JPMorgan Chase
From SourceWatch
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JPMorgan Chase is the third largest financial services company in the US. It was formed in 2001 by the merger of retail banking giant Chase Manhattan and investment bank J.P. Morgan. Then in 2004 JPMorgan Chase and Bank One merged. The company now has operations in more than 50 countries.[1] Brand names currently used are JPMorgan Chase, JPMorgan, and Chase.[2] Legacy names are J.P. Morgan, Chase Manhattan, Chemical, Manufacturers Hanover, Bank One, First Chicago, and National Bank of Detroit.[3]
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Financial crisis and the bailout
On September 25, 2008 the FDIC closed Washington Mutual, and the bank was purchased by JPMorgan Chase for $1.9 billion[4]. Washington Mutual shareholders lost all of their equity.
Contribution to the crisis
JPMorgan's strategy of growth helped lead them to become a "too big to fail" bank, requiring government support during the financial crisis. In 2004, JPMorgan Chase agreed to buy Bank One, creating a $1.1 trillion bank holding company.[5]Sold Out - How Wall Street and Washington Betrayed America , Consumer Education Foundation, March, 2009, accessed October 11, 2009.</ref>
JPMorgan Chase acquired Bear Stearns March 18, 2008, for $2 per share[6]. Six days later the deal was revised upward to $10 a share after Bear Sterns shareholders objected to the initial pricing[7].
Bailout amounts
On October 28, 2008 the Treasury Department started the Capital Purchase Program. JPMorgan Chase was among the eight large U.S. banks to receive the Treasury Department's initial round of capital investments and received $25 billion of TARP funds.[1]
Bernie Madoff
Chase has been accused of abetting Bernard Madoff's by maintaining his checking accounts and trading with his brokerage firm after the bank realized that he was engaged in fraud, and of removing their own money from Madoff-associated accounts before news of the fraud reached the public[8].
Coal investments
JPMorgan Chase is a major financier of new coal plant construction. New coal-fired power plants in the U.S. being funded by the company include:
- Hempstead (AL)
- Plum Point Energy Station (AR)
- Springerville Generating Station Unit 3 (AZ)
- Springerville Generating Station Unit 3 (AZ)
- Glades (FL)
- Longleaf (GA)
- Sutherland Generating Station Unit 4 (IA)
- LS Power Elk Run Energy Station (IA)
- Prairie State Energy Campus (IL)
- Smith Station (KY)
- Spurlock Power Station Unit 4 (KY)
- Thoroughbred Generating Station (KY)
- Little Gypsy Repowering (LA)
- Midland Power Plant (MI)
- Spiritwood Industrial Park (ND)
- Mustang Energy Project (NM)
- White Pine Energy Station (NV)
- American Municipal Power Generating Station (OH)
- Great Bend IGCC (OH)
- Red Rock Generating Facility (OK)
- Sallisaw Project (OK)
- Marion City Project (SC)
- Big Brown 3 (TX)
- Lake Creek 3 (TX)
- Martin Lake 4 (TX)
- Monticello 4 (TX)
- Morgan Creek 3 & 4 (TX)
- Morgan Creek 7 (TX)
- Oak Grove Plant (TX)
- Sandy Creek Plant (TX)
- Tradinghouse 3 & 4 (TX)
- Valley 4 (TX)
- Wise County Plant (VA)
- Nelson Dewey Generating Facility (WI)
- Mountaineer (WV)
Pharmaceutical Interests
The Rockefeller empire, in tandem with Chase Manhattan Bank (now JPMorgan Chase) owns over half of the pharmaceutical interests in the United States. It is the largest drug manufacturing combine in the world. Since WWII, the pharmaceutical industry has steadily netted increasing profits to become the world's second largest manufacturing industry; [9], [10] after the arms industry. See also Rockefeller Foundation.
Principal Subsidiaries
- The Chase Manhattan Bank
- Chase Manhattan Bank USA, National Association
- Chase Securities, Inc.
- J.P. Morgan Securities, Inc.
- Morgan Guaranty Trust Company of New York
Top Shareholders
Accessed September 2008: [11]
Transfer Agent
Mellon Investor Services LLC
Overpeck Center
85 Challenger Road
Ridgefield Park, New Jersey 07660-2108
1-800-758-4651
Web: http://vault.mellon-investor.com/isd
Political contributions
Decade-long campaign contribution total (1998-2008): $15,714,953[5]
2008 Campaign contribution (Top 20) Total: $4,247,991[5]
2008 Top Recipients:[5]
1. Barack Obama (D) $559,210
2. Hillary Clinton (D) $272,694
3. John McCain (R) $205,657
4. Rudy Giuliani (R) $94,300
5. Mitt Romney (R) $78,250
Geoffrey T. Boisi, Ex-Vice Chair of JPMorgan, was a Bush Ranger having raised at least $200,000 for Bush in the 2004 presidential election. [12]
JPMorgan Chase gave $139,555 to federal candidates in the 05/06 election period through its political action committee - 37% to Democrats, 63% to Republicans. [13]
Lobbying
Decade-long lobbying expenditure total (1998-2008): $49,372,915[5]
2008 Lobbying Expenditure (Top 11) Total: $6,336,000 [5]
2008 Top Lobbying Expenditure Recipients:[5]
1.JP Morgan Chase & Co $5,390,000
2.OB-C Group $240,000
3.Equale & Assoc $147,500
4.BKSH & Assoc $120,000
5.Richard F Hohlt $130,000
The company spent $6,210,000 for lobbying in 2006. $1,084,040 went to 14 outside lobbying firms with the remainder being spent using in-house lobbyists. Two of the lobbying firms used were Mayer, Brown et al and Richard F Hohlt. [14]
Personnel and political appointees
Key executives and 2008 pay
- James Dimon, Chairman and Chief Executive Officer, $1,000,000
- Michael J. Cavanagh, Chief Financial Officer, $2,500,000 (Exercised $1,840,000 in options)
- Mr. Charles W. Scharf, Chief Exec. Officer of Retail Financial Services, $2,500,000 (Exercised $21,230,000 in options)
- Mr. Gordon A. Smith, Chief Exec. Officer of Card Services, $2,500,000
- Mr. Frank Bisignano, Chief Admin. Officer , $2,500,000 [15]
Board members
- Crandall C. Bowles, Chairman Springs Industries, Inc.
- Stephen B. Burke, President, Comcast Cable Communications, Inc.
- David M. Cote, Chairman and Chief Executive Officer, Honeywell International Inc.
- James S. Crown, President, Henry Crown and Company
- James Dimon, Chairman of the Board and Chief Executive Officer
- Ellen V. Futter, President and Trustee, American Museum of Natural History
- William H. Gray, III, Chairman, Amani Group
- Laban P. Jackson, Jr., Chairman and Chief Executive Officer, Clear Creek Properties, Inc.
- David C. Novak, Chairman and Chief Executive Officer, YUM! Brands, Inc.
- Lee R. Raymond, Retired Chairman and Chief Executive Officer, Exxon Mobil Corporation
- William C. Weldon, Chairman and Chief Executive Officer, Johnson & Johnson [16]
Earnings and bonuses
According to a report by the Attorney General of New York State JPMorgan Chase paid $8.693 billion in bonuses to executives and employees[17] while earning only $5.6 billion after being a recipient of TARP bailout funds of $25 billion.
Breakdown of JPMorgan Chase 2008 bonuses from the Attorney General's report
- Top four recipients received a combined $74.80 million.
- The next four received: $49.18 million.
- The next six received: $60.96 million.
- Number of individuals that received more than $10 million: 10
- Number that received more than $8 million: 29
- Number that received more than $5 million: 84
- Number that received more than $4 million: 130
- Number that received more than $3 million: More than 200
- Number that received at least $1 million: 1,626 [18]
Contact
270 Park Avenue
New York, NY 10017
Phone: 212-270-6000
Fax: 212-270-1648
Web: http://www.jpmorganchase.com
Articles & sources
Sourcewatch Articles
References
- ↑ Profile, Hoovers, accessed July 2007.
- ↑ About page, JPMorgan Chase, accessed August 2007.
- ↑ History, JPMorgan Chase, accessed August 2007.
- ↑ JPMorgan Buys Failed WaMu Assets for $1.9 Billion, CNBC, September 25, 2008
- ↑ 5.0 5.1 5.2 5.3 5.4 5.5 5.6
- ↑ Robin Sidel, Dennis K. Berman, and Kate Kelley, J.P. Morgan Buys Bear in Fire Sale, As Fed Widens Credit to Avert Crisis, Wall Street Journal, March 17, 2008
- ↑ David Cho and Neil Irwin, J.P. Morgan Raises Its Offer for Bear Stearns, Washington Post, March 24, 2008
- ↑ Claudio Gatti and Diana B. Henriques, JPMorgan Exited Madoff-Linked Funds Last Fall, NY Times, January 28, 2009
- ↑ The Pharmaceutical Racket, Part 9, Campaign Against Fraudulent Medical Research , 1995
- ↑ Hans Reusch The Truth About the Rockefeller Drug Empire: The Drug Story, CIVIS Foundation Report number 15, Fall-Winter 1993
- ↑ JPMorgan Chase & Co (JPM), UK finance, accessed September 25, 2008.
- ↑ Pioneers and Rangers, Texans for Public Justice, accessed August 2007.
- ↑ 2006 PAC Summary Data, Open Secrets, accessed July 2007.
- ↑ JPMorgan Chase lobbying expenses, Open Secrets, accessed October 2007.
- ↑ JPMorgan Chase Key Executives, Yahoo Finance, accessed October 2009.
- ↑ Members of the Board, accessed October 2009.
- ↑ Andrew M. Cuomo, No Rhyme or Reason, report by the Attorney General of New York, retreived Oct 4, 2009.
- ↑ Michael Corkery, J.P. Morgan Chase: The Cuomo Report’s Bonus Breakdown, Deal Journal, Wall Street Journal, July 30, 2009. Retrieved Oct 6, 2009.
External resources
- Sold Out - How Wall Street and Washington Betrayed America , Consumer Education Foundation, March, 2009.
- Big Bank Profile: JPMorgan Chase, Service Employees International Union, accessed October 2009.
External articles
- Maud Beelman, "U.S. Contractors Reap the Windfalls of Post-War Reconstruction", CorpWatch, October 30, 2003.
- Julie Creswell, "J. P. Morgan Chase to Pay Investors $2.2 Billion", CorpWatch/ New York Times, June 15, 2005.
