A Closer Look at Chase and J. P. Morgan

N E W  Y O R K, Sept. 13, 2000 -- Key events in the history of bankingpowerhouses Chase Manhattan and J. P. Morgan, which announced they will merge to create a new entity tobe called J.P. Morgan Chase & Co.

1799: The Manhattan Co. is formed to help improve New York’swater supply and fight a yellow fever epidemic. It is organized byAaron Burr and Alexander Hamilton.

1808: Manhattan Co. sells water operations and begins to focussolely on banking, helping finance economic development in New York.

1823: New York Chemical Manufacturing Co. is founded.

1824: Chemical Bank is formed as a division of New YorkChemical.

1838: American businessman George Peabody opens a Londonmerchant banking firm, establishing the roots of the House ofMorgan.

1854: Junius S. Morgan, descendant of a New England family ofmerchants, becomes Peabody’s partner, eventually taking over thefirm in 1864 and naming it J.S. Morgan & Co.

1861: Junius’ 24-year-old son, J. Pierpont Morgan, establishesJ.P. Morgan, which initially serves as a New York sales anddistribution office for the European securities underwritten by hisfather’s firm.

1865: Chemical acquires a national charter under the NationalBank Act and starts issuing government-backed bank notes.

1868 : The Paris banking firm Drexel, Harjes & Co. is formed.Pierpont becomes a partner in 1871, and the firm is later renamedMorgan, Harjes & Co.

1877: Chase National Bank is founded in honor of Samuel Chase,the Secretary of the Treasury under Abraham Lincoln.

1895: Five years after his father’s death, Pierpont consolidatesthe family’s banking interests, assuming the role of senior partnerin each of four related firms in New York, Philadelphia, London,and Paris.

1907: Panic on Wall Street prompts a run on the banks; the Houseof Morgan leads a rescue of the financial system. The incidentprompts the creation of the Federal Reserve in 1913.

1910: The London investment banking firm Morgan, Grenfellis formed, replacing J.S. Morgan as the British arm of theMorgan network.

1913: Pierpont dies; his son, J.P. (Jack) Morgan Jr., becomesthe firm’s senior partner. Construction begins on Morgan’s newheadquarters building at 23 Wall St. in New York City’sfinancial district.

1930: Chase National Bank becomes the then-largest bank in theworld with deposits of almost $2 billion.

1935: In response to the Banking Act of 1933, mandating theseparation of banking and securities activities in the UnitedStates, J.P. Morgan chooses to continue its commercialbanking business while several senior partners and staff membersleave to form the securities firm of Morgan Stanley.

1955: Chase and Bank of Manhattan merge to form Chase ManhattanBank. David Rockefeller, the youngest son of John D. Rockefeller,is given responsibility to develop the new entity.

1965: Chase obtains a federal charter.

1969: David Rockefeller becomes chairman of the board ofdirectors of Chase Manhattan.

1991: Chemical Bank merges with Manufacturers Hanover.

1996: Chemical merges with Chase in a $10 billion deal to formwhat is the then-largest bank holding company in the united States.

1999: Chase acquires boutique investment firm Hambrecht & Quist.

2000: Chase announces plans to acquire J.P. Morgan & Co. for $36billion. The new company will be named J.P. Morgan Chase & Co.