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'''JPMorgan Chase & Co.''' is  a multinational banking corporation that offers stock brokerage, investment banking and conventional retail banking. It is the largest bank in the United States by assets and market capitalization.<ref>{{Cite news|title=BofA Swings to Profit in Muddled Quarter|url=http://online.wsj.com/article/SB10001424052970204479504576638653920110530.html?mod=WSJ_hp_MIDDLETopStories | work=The Wall Street Journal | first1=Liz|last1=Rappaport|first2=Dan|last2=Fitzpatrick|date=October 19, 2011}}</ref>

'''JPMorgan Chase & Co.''' is  a multinational banking corporation that offers stock brokerage, investment banking and conventional retail banking. It is the largest bank in the United States by assets and market capitalization.<ref>{{Cite news|title=BofA Swings to Profit in Muddled Quarter|url=http://online.wsj.com/article/SB10001424052970204479504576638653920110530.html?mod=WSJ_hp_MIDDLETopStories | work=The Wall Street Journal | first1=Liz|last1=Rappaport|first2=Dan|last2=Fitzpatrick|date=October 19, 2011}}</ref>

The bank is the result of a series of mergers of various banks with long histories.  One of these, the Bank of Manhattan Company dates back to 1799.

The bank is the result of a series of mergers of various banks with long histories.  One of these, the Bank of Manhattan Company dates back to 1799. In the late 1800s and early 1900s, [[J. P. Morgan]] with financing from the [[Rothschild family]] built an investment bank to finance other companies.  In the 1970s and 1980s, [[David Rockefeller]] built the Chase Manhattan Bank into one of the most successful commercial banks in the world.  All of these became a part of the current JPMorgan Chase.

In recent years, JPMorgan has grown during the difficulties experienced by the financial sector.  At the end of 2007, [[Bear Stearns & Co. Inc.]] was the fifth largest investment bank in the United States but the value of its stock had declined through the second half of 2007. On Friday, March 14, 2008 Bear Stearns lost 47% of its stock price to close at $30.00 per share under rumors that clients were withdrawing capital from the bank. On March 16, 2008, after a weekend of intense negotiations between JPMorgan, Bear, and the federal government, JPMorgan Chase announced that it had plans to acquire Bear Stearns in a [[stock swap]] worth $2.00 per share or $240&nbsp;million pending shareholder approval scheduled within 90 days. In the interim, JPMorgan Chase agreed to guarantee all Bear Stearns trades and business process flows.<ref>{{cite web|first=Francesco|last=Guerrera|title=Bear races to forge deal with JPMorgan|url=http://www.ft.com/cms/s/e2206ed2-f380-11dc-b6bc-0000779fd2ac.html|work=Financial Times|date=March 16, 2008|accessdate=June 17, 2012}}</ref>  Two days later, on March 18, 2008, JPMorgan Chase formally announced the acquisition of Bear Stearns for $236&nbsp;million. The stock swap agreement was signed in the late-night hours of March 18, 2008, with JPMorgan agreeing to exchange 0.05473 of each of its shares upon closure of the merger for one Bear share, valuing the Bear shares at $2 each.

In recent years, JPMorgan has grown during the difficulties experienced by the financial sector.  At the end of 2007, [[Bear Stearns & Co. Inc.]] was the fifth largest investment bank in the United States but the value of its stock had declined through the second half of 2007. On Friday, March 14, 2008 Bear Stearns lost 47% of its stock price to close at $30.00 per share under rumors that clients were withdrawing capital from the bank. On March 16, 2008, after a weekend of intense negotiations between JPMorgan, Bear, and the federal government, JPMorgan Chase announced that it had plans to acquire Bear Stearns in a [[stock swap]] worth $2.00 per share or $240&nbsp;million pending shareholder approval scheduled within 90 days. In the interim, JPMorgan Chase agreed to guarantee all Bear Stearns trades and business process flows.<ref>{{cite web|first=Francesco|last=Guerrera|title=Bear races to forge deal with JPMorgan|url=http://www.ft.com/cms/s/e2206ed2-f380-11dc-b6bc-0000779fd2ac.html|work=Financial Times|date=March 16, 2008|accessdate=June 17, 2012}}</ref>  Two days later, on March 18, 2008, JPMorgan Chase formally announced the acquisition of Bear Stearns for $236&nbsp;million. The stock swap agreement was signed in the late-night hours of March 18, 2008, with JPMorgan agreeing to exchange 0.05473 of each of its shares upon closure of the merger for one Bear share, valuing the Bear shares at $2 each.

In January 2011, JPMorgan Chase admitted that it wrongly overcharged several thousand military families for their mortgages. JPMorgan also admitted to improperly foreclosing on more than a dozen military families. These actions violated the [[Servicemembers Civil Relief Act]] which automatically lowers mortgage rates to 6 percent, and bars foreclosure proceedings of active duty personnel.  An official stated that the situation was "grim", and Chase initially stated it would be refunding up to $2,000,000 to those who were overcharged, and that families improperly foreclosed on have gotten or will get their homes back.<ref>[http://www.msnbc.msn.com/id/41043127/ "No. 2 bank overcharged troops on mortgages"], [[msnbc.com]], January 17, 2011</ref>

In January 2011, JPMorgan Chase admitted that it wrongly overcharged several thousand military families for their mortgages. JPMorgan also admitted to improperly foreclosing on more than a dozen military families. These actions violated the [[Servicemembers Civil Relief Act]] which automatically lowers mortgage rates to 6 percent, and bars foreclosure proceedings of active duty personnel.  An official stated that the situation was "grim", and Chase initially stated it would be refunding up to $2,000,000 to those who were overcharged, and that families improperly foreclosed on have gotten or will get their homes back.<ref>[http://www.msnbc.msn.com/id/41043127/ "No. 2 bank overcharged troops on mortgages"], [[msnbc.com]], January 17, 2011</ref>

In April and May 2012 very large trading losses occurred at JPMorgan's Chief Investment Office, based on transactions booked through its London branch. The unit was run by Ina Drew who has since stepped down. A series of derivative transactions involving credit default swaps (CDS) were entered into, reportedly as part of the bank's "hedging" strategy. Trader Bruno Iksil, nicknamed the "London Whale" accumulated very large CDS positions in the market. JPMorgan announced that it estimated the trading loss as exceeding $2 billion, but the final actual loss is expected to be substantially larger. Many investigations were launched to investigate the risk management system and controls in place and operating at the firm. When CEO Jamie Dimon testified before Congress, he refused to explain what went wrong with the the derivatives, but claimed they were designed to hedge JPMorgan's risks in financial markets. [[Ina Drew]], the Chief Investment Officer of JPMorgan, resigned when the loss was announced.

In April and May 2012 very large trading losses occurred at JPMorgan's Chief Investment Office, based on transactions booked through its London branch. A series of derivative transactions involving credit default swaps (CDS) were entered into, reportedly as part of the bank's "hedging" strategy. Trader Bruno Iksil, nicknamed the "London Whale" accumulated very large CDS positions in the market. JPMorgan announced that it estimated the trading loss as exceeding $2 billion, but the final actual loss is expected to be substantially larger. Many investigations were launched to investigate the risk management system and controls in place and operating at the firm. When CEO [[Jamie Dimon]] testified before Congress on June 19, he refused to explain what went wrong with the the derivatives, but claimed they were designed to hedge JPMorgan's risks in financial markets. [[Ina Drew]], the Chief Investment Officer of JPMorgan, resigned when the loss was announced.

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[[Category:Business]]

[[Category:Business]]