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J.P. Morgan About Us Company History
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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
J.P. Morgan celebrates the 90th anniversary of the firm’s
presence in China.
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.
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
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.
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.
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
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.
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.
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.
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.
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.
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
1824 The Chemical Bank is established.
1799 The Manhattan Company, the firm’s earliest predecessor
institution, is chartered.
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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
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
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.”).
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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
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
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
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.
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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
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
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
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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.
Robert deV. Frierson
Deputy Secretary of the Board
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
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,
government clients under its J.P.
Morgan and Chase brands. Information about JPMorgan
Chase & Co. is available at