Big, Bigger, Biggest, and the Best? JP Morgan.

 

• About JP Morgan, the Iconic Financial Institution. 

 

JP Morgan is one of the most iconic financial institutions in the world, with a history that dates back to the mid-19th century. Here's a timeline of its beginning, growth, and going public:

 

1837: Junius Spencer Morgan, J.P. Morgan's father, founds his own merchant banking firm in London. The firm, known as J.S. Morgan & Co., specializes in financing the shipping industry.

 

1854: Junius Spencer Morgan's son, John Pierpont Morgan (J.P. Morgan), joins the family business in London.

 

1860: J.P. Morgan returns to the United States and begins working for his father's friend, George Peabody, who had established a banking firm in New York City.

 

1864: J.P. Morgan establishes his own private banking firm, which eventually becomes known as J.P. Morgan & Co. The firm is based in New York City and specializes in providing financial services to corporations, governments, and wealthy individuals.

 

1901: J.P. Morgan helps to finance the creation of U.S. Steel, which becomes the world's first billion-dollar corporation.

 

1907: J.P. Morgan plays a pivotal role in averting a financial crisis when he helps to organize a group of bankers to provide emergency loans to troubled banks and corporations.

 

1913: The Federal Reserve System is established, which helps to stabilize the U.S. banking system and reduce the need for emergency loans.

 

1915: J.P. Morgan dies, and his son, J.P. Morgan Jr., takes over as head of J.P. Morgan & Co.

 

1935: J.P. Morgan & Co. is reorganized as a commercial bank and is renamed Morgan Guaranty Trust Company.

 

1959: Morgan Guaranty Trust Company becomes the first commercial bank to issue a credit card.

 

1985: Morgan Guaranty Trust Company merges with the investment bank J. Henry Schroder & Co. to become Morgan Guaranty Trust Co. of New York.

 

2000: Morgan Guaranty Trust Co. of New York merges with J.P. Morgan & Co. to form JPMorgan Chase & Co.

 

To go public on the US stock market, a company must first file an initial public offering (IPO) with the Securities and Exchange Commission (SEC). An IPO is the first time that a company's shares are offered for sale to the public. The SEC reviews the company's financial statements and other disclosures to ensure that they are accurate and complete. Once the SEC approves the IPO, the company can begin selling its shares to investors.

 

Some important people in the growth of JP Morgan include:

 

J.P. Morgan: The founder of the firm and one of the most influential bankers in history.

 

J.P. Morgan Jr.: J.P. Morgan's son, who took over as head of the firm after his father's death and helped to modernize it.

 

Henry Sturgis Morgan: J.P. Morgan's nephew, who helped to expand the firm's business in Europe and Asia.

 

Thomas W. Lamont: A partner at J.P. Morgan & Co. who played a key role in many of the firm's most important deals.

 

John W. Davis: A lawyer who represented J.P. Morgan & Co. in several landmark antitrust cases.

 

Hugh McCulloch: The first Secretary of the Treasury under President Abraham Lincoln, who helped to establish the national banking system and was a mentor to J.P. Morgan.

 

Some interesting facts and stories about JP Morgan with a timeline:

 

1864: J.P. Morgan establishes his own private banking firm, which eventually becomes known as J.P. Morgan & Co. At the time, the firm was called "The House of Morgan," and it quickly became one of the most powerful financial institutions in the world.

 

1901: J.P. Morgan helps to finance the creation of U.S. Steel, which becomes the world's first billion-dollar corporation. Morgan's involvement in the creation of U.S. Steel helped to solidify his reputation as one of the most powerful financiers in the world.

 

1907: J.P. Morgan plays a pivotal role in averting a financial crisis when he helps to organize a group of bankers to provide emergency loans to troubled banks and corporations. This event is known as the Panic of 1907, and it is seen as a precursor to the Federal Reserve System, which was established in 1913.

 

1912: J.P. Morgan famously testifies before Congress during the Pujo hearings, which investigated the power and influence of Wall Street banks. Morgan's testimony is widely criticized, and it helps to fuel calls for greater regulation of the banking industry.

 

1915: J.P. Morgan dies, and his son, J.P. Morgan Jr., takes over as head of J.P. Morgan & Co. J.P. Morgan Jr. helps to modernize the firm and expand its business in Europe and Asia.

 

1929: The stock market crashes, leading to the Great Depression. J.P. Morgan & Co. is one of the few Wall Street banks to survive the crisis, thanks in part to its conservative approach to lending and investing.

 

1933: President Franklin D. Roosevelt signs the Glass-Steagall Act, which separates commercial banking from investment banking. J.P. Morgan & Co. becomes a commercial bank and is renamed Morgan Guaranty Trust Company.

 

1959: Morgan Guaranty Trust Company becomes the first commercial bank to issue a credit card. The card, known as the "Morgan Guaranty Charge Card," is the precursor to the modern credit card.

 

1985: Morgan Guaranty Trust Company merges with the investment bank J. Henry Schroder & Co. to become Morgan Guaranty Trust Co. of New York.

 

2000: Morgan Guaranty Trust Co. of New York merges with J.P. Morgan & Co. to form JPMorgan Chase & Co. The merger creates one of the largest financial institutions in the world.

  

 

•   JP Morgan's Stock Movement and Repond against Financial Crisis. 

 

As of September 2021, JPMorgan Chase & Co., the successor to the House of Morgan, has a market capitalization of over $470 billion. This means that the total value of all its outstanding shares of stock, which are traded on the New York Stock Exchange, is over $470 billion. JPMorgan Chase & Co. is one of the largest banks in the world in terms of assets, with total assets of over $3.7 trillion.

 

The movement of JPMorgan Chase & Co.'s stock price is influenced by a variety of factors, including the overall performance of the economy, interest rates set by central banks, regulatory changes, and the bank's own financial performance. In general, a strong economy and low interest rates tend to be positive for JPMorgan Chase & Co.'s stock price, while weak economic conditions and high interest rates can be negative. However, the stock price can also be affected by company-specific factors, such as news of major acquisitions, legal settlements, or management changes.

 

Over the past decade, JPMorgan Chase & Co.'s stock price has generally trended upwards, with occasional dips during periods of market volatility or economic uncertainty. For example, during the COVID-19 pandemic in early 2020, the stock price experienced a sharp decline, but it has since recovered and reached new all-time highs in mid-2021. Despite some occasional setbacks, JPMorgan Chase & Co.'s stock has been a solid performer over the long-term, reflecting the company's strong financial position and ongoing success in the competitive banking industry.

  

J.P. Morgan, the founder of J.P. Morgan & Co., was known for his ability to respond quickly and effectively to major financial problems and crises. Today, JPMorgan Chase & Co. continues this legacy by taking a proactive approach to managing risk and responding to challenges in the financial markets.

 

Here are a few examples of how JPMorgan Chase & Co. has responded to major financial problems and crises in recent years:

 

During the 2008 financial crisis, JPMorgan Chase & Co. was one of the few major banks that managed to avoid a government bailout. Instead, the bank was able to raise capital from private investors and maintain its financial stability. JPMorgan Chase & Co. also acquired several distressed banks during this period, including Washington Mutual and Bear Stearns, which helped to solidify the bank's position as one of the strongest financial institutions in the world.

 

In 2012, JPMorgan Chase & Co. experienced a significant trading loss of more than $6 billion, which became known as the "London Whale" scandal. The bank responded quickly by conducting an internal investigation, firing several top executives, and implementing new risk management policies to prevent similar incidents from occurring in the future.

 

During the COVID-19 pandemic in 2020, JPMorgan Chase & Co. provided critical financial support to individuals, small businesses, and large corporations that were impacted by the crisis. The bank offered loan deferrals, fee waivers, and other forms of assistance to help customers navigate the economic uncertainty caused by the pandemic.

 

• The Relationship btw JP Morgan and the Federal Reserver and Political Parties. 

 

The relationship between JPMorgan Chase & Co. and the Federal Reserve, or "the Fed," is complex and multifaceted. On one hand, JPMorgan Chase & Co. is subject to the Fed's regulatory oversight and monetary policy decisions, which can have a significant impact on the bank's operations and profitability. On the other hand, JPMorgan Chase & Co. also has a close working relationship with the Fed, particularly in its role as a primary dealer for U.S. government securities.

 

Here are a few key points to consider when discussing the relationship between JPMorgan Chase & Co. and the Fed:

 

Regulatory oversight: As a large bank, JPMorgan Chase & Co. is subject to a range of regulations and oversight by federal agencies, including the Fed. The Fed is responsible for supervising and regulating the bank's activities related to banking and financial services, including risk management, capital adequacy, and compliance with consumer protection laws.

 

Monetary policy: The Fed's monetary policy decisions, such as setting interest rates and controlling the money supply, can have a significant impact on JPMorgan Chase & Co.'s business operations and profitability. For example, higher interest rates can increase the cost of borrowing for the bank and its customers, while lower rates can stimulate lending and economic growth.

 

Primary dealer status: JPMorgan Chase & Co. is one of 24 primary dealers of U.S. government securities, which means it has a direct relationship with the Fed in buying and selling government debt. This status gives JPMorgan Chase & Co. access to important information about the Fed's monetary policy decisions and allows the bank to participate in auctions of Treasury securities.

 

 

 

As a large and influential financial institution, JPMorgan Chase & Co. has historically maintained relationships with both major political parties in the United States. However, the nature and extent of these relationships have evolved over time, and the bank has faced scrutiny and criticism for its political activities in some cases.

 

Here are a few key points to consider when discussing the relationship between JPMorgan Chase & Co. and political parties in the U.S.:

 

Political donations: JPMorgan Chase & Co. has a long history of making political donations to both Democratic and Republican candidates and causes. In recent years, the bank has generally favored Democrats in its campaign contributions, although it has also donated to Republican candidates and committees.

 

Lobbying activities: Like many large corporations, JPMorgan Chase & Co. engages in extensive lobbying activities to influence public policy. The bank has lobbied on a range of issues, including financial regulation, taxes, and international trade.

 

Revolving door: Some critics have accused JPMorgan Chase & Co. of maintaining a "revolving door" between its executives and government officials, in which individuals move back and forth between the bank and positions of government power. For example, several former JPMorgan Chase & Co. executives have held high-ranking positions in the Treasury Department and other government agencies.

 

• The History of M&A by JP Morgan.

 

JPMorgan Chase & Co. has a long and storied history of mergers and acquisitions (M&A), dating back to the early 20th century. Here are some key moments in the bank's M&A history:

• 1895: J.P. Morgan & Co. merges with the New York financial firm Drexel, Morgan & Co., creating one of the largest investment banks in the world.
• 1901: J.P. Morgan & Co. plays a key role in the creation of U.S. Steel, a massive steel conglomerate formed through the merger of several smaller companies.
• 1929: J.P. Morgan & Co. is a major player in the stock market crash of 1929, which triggers the Great Depression.
• 1935: J.P. Morgan & Co. merges with Guaranty Trust Company, creating Morgan Guaranty Trust Company.
• 1959: Morgan Guaranty Trust Company acquires the New York-based investment firm Smith Barney & Co.
• 1987: Morgan Guaranty Trust Company merges with the retail bank Chase Manhattan Bank, creating J.P. Morgan & Co. Incorporated.
• 1991: J.P. Morgan & Co. helps to arrange the leveraged buyout of the food company RJR Nabisco, which becomes one of the largest and most controversial deals of the era.
• 2000: J.P. Morgan & Co. merges with the financial services company Chase Manhattan Corp., creating JPMorgan Chase & Co.
• 2004: JPMorgan Chase & Co. acquires Bank One, a major retail bank based in Chicago.
• 2008: JPMorgan Chase & Co. acquires Bear Stearns, a troubled investment bank that had been hit hard by the subprime mortgage crisis.
• 2010: JPMorgan Chase & Co. acquires the assets of Washington Mutual, a failed savings and loan association.
• 2020: JPMorgan Chase & Co. acquires the digital wealth management platform Nutmeg, signaling the bank's continued expansion into fintech and digital banking.