Chase Bank
Parent JPMorgan Chase | | |
Website | www | |
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Footnotes / references [1] |
JPMorgan Chase Bank, N.A., doing business as Chase, is an American national bank headquartered in New York City that constitutes the consumer and commercial banking subsidiary of the U.S. multinational banking and financial services holding company, JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000.[2] Chase Manhattan Bank was formed by the merger of the Chase National Bank and the Manhattan Company in 1955.[3] The bank merged with Chemical Bank New York in 1996 and later merged with Bank One Corporation in 2004[4] and in 2008 acquired the deposits and most assets of Washington Mutual.
Chase offers more than 5,100 branches and 17,000 ATMs nationwide and has 18.5 million checking accounts and 25 million debit card users as of 2023.[5] JPMorgan Chase & Co. has 250,355 employees (as of 2016) and operates in more than 100 countries. JPMorgan Chase & Co. had assets of $3.31 trillion in 2022 which makes it the largest bank in the United States[6] as well as the bank with the most branches in the United States[7] and the only bank with a presence in all of the contiguous United States.[8] JPMorgan Chase, through its Chase subsidiary, is one of the Big Four banks of the United States.[9][10]
History
The Manhattan Company
Chase traces its history back to the founding of The Manhattan Company by Aaron Burr on September 1, 1799, in a house at 40 Wall Street:[2]
After an epidemic of yellow fever in 1798, during which coffins had been sold by itinerant vendors on street corners,
Bank of New York.
In 2006, the modern-day Chase bought the
: 23–26Chase National Bank
Chase National Bank was formed in 1877 by
The Chase National Bank acquired a number of smaller banks in the 1920s through its Chase Securities Corporation. In 1926, for instance, it acquired Mechanics and Metals National Bank.
However, its most significant acquisition was that of the Equitable Trust Company of New York in 1930, the largest stockholder of which was John D. Rockefeller Jr.[16] This made Chase the largest bank in the US and the world.
Chase was primarily a
Merger as Chase Manhattan Bank
In 1955, Chase National Bank and The Manhattan Company merged to create the Chase Manhattan Bank.[2] As Chase was a much larger bank, it was first intended that Chase acquire the "Bank of Manhattan", as it was nicknamed, but it transpired that Burr's original charter for the Manhattan Company had not only included the clause allowing it to start a bank with surplus funds, but another requiring unanimous consent of shareholders for the bank to be taken over. The deal was therefore structured as an acquisition by the Bank of the Manhattan Company of Chase National, with John J. McCloy becoming chairman of the merged entity. This avoided the need for unanimous consent by shareholders.
For Chase Manhattan Bank's new logo,
The mergers and acquisitions during this period allowed Chase Manhattan to expand its influence over many non-financial corporations. A 1979 study titled "The Significance of Bank Control over Large Corporations"[22] found that: "The Rockefeller-controlled Chase Manhattan Bank tops the list, controlling 16 companies." In 1985, Chase Manhattan expanded into Arizona by acquiring Continental Bank.[23] In 1991, Chase Manhattan expanded into Connecticut by acquiring two insolvent banks.[24]
Mergers with Chemical, J.P. Morgan
In August 1995, Chemical Bank of New York and Chase Manhattan Bank announced plans to merge.[25] The merger was completed in August 1996.[26] Chemical's previous acquisitions included Manufacturers Hanover Corporation, in 1991, and Texas Commerce Bank, in 1987. Although Chemical was the nominal survivor, the merged company retained the Chase name since not only was it better known (particularly outside the United States), but also the original charter of Chase required that the name be retained in any future business ventures. Hence, even today, it is known as JPMorgan Chase.
In December 2000, the combined Chase Manhattan completed the acquisition of
In October 2010, Chase was named in two lawsuits alleging manipulation of the silver market.[29] The suits allege that by managing giant positions in silver futures and options, the banks influenced the prices of silver on the New York Stock Exchange's Comex Exchange since early 2008.
The following is an illustration of the company's major mergers and acquisitions and historical predecessors to 1995 (this is not a comprehensive list):
Chase Manhattan Bank (merged 1995) |
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Bank One Corporation
In 2004, JPMorgan Chase merged with Chicago-based Bank One Corp., bringing on board its current chairman and CEO Jamie Dimon as president and COO and designating him as CEO William B. Harrison Jr.'s successor. Dimon's pay was pegged at 90% of Harrison's. Dimon quickly made his influence felt by embarking on a cost-cutting strategy and replaced former JPMorgan Chase executives in key positions with Bank One executives—many of whom were with Dimon at Citigroup. Dimon became CEO in January 2006 and chairman in December 2006 after Harrison's resignation.[30]
The following is an illustration of Bank One's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):
Bank One (merged 1998) |
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Washington Mutual
On September 25, 2008, JPMorgan Chase bought most banking operations of Washington Mutual from the
Other recent acquisitions and expansions
In the first quarter of 2006, Chase purchased
In 2019, Chase began opening retail branches in
In August 2021, Chase announced that it was the first bank to have a retail presence in all 48 of the contiguous United States. The last state in the US to have a Chase branch was Montana, with the branch in Billings the first branch in the state.[40][41]
Expansion outside the US
In September 2021, JPMorgan Chase entered the
Controversies
WWII Related Controversies
Purchase of Nazi Germany's Reichsmarks
A press release from the
These facts were discovered when the FBI began its investigation in October 1940. The purpose of the investigation was to follow German-Americans who had bought the Marks. However, Chase National Bank's executives were never federally prosecuted because Chase's lead attorney threatened to reveal
Release of funds for Nazi Germany
Besides the controversial Rückwanderer Mark Scheme, NARA records also revealed another controversy during the
Refusal to release funds belonging to Jews in occupied France
In 1998, Chase general counsel William McDavid said that Chase did not have control over Niedermann. Whether that claim was true or not, Chase Manhattan Bank acknowledged seizing about 100 accounts during the
Related legal action
In May 1999, Chase Manhattan reached a settlement with 20 plaintiffs who filed an asset reparations lawsuit, such as the
Public acknowledgement from Chase Manhattan
In February 2000, more than fifty years after information regarding the ties between Chase and Nazi Germany was revealed during Congressional hearings, Chase Manhattan publicly acknowledged the deal its predecessor Chase National Bank made with Nazi Germany which helped the German government exchange marks and which also likely originated from the forced sale of assets by Jewish refugees.[53]
Recent controversies
JPMorgan Chase has paid $16 billion in fines, settlements, and other litigation expenses from 2011 to 2013. Of the $16 billion JPMorgan Chase has paid, about $8.5 billion were for fines and settlements resulting from illegal actions taken by bank executives, according to Richard Eskow at the Campaign for America's Future, who cited a new report from Joshua Rosner of Graham Fisher & Co.
The $16 billion total does not include a recent settlement that calls for JPMorgan Chase to pay $100 million to waive $417 million in claims it had made against clients of the firm MF Global.
The
Among its other transgressions, JPMorgan has been found to have:[55][56][57][58][59][60]
- Misled investors
- Engaged in fictitious trades
- Collected illegal flood insurance commissions
- Wrongfully foreclosed on soldiers; charged veterans hidden fees for refinancing
- Violated the Federal Trade Commission Act by making false statementsto people seeking automobile loans
- Illegally increased their collection of overdraft feesby processing large transactions before smaller ones
- Helped drive Jefferson County, Alabama, into bankruptcy by switching its fixed-rate debt to variable
- Violated Sherman Act relating to bid rigging
- Stole and auctioned items from deposit boxes of private individuals
Targeted account closures
During 2013 and 2014, Chase and other banks received media attention for the practice of cancelling the personal and business accounts of hundreds of legal
In addition to closing accounts for sex workers, the bank has also been using its "morality clause" to disassociate from other types of businesses.
In 2019, the bank faced growing criticism for its alleged practice of arbitrarily targeting the personal accounts of outspoken online personalities such as Martina Markota and Proud Boys chairman Enrique Tarrio. Although the specific motives behind the closures were not officially disclosed the assumption among many on the right was that they were political in nature.[68]
Dakota Access Pipeline
Financial documents[69] from Energy Transfer Partners, the pipeline builder for the Dakota Access Pipeline, lists a number of large banking institutions that have provided credit for the project, including JP Morgan Chase. Because of these financial ties, Chase and other banks were a target[70] of the Dakota Access Pipeline protests during 2016 and 2017.
Parental leave policy
JPMorgan Chase agreed to pay $5 million to compensate their male employees who did not receive the same paid parental leave as women from 2011 to 2017.[71] In December 2017, the bank "clarified its policy to ensure equal access to men and women looking to be their new child's main caregiver".[72] According to the involved attorneys, this is the biggest recorded settlement in a U.S. parental leave discrimination case. JPMorgan agreed to train and monitor to ensure equal parental leave benefits and stated that "its policy was always intended to be gender-neutral".[73]
Fossil fuel investment
Chase has faced criticism and protests over its high rate of investment in various fossil fuel industries such as coal, oil, and gas.[74] A study released in October 2019 indicated that Chase invests more ($75 billion) in fossil fuels than any other bank.[75]
Unequal lending practices
An analysis of home purchases in Chicago from 2012 to 2018 by City Bureau and WBEZ Chicago showed that JP Morgan Chase, "loaned 41 times more in Chicago’s white neighborhoods than it did in the city’s black neighborhoods."[76] The report prompted protests at Chicago Chase branches in June 2020.[77] At a reopening of a remodeled Chase branch in Chicago's South Shore, Dimon said via video, "we have targets now to do $600 million (over the next five 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, sustained, and concealed the human trafficking network operated by Jeffrey Epstein."[79]
References
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Further reading
- OCLC 25026508.
- OCLC 247735191.
- OCLC 231967677.
- Wilson, John Donald (1986). The Chase: The Chase Manhattan Bank, N.A., 1945–1985. Boston, Mass: OCLC 13581810.