JPMorgan Chase & Co. (JPM) is a big company that offers financial services all over the world. It’s the largest bank in the United States when you count up all the money and things it owns. This company’s history goes back really far, all the way to 1799 when the Manhattan Co. was started in New York City. JPMorgan Chase & Co. is made from putting together more than 1,200 other companies that came before it, like J.P. Morgan & Co., the Chase Manhattan Bank, and Bank One.
Nowadays, JPMorgan does different things like helping regular people with their banking, working with investments, helping businesses with their money, managing assets, and more. They have four main parts of their business: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. In the year 2022, they made $37.7 billion in profit from $128.7 billion in money they earned. Their total value was $406.7 billion by June 27, 2023.
Even after more than 200 years since the Manhattan Co. started, JPMorgan is still changing and growing. The name it has now came about because two banks joined together in the year 2000. They also bought other companies over the next ten years, which made them the biggest bank in the U.S.
Some of these buyouts happened during the big financial crisis in 2008. Because the U.S. government wanted to stop the whole financial system from falling apart, JPMorgan bought two big companies during that time. This helped the financial industry in the U.S. not crash. Other purchases have also made the bank bigger around the world.
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In the following section, we’ll look more closely at seven of the most important companies that JPMorgan has bought. Right now, the bank doesn’t give details about how much money these buys make, and many of them are now part of the bank itself and don’t exist as separate companies anymore.
7 Companies Owned by JPMorgan Chase & Co.
1. JPMorgan & Co. Inc./The Chase Manhattan Corp.
- Business Type: Banking and Financial Services
- Price of Purchase: Between $30.9 billion and $38.58 billion
- Date of Purchase: Announced on September 13, 2000
The Wall Street Journal. “Chase Agrees to Buy J.P. Morgan In Stock Deal Valued at $38.58 Billion.” The current name of the bank, “JPMorgan Chase & Co.,” came about because two companies, JPMorgan & Co. Inc. and Chase Manhattan Corp., merged in 2000. JPMorgan & Co. was first started in New York in 1871. The origins of Chase Manhattan Corp. go back to Chase National Bank, which began in Manhattan in 1877. Different estimates put the value of this merger between $30.9 billion and $38.58 billion.
Even though the merging made a new company, the combined assets of the company were around $660 billion. This made it the third-largest bank in the U.S., with Citigroup, Inc. having $800 billion, and Bank of America Corp. having $680 billion. The deal also connected Chase’s lending and venture-capital section with JPMorgan Chase’s private banking part, which managed $400 billion in assets. Since then, JPMorgan Chase & Co. has grown to become the biggest bank in the U.S., with a total of about $3.3 trillion in assets.
2. Bank One Corp.
- Business Type: Banking and Financial Services
- Price of Purchase: About $58 billion
- Date of Purchase: Completed on July 1, 2004
Bank One started as the First Banc Group of Ohio in 1968. It grew by buying other banks, first in Ohio and then in different states like Arizona, Colorado, Indiana, Texas, Utah, and Wisconsin. The company changed its name to Bank One Corp. and was later bought by JPMorgan Chase & Co. in 2004.
This merger was first talked about in January 2004. After it was done, JPMorgan Chase became the second-largest bank in the U.S. Its total money and things it owned, called assets, added up to $1.1 trillion, which was a bit less than Citigroup’s $1.2 trillion.
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Getting Bank One helped JPMorgan become stronger in serving regular people’s banking needs. It also made them big enough to compete more seriously with Citigroup. The deal had plans about who would lead the new big bank.
The agreement said that Jamie Dimon, who was the chair and chief executive officer (CEO) of Bank One, would become the president and chief operating officer (COO) of the new bank. Eventually, he would take over from JPMorgan’s CEO, William Harrison Jr., in 2006. Dimon started being the CEO on December 31, 2005, and a year later, he became the chair of the board too. People think he’s one of the most important people in the banking world, and he still has these jobs today.
3. The Bear Stearns Companies Inc.
- Business Type: Investment Banking
- Price of Purchase: $1.4 billion
- Date of Purchase: May 31, 2008
Bear Stearns Companies Inc. was created in 1923. It faced challenges like the stock market crash of 1929 and the tough times during the Great Depression. By the early 2000s, Bear Stearns was one of the big and respected investment banks on Wall Street. But its good reputation changed because of risky debt and big financial bets that didn’t work out well during the subprime mortgage crisis and the global financial crisis of 2008. By the spring of 2008, Bear Stearns was almost out of money. It had to decide between going bankrupt or agreeing to be taken over by JPMorgan.
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The U.S. government was worried that if Bear Stearns went down, the whole U.S. financial system could be in trouble. So, they played a big role in helping JPMorgan buy Bear Stearns. To make it happen, the Federal Reserve gave a special loan of $30 billion to help with Bear Stearns’ assets that were hard to sell, like mortgage investments. This loan made sure that JPMorgan wouldn’t lose money if the value of those assets went down.
However, the deal to buy Bear Stearns might not have turned out as well as expected. In 2015, Jamie Dimon, who was the CEO of JPMorgan, said that they had already paid out $19 billion to settle legal issues linked to the financial crisis. And a big part of this money, 70%, was because of Bear Stearns and another troubled bank called Washington Mutual, which JPMorgan bought during the crisis.
4. Washington Mutual Bank
- Business Type: Savings and Loan Association
- Price of Purchase: $1.9 billion
- Date of Purchase: September 25, 2008
Washington Mutual started in Seattle back in 1889 as the Washington National Building Loan and Investment Association. This bank helped people save money and offered services like checking and savings accounts, home loans, and other types of loans. In 1917, it became known as Washington Mutual Savings Bank. As time went on, the bank got bigger by buying other financial companies. By 2008, it had grown to be the largest savings and loan bank in the U.S.
Just like Bear Stearns, Washington Mutual had a tough time during the financial crisis. Many people took their money out of the bank, and it couldn’t handle it. This led to the government’s Federal Deposit Insurance Corporation (FDIC) taking over the bank. This event was the largest banking failure in the history of the United States.
In September 2008, JPMorgan bought Washington Mutual’s banking operations from the FDIC for $1.9 billion. This deal made JPMorgan the biggest bank that takes people’s money in the country. However, just like with the Bear Stearns purchase, JPMorgan had to deal with unexpected expenses and costs from big legal cases afterward.
5. Cazenove Group
- Business Type: Stockbroker and Investment Bank
- Price of Purchase: $1.7 billion
- Date of Purchase: Announced on November 19, 2009
Cazenove, which is based in the U.K., has been around since 1819. It’s the company that helps some of the biggest companies in the U.K., even including the Queen of England before she passed away. JPMorgan and Cazenove started working together in 2004 when JPMorgan bought half of Cazenove, making them partners with equal ownership. This deal also gave JPMorgan the choice to buy the rest of Cazenove. They chose to do that in November 2009, agreeing to pay $1.7 billion for the remaining part of the company.
Even though JPMorgan and Cazenove’s investment banking part were already working closely together after the first deal, this new buyout meant that they combined more parts of their businesses. This included things like working with stocks and providing research. They started using the name “JPMorgan Cazenove” for these combined efforts.
Nowadays, JPMorgan Cazenove does three main things:
- Corporate Finance: This part gives a complete range of services for investment banking to companies based in the U.K.
- Cash Equities: They help corporate, big investor, and hedge fund clients with services related to cash equities all across Europe, the Middle East, and Africa.
- Equity Research: They offer research services about stocks to clients in Europe, the Middle East, and Africa.
- Business Type: Healthcare Payments
- Price of Purchase: Over $500 million
- Date of Purchase: July 24, 2019
InstaMed was created in 2004 with the goal of making healthcare payments simpler. The company grew fast and in 2007, it got certified by Visa and Mastercard. In 2015, it also started working with Apple Pay. In the year just before JPMorgan bought it, InstaMed managed transactions worth around $94 billion.
After being acquired by JPMorgan, InstaMed still works as a separate part of the bank. This move let JPMorgan offer more ways to make payments in the healthcare industry. It helps healthcare users, providers, and payers work more smoothly together. It also helped JPMorgan get into a new area of handling payments. At the time when InstaMed was bought, the United States spent more than $3 trillion on healthcare.
- Business Type: Payment Processing Technology
- Price of Purchase: More than $220 million, and possibly up to $400 million including bonuses and extra payments based on achieving growth goals
Source: TechCrunch. “Chase Closes WePay Acquisition, a Deal Valued Up to $400M.”Date of Purchase: December 2017
JPMorgan’s decision to buy WePay in 2017 marked an important step for the bank, as it was their first major acquisition in the financial technology (fintech) sector. WePay started in 2008, testing a system that any group needing a way to handle payments could use, like crowdfunding platforms such as GoFundMe.
With this purchase, JPMorgan entered the field of processing payments, which is a part of finance that’s growing thanks to newer fintech companies. After getting WePay, JPMorgan gave the technology and services of WePay to its four million small business customers.
What Is the Difference Between Chase and JPMorgan Chase?
Chase National used to be a bank in the United States. In 1955, it combined with the Bank of Manhattan Company to create Chase Manhattan. Then, in the year 2000, Chase Manhattan joined with JPMorgan & Co. to make the bank we now know as JPMorgan Chase.
What Does JPMorgan Do?
JPMorgan is a global financial firm and its business consists of all financial and banking services. The company offers financial services for consumers and companies, investment banking, commercial banking, wealth management, and asset management services.
What Are the Largest Banks in the U.S.?
The five largest banks in the U.S. by total assets are
Bank of America
The Bottom Line
JPMorgan Chase is the largest commercial bank in the U.S. by assets. Its history has consisted of various bank mergers and acquisitions that have made it the large, global player that it is today. Some of these acquisitions boosted the company while others dented the business, yet the bank has continued to perform well and maintain its leading position.
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