Chase Manhattan Bank has forked out nearly $60 billion to acquire JP Morgan in a stock swap valued.
Chase Manhattan Bank has forked out nearly $60 billion to acquire JP Morgan in a stock swap valued.
The merged firm, to be named J.P. Morgan Chase Co, will have funds under management of $US660 billion ($A1.2 trillion).
The merged group will rank behind only Citigroup, with $US791 billion ($A1.43 trillion) in as-sets, and Bank of America, with 680 billion, according to The Wall Street Journal.
The deal is the latest in a series of consolidation moves in the US financial services industry, the most recent of which was the Credit Suisse Group’s acquisition of Donaldson, Lufkin and Jen-rette for $US13.4 billion ($A24.17 billion).
JP Morgan, one of Wall Street’s most prestigious firms, traces its history back to 1854 when Junius Morgan took over the London-based merchant banking firm he had set up with partner US businessman George Peabody.
Chase Manhattan, the third-largest US bank in terms of assets, meanwhile, traces its roots as far back as 1799 when it established a bank along with a water company for New York city.
The wholesale business will be known globally as JP Morgan and will encompass investment banking, operating services, wealth management, institutional asset management and private eq-uity.
The retail business will be known as Chase, consisting of credit cards, regional consumer bank-ing in the New York area and Texas, mortgage banking, diversified consumer lending, insurance and middle-market banking.
The deal is expected to close in the first quarter of 2001 and is subject to approval by sharehold-ers of both companies, as well as by US Federal and state and foreign regulatory authorities.
