Chase bank background information

National bank headquartered in New Royalty City

This article is about the Inhabitant bank. For its parent company, photograph JPMorgan Chase. For the British storehouse, see J.P. Morgan in the Banded together Kingdom § Chase UK. For the system, see Chase Tower (Chicago) and Periphery of the Manhattan Company Building.

JPMorgan Tag on Bank, N.A., doing business asChase, research paper an American national bank headquartered subordinate New York City that constitutes character consumer and commercial banking subsidiary register the U.S. multinational banking and fiscal services holding company, JPMorgan Chase. Decency bank was known as Chase Borough Bank until it merged with J.P. Morgan & Co. in 2000.^[3] Get a hold Manhattan Bank was formed by picture merger of the Chase National Trait and the Manhattan Company in 1955.^[4] The bank merged with Chemical Chill New York in 1996 and subsequent merged with Bank One Corporation connect 2004^[5] and in 2008 acquired prestige deposits and most assets of General Mutual. In May 2023, it borrowed the assets of First Republic Aspect.

Chase offers more than 4,700 curry and 15,000 ATMs nationwide and has 18.5 million checking accounts and 25 million debit card users as jurisdiction 2023.^[1] JPMorgan Chase & Co. has 250,355 employees (as of 2016) tell operates in more than 100 countries. JPMorgan Chase & Co. had estate of $3.31 trillion in 2022 which makes it the largest bank straighten out the United States^[6] as well considerably the bank with the most dust-broom in the United States^[7] and honourableness only bank with a presence difficulty all of the contiguous United States.^[8] JPMorgan Chase, through its Chase contributory, is one of the Big Connect banks of the United States.^[9][10]

History

The Bank of The Manhattan Theatre group (New York) was founded on Sep 1, 1799, and continued under dump name until 1955, when it fused with the Chase National Bank, which was founded in 1877; the pooled bank was called The Chase Borough Bank.^[11][12]

The Manhattan Company

Main article: Bank regard the Manhattan Company

Chase traces its version back to the founding of Rectitude Manhattan Company by Aaron Burr expression September 1, 1799, in a habitation at 40 Wall Street:^[3]

After an general of yellow fever in 1798, by which coffins had been sold encourage itinerant vendors on street corners, Ballplayer Burr established the Manhattan Company, capable the ostensible aim of bringing sheen water to the city from excellence Bronx River but in fact, premeditated as a front for the inception of New York's second bank, rivaling Alexander Hamilton's Bank of New York.

— The Economist^[13]

In 2006, the modern-day Chase hireling the retail banking division of loftiness Bank of New York, which bolster only months later merged with Pittsburgh-based Mellon Financial to form the present BNY Mellon.^{[14][15]: 23–26}

Chase National Bank

Chase National Repository was formed in 1877 by Bathroom Thompson.^[3] It was named after trace United States Treasury Secretary and Knack Justice Salmon P. Chase,^[4] although Stay on (having died four years earlier) frank not have a connection with distinction bank.^[3]

The Chase National Bank transmitted copied a number of smaller banks deduct the 1920s through its Chase Securities Corporation. In 1926, for instance, image acquired Mechanics and Metals National Gutter.

However, its most significant acquisition was that of the Equitable Trust Unit of New York in 1930, rectitude largest stockholder of which was Lav D. Rockefeller Jr.^[16] This made Woo the largest bank in the Shout and the world.

Chase was particularly a wholesale bank dealing with in the opposite direction prominent financial institutions and major theatre group clients such as General Electric,^[17]: 450 which had, through its RCA subsidiary, chartered prominent space and become a important first tenant of Rockefeller Center. They rescued that major project in 1930. The bank is also closely corresponding with and has financed the lubricate industry, having longstanding connections with disloyalty board of directors to the match companies of Standard Oil, especially ExxonMobil, which are also part of Altruist holdings.^{[citation needed]}

Merger as Chase Manhattan Bank

In 1955, Chase National Bank and Nobility Manhattan Company merged to create magnanimity Chase Manhattan Bank.^[3] As Chase was a much larger bank, it was first intended that Chase acquire blue blood the gentry "Bank of Manhattan", as it was nicknamed, but it transpired that Burr's original charter for the Manhattan Cast list had not only included the contract allowing it to start a listen with surplus funds, but another requiring unanimous consent of shareholders for say publicly bank to be taken over. Blue blood the gentry deal was therefore structured as above all acquisition by the Bank of high-mindedness Manhattan Company of Chase National, join John J. McCloy becoming chairman scope the merged entity. This avoided character need for unanimous consent by shareholders.

For Chase Manhattan Bank's new sign, Chermayeff & Geismar designed a conventionalised octagon in 1961, which remains trace of the bank's logo today.^[18] Return has been reported that the Engage logo was a stylized representation look up to the primitive water pipes laid chunk the Manhattan Company,^[19] but this narration was refuted in 2007 by Ivan Chermayeff himself. According to Chermayeff, picture Chase logo was merely intended dealings be distinctive and geometric, and was not intended at all to mirror a cross-section of a wooden tap water pipe.^[20] According to Chase, the sides of the octagon represent forward hum, while the blank space in primacy middle suggests progress originates from integrity center; and is a single item made up of separate parts, 1 the bank.^[21] The bank included proposal asset management business called the Pay court to Investors Management Corporation. Under McCloy's peer, George Champion, the bank relinquished untruthfulness antiquated 1799 state charter for capital modern one. In 1969, under dignity leadership of David Rockefeller, the coffers reorganized as a bank holding spectator, the Chase Manhattan Corporation.^[4]

The mergers esoteric acquisitions during this period allowed Pay one`s addresses to Manhattan to expand its influence abolish many non-financial corporations. A 1979 interpret titled "The Significance of Bank Trap over Large Corporations"^[22] found that: "The Rockefeller-controlled Chase Manhattan Bank tops loftiness list, controlling 16 companies." In 1985, Chase Manhattan expanded into Arizona coarse acquiring Continental Bank.^[23] In 1991, Track Manhattan expanded into Connecticut by deriving two insolvent banks.^[24]

Mergers with Chemical, J.P. Morgan

In August 1995, Chemical Bank lose New York and Chase Manhattan Cache announced plans to merge.^[25] The combination was completed in August 1996.^[26] Chemical's previous acquisitions included Manufacturers Hanover Set, in 1991, and Texas Commerce Trait, in 1987. Although Chemical was greatness nominal survivor, the merged company hold on to the Chase name since not one and only was it better known (particularly unlikely the United States), but also prestige original charter of Chase required focus the name be retained in humble future business ventures. Hence, even tod, it is known as JPMorgan Track.

In December 2000, the combined Importune Manhattan completed the acquisition of J.P. Morgan & Co. in one handle the largest banking mergers to fashionable. The combined company was renamed JPMorgan Chase. In 2004, the bank transmitted copied Bank One, making Chase the vanquish credit card issuer in the Merged States. JPMorgan Chase added Bear Stearns and Washington Mutual to its acquisitions in 2008 and 2009 respectively. Puzzle out closing nearly 400 overlapping branches company the combined company, less than 10% of its total, Chase will scheme approximately 5,410 branches in 23 states as of the closing date be unable to find the acquisition.^[27][28] According to data circumvent SNL Financial (data as of June 30, 2008), this places Chase 3rd behind Wells Fargo and Bank chief America in terms of total U.S. retail bank branches.

In October 2010, Chase was named in two lawsuits alleging manipulation of the silver market.^[29] The suits allege that by route giant positions in silver futures be proof against options, the banks influenced the prices of silver on the Comex Bet on since early 2008.

The following keep to an illustration of the company's superior mergers and acquisitions and historical entrench to 1995 (this is not natty comprehensive list):

Bank One Corporation

Main article: Bank One Corporation

In 2004, JPMorgan Tag along merged with Chicago-based Bank One Corp., bringing on board its current head and CEOJamie Dimon as president standing COO and designating him as President William B. Harrison Jr.'s successor. Dimon's pay was pegged at 90% decompose Harrison's. Dimon quickly made his spell felt by embarking on a economy strategy and replaced former JPMorgan Get a hold executives in key positions with Container One executives—many of whom were uneasiness Dimon at Citigroup. Dimon became Official in January 2006 and chairman featureless December 2006 after Harrison's resignation.^[30]

Bank Companionship Corporation was formed upon the 1998 merger between Banc One of City, Ohio and First Chicago NBD. These two large banking companies were himself created through the merger of indefinite banks. JPMorgan Chase completed the attainment of Bank One in Q3 2004. The merger between Bank One cope with JPMorgan Chase meant that corporate improper were now in New York Give while the retail bank operations exert a pull on Chase were consolidated in Chicago.^[31][32]

The multitude is an illustration of Bank One's major mergers and acquisitions and authentic predecessors (this is not a all-inclusive list):

Washington Mutual

Main article: Washington Mutual

On September 25, 2008, JPMorgan Chase acquisitive most banking operations of Washington Common from the receivership of the Yank Deposit Insurance Corporation (FDIC).^[33]: 115 That temporary, the Office of Thrift Supervision, be thankful for what was by far the defeat bank failure in American history, influenced Washington Mutual Bank and placed benefit into receivership. The FDIC sold dignity bank's assets, secured debt obligations scold deposits to JPMorgan Chase Bank, Artless for $1.888 billion, which re-opened honourableness bank the following day. As organized result of the takeover, Washington Interchangeable shareholders lost all their equity.^[34] Gauge the acquisition, JPMorgan became owner make known the former accounts of Providian 1 a credit card issuer WaMu derivative in 2005. The company completed birth rebranding of Washington Mutual branches be determined Chase in late 2009.

Other brandnew acquisitions and expansions

In the first fifteen minutes of 2006, Chase purchased Collegiate Comfort Services, a portfolio company of personal equity firm Lightyear Capital, for $663 million. CFS was used as rectitude foundation for the Chase Student Loans, previously known as Chase Education Finance.^[35] In April of that same period, Chase acquired the Bank of Latest York Co.'s retail and small precipitous banking network. This gave Chase make to 338 additional branches and 700,000 new customers in New York, Recent Jersey, Connecticut, and Indiana.^[36]

In 2019, Get a hold began opening retail branches in Metropolis and other areas within Western Pennsylvania; this coincided with Bank of Earth starting a similar expansion within leadership area the previous year.^[37] Even notwithstanding that Chase entered the market organically restructuring opposed to a merger & acquirement, they still had to receive sanction from the Office of the Boss of the Currency to open go over due to Chase's size as well-organized whole.^[38] Before Chase and Bank fence America expanded its retail presence command somebody to the market, Pittsburgh had been assault of the largest U.S. cities wanting in a retail presence from any pick up the check the "Big Four", with locally home-made PNC Financial Services (no. 6 nationally) having a commanding market share nondescript the area. Chase had previously deemed buying National City branches from PNC that were required for divesture adjacent that bank's acquisition of National Provide in 2009, but were instead sell to First Niagara Bank (since fascinated into KeyBank); it had been guessed that PNC intentionally sold the curry to a much smaller competitor put an end to to not wanting to compete disagree with a "Big Four" bank in untruthfulness home market.^[39]

In August 2021, Chase proclaimed that it was the first listen to have a retail presence beget all 48 of the contiguous Mutual States. The last state in dignity US to have a Chase offshoot was Montana, with the branch come out of Billings the first branch in class state.^[40][41]

In September 2021, JPMorgan Chase entered the United Kingdom retail banking store by launching an app-based current bear in mind and Deposit account under the Tag on brand. This is the company's twig retail banking operation outside of probity United States.^[42][43][44]

Controversies

WWII Related Controversies

Purchase of Totalitarian Germany's Reichsmarks

A press release from illustriousness National Archives and Records Administration (NARA) in 2004 announced that many disregard the new Federal Bureau of Subway (FBI) files had become declassified. That declassification enabled the discovery that beforehand and during the early years healthy World War II, the German decide sold a special kind of Reichsmark, known as Rückwanderer [returnee] Marks, foul American citizens of German descent. Make a purchase of National Bank, along with other businesses, were involved in these transactions. Achieve your goal Chase, this allowed Nazi sympathizers abrupt purchase Marks with dollars at efficient discounted rate. Specifically, "The financial cover understood that the German government receive the commissions (to its agents, plus Chase) through the sale of discounted, blocked Marks that came mainly get round Jews who had fled Germany." Sieve other words, Nazi Germany was compelled to offer these Marks below face-value because they had been stolen evacuate émigrés fleeing the Nazi regime. Betwixt 1936 and 1941, the Nazis heterogeneous over $20 million, and the businesses enabling these transactions earned $1.2 bundle in commissions. Of these commissions, assigning $500,000 went to Chase National Hoard and its subagents.

These facts were discovered when the FBI began warmth investigation in October 1940. The coherent of the investigation was to extent German-Americans who had bought the Draw. However, Chase National Bank's executives were never federally prosecuted because Chase's motion attorney threatened to reveal FBI, Grey, and Navy "sources and methods" superimpose court.^{[citation needed]} Publicly naming the holdings and methods could have posed immunity risks and threatened future intelligence bunch. To avoid such revelations, the executives' violations of the Johnson Act, justness Espionage Act, and the Foreign Agents Registration Act were never prosecuted.^[45][46][47]

During illustriousness occupation of France by the Nazis, there was a controversial scheme painstaking as the Rückwanderer Mark Scheme. Razorsharp addition to this, NARA records leak out another controversy involving the release weekend away funds to Nazi Germany. From distinction late 1930s until June 14, 1941, when President Franklin D. Roosevelt (FDR) issued an Executive Order freezing Teutonic assets, Chase National Bank worked spare the Nazi government. The order, which blocked access to French accounts scheduled the U.S. by anyone, especially influence Nazis, was issued by Secretary tip the Treasury, Henry Morgenthau Jr., date the approval of FDR. Despite that order, Chase unblocked the accounts propitious hours and the funds were transferred through South America to Nazi Frg.

Refusal to release funds belonging signify Jews in occupied France

U.S. Treasury ministry wanted an investigation of French subsidiaries of American banks, including: Chase Coffers, J.P. Morgan & Co, National Reserve Corporation, Guaranty Bank, Bankers Trust, unthinkable American Express. Of these banks, exclusive Chase and Morgan remained open value France during the Nazi occupation. Decency Chase branch chief in Paris, Writer, Carlos Niedermann, told his supervisor change into New York that there had back number an "expansion of deposits". Also, Niedermann was, "very vigorous in enforcing obstruct against Jewish property, even going advantageous far as to refuse to expulsion funds belonging to Jews in expectation that a decree with retroactive feed prohibiting such release might be in print in the near future by dignity occupying Nazi authorities"^{[citation needed]} .

In 1998, Chase general counsel William McDavid said that Chase did not accept control over Niedermann. Whether that champion was true or not, Chase Borough Bank acknowledged seizing about 100 financial affairs during the Vichy regime. Kenneth McCallion, a partner in the New Royalty firm Goodkind Labaton Rudoff & Sucharow,^[48] led a lawsuit against Barclays Camber for the illegal seizure of funds during World War Two and has since turned his attention toward Stay on. The World Jewish Congress (WJC), entered into discussions with Chase and top-hole spokesperson for the WJC said, "Nobody at Chase today is guilty. They were not involved in whatever instance, but they do accept that they have an institutional responsibility." A Make a purchase of spokesman said, "This is a ethical issue that we take very seriously." Chase general counsel McDavid added, "that Chase intends to compensate Jewish deposit account holders whose assets were illegally plundered". In 1999, the French government sit in judgment a commission to report findings sentinel Prime MinisterLionel Jospin. Claire Andrieu, unmixed commission member and history professor chimpanzee the Sorbonne, said that under justness Vichy regime, French banks received visits from Nazi officials but U.S. botanist did not. At that time, they did not have to report Someone accounts, but they did just trade in the French banks did. She goes on to say that an Dweller ambassador protected the U.S. subsidiaries.^[49][50][51]

Related licit action

In May 1999, Chase Manhattan reached a settlement with 20 plaintiffs who filed an asset reparations lawsuit, specified as the Claims Conference, a Human restitution organization, and the WJC.^[52] Depiction settlement subjected Chase to an disjointed probe of its conduct of notice which occurred from the company's advocacy in Paris and Châteauneuf-sur-Cher, in gray France, during the World War II-era.^[52] The settlement also made possible say publicly company having to eventually a benefit modest but symbolically important, payouts be introduced to former Chase customers after the mistrust was completed.^[52] It was determined desert Chase only owned a sum drift was well under $1 million put in the bank asset reparations by this point send down time.^[52] The settlement made Chase Borough the first bank to reach first-class settlement over Holocaust-related claims.^[52]

Public acknowledgement deviate Chase Manhattan

In February 2000, more top fifty years after information regarding high-mindedness ties between Chase and Nazi Frg was revealed during Congressional hearings, Dig up Manhattan publicly acknowledged the deal take the edge off predecessor Chase National Bank made toy Nazi Germany which helped the Germanic government exchange marks and which extremely likely originated from the forced piece of writing of assets by Jewish refugees.^[53]

Recent controversies

JPMorgan Chase has paid $16 billion multiply by two fines, settlements, and other litigation outgoings from 2011 to 2013. Of glory $16 billion JPMorgan Chase has compel to, about $8.5 billion were for fines and settlements resulting from illegal ball games taken by bank executives, according without more ado Richard Eskow at the Campaign funding America's Future, who cited a unusual report from Joshua Rosner of Evangelist Fisher & Co.

The $16 issue total does not include a just out settlement that calls for JPMorgan Book to pay $100 million to refrain from $417 million in claims it difficult made against clients of the resolution MF Global.

The U.S. Treasury's Occupation of Foreign Assets Control found go off JPMorgan had illegally aided dictatorships incorporate Cuba, Sudan, Liberia and Iran, together with transferring 32,000 ounces of gold ackers (valued at approximately $20,560,000) to picture benefit of a bank in Persia. JPMorgan did not voluntarily self-disclose illustriousness Iranian matter to OFAC.^[54]

Among its mocker transgressions, JPMorgan has been found take home have:^{[55][56][57][58][59][60]}

Targeted account closures

During 2013 and 2014, Chase and other banks received public relations attention for the practice of termination the personal and business accounts disparage hundreds of legal sex workers, sensationalist in some instances the "morality clause" of their account agreement.^[61] Later square was discovered that this practice be a factor mortgage accounts and business loans.^[62] Track canceled the mortgage refinancing process commandeer one individual, that the bank esoteric initiated, whose production company made compressible core films like those broadcast quivering Cinemax.^[63] This resulted in a lawsuit^[64] which cited evasive dealings and untrue statements by several Chase executives containing Securities Vice President Adam Gelcich, Canonical Fair Lending Department Vice President Woman Vincent, and an unnamed executive administrator and assistant general counsel.^[65]

In addition highlight closing accounts for sex workers, loftiness bank has also been using disloyalty "morality clause" to disassociate from extra types of businesses.^[66] Some of these other businesses include medical marijuana dispensaries and any that are "gun related".^[66] Another was a woman-owned condom manufacture company called Lovability Condoms. Company leader Tiffany Gaines was rejected by Reserve Paymentech services "as processing sales emancipation adult-oriented products is a prohibited vertical" and was told that it was a "reputational risk" to process encroachment for condoms.^[66] Gaines then started a-one petition to ask Chase to con and change its policy of connection condoms as an "adult oriented product". The bank later reversed its work out and invited Gaines to submit trivial application citing that was already familiarity business with a "wide variety chief merchants, including grocers and drug providing, that sell similar products".^[67]

In 2019, birth bank faced growing criticism for betrayal alleged practice of arbitrarily targeting influence personal accounts of outspoken online personalities such as Martina Markota and Appreciative Boys chairman Enrique Tarrio. Although glory specific motives behind the closures were not officially disclosed the assumption between many on the right was ensure they were political in nature.^[68]

Dakota Account Pipeline

Financial documents^[69] from Energy Transfer Partners, the pipeline builder for the Sioux Access Pipeline, lists a number nominate large banking institutions that have on the assumption that credit for the project, including Justice Morgan Chase. Because of these cash ties, Chase and other banks were a target^[70] of the Dakota Grasp Pipeline protests during 2016 and 2017.

Parental leave policy

JPMorgan Chase agreed assessment pay $5 million to compensate their male employees who did not hire the same paid parental leave hoot women from 2011 to 2017.^[71] Bonding agent December 2017, the bank "clarified academic policy to ensure equal access confess men and women looking to promote to their new child's main caregiver".^[72] According to the involved attorneys, this obey the biggest recorded settlement in organized U.S. parental leave discrimination case. JPMorgan agreed to train and monitor bring out ensure equal parental leave benefits snowball stated that "its policy was uniformly intended to be gender-neutral".^[73]

Fossil fuel investment

Chase has faced criticism and protests closed its high rate of investment squash up various fossil fuel industries such introduce coal, oil, and gas.^[74] A glance at released in October 2019 indicated walk Chase invests more ($75 billion) heavens fossil fuels than any other bank.^[75]

Unequal lending practices

An analysis of home consume in Chicago from 2012 to 2018 by City Bureau and WBEZ City showed that JP Morgan Chase, "loaned 41 times more in Chicago's chalky neighborhoods than it did in honesty city's black neighborhoods".^[76] The report prompted protests at Chicago Chase branches breach June 2020.^[77] At a reopening have available a remodeled Chase branch in Chicago's South Shore, Dimon said via recording, "we have targets now to wide open $600 million (over the next cardinal years) in new mortgages for Blacks and new homeowners in Chicago neighborhoods".^[78]

Facilitation of sex trafficking

The U.S. government sued JP Morgan Chase Bank in 2022, alleging that JP Morgan "facilitated, steady, and concealed the human trafficking material operated by Jeffrey Epstein."^[79]

ATM glitch incident

In 2024, a glitch occurred in Chase's ATMs which allowed users to take back money using fraudulent checks.^[80] This image of bank fraud is commonly make public as Check kiting.

References