Chase Bank

JPMorgan Chase Bank, N.A.

File:Chase logo 2023.svg Chase logo
Company type	National bank
Industry	Banking, Financial services
Predecessor	Chase National Bank, The Manhattan Company
Founded	1955 (1955)
Headquarters	New York City , United States
Area served	United States (all contiguous states)
Key people	Jamie Dimon (Chairman and CEO)
Products	Consumer banking, Commercial banking, Credit cards, Retail banking
Number of employees	250,355 (2023)
Parent	JPMorgan Chase & Co.

JPMorgan Chase Bank, N.A., commonly known as Chase, ranks among the foremost national banks in the United States and is headquartered in New York City. It functions as the consumer and commercial banking division of the global financial services conglomerate, JPMorgan Chase. The institution was originally called Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000. Its foundation traces back to the 1955 union of Chase National Bank and the Manhattan Company. Important subsequent consolidations include the 1996 merger with Chemical Bank, the 2004 integration of Bank One Corporation, and the 2008 acquisition of Washington Mutual’s deposits and assets. In May 2023, Chase further expanded by acquiring assets from First Republic Bank.

With a network exceeding 4,700 branches and 15,000 ATMs across the country, Chase serves approximately 18.5 million checking account holders and 25 million debit card users as of 2023. Globally, JPMorgan Chase & Co. employs around 250,355 individuals and operates in over 100 nations. Reporting $4 trillion in assets in 2022, it stands as the largest U.S. bank by both asset size and branch footprint, uniquely maintaining branches across every contiguous state. As a member of the Big Four American banks, Chase commands a substantial share in both retail and commercial banking markets.

The leadership team features Chairman and CEO Jamie Dimon, whose strategic vision has propelled growth through acquisitions and innovation within financial services. The organization’s business strategy combines retail banking, card services, and commercial banking to offer an extensive range of products designed for a diverse clientele. JPMorgan Chase’s robust financial results and worldwide presence highlight its competitive strength and influence within the banking sector.

History

The Bank of The Manhattan Company was established on September 1, 1799, in New York and retained this name until its 1955 merger with Chase National Bank, which had been founded in 1877; following this merger, the new entity was called The Chase Manhattan Bank.

The Manhattan Company

The origins of Chase can be traced to The Manhattan Company, founded by Aaron Burr on September 1, 1799, at 40 Wall Street.

In 2006, the modern iteration of Chase acquired the retail banking operations of the Bank of New York. Shortly thereafter, that institution merged with Mellon Financial from Pittsburgh to create what is now known as BNY Mellon.

Chase National Bank

Chase National Bank was established in 1877 by John Thompson and was named after former Treasury Secretary and Chief Justice Salmon P. Chase, although there was no direct affiliation between them.

During the 1920s, Chase expanded its reach through acquisitions orchestrated by its subsidiary Chase Securities Corporation, including acquiring Mechanics and Metals National Bank in 1926. Its most notable acquisition occurred in 1930 when it took over Equitable Trust Company of New York; this company’s largest shareholder was John D. Rockefeller Jr., which elevated Chase to become the largest bank both nationally and internationally.

Primarily focused on wholesale banking, Chase catered to major corporate clients such as General Electric and provided financing for landmark projects like Rockefeller Center. The bank also maintained enduring board relationships with successor firms of Standard Oil, including ExxonMobil, thereby solidifying its influence within the petroleum sector.

Merger as Chase Manhattan Bank

In 1955, The Manhattan Company and Chase National Bank combined to create Chase Manhattan Bank. Although the initial intention was for Chase to acquire Manhattan, the necessity of obtaining shareholder approval resulted in structuring the transaction as Manhattan acquiring Chase National, with John J. McCloy appointed as chairman.

A new emblem was introduced in 1961, crafted by Chermayeff & Geismar, featuring a stylized octagon that represented progress and cohesion within the bank’s organizational framework. This emblem continues to serve as a fundamental component of the brand’s visual identity.

Following McCloy, George Champion and subsequently David Rockefeller led efforts to modernize the bank’s charter. In 1969, Chase reorganized into a bank holding company known as the Chase Manhattan Corporation.

During this period, Chase Manhattan broadened its market presence through various mergers and acquisitions, exerting control over multiple non-financial firms; a 1979 analysis revealed that under Rockefeller’s leadership, it managed 16 such companies. The bank also extended its geographic reach by acquiring Continental Bank in Arizona (1985) and entering the Connecticut market via two failed bank acquisitions (1991).

Mergers with Chemical, J.P. Morgan

In August 1995, Chemical Bank based in New York and Chase Manhattan Bank declared their intention to merge, finalizing the agreement by August 1996. Prior to this, Chemical had acquired Manufacturers Hanover Corporation in 1991 and Texas Commerce Bank in 1987. Although Chemical was technically the surviving entity, the combined institution retained the Chase name due to its stronger brand equity and original charter stipulations. This merger set the stage for what is now JPMorgan Chase.

In December 2000, Chase Manhattan completed a landmark acquisition of J.P. Morgan & Co., rebranding as JPMorgan Chase. The 2004 takeover of Bank One established Chase as the leading U.S. credit card issuer. Subsequent acquisitions included Bear Stearns in 2008 and Washington Mutual in 2009, significantly increasing JPMorgan Chase’s market share and international operations. After shuttering nearly 400 overlapping branches—representing less than 10% of its total network—the bank operated roughly 5,410 branches across 23 states at the time of acquiring Washington Mutual. Mid-2008 data from SNL Financial positioned Chase third among U.S. retail banking branch networks, trailing only Wells Fargo and Bank of America.

In October 2010, JPMorgan Chase faced legal action accusing it of manipulating silver markets through substantial holdings in silver futures and options beginning in early 2008.

The following chart outlines key mergers and antecedent institutions leading up to 1995 (not comprehensive):

Bank One Corporation

In 2004, JPMorgan Chase merged with Chicago-based Bank One Corporation, appointing Jamie Dimon—previously president and COO—as chairman and CEO, succeeding William B. Harrison Jr. Dimon’s salary was set at 90% of Harrison’s compensation. He promptly enacted cost-reduction initiatives and replaced numerous senior JPMorgan Chase executives with leaders from Bank One and his former associates from Citigroup. Dimon officially became CEO in January 2006 and took on the chairman role in December of that year following Harrison’s departure.

Bank One Corporation emerged from the 1998 consolidation of Banc One from Columbus, Ohio, and First Chicago NBD, both products of multiple prior banking mergers. JPMorgan Chase finalized its acquisition of Bank One during the third quarter of 2004, relocating its corporate headquarters to New York City while centralizing retail banking operations in Chicago.

The following presents an overview of Bank One's principal mergers and predecessor entities (not exhaustive):

Washington Mutual

On September 25, 2008, JPMorgan Chase acquired the majority of Washington Mutual's banking operations from the FDIC receivership, marking the largest bank collapse in U.S. history. The Office of Thrift Supervision took control of Washington Mutual Bank and sold its assets, secured liabilities, and deposits to JPMorgan Chase for $1.888 billion. The bank resumed operations under Chase the following day, causing Washington Mutual shareholders to lose all their investment value. This acquisition also encompassed accounts previously held by Providian Financial, a credit card company that WaMu had purchased in 2005. By the end of 2009, all Washington Mutual branches had been fully converted to Chase branding.

Other recent acquisitions and expansions

In the first quarter of 2006, Chase acquired Collegiate Funding Services (CFS) for $663 million, laying the groundwork for Chase Student Loans (formerly known as Chase Education Finance). Later that April, Chase expanded its footprint by purchasing Bank of New York Co.'s retail and small business banking divisions, adding 338 branches and approximately 700,000 customers across New York, New Jersey, Connecticut, and Indiana.

Chase extended its retail branch network into Pittsburgh and Western Pennsylvania in 2019, entering a region traditionally dominated by PNC Financial Services. This organic growth required regulatory approval from the Office of the Comptroller of the Currency due to Chase’s size. Previous efforts to penetrate the Pittsburgh market through acquisitions had failed because PNC divested National City branches to smaller banks to limit competition from major national banks.

By August 2021, Chase became the first bank to operate retail branches in every one of the contiguous 48 states by opening its inaugural Montana branch in Billings. This achievement underscores Chase’s deliberate strategy to expand its national retail banking presence.

Expansion outside the US

In September 2021, JPMorgan Chase introduced its initial retail banking services beyond U.S. borders by launching an app-based current and deposit account under the Chase brand in the United Kingdom. This initiative marked a significant step in broadening the company’s global footprint while targeting digital retail banking customers within the UK market.

Purchase of Nazi Germany's Reichsmarks

Declassified FBI documents have disclosed that prior to and during the early years of World War II, Chase National Bank facilitated transactions enabling American citizens of German heritage to purchase Nazi Reichsmarks at discounted rates, referred to as Rückwanderer Marks. These currency notes were sold below their nominal value because they were confiscated from Jews escaping Nazi Germany. From 1936 through 1941, Nazi Germany generated over $20 million through these sales, with institutions like Chase earning commissions totaling $1.2 million—more than $500,000 of which went directly to Chase and its representatives.

An FBI probe launched in 1940 examined these dealings; however, prosecution was avoided when Chase executives threatened to reveal classified intelligence sources and methods that could have jeopardized national security. As a result, alleged breaches of statutes including the Johnson Act, Espionage Act, and Foreign Agents Registration Act were never formally prosecuted.

Furthermore, during Nazi Germany’s occupation of France, Chase National Bank controversially lifted restrictions on French accounts despite a 1941 Executive Order by President Franklin D. Roosevelt freezing German assets. The funds were then routed through South America back to Nazi Germany, raising serious questions about corporate compliance amid wartime geopolitical complexities.

Withholding of Jewish Funds in Occupied France

Officials from the U.S. Treasury initiated probes into French branches of American banks such as Chase Bank and J.P. Morgan & Co., which continued operations throughout the Nazi occupation. Carlos Niedermann, who managed Chase’s Paris office, observed an increase in deposits and actively applied restrictions on Jewish assets, including refusing to release funds belonging to Jewish clients in anticipation of retrospective Nazi regulations.

In 1998, William McDavid, Chase’s general counsel, clarified that the bank did not directly oversee Niedermann but admitted to confiscating approximately 100 accounts under the Vichy government’s authority. Kenneth McCallion, a partner at Goodkind Labaton Rudoff & Sucharow, initiated lawsuits against Barclays Bank for comparable wartime confiscations and subsequently pursued Chase. The World Jewish Congress engaged with Chase representatives, with a spokesperson emphasizing the bank’s institutional accountability despite current personnel not being involved in past actions. Chase agreed to provide restitution to Jewish account holders whose funds had been seized.

The French government established a commission in 1999 reporting to Prime Minister Lionel Jospin. Claire Andrieu, a Sorbonne history professor serving on the commission, highlighted that while Nazi officials inspected French banks, American bank subsidiaries were not directly overseen and were not obligated to report Jewish accounts but still complied similarly with restrictions. She also mentioned that an American ambassador offered protection to U.S. banking subsidiaries during this era.

Legal Proceedings

In May 1999, Chase Manhattan reached a settlement with 20 claimants, including the Claims Conference and the World Jewish Congress, concerning reparations for assets linked to World War II activities conducted through its Paris and Châteauneuf-sur-Cher branches in France. This agreement resulted in an independent inquiry and modest compensation for affected former clients. Chase was found responsible for under $1 million in reparations, marking it as the first financial institution to resolve Holocaust-related claims.

Official Admission by Chase Manhattan

In February 2000, Chase Manhattan publicly recognized its predecessor’s involvement in transactions with Nazi Germany that facilitated currency exchanges, likely connected to forced asset sales by Jewish refugees.

Contemporary Issues

Between 2011 and 2013, JPMorgan Chase incurred penalties totaling $16 billion from fines, settlements, and litigation expenses, with $8.5 billion attributed to unlawful conduct by company executives. This figure does not include a recent $100 million settlement related to claims involving MF Global clients.

The U.S. Treasury's Office of Foreign Assets Control determined that JPMorgan unlawfully supported authoritarian regimes in Cuba, Sudan, Liberia, and Iran, including transferring gold bullion worth more than $20 million to an Iranian bank without voluntary reporting.

Additional infractions involve:

• Deceptive practices toward investors and executing fictitious trades
• Illegitimate collection of flood insurance commissions
• Improper foreclosures targeting military personnel and imposing hidden refinancing fees on veterans
• Violations of the Federal Trade Commission Act through false auto loan disclosures
• Unauthorized increases in overdraft fees by manipulating transaction processing order
• Contributing to Jefferson County, Alabama’s bankruptcy by converting debt from fixed to variable interest rates
• Antitrust breaches through bid-rigging schemes
• Theft and auctioning of contents from private and government safe deposit boxes

Although these legal disputes have affected JPMorgan Chase’s financial results, they have not weakened its dominant position or extensive global presence.

Selective account terminations

During 2013 and 2014, Chase came under scrutiny for terminating personal and business accounts held by numerous lawful sex workers, invoking the "morality clause" embedded in their account agreements. This approach also impacted mortgage accounts and business financing, including the cancellation of refinancing arrangements for a production company specializing in softcore films broadcast on Cinemax. A subsequent lawsuit accused Chase executives, such as Securities Vice President Adam Gelcich and Legal Fair Lending Department Vice President Deb Vincent, of deceptive behavior and providing misleading information.

Chase’s application of the "morality clause" extended beyond sex industry clients to encompass other sectors like medical marijuana dispensaries and businesses connected to firearms. For instance, the bank initially declined payment processing services for Lovability Condoms, a female-led condom manufacturer, citing concerns about reputational risk by categorizing condoms as "adult oriented products." After public outcry and a petition led by founder Tiffany Gaines, Chase reversed its stance and invited the company to seek services, recognizing its existing dealings with merchants offering similar items.

In 2019, Chase was criticized for purportedly closing personal accounts of outspoken internet personalities such as Martina Markota and Proud Boys chairman Enrique Tarrio. Although the bank did not officially clarify its reasons, many observers speculated that these account closures were politically motivated.

Dakota Access Pipeline

Financial records from Energy Transfer Partners, the developer of the Dakota Access Pipeline, show that major financial institutions including JP Morgan Chase extended credit to support the project. These banking relationships placed Chase among the central targets during the Dakota Access Pipeline protests in 2016 and 2017.

Parental leave policy

JPMorgan Chase agreed to pay $5 million to male employees who were denied equal paid parental leave between 2011 and 2017. In December 2017, the bank revised its parental leave policy to guarantee equal benefits for men and women serving as primary caregivers. This settlement represents the largest recorded U.S. case involving discrimination in parental leave. JPMorgan pledged to implement training programs and oversight measures to uphold gender-neutral parental leave policies, emphasizing that their intent was always to maintain fairness.

Fossil fuel investment

JPMorgan Chase has drawn criticism for its substantial financial commitments to fossil fuel industries, including coal, oil, and natural gas. A 2019 report identified the bank as the top investor in fossil fuels among global banks, with $75 billion allocated to this sector.

Disparities in lending

An investigation into Chicago home loans from 2012 through 2018 conducted by City Bureau and WBEZ Chicago found that JP Morgan Chase extended mortgages at a rate 41 times higher in predominantly white neighborhoods compared to Black neighborhoods. This significant discrepancy sparked protests at Chicago Chase branches in June 2020. In response, CEO Jamie Dimon announced plans to allocate $600 million over five years toward new mortgages for Black buyers and first-time homeowners in Chicago neighborhoods, indicating a strategic effort to address lending inequities.

Allegations of Enabling Sex Trafficking

In 2022, JP Morgan Chase Bank faced a lawsuit from the U.S. government accusing the institution of enabling and obscuring the human trafficking operations managed by Jeffrey Epstein. This case introduced substantial legal challenges and threatened the bank’s reputation.

ATM System Malfunction

A 2024 technical failure affecting Chase ATMs permitted withdrawals through the use of counterfeit checks, representing a type of check kiting fraud. This event exposed weaknesses within the bank’s transaction processing infrastructure, undermining customer confidence and highlighting risks in operational controls.