan had ambitions to start a banking business in India as early as 1902, and Morgan Grenfell had begun extending credit to Yule & Co. in 1911.

In 1945, Chase began business in India, when Chase National Bank opened its first representative office in Mumbai. Initially located at the Taj Mahal Palace hotel, the office moved to the New India Assurance Building within a year.

•Our presence in India dates back to 1922.
•Chase National Bank opened its first representative office in Mumbai in 1945.
•Mumbai is one of J.P. Morgan's largest locations outside of the U.S. and serves as a regional hub.

In the 1980s, our business in India broadened to include investment banking, cross-border capital market activities and financial advisory services.

In 1993, J.P. Morgan entered into a joint venture with the Industrial Credit and Investment Corporation of India (ICICI), making us one of the leading investment banks in India, raising funds in the domestic market for public and private sector clients. In the following year, J.P. Morgan formed a second joint venture with ICICI to offer investment management services in India.

In 1994, Chase and its affiliates helped arrange two of the largest international financings for Indian corporations: a US$250 million European bond issue by iron and steel manufacturer Essar Gujarat Ltd., and a US$250 million revolving credit facility for the State Bank of India. In 1995, Chase Manhattan Bank opened a branch in Mumbai after India's central bank (known as the Reserve Bank of India) granted Chase the permit to conduct full banking operations.

Through our predecessor firm, Jardine Fleming, we commenced merchant banking and stockbroking activities in India in 1993 and 1994 respectively.

In 2002, JPMorgan Chase established its global service center in Mumbai, providing round-the-clock middle- and back-office support for every line of business at JPMorgan Chase. Today, Mumbai is one of J.P. Morgan's largest locations outside of the United States and serves as a regional hub for many of our businesses in India.

In 2007, J.P. Morgan launched commercial banking in India. In the same year, J.P. Morgan Asset Management received its license to sell to retail investors in India. This was followed by the launch of its first mutual fund, the J.P. Morgan India Equity Fund.

Since 2008, J.P. Morgan has helped raise more than US$20 billion for Indian corporations through domestic and international offerings. As the first bank to execute long-tenure foreign exchange rupee options, and the first foreign primary dealer with the Reserve Bank of India, we continue to be leaders in financial innovation in India.
https://www.jpmorgan.com/IN/en/about-us


US 1-866-578-3658 info@jpmsecfund.com

JPM Fair Fund

RCB Fund Services LLC

About the Fund Plan Administrator
.
RCB Fund Services LLC (“RFS”) specializes in helping victims recover from unlawful conduct. RFS has frequently handled some of the largest and most complicated claims and distribution processes on behalf of the United States Government, specifically the Department of Justice (“DOJ”) and the U.S. Securities and Exchange Commission (“SEC”). RFS has administered the first SEC Fair Fund ever created, and the two largest DOJ forfeiture remission funds in history. Among other assignments, RFS’s experience includes the WorldCom, Enron, Royal Dutch Shell, and British Petroleum Fair Funds, and the Madoff Securities and Adelphia Communications Corp. DOJ forfeiture funds. RFS is adept at developing innovative solutions to complex problems that are present in large settlement fund administrations, and has pioneered many techniques in the industry and developed other practical solutions to challenging issues along the way.

RFS was formed in 1996 by Mr. Richard C. Breeden to provide specialized claims administration and fund distribution services in cases involving securities fraud. Mr. Breeden is a former Chairman of the U.S. Securities and Exchange Commission under Presidents George H. W. Bush and William J. Clinton, with extensive experience in capital markets and investments. Mr. Breeden has assisted law enforcement or judicial proceedings on various occasions, including serving as a court-appointed Monitor, a Trustee in bankruptcy proceedings, as a Special Master to the DOJ handling the remission of criminal forfeitures to victims of securities fraud, and as a Distribution Agent for SEC Fair Fund cases.

Most recently, DOJ appointed Mr. Breeden to serve as its Special Master in administering the distribution of approximately $4 billion in forfeitures that have been obtained thus far by the United States Attorney’s Office for the Southern District of New York in cases related to the Ponzi scheme operated through Bernard L. Madoff Investment Securities LLC. RFS is providing analytical support to Mr. Breeden in his role as Special Master.
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If you have questions, RFS is here to provide support. Visit the FAQs for answers to the most commonly asked questions.

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FEDERAL RESERVE SYSTEM
JPMorgan Chase & Co. New York, New York
Order Approving Notice to Engage in
Activities Complementary to a Financial Activity

JPMorgan Chase & Co. (“JPM Chase”), a financial holding company (“FHC”) within the meaning of the Bank Holding Company Act (“BHC Act”), has requested the Board’s approval under section 4 of the BHC Act1 and the Board’s Regulation Y (12 CFR Part 225) to trade in physical commodities. Regulation Y authorizes bank holding companies (“BHCs”) to engage as principal in derivative contracts based on financial and nonfinancial assets (“Commodity Derivatives”). Under Regulation Y, a BHC may conduct Commodity Derivatives activities subject to certain restrictions that are designed to limit the BHC’s activity to trading and investing in financial instruments rather than dealing directly in physical nonfinancial commodities.2 Under these restrictions, a BHC generally is not allowed to take or make delivery of nonfinancial commodities underlying Commodity Derivatives. In addition, BHCs generally are not permitted to purchase or sell nonfinancial commodities in the spot market.
1 12 U.S.C. § 1843. 2 Commodity Derivatives permissible for BHCs under Regulation Y are hereinafter referred to as “BHC-permissible Commodity Derivatives.”

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The BHC Act, as amended by the Gramm-Leach-Bliley Act (“GLB Act”), permits a BHC to engage in activities that the Board had determined were closely related to banking, by regulation or order, prior to November 12, 1999. 3 The BHC Act permits an FHC to engage in a broad range of activities that are defined in the statute to be financial in nature.4 Moreover, the BHC Act allows FHCs to engage in any activity that the Board determines, in consultation with the Secretary of the Treasury, to be financial in nature or incidental to a financial activity.5 In addition, the BHC Act permits FHCs to engage in any activity that the Board (in its sole discretion) determines is complementary to a financial activity and does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally. 6 This authority is intended to allow the Board to permit FHCs to engage, on a limited basis, in an activity that appears to be commercial rather than financial in nature but that is meaningfully connected to a financial activity such that it complements the financial activity.7 The BHC Act provides that any FHC seeking to engage
3 12 U.S.C. § 1843(c)(8).
4 The Board determined by regulation before November 12, 1999, that engaging
as principal in Commodity Derivatives, subject to certain restrictions, was closely
related to banking. Accordingly, engaging as principal in BHC-permissible
Commodity Derivatives is a financial activity for purposes of the BHC Act.
See 12 U.S.C. § 1843(k)(4)(F).
5 12 U.S.C. § 1843(k)(1)(A). 6 12 U.S.C. § 1843(k)(1)(B). 7 See 145 Cong. Rec. H11529 (daily ed. Nov. 4, 1999) (Statement of Chairman Leach) (“It is expected that complementary activities would not be significant relative to the overall financial activities of the organization.”).

in a complementary activity must obtain the Board’s prior approval under section 4(j) of the BHC Act.8 Through its indirect subsidiary, JPMorgan Ventures Energy Corporation (“JPMVEC”), JPM Chase engages as principal in BHC-permissible Commodity Derivatives and plans to expand those activities to include physical commodity transactions, with a principal focus on energy-related commodities. JPM Chase has, therefore, requested that the Board permit it to engage in physical commodity trading activities, including physical transactions in energy-related commodities, such as natural gas, crude oil, and emissions allowances,9 and to take and make delivery of physical commodities to settle BHC-permissible Commodity Derivatives in which JPM Chase currently engages (“Commodity Trading Activities”). The Board previously has determined that Commodity Trading Activities involving a particular commodity complement the financial activity of engaging regularly as principal in BHC-permissible Commodity Derivatives based on that commodity.10 In light of the foregoing and all other
8 12 U.S.C. § 1843(j). 9 An emission allowance is an intangible right to emit certain pollutants during a given year or any year thereafter that is granted by the U.S. Environmental Protection Agency or comparable foreign regulatory authority to an entity, such as a power plant or other industrial concern, affected by environmental regulation aimed at reducing emission of pollutants. An allowance can be bought, sold, or exchanged by individuals, brokers, corporations, or government entities that establish an account at the relevant governmental authority. Emissions allowances are stored and tracked on the records of the relevant government authority. Accordingly, there are no transportation, environmental, storage, or insurance risks associated with ownership of emissions allowances. 10 Barclays Bank, PLC, 90 Federal Reserve Bulletin 511 (2004); UBS AG, 90 Federal Reserve Bulletin 215 (2004); and Citigroup Inc., 89 Federal Reserve Bulletin 508 (2003). For example, Commodity Trading Activities involving

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facts of record, the Board believes that the Commodity Trading Activities are complementary to the Commodity Derivatives activities of JPM Chase. To authorize JPM Chase to engage in Commodity Trading Activities as a complementary activity under the GLB Act, the Board also must determine that the activities do not pose a substantial risk to the safety or soundness of depository institutions or the U.S. financial system generally.11 In addition, the Board must determine that the performance of Commodity Trading Activities by JPM Chase “can reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices.”12 Approval of the proposal likely would benefit JPM Chase’s customers by enhancing the company’s ability to provide efficiently a full range of commodity-related services. Approving Commodity Trading Activities for JPM Chase also would enable the company to improve its understanding of physical commodity and commodity derivatives markets and its ability to serve as an effective competitor in those markets. JPM Chase has established and maintains policies for monitoring, measuring, and controlling the credit, market, settlement, reputational, legal, and operational risks involved in its Commodity Trading Activities. These policies address key areas, such as counterparty-credit risk, value-at-risk methodology,
all types of crude oil would be complementary to engaging regularly as principal in BHC-permissible Commodity Derivatives based on Brent crude oil. 11 12 U.S.C. § 1843(k)(1)(B). 12 12 U.S.C. § 1843(j)(2)(A).

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and internal limits with respect to commodity trading, new business and new product approvals, and identification of transactions that require higher levels of internal approval. The policies also describe critical internal control elements, such as reporting lines, and the frequency and scope of internal audits of Commodity Trading Activities. Based on the above and all the facts of record, the Board believes that JPM Chase has the managerial expertise and internal control framework to manage adequately the risks of taking and making delivery of physical commodities as proposed. As a condition of this order, to limit the potential safety and soundness risks of Commodity Trading Activities, the market value of commodities held by JPM Chase as a result of Commodity Trading Activities must not exceed 5 percent of JPM Chase’s consolidated tier 1 capital.13 JPM Chase also must notify the Federal Reserve Bank of New York if the market value of commodities held by JPM Chase as a result of its Commodity Trading Activities exceeds 4 percent of its tier 1 capital. In addition, JPM Chase may take and make delivery only of physical commodities for which derivative contracts have been authorized for trading on a U.S. futures exchange by the Commodity Futures Trading Commission (“CFTC”) (unless specifically excluded by the Board) or that have been specifically approved by the Board.14 This requirement is designed
13 JPM Chase would be required to include in this 5 percent limit the market value of any commodities held by JPM Chase as a result of a failure of its reasonable efforts to avoid taking delivery under section 225.28(b)(8)(ii)(B) of Regulation Y. 14 The particular commodity derivative contract that JPM Chase takes to physical settlement need not be exchange traded, but (in the absence of specific Board approval) futures or options on futures on the commodity underlying the derivative contract must have been authorized for exchange trading by the CFTC.

to prevent JPM Chase from becoming involved in dealing in finished goods and other items, such as real estate, that lack the fungibility and liquidity of exchange-traded commodities. To minimize the exposure of JPM Chase to additional risks, including storage risk, transportation risk, and legal and environmental risks, JPM Chase would not be authorized (i) to own, operate, or invest in facilities for the extraction, transportation, storage, or distribution of commodities; or (ii) to process, refine, or otherwise alter commodities. In conducting its Commodity Trading Activities, JPM Chase has committed to use appropriate storage and transportation facilities owned and operated by third parties.15 JPM Chase and its Commodity Trading Activities also remain subject to the general securities, commodities, and energy laws and the rules and regulations (including the antifraud and antimanipulation rules and regulations) of the Securities and Exchange Commission, the CFTC, and the Federal Energy Regulatory Commission.
The CFTC publishes annually a list of the CFTC-authorized commodity contracts. See Commodity Futures Trading Commission, FY 2004 Annual Report to Congress 109. With respect to granularity, the Board intends this requirement to permit Commodity Trading Activities involving all types of a listed commodity. For example, Commodity Trading Activities involving any type of coal or coal derivative contract would be permitted, even though the CFTC has authorized only Central Appalachian coal. 15 Approving Commodity Trading Activities as a complementary activity, subject to limits and conditions, would not in any way restrict the existing authority of JPM Chase to deal in foreign exchange, precious metals, or any other bank-eligible commodity.
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Permitting JPM Chase to engage in the limited amount and types of Commodity Trading Activities described above, on the terms described in this order, would not appear to pose a substantial risk to JPM Chase, depository institutions, or the U.S. financial system generally. Through its existing authority to engage in Commodity Derivatives, JPM Chase already may incur the price risk associated with commodities. Permitting JPM Chase to buy and sell commodities in the spot market or physically settle Commodity Derivatives would not appear to increase significantly the organization’s potential exposure to commodity-price risk. For these reasons, and based on JPM Chase’s policies and procedures for monitoring and controlling the risks of Commodity Trading Activities, the Board concludes that consummation of the proposal does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally and can reasonably be expected to produce benefits to the public that outweigh any potential adverse effects. Based on all the facts of record, including the representations and commitments made to the Board by JPM Chase in connection with the notice, and subject to the terms and conditions set forth in this order, the Board has determined that the notice should be, and hereby is, approved. The Board’s determination is subject to all the conditions set forth in Regulation Y, including those in section 225.7 (12 CFR 225.7), and to the Board’s authority to require modification or termination of the activities of a BHC or any of its subsidiaries as the Board finds necessary to ensure compliance with, or to prevent evasion of, the provisions and purposes of the BHC Act and the Board’s regulations and orders issued thereunder. The Board’s decision is specifically conditioned on compliance with all the commitments made to the Board in connection with the

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notice, including the commitments and conditions discussed in this order. The commitments and conditions relied on in reaching this decision shall be deemed to be conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be enforced in proceedings under applicable law. By order of the Board of Governors,16 effective November 18, 2005.
(signed) _____________________________
Robert deV. Frierson
Deputy Secretary of the Board

16

 

 

Michael Feroli was on the Federal Reserve Board 2002 -2006

2008 JPMorgan Chase & Co. acquires The Bear Stearns Companies Inc., strengthening its capabilities across a broad range of businesses, including prime brokerage, cash clearing and energy trading globally. https://www.jpmorgan.com/country/US/EN/company-history

 

2013

May – Thomas Schenkman, 42, Managing Director of Global Infrastructure, JP Morgan, SUDDEN DEATH, cause unknown/pending

June – Richard Gravino, 49, Application Team Lead, JP Morgan, SUDDEN DEATH cause unknown/pending   IT Specialist JP Morgan,

July – Julian Knott, 45, JPMorgan Executive Director,Global Tier 3 Network Operations, SELF-INFLICTED GUNSHOT WOUND

Oct 2013 – Ezdehar Husainat – former JP Morgan banker, killed in FREAK ACCIDENT when her SUV crushed her to death

Dec 2013 – Joseph . Ambrosio, age 34, Financial Analyst for J.P. Morgan, died suddenly from Acute Respiratory

2014 BANKER DEATHS

 Ryan Henry Crane, age 37, JP Morgan
 Li Junjie, 33, Hong Kong JP Morgan
 Gabriel Magee, 39, age JP Morgan employee

Jason Alan Salais, 34 year old IT Specialist at JPMorgan since 2008

Joseph A. Giampapa, 55, corporate bankruptcy lawyer, JP Morgan Chase

Julian Knott, Directeur Global Operations Center JP Morgan, 45, Amerika


In the Matter of JPMorgan Chase & Co.
Admin Proc. File No. 3-15507

On September 19, 2013, the Commission instituted and simultaneously settled proceedings against JPMorgan Chase & Co. (“JPMorgan”). The Commission found that JPMorgan violated federal securities laws when it made material misstatements in its public filings with the Commission. The Commission ordered JPMorgan to pay a civil money penalty in the amount of $200,000,000 to the Commission and ordered that such penalty may be distributed pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended. See the Commission’s order, Release No. 34-70458.

On October 4, 2013, the Commission issued an order appointing Damasco and Associates LLP as the Tax Administrator. See the Commission’s order, Release No. 34-70615.

On March 5, 2014, the Commission issued an order establishing a Fair Fund. See the Commission’s order, Release No. 34-71654.

On March 27, 2014, the Commission issued an order appointing RCB Fund Services, LLC as the fund plan administrator and setting the administrator bond amount. See the Commission’s order, Release No. 34-71825.

On December 11, 2014, the Commission issued a notice of the proposed plan of distribution and opportunity for comment and simultaneously provided a link to the proposed plan of distribution. The notice provided parties 30 days to submit their comments on the proposed plan of distribution. See the Commission’s notice, Release No. 34-73824, and the proposed plan of distribution, Release No. 34-73824-pdp.

On February 12, 2015, the Commission issued an order approving the plan of distribution. See the Commission’s order, Release No. 34-74266, and the plan of distribution, Release No. 34-74266-dp. The claim form may found at http://jpmsecfund.com/claim-forms.

On August 11, 2017, the Commission issued an order approving the disbursement of $200,000,000 from the Fair Fund to Huntington National Bank for the Fund Administrator to distribute to investors in accordance with the Distribution Plan. See the Commission's order: Release No. 34-81383.

On November 3, 2018, the Commission issued an order reducing the Fund Administrator’s bond amount. See the Commission’s Order: Release No. 34-84532.

On August 22, 2019, the Commission issued an order directing the disbursement of $9,488,801.91 from the Fair Fund to the Fund Administrator for distribution to eligible investors in accordance with the Plan. See the Commission’s Order: Release No. 34-86727.

For more information, please contact the Fund Administrator:

RCB Fund Services, LLC
Telephone Number: 866-578-3658 (domestic) or 315-671-5779 (international)
Website: www.jpmsecfund.com
Email: info@jpmsecfund.com

Modified: August 27, 2019
https://www.sec.gov/divisions/enforce/claims/jpmorgan-chase.htm

https://www.sec.gov/litigation/admin/2013/34-70458.pdf

https://www.sec.gov/litigation/admin/2013/34-70615.pdf

https://www.sec.gov/litigation/admin/2014/34-71654.pdf

https://www.sec.gov/litigation/admin/2014/34-71825.pdf

https://www.sec.gov/litigation/admin/2014/34-73824.pdf

https://www.sec.gov/litigation/admin/2015/34-74266.pdf

https://www.sec.gov/litigation/admin/2015/34-74266-dp.pdf

http://jpmsecfund.com/wp-content/uploads/2015/04/JPMFairFund_ClaimForm.pdf

https://www.sec.gov/litigation/admin/2017/34-81383.pdf

https://www.sec.gov/litigation/admin/2018/34-84532.pdf

https://www.sec.gov/litigation/admin/2019/34-86727.pdf

http://jpmsecfund.com/wp-content/uploads/2015/04/Distribution_Plan_02.12.2015.pdf

Business Details
Location of This Business
845 Laurel St, San Carlos, CA 94070-3914

Headquarters
270 Park Ave, New York, NY 10017-2014

BBB File Opened: 3/1/2000
Years in Business: 196
Business Started: 1/1/1824
Business Incorporated: 10/28/1968
Type of Entity: Corporation
Number of Employees: 1
Alternate Business Name
Washington Mutual
Chase Bank
J P Morgan Securities Inc
Business Management
Mr. James A. Dimon, President/CEO
Ms. Veronica Morsello, Branch Manager
Mr. Oliver Balleza, Branch Manager
Mr. Joe Illathu, Manager
Ms. Avianca Verdugo, Branch Manager
Contact Information
Principal

Ms. Avianca Verdugo, Branch Manager
Customer Contact

Mr. James A. Dimon, President/CEO
Additional Contact Information
Fax Numbers

(650) 340-8539Other Fax
(650) 571-9342Other Fax
(510) 758-4963Other Fax
Phone Numbers

(650) 508-2654Other Phone
(415) 315-5608Other Phone
(650) 994-2902Other Phone
(650) 364-4340Other Phone
(650) 991-9122Other Phone
(212) 270-6000Other Phone
(650) 348-2456Other Phone
(415) 293-7629Other Phone
(510) 521-9080Other Phone
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JPMorgan Rejects Threat to Dollar Status Flagged by Goldman

By
Chris Anstey

‎August‎ ‎07‎, ‎2020‎ ‎5‎:‎00‎ ‎PM

Failure to add stimulus may pressure dollar, strategists say

Short recommendation seen as different from long-term judgment

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JPMorgan Chase & Co. strategists said that while the dollar does face further downside, it isn’t caught in the kind of structural decline suggested by Goldman Sachs Group Inc. analysts last week.

“We continue to push back on the idea of a much broader, secular downtrend in the dollar predicated on structural factors,” JPMorgan currency strategists Daniel Hui, Paul Meggyesi and Juan Duran-Vara wrote in an Aug. 7 note. Those include “the U.S. loss of reserve currency status” and a “rehabilitation” of the euro from that region’s growth malaise, they wrote.

JPMorgan said it engaged with clients about concerns about the inflation outlook tied to an expected shift by the Federal Reserve to strengthen efforts to boost price gains. “The emphasis on inflation and attendant currency debasement” intensified thanks to the surging price in gold to record highs, the strategists wrote.

Gold has soared, dollar retreated since depths of crisis

Goldman’s commodity strategists hit that theme last week, saying that there were “real concerns around the longevity of the U.S. dollar as a reserve currency” thanks to American policy triggering “debasement” fears.

Read more: Goldman Warns on Inflation Threat to Dollar as Reserve Currency

The JPMorgan team noted that, indeed, measures of inflation expectations have been picking up lately. And that’s happened alongside a slide in the greenback, which saw its biggest drop in a decade last month.

“It is certainly tempting to conclude that there is a causation at work here,” the strategists wrote. However, it could simply be “coincidental,” thanks to an unwinding of the moves during the heights of the financial strains caused by the Covid-19 crisis, they wrote.

A look back at differences in inflation rates, interest rates and real yields -- those adjusted for price changes -- indicates that none of them “explain much of the dollar index or most dollar pairs over the past five years,” the JPMorgan strategists wrote.

What will be putting downward pressure on the dollar for now is the failure in Washington to reach a deal on another fiscal-stimulus package, according to the Wall Street bank.

The “fiscal drag” to the economy from the expiration of support including supplemental unemployment insurance payments “should be felt in real-time, and will translate into real-time ongoing downward pressure on the dollar,” the bank wrote.

Read more: Mnuchin Says Trump to Take Executive Action After Talks Stall

The team said it’s added a trading recommendation to short the dollar against the yen. But that’s different from a long-term judgment on the greenback.

“The greatest conviction we have is that idiosyncratically driven dollar weakness will be narrow and conditional, rather than broad, sustained and structural,” they wrote.

https://www.bloomberg.com/news/articles/2020-08-07/jpmorgan-rejects-threat-to-dollar-status-flagged-by-goldman

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