Jamie Dimon

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Posted by sonny 04/28/2009 @ 06:13

Tags : jamie dimon, jp morgan chase, banking, finance

News headlines
Sorry, Jamie Dimon, Your Bank Can't Really Sell Debt That Isn't ... - The Business Insider
This morning the news broke that JP Morgan Chase & Co plans to sell a benchmark-sized issue of five-year notes that will not be guaranteed by the Federal Deposit Insurance Corp. The ability to raise debt outside of a formal government guarantee has...
Breakingviews.com Shareholders Hurt in Bailout Payback - New York Times
At JPMorgan Chase, the chief executive, Jamie Dimon, has unequivocally said his bank did not need more equity to pay back the government. Take BB&T. The North Carolina-based bank makes money, and it passed the government's bank capital stress test with...
Jamie Dimon Takes Down Victoria Gotti - Cityfile
Congrats to JPMorgan Chase chief Jamie Dimon: He's now in possession of what may very well be the tackiest home in New York. A Brooklyn judge has given JPMorgan the go-ahead to foreclose on the Old Westbury home of Victoria Gotti, the gaudy home that...
Worries over huge credit-card debt - Philadelphia Inquirer
JPMorgan Chase & Co. chief executive Jamie Dimon last week called his company's credit-card business, which employs 5000 in Wilmington, its "biggest conundrum." The federal government said last week that 12 of the nation's 19 biggest banks could...
Dimon: Billion Or Beat It - DealBreaker.Com
Jamie Dimon is FIRING JPM's small prime brokerage clients and administrative clients, saying, "You're just not big enough for us, we only want to handle accounts of 1 billion and up, too bad, you have a month to move your accounts....
Dimon foresees possible rise in investment banking returns - Wealth Bulletin
Jamie Dimon, chairman and chief executive of JP Morgan Chase, said returns in investment banking are unlikely to fall, and could actually increase, despite lower leverage. Dimon said on a conference call: “Leverage will lower but we could give you as...
The Last Meals of Bear Stearns - New York Magazine
Schwartz's call also interrupted JPMorgan CEO Jamie Dimon's 52nd-birthday celebration with his family, Kelly reports. "Let's do something," the Bear CEO had told him. It was too short notice for a wholesale purchase of Bear, he knew,...
JPMorgan's Dimon foresees more mergers in banking industry - SmartBrief
Jamie Dimon, CEO of JPMorgan Chase, said the bank is busy integrating Washington Mutual and Bear Stearns but will consider other foreign and domestic acquisitions. Dimon said JPMorgan's "greatest strategic issue" is to expand its consumer business in...
Report: Paulson Told Banks They Must Take TARP Money - FOXBusiness
Attendees at the meeting, according to the report, included Bank of New York's (BK) Robert Kelly, Citigroup's (C) Vikram Pandit, Goldman Sachs's (GS) Lloyd Blankfein, JPMorgan Chase's (JPM) Jamie Dimon, Merrill Lynch's (BAC) then-CEO John Thain,...
Dimon Says Federal Programs Working - BankInvestmentConsultant.com
By Steven Sloan The Federal Reserve Board's program to get banks lending again is starting to work, and other federal stimulus efforts are starting to show signs of success, James Dimon, the chairman of JPMorgan Chase & Co., said Tuesday....

Jamie Dimon

James L. "Jamie" Dimon (born March 13, 1956) is the current CEO and chairman of JPMorgan Chase & Co as well as a Class A director of the Board of Directors of the New York Federal Reserve, a three year term which started January 2007.

James L. "Jamie" Dimon was born in New York City to Theodore and Themis Dimon. His grandfather, a Greek immigrant from Turkey, was a broker and passed on his knowledge of the business to his son and partner, Theodore. They worked together for 19 years, and Jamie held summer jobs at their New York office. Later, he majored in psychology and economics at Tufts University, before earning an M.B.A. degree from Harvard Business School. Upon his graduation in 1982, Sandy Weill convinced him to turn down offers from Goldman Sachs and Morgan Stanley to join him as an assistant at American Express.

Although Weill could not offer the same amount of money as the investment banks, Weill promised Dimon that he would have "fun". In a power struggle, Weill left American Express in 1985 and Dimon followed him. The two then took over Commercial Credit, a consumer finance company, from Control Data, which became the vehicle that Dimon and Weill would use to propel themselves to the top of the financial world. Through a series of unprecedented mergers and acquisitions, in 1998 Dimon and Weill were able to form the largest financial services conglomerate the world had ever seen, Citigroup. Although Weill was the one who made the deals, Dimon was the "whiz kid" who made the numbers work.

Dimon left Citigroup in November 1998. It was rumored at the time that he and Weill got into an argument in 1997 over the perceived lack of promotion given by Dimon to Weill's daughter, Jessica M. Bibliowicz. In his 2005 University of Chicago Graduate School of Business Fireside Chat and 2006 Kellogg School of Management interviews, Dimon stated that he was fired by Weill.

In March 2000 Dimon became CEO of Bank One, then the nation's fifth largest bank. He became president of J.P. Morgan Chase in mid-2004 when it acquired Bank One.

As JPMorgan Chase's Chairman, President & CEO, Dimon oversaw the transfer of $25 billion from the US Treasury Department to JPMorgan Chase on October 28, 2008 via TARP.This was the fifth largest amount transferred under Section A of TARP to help troubled assets related to residential mortgages.

JPMorgan Chase advertised in February 2009 that they would be using their capital base monetary strength to acquire new businesses , primarily due to the funds provided by TARP and in direct violation of TARP’s main intent; to help troubled assets related to residential mortgages and all obligations as spelled out in TARP.

Dimon was named to Time Magazine's 2006 list of the world's 100 most influential people.

He is married to Judith Kent; they have three children, Julia, Laura, and Kara Leigh.

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JPMorgan Chase

September 16, 1920: a bomb exploded in front of the headquarters of J.P. Morgan Inc. at 23 Wall Street, injuring 400 and killing 38 people.

JPMorgan Chase & Co. (NYSE: JPM) is one of the oldest financial services firms in the world. It is a leader in financial services with assets of $2.3 trillion., and the largest market capitalization and deposit base of any U.S. banking institution. The hedge fund unit of JPMorgan Chase is the largest hedge fund in the United States with $34 billion in assets as of 2007. Formed in 2000 when Chase Manhattan Corporation acquired J.P. Morgan & Co., the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and governmental clients.

The JPMorgan brand is used by the Investment Bank as well as the Asset Management, Private Banking, Private Wealth Management, and Treasury & Securities Services Divisions. Fiduciary activity within Private Banking and Private Wealth Management is done under the aegis of JPMorgan Chase Bank, N.A.—the actual trustee. The Chase brand is used for credit card services in the United States and Canada, the bank's retail banking activities in the United States, and commercial banking.

JP Morgan Chase is one of the Big Four Banks of United States with Bank of America, Citigroup and Wells Fargo.

JPMorgan Chase, as it exists since 2008, is the result of the combination of several large U.S. banking companies over the last decade including Chase Manhattan Bank, J.P. Morgan & Co., Bank One, Bear Stearns and Washington Mutual. Going back further, its predecessors include major banking firms among which are Chemical Bank, Manufacturers Hanover, First Chicago Bank, National Bank of Detroit, Texas Commerce Bank, Providian Financial and Great Western Bank.

The New York Chemical Manufacturing Company was founded in 1823 as a maker of various chemicals. In 1824, the company amended its charter to perform banking activities and created the Chemical Bank of New York. After 1851, the bank was separated from its parent and grew organically and through a series of mergers, most notably with Corn Exchange Bank in 1954, Texas Commerce Bank (a large bank in Texas) in 1986, and Manufacturer's Hanover Trust Company in 1991 (the first major bank merger "among equals"). At many points throughout this history, Chemical Bank was the largest bank in the United States (either in terms of assets or deposit market share).

In 1996, Chemical acquired the Chase Manhattan Corporation taking the more prominent Chase name. In 2000, the combined company acquired J.P. Morgan & Co. and combined the two names to form what is today JPMorgan Chase & Co. JPMorgan Chase retains Chemical Bank's headquarters at 277 Park Avenue and stock price history.

The Chase Manhattan Bank was formed upon the 1931 purchase of Chase National Bank (established in 1877) by the Bank of the Manhattan Company (established in 1799), the company's oldest predecessor institution. The Bank of the Manhattan Company was the creation of Aaron Burr, who transformed The Manhattan Company from a water carrier into a bank.

Led by David Rockefeller during the 1970s and the 1980s, Chase Manhattan emerged as one of the largest and most prestigious banking concerns, with leadership positions in syndicated lending, treasury and securities services, credit cards, mortgages, and retail financial services. Weakened by the real estate collapse in the early 1990s, it was acquired by Chemical Bank in 1996 but retained the Chase name. Prior to its merger with J.P. Morgan & Co., Chase acquired San Francisco-based Hambrecht & Quist in 1999 for $1.35 billion.

The heritage of the House of Morgan traces its roots back to the partnership of Drexel, Morgan & Co. which in 1895, was renamed J.P. Morgan & Co. (see also: J. Pierpont Morgan). Arguably the most influential financial institutions of its era, J.P. Morgan & Co. financed the formation of the United States Steel Corporation, which took over the business of Andrew Carnegie and others and was the world's first billion-dollar corporation. In 1895, J.P. Morgan & Co. supplied the United States government with $62 million in gold to float a bond issue and restore the treasury surplus of $100 million. In 1892, the company began to finance the New York, New Haven and Hartford Railroad and led it through a series of acquisitions that made it the dominant railroad transporter in New England.

Built in 1914, 23 Wall Street was known as the "House of Morgan," and for decades the bank's headquarters was the most important address in American finance. At noon, on September 16, 1920, a terrorist bomb exploded in front of the bank, injuring 400 and killing 38. Shortly before the bomb went off, a warning note was placed in a mailbox at the corner of Cedar Street and Broadway. The warning read: "Remember we will not tolerate any longer. Free the political prisoners or it will be sure death for all of you. American Anarchists Fighters." While theories abound about who was behind the Wall Street bombing and why they did it, after twenty years of investigation the FBI rendered the file inactive in 1940 without ever finding the perpetrators.

In August 1914, Henry P. Davison, a Morgan partner, traveled to the UK and made a deal with the Bank of England to make J.P. Morgan & Co. the monopoly underwriter of war bonds for UK and France. The Bank of England became a "fiscal agent" of J.P. Morgan & Co. and vice versa. The company also invested in the suppliers of war equipment to Britain and France. Thus, the company profited from the financing and purchasing activities of the two European governments.

In the 1930s, all J.P. Morgan & Co. along with all integrated banking businesses in the United States, was required by the provisions of the Glass-Steagall Act to separate its investment banking from its commercial banking operations. J.P. Morgan & Co. chose to operate as a commercial bank, because at the time commercial lending was perceived to be more profitable and prestigious business in the post depression era. Additionally, many within J.P. Morgan believed that a change in the climate would allow the company to resume its securities businesses but it would be nearly impossible to reconstitute the bank if it were disassembled.

In 1935, after being barred from securities business for over a year, the heads of J.P. Morgan made the decision to spinoff its investment banking operations. Led by J.P. Morgan partners, Henry S. Morgan (son of Jack Morgan and grandson of J. Pierpont Morgan) and Harold Stanley, Morgan Stanley was founded on September 16, 1935 with $6.6 million of nonvoting preferred stock from J.P. Morgan partners. In order to bolster its position, in 1959, J.P. Morgan merged with the Guaranty Trust Company of New York to form the Morgan Guaranty Trust Company. The bank would continue to operate as Morgan Guaranty through the 1980s before beginning to migrate back toward the use of the J.P. Morgan brand. In 1984, the group finally purchased the Purdue National Corporation of Lafayette Indiana, uniting a history between the two figures of Salmon Portland Chase and John Purdue. In 1988, the company once again began operating exclusively as J.P. Morgan & Co.

In 2004, JPMorgan Chase merged with Bank One Corp., bringing on board current chairman and CEO Jamie Dimon as president and COO and designating him as CEO William B. Harrison, Jr.'s successor. Dimon's pay was pegged at 90% of Harrison's. Dimon quickly made his influence felt by embarking on a cost-cutting strategy and replaced former JPMorgan Chase executives in key positions with Bank One executives—many of whom were with Dimon at Citigroup. Dimon became CEO in January 2006 and Chairman in December 2006.

Bank One Corporation was formed upon the 1998 merger between Banc One of Ohio and First Chicago NBD. These two large banking companies had themselves been created through the merger of many banks. This merger was largely considered a failure until Jamie Dimon—recently ousted as President of Citigroup—took over and reformed the new firm's practices—especially its disastrous technology mishmash inherited from the many mergers prior to this one. Mr. Dimon effected more than sufficient changes to make Bank One Corporation a viable merger partner for JPMorgan Chase.

Bank One Corporation traced its roots to First Bancgroup of Ohio, founded as a holding company for City National Bank of Columbus, Ohio and several other banks in that state, all of which were renamed "Bank One" when the holding company was renamed Bank One Corporation. With the beginning of interstate banking they spread into other states, always renaming acquired banks "Bank One", though for a long time they resisted combining them into one bank. After the NBD merger, adverse financial results led to the departure of CIO John B. McCoy, whose father and grandfather had headed Banc One and predecessors. Jamie Dimon, a former key executive of Citigroup, was brought in to head the company. JPMorgan Chase completed the acquisition of Bank One in 2004.

At the end of 2007, Bear Stearns & Co. Inc. was the fifth largest investment bank in the United States but its market capitalization had deteriorated through the second half of 2007. On Friday, March 14, 2008 Bear Stearns lost 47% of its equity market value to close at $30.00 per share as rumors emerged that clients were withdrawing capital from the bank. Over the following weekend it emerged that Bear Stearns might prove insolvent and on or around March 15, 2008 the Federal Reserve engineered a deal to prevent a wider systemic crisis from the collapse of Bear Stearns.

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 million pending shareholder approval scheduled within 90 days. In the interim, JPMorgan Chase agreed to guarantee all Bear Stearns trades and business process flows. Two days later, on March 18, 2008, JPMorgan Chase formally announced the acquisition of Bear Stearns for $236 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.

On March 24, 2008, after considerable public discontent by Bear Stearns shareholders over the low acquisition price threatened the deal's closure, a revised offer was announced at approximately $10 per share. Under the revised terms, JPMorgan also immediately acquired a 39.5% stake in Bear Stearns (using newly issued shares) at the new offer price and gained a commitment from the board (representing another 10% of the share capital) that its members would vote in favour of the new deal. With sufficient committments thus in hand to ensure a successful shareholder vote, the merger was completed on June 2, 2008.

On September 25, 2008; JPMorgan Chase bought most of the banking operations of Washington Mutual from the receivership of the FDIC. That night, the Office of Thrift Supervision had seized Washington Mutual Bank and placed it into receivership in by far the largest bank failure in American history. The FDIC sold the bank's assets, secured debt obligations and deposits to JPMorgan Chase & Co for $1.836 billion, which re-opened the bank the following day. As a result of the takeover, Washington Mutual shareholders lost all their equity.

JPMorgan Chase raised $10 billion in a stock sale to cover writedowns and losses after taking on deposits and branches of Washington Mutual. Through the acquisition, JPMorgan Chase now owns the former accounts of Providian Financial, a credit card issuer WaMu acquired in 2005. The company announced plans to complete the rebranding of Washington Mutual branches to Chase by late 2009.

Currently, shareholders are fighting what they consider the illegal seizure of Washington Mutual through such websites as WamuCoup.com, WamuStory.com, and WamuEquity.org, claiming that the OTS acted in an arbitrary and capricious manner and seized the bank for political reasons or for the benefit of JPMorgan Chase, which acquired a large network of branches at what they claim to be an unfairly low price. Shareholders claim that as of the date of the takeover, the bank had enough liquidity to meet all its obligations and was in compliance with the business plan negotiated with the OTS 2 weeks earlier and that the holding company's board and management was kept completely in the dark about the government's negotiations with Chase, hampering the bank's ability to sell itself on its own. Chief executive Alan H. Fishman was flying from New York to Seattle on the day the bank was closed, and eventually received a $7.5 million sign-on bonus and cash severance of $11.6 million after being CEO for 17 days.

In 2006, JPMorgan Chase purchased Collegiate Funding Services, a portfolio company of private equity firm Lightyear Capital, for $663 million. CFS was used as the foundation for the Chase Student Loans, previously known as Chase Education Finance.

On March 26, 2008, JPMorgan acquired the UK-based carbon offsetting company ClimateCare.

Louisiana’s First Commerce Corp.

Although Chase Manhattan Bank's headquarters were once located at the One Chase Manhattan Plaza building in downtown Manhattan, the current world headquarters for JPMorgan Chase & Co. are located at 270 Park Avenue.

The bulk of North American operations take place in four buildings located adjacent to each other on Park Avenue in New York City: the former Union Carbide Building at 270 Park Avenue, the hub of sales and trading operations, and the original Chemical Bank building at 277 Park Avenue, where most investment banking activity took place. Asset and wealth management groups are located at 245 Park Avenue and 345 Park Avenue. Other groups are located in the former Bear Stearns building at 383 Madison Avenue. Approximately 10,000 employees are located at the McCoy Center, the former Bank One offices at 1111 Polaris Parkway, Columbus, Ohio.

The bank moved some of its operations to the JPMorgan Chase Tower (formerly Texas Commerce Bank Tower) in Houston, when it purchased Texas Commerce Bank. Since merging with Bank One in 2004, retail services (branded as "Chase") are headquartered at The Chase Tower in Chicago.

The Card Services division has its headquarters in Wilmington, DE, with Card Services offices in Elgin, IL, Mumbai, India, San Antonio, TX, Springfield, MO, and Frederick, MD. There are also large operations centers in Brooklyn, NY, Rochester, NY, Columbus, OH, Dallas, TX, Fort Worth, TX, Indianapolis, IN, Tampa, FL, Orlando, FL, Louisville, KY, Newark, DE, Phoenix, AZ, Milwaukee, WI, Toronto, Ontario, and Burlington, Ontario. Operations centers in the United Kingdom are located in Bournemouth, Glasgow, London, Liverpool and Swindon of which Bournemouth hosts the European headquarters. There are also backoffice and technology operations offices based in Manila and Cebu, Philippines, and Mumbai and Bangalore, India.

The JPMorgan Investment Bank also maintained a number of high-profile offices around the globe, with the largest concentrations outside the US in London, Tokyo, Hong Kong and Singapore. In August 2008, the bank announced plans to construct a new European headquarters, based at Canary Wharf, London.

J. P. Morgan Chase, which helped underwrite $15.4 billion of WorldCom's bonds, agreed in the middle of March 2005 to pay $2 billion; that was 46 percent, or $630 million, more than it would have paid had it accepted an investor offer in May of $1.37 billion. J. P. Morgan was the last big lender to settle. Its payment is the second largest in the case, exceeded only by the $2.6 billion accord reached in Q4 2004 by Citigroup ().

In March 2005, 16 of WorldCom's 17 former underwriters reached settlements with the investors ().

According to a University of California press release, allegations were filed in national court in an attempt to hold stock advisors responsible for poor investment decisions. The suits seek to recover the losses suffered by individual and company clients. Groups claiming JP Morgan Chase stock fraud resulted in loss of investments are the University of California and former Enron employees, among others.

On April 23, 2009, Chase was served with a complaint from MLSMK Investment Company, a Palm Beach, Florida partnership that directly deposited $12.8 million into Bernard Madoff's account between October and early December, 2008. The lawsuit alleges the bank of aiding Madoff's crime by maintaining his checking accounts and trading with his brokerage firm long after the bank realized that he was running a vast fraud. In September, 2008, Morgan Chase began withdrawing $250 million of its own money from the Sentry funds operated by the Fairfield Greenwich Group, a Madoff feeder fund. If the bank had terminated Madoff's accounts then, the plaintiffs would not have lost their money.

New York City officials have already paid Goldman Sachs $650m (£330m) to build new offices in Battery Park City. But the paper says that JP Morgan Chase will receive an even better deal, with tax breaks, discounted electric power and rent subsidies worth $100m from city and state authorities. And it says that rent subsidies will amount to $50m per year for 15 years, or $750m. JP Morgan Chase is a huge, and very profitable company.

However, following the acquisition of Bear Stearns, JPMorgan Chase abandoned its relocation plans.

The US Treasury Department transferred $25 billion of US funds to JPMorgan Chase on Oct 28 via TARP.. This was the fifth largest amount transferred under the United States 2008 bailout bill (a.k.a. TARP) primarily related to USA mortgages.. A main stipulation in TARP was to help troubled assets related to residential mortgages and all obligations as such (see TARP).

TARP states "Troubled assets" are defined as "(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability" , But a press release issued by JP Morgan Chase noted on December 23, 2008 showed a diversion from TARP.

In January 2009, JPMorgan Chase announced its intent to change the terms of upwards of a trillion dollars-worth of mortgages in an effort to keep them from foreclosure. Jamie Dimon, JPMorgan chief executive, criticized a proposed law that would allow bankruptcy judges to cut the mortgage rates in existing mortgages for borrowers who would otherwise be forced into default. Despite its announcement in January 2009, JPMorgan Chase had continued to process foreclosures on hundreds of thousands of properties. .

Associated · BancorpSouth · BancWest* · Bank of America · Bank of New York Mellon · BB&T · BBVA Compass* · BOK Financial · Capital One · Citigroup · Citizens Financial Group* · City National (California) · Colonial · Commerce · Comerica · FBOP · Fifth Third · First BanCorp · First Citizens · First Horizon National · First National of Nebraska · Fulton · Harris* · HSBC Bank USA* · Huntington · JPMorgan Chase · Key · M&T · Marshall & Ilsley · New York Community · New York Private · Northern Trust · PNC · Popular · RBC* · Regions · South Financial Group · State Street · SunTrust · Susquehanna · Synovus · Taunus* · TCF · TD* · U.S. Bancorp · UnionBanCal* · W Holding · Webster · Wells Fargo · Zions * indicates the U.S. subsidiary of a non-U.S. bank. Inclusion on this list is based on U.S. assets only.

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Sanford I. Weill

Sanford I. Weill

Sanford I. Weill (born March 16, 1933), commonly known as Sandy Weill, is an American banker, financier and philanthropist. He is a former chief executive officer and chairman of Citigroup Inc. He served in those positions until October 1, 2003 and April 18, 2006 respectively.

Weill was born in the Bensonhurst section of Brooklyn, New York to two Polish-Jewish immigrants.

In his younger years, he attended P.S. 200 in the Bensonhurst section of Brooklyn. He also attended Peekskill Military Academy in Peekskill, New York, then enrolled at Cornell where he was active in the Air Force ROTC and the Alpha Epsilon Pi Fraternity. In this fraternity Sandy met Josue Nolasco. Josue's financial and business savvy made a huge impact on the young Sandy Weill. Josue went on to become a multimillionaire, and a personal business advisor to Sandy Weill. It has not been confirmed but many believe Josue was always behind all of the big business ventures Sandy was part of. He was part of Sandy's master mind. Personal problems led to a delay in graduation, which with reductions in military spending squashed his goal to become a pilot. Weill received a Bachelor of Arts degree in Government from Cornell University in 1955 and got his first job on Wall Street: a runner for Bear Stearns.

Weill married his wife, the former Joan Mosher, on June 20, 1955. The couple live in Greenwich, Connecticut. They have two adult children (Marc Weill, Jessica Weill Bibliowicz) and four grandchildren.

While working at Bear Stearns, Weill was a neighbor of Arthur Carter who was working at Lehman Brothers. In 1956, he became a licensed broker at Bear Stearns. Rather than making phone calls or personal visits to solicit clients, Weill found he was far more comfortable sitting at his desk, poring through companies' financial statements and disclosures made to the U.S. Securities and Exchange Commission. For weeks his only client was his mother, Etta, until Joan persuaded an ex-boyfriend to open a brokerage account.

In May 1960, Arthur Carter, Roger Berlind, Peter Potoma, and Weill formed Carter, Berlind, Potoma & Weill. In 1962 the firm became Carter, Berlind & Weill after the New York Stock Exchange brought disciplinary proceedings against Potoma. In 1968 the firm became Cogan, Berlind, Weill & Levitt (Marshall Cogan, Arthur Levitt), or CBWL (jokingly, Wall Street called them Corned Beef With Lettuce). Weill served as the firm's Chairman from 1965 to 1984, a period in which it completed over 15 acquisitions to become the country’s second largest securities brokerage firm. The company became CBWL-Hayden, Stone, Inc. in 1970; Hayden Stone, Inc. in 1972; Shearson Hayden Stone in 1974, when it merged with Shearson Hammill & Co.; and Shearson Loeb Rhoades in 1979, when it merged with Loeb Rhoades Hornblower & Co. With capital totalling $250 million, Shearson Loeb Rhoades trailed only Merrill Lynch as the securities brokerage industry's largest firm.

In 1981 Weill sold Shearson Loeb Rhoades to American Express for about $930 million in stock. (Sources differ on the precise figure.) In 1982, he founded the National Academy Foundation with the Academy of Finance to educate students that would graduate from High School. Weill began serving as president of American Express Co. in 1983 and as chairman and CEO of American Express's insurance subsidiary, Fireman's Fund Insurance, in 1984. Increasingly nettled by his forced subservience to the chairman of the company, James D. Robinson III, whose ideas about the business conflicted sharply with his, Weill realised that he would never be named CEO. He resigned in August 1985, at the age of 52.

After a failed attempt to become the CEO of BankAmerica Corp. (and "take over" Merrill Lynch, according to a Jamie Dimon interview in 2002), he set his sights a little lower and persuaded Minneapolis-based Control Data Corporation to spin off a troubled subsidiary, Commercial Credit, a consumer finance company. In 1986, with $7 million of his own money invested in the company, Weill took over as CEO of Commercial Credit. After a round of deep cost cuts and reorganisation, the company performed a successful IPO.

In 1987 he acquired Gulf Insurance. The next year, 1988, he paid $1.5 billion for Primerica, the parent company of Smith Barney and the A. L. Williams insurance company. In 1989 he acquired Drexel Burnham Lambert's retail brokerage outlets. In 1992, he paid $722 million to buy a 27 percent share of Travelers Insurance, which had gotten into trouble because of bad real estate investments.

In 1993 he reacquired his old Shearson brokerage (now Shearson Lehman) from American Express for $1.2 billion. By the end of the year, he had completely taken over Travelers Corp in a $4 billion stock deal and officially began calling his corporation Travelers Group Inc. In 1996 he added to his holdings, at a cost of $4 billion, the property and casualty operations of Aetna Life & Casualty. In September 1997 Weill acquired Salomon Inc., the parent company of Salomon Brothers Inc. for over $9 billion in stock.

In April 1998 Travelers Group announced an agreement to undertake the $76 billion merger between Travelers and Citicorp, and the merger was completed on October 8, 1998. The possibility remained that the merger would run into problems connected with federal law. Ever since the Glass-Steagall Act banking and insurance businesses had been kept separate. Weill and John S. Reed bet that Congress would soon pass legislation overturning those regulations, which Weill, Reed and a number of businesspeople considered not in their interest. To speed up the process, they recruited ex-President Gerald Ford (Republican) to the Board of Directors and Robert Rubin (Secretary of Treasury during Democratic Clinton Administration) whom Weill was close to. With both Democrats and Republican on their side, the law was taken down in less than 2 years. (Many European countries, for instance, had already torn down the firewall between banking and insurance.) During a two-to-five-year grace period allowed by law, Citigroup could conduct business in its merged form; should that period have elapsed without a change in the law, Citigroup would have had to spin off its insurance businesses.

In 2001, Sanford I. Weill became a Class A Director of the Federal Reserve Bank of New York. Class A Directors are Board Members who are elected by Member Banks (of the Federal Reserve System) to represent the interests of Member Banks. (See article on Federal Reserve Bank Board Membership).

In 2002 the company was hit by the wave of Wall Street managerial restructuring that followed the stock market downturn of 2002. Chuck Prince replaced Mr. Weill as the CEO of Citigroup on October 1, 2003.

In 2003 Citigroup repurchased $300 million worth of shares from Mr. Weill. It was reported among the $1.967 billion of "treasury stock acquired" in the Citigroup consolidated statement of changes in stockholders' equity.

As of April 2006 he held 16,518,365 shares of Citigroup, Inc. and another 3,109,173 unexercised options.

He served as a Cornell Trustee for many years, and in 1998 he endowed Cornell's medical school, now known as the Weill Cornell Medical College.

In May 2003, he received the Baruch Medal for Business and Civic Leadership, presented by Baruch College for his work in public education and his accomplishments in business.

He is currently the chairman of the Board of Trustees of the National Academy Foundation (NAF), a non-profit he founded in 1982. NAF supports career-themed academies in the areas of finance, hospitality and tourism, information technology and engineering in over 500 high schools across the United States.

He is also currently the Chairman of the Carnegie Hall Board of Directors and is an avid champion of classical music in the United States.

In September 2006, Joan and Sanford Weill Hall was dedicated at the University of Michigan. The building is home to the Gerald R. Ford School of Public Policy. Weill donated $5 million towards the construction of the building and an additional $3 million to endow the position of the dean of the school.

In June 2007, he endowed the Weill Institute for Cell and Molecular Biology at Cornell, housed in a new life science building named Weill Hall. As chairman of the Board of Overseers of Weill Cornell Medical College and an emeritus member of the Board of Trustees of Cornell University, Mr. Weill orchestrated a $400 million donation to Cornell, of which he and his wife personally contributed $250 million.

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Washington Mutual

The Washington Mutual Tower in Seattle, Washington

Washington Mutual, Inc. (abbreviated to WaMu) (Pink Sheets: WAMUQ) is a savings bank holding company and the former owner of Washington Mutual Bank, which was the United States' largest savings and loan association.

On September 25, 2008, the United States Office of Thrift Supervision (OTS) seized Washington Mutual Bank from Washington Mutual, Inc. and placed it into the receivership of the Federal Deposit Insurance Corporation (FDIC). The OTS took the action due to the withdrawal of $16.4 billion in deposits, during a 10-day bank run (amounting to 9% of the deposits it had held on June 30, 2008). The FDIC sold the banking subsidiaries (minus unsecured debt or equity claims) to JPMorgan Chase for $1.9 billion, which re-opened the bank the next day. The holding company, Washington Mutual, Inc. was left with $33 billion assets, and $8 billion debt, after being stripped of its banking subsidiary by the FDIC. The next day, September 26, Washington Mutual, Inc. filed for Chapter 11 voluntary bankruptcy in Delaware, where it is incorporated.

Washington Mutual Bank's closure and receivership is the largest bank failure in American financial history. Before the receivership action, it was the sixth-largest bank in the United States. According to Washington Mutual Inc.'s 2007 SEC filing, the holding company held assets valued at $327.9 billion.

On 20 March 2009, Washington Mutual Inc. filed suit against the FDIC in the United States District Court for the District of Columbia, seeking damages of approximately $30-$40 Billion for what they claim to be an unjustified seizure and an extremely low sale price to JPMorgan Chase.: WMI vs FDIC Court Complaint JPMorgan Chase promptly filed a counterclaim in Bankruptcy Court in Delaware.

Despite its name, Washington Mutual ceased being a mutual company in 1983 when it demutualized and became a public company.

As of June 30, 2008, Washington Mutual Bank had total assets of US$ 307 billion, with 2,239 retail branch offices operating in 15 states, with 4,932 ATMs, and 43,198 employees. It held liabilities in the form of deposits of $188.3 billion, and owed $82.9 billion to the Federal Home Loan Bank, and had subordinated debt of $7.8 billion. It held as assets of $118.9 billion in single-family loans, of which $52.9 billion were "option adjustable rate mortgages" (Option ARMs), with $16 billion in subprime mortgage loans, and $53.4 billion of Home Equity lines of Credit (HELOCs) and credit cards receivables of $10.6 billion. It was servicing for itself and other banks loans totaling $689.7 billion, of which $442.7 were for other banks. It had non-performing assets of $11.6 billion, including $3.23 billion in payment option ARMs and $3.0 billion in subprime mortgage loans.

On September 15, 2008, the holding company received a credit rating agency downgrade; from that date through September 24, 2008, customers withdrew $16.7 billion in deposits, which ultimately led the Office of Thrift Supervision to close the bank.

The FDIC then sold most of the bank's assets and liabilities, including secured debt to JPMorgan Chase for $1.9 billion. Claims of the subsidiary bank's equity holders, senior and subordinated debt (all primarily owned by the holding company) were not acquired by JP Morgan Chase.

Washington Mutual was incorporated as the Washington National Building Loan and Investment Association on September 25, 1889, after the great Seattle fire destroyed 120 acres (0.49 km2) of the central business district of Seattle. The newly formed company made its first home mortgage loan on the West Coast on February 10, 1890. It changed its name to Washington Savings and Loan Association on June 25, 1908. By 1917, it was operating under the name Washington Mutual Savings Bank. The company purchased its first company, the financially distressed Continental Mutual Savings Bank, on July 25, 1930. Its marketing slogan for much of its history was "The Friend of the Family". At the time of its demise, the slogan was "Simpler Banking, More Smiles".

In 1983, Washington Mutual bought the brokerage firm Murphey Favre and demutualized, converting into a capital stock savings bank. By 1989, its assets had doubled. In October 2005, Washington Mutual purchased the formerly "subprime" credit card issuer Providian for approximately $6.5 billion, although Providian's new management team's strategy of targeting Prime credit card consumers had been underway since 2001, therefore the credit card unit's nonperforming loan portfolio had improved significantly prior to the company's sale to WaMu. In March 2006, Washington Mutual began the move into its new headquarters, WaMu Center, located in downtown Seattle. The company's previous headquarters, Washington Mutual Tower, stands about a block away from the new building on Second Avenue. In August 2006, Washington Mutual began using the official abbreviation of WaMu in all but legal situations.

Since the acquisition of Murphey Favre, WaMu made numerous acquisitions with the aim of expanding the corporation. By acquiring companies including PNC Mortgage, Fleet Mortgage and Homeside Lending, WaMu became the third-largest mortgage lender in the U.S. With the acquisition of Providian Financial Corporation in October 2005, WaMu also became the nation's 9th-largest credit-card company.

Killinger's goal was to build WaMu into the “Wal-Mart of Banking,” which would cater to lower- and middle-class consumers that other banks deemed too risky. Complex mortgages and credit cards had terms that made it easy for the least creditworthy borrowers to get financing, a strategy the bank extended in big cities, including Chicago, New York and Los Angeles. WaMu pressed sales agents to pump out loans while disregarding borrowers’ incomes and assets. WaMu set up a system of dubious legality that enabled real estate agents to collect fees of more than $10,000 for bringing in borrowers, sometimes making the agents more beholden to WaMu than they were to their clients. Variable-rate loans — Option Adjustable Rate Mortgages (Option ARMs) in particular — were especially attractive because they carried higher fees than other loans, and allowed WaMu to book profits on interest payments that borrowers deferred. As WaMu was selling many of its loans to investors, it did not worry about defaults.

In December 2007, the subsidiary Washington Mutual Bank reorganized its home-loan division, closing 160 of its 336 home-loan offices and removing 2,600 positions in its home-loan staff (a 22% reduction).

In March 2008, on the same weekend that JPMorgan Chase Chairman and CEO Jamie Dimon negotiated the takeover of Bear Stearns, he secretly dispatched members of his team to Seattle to meet with WaMu executives, urging them to consider a quick deal. However, WaMu Chairman and CEO Kerry Killinger rejected JPMorgan Chase's offer that valued WaMu at $8 a share, mostly in stock.

In April 2008, the holding company, responding to losses and difficulties sustained as a result of the 2007-2008 subprime mortgage crisis, announced that 3,000 people companywide would lose their jobs, and the company stated its intent to close its approximately 186 remaining stand-alone, home-loan offices, including 23 in Washington State and a loan-processing center in Bellevue, Washington. It stopped buying loans from outside mortgage brokers — known in the trade as "wholesale lending." WaMu also announced a $7 billion infusion of new capital by new outside investors led by TPG Capital. TPG agreed to pump $2 billion into the Washington Mutual holding company; other investors, including some of WaMu's current institutional holders, agreed to buy an additional $5 billion in newly issued stock. This angered many investors, as TPG's investment would dilute the holdings of existing shareholders, and as WaMu executives excluded mortgage losses from computing bonuses.

In June 2008, Kerry Killinger stepped down as the Chairman, though remaining the Chief Executive Officer. On September 8, 2008, under pressure from investors, the Washington Mutual holding company's board of directors dismissed Kerry Killinger as the CEO. Alan H. Fishman, chairman of mortgage broker Meridian Capital Group, and a former chief operating officer of Sovereign Bank, was named the new CEO.

By mid-September 2008, WaMu's share price had closed as low as $2.00. It had been worth over $30.00 in September 2007, and had traded as high as $45 at one point in the previous year. While WaMu publicly insisted it could stay independent, earlier in the month it had quietly hired Goldman Sachs to identify potential bidders. However, several deadlines passed without anyone submitting a bid. At the same time, WaMu suffered a massive run (mostly via electronic banking over the internet and wire transfer); customers pulled out $16.7 billion in deposits in a ten-day span.

This led the Federal Reserve and the Treasury Department to step up pressure for WaMu to find a buyer, as a takeover by the Federal Deposit Insurance Corporation (FDIC) could have been a severe drain on the FDIC insurance fund, which had already been hard hit by the failure of IndyMac that year. The FDIC ultimately brokered the deal, and held a secret auction of the bank. Finally, on the morning of Thursday, September 25 (coincidentally the 119th anniversary of WaMu's establishment), regulators informed JPMorgan Chase that it was the winner.

On Thursday night (shortly after the close of business on the West Coast), the Office of Thrift Supervision seized Washington Mutual Bank and placed it into the receivership of the FDIC. In a statement, the OTS said that the massive run meant that WaMu was no longer sound. The FDIC, as receiver, sold most of Washington Mutual Bank's assets, including the branch network, all of its deposit liabilities and secured debts to JPMorgan Chase for $1.9 billion. The transaction did not require any FDIC insurance funds. Normally, bank seizures take place after the close of business on Fridays so the FDIC can have the weekend to find a buyer for the failed bank. However, due to the bank's deteriorating condition and leaks that a seizure was imminent, regulators felt compelled to act a day early.

JPMorgan Chase didn't acquire any of Washington Mutual Bank's equity obligations (though JPMorgan Chase planned to issue $8 billion in common stock to recapitalize the bank). As a result of the seizure, WaMu's stockholders were nearly wiped out. Its stock price dropped to $0.16 a share, far from $45 a share in 2007. In their Chapter 11 filing, WaMu listed assets of $33 Billion and Debt of $8 Billion. (ref. Appendix A). The filing also indicates that enough funds are available for distribution to unsecured creditors.

Currently, shareholders are fighting what they consider the illegal seizure of Washington Mutual through such websites as WaMuCoup.com, WaMuStory.com, and WaMuEquity.org, claiming that the OTS acted in an arbitrary and capricious manner and seized the bank for political reasons or for the benefit of JPMorgan Chase, which acquired a large network of branches at what they claim to be an unfairly low price. Shareholders claim that as of the date of the takeover, the bank had enough liquidity to meet all its obligations and was in compliance with the business plan negotiated with the OTS 2 weeks earlier and that the holding company's board and management was kept completely in the dark about the government's negotiations with Chase, hampering the bank's ability to sell itself on its own. Chief executive Alan H. Fishman was flying from New York to Seattle on the day the bank was closed, and eventually received a $7.5 million sign-on bonus and cash severance of $11.6 million after being CEO for 17 days. Senator Maria Cantwell has demanded an explanation from the government and threatened to open an investigation and Washington Mutual's former shareholders have threatened a lawsuit demanding compensation for the lost value of their shares.

The seizure of WaMu Bank resulted in the largest bank failure in American financial history, far exceeding the failure of Continental Illinois in 1984.

On September 26, 2008, Washington Mutual, Inc. and its remaining subsidiary, WMI Investment Corp., filed for Chapter 11 bankruptcy. As a result, it was delisted from the NYSE, and now trades on Pink Sheets.

All assets of the bank and most liabilities (including deposits, covered bonds, and other secured debt) of Washington Mutual Bank's liabilities had been assumed by JPMorgan Chase. However unsecured senior debt obligations were not assumed, leaving holders of those obligations with little meaningful source of recovery. On Friday, Sep. 26, 2008, Washington Mutual customers in the branches were given a letter that said the combined banks have 5,400 branches and 14,200 ATM's in 23 states.

For the time being, Washington Mutual account holders can continue banking as normal. Deposits held by Washington Mutual are now liabilities of JPMorgan Chase.

Washington Mutual Inc. owed $12.5 billion in back taxes to the IRS. The company filed court papers on January 22, 2009 alleging losses were so great, $20 billion, the company requested that it pays only part of the tax debt, and that the IRS could owe Washington Mutual Inc. a tax refund.

Washington Mutual Inc. sued the Federal Deposit Insurance Corp for well over $40 billion in connection with the sale of its banking operations to JPMorgan Chase.

Shareholders are currently engaging in a legal battle with JP Morgan and the FDIC through such websites as WamuTruth.com, WamuStory.com, WamuEquity.org, and WamuCoup.com. They believe that the sale was done in a haphazard and potentially illegal manner and have gathered proof regarding this through these websites.

The company has also disclosed that after branch conversions, additional branch consolidation and closure could occur, such as in the Chicago area.

WaMu introduced an advertising campaign during the 2003 Academy Awards known as the “The Power of Yes”. This was to promote the offering of loans to all consumers, particularly borrowers that the banks deemed too risky. Another commercial in the ad series showed WaMu representatives in casual clothes, contrasting with traditionally-dressed bankers in suits.

During its run, the Whoo hoo! ads, created by TBWA\Chiat\Day of Playa del Rey, California, become widespread in web navigation. After WaMu launched the new advertisement, there was double digit growth at its website and the term “wamu” appeared in searches over 1,000% more between January and March than in all of 2007.

Washington Mutual (before the bank's September 2008 conservatorship and sale to JPMorgan Chase) applied to register a trademark in the phrase. Initially, the bank wanted to use "woo hoo" (without the "h" in the first word) as the slogan, but they were concerned because of the existing use of the phrase by Homer Simpson, a character in The Simpsons.

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Asian Banker Research

Asian Banker Research is one of the three major units of The Asian Banker, . other units are Asian Banker Editorial and Asian Banker Forums.

The Asian Banker launched a research division in 2003. The business compiles rankings, such as such as Asia Pacific banks by asset size and financial strength, CEO compensation, dividend payouts, the top 40 Islamic banking institutions in Asia, a databook of macro indicators of banking, payments and distribution, and industry performance. The division also writes management reports, research notes, country reports, and proprietary benchmarking on consumer banking technology and operations, and other topics.

While The Asian Banker’s research business covers a variety of research projects, its most visible product is The Asian Banker 300, a reference guide to the 300 largest banks in Asia Pacific by assets. The research comes out in September or October and is launched every year at Sibos, the large annual financial services convention organized by SWIFT. In the 2007 financial year, the 10 largest banks in the Asia Pacific region by assets were Mitsubishi UFJ Financial Group, Mizuho Financial Group, Industrial and Commercial Bank of China, Sumitomo Mitsui Financial Group, China Construction Bank, Agricultural Bank of China, Bank of China, Norinchukin Bank, Hongkong and Shanghai Banking Corporation and National Australia Bank. This has been unchanged since the previous year.

Since 2003, the guide has added a strength ranking, which measures each of the 300 banks according to a strength formula. The formula weights assets, year-on-year growth in loans, year-on-year growth in deposits, and eight other criteria to arrive at a total strength score. Invariably, the largest banks are not necessarily the strongest banks, and in the 2007 financial year, the 10 strongest banks in the Asia Pacific region were Hongkong and Shanghai Banking Corporation, Oversea-Chinese Banking Corporation, Hang Seng Bank, China CITIC Bank, AXIS Bank, Westpac Banking Corporation, Bank of China, Bank of East Asia, United Overseas Bank, and ANZ. The ranking is a recognized benchmark among financial institutions in Asia, and banks that have mentioned the ranking in their investor relations materials and financial reports include Siam Commercial Bank, Maybank, Shanghai Pudong Development Bank, DBS, Bumiputra-Commerce Holdings and Hang Seng Bank.

The Asian Banker’s research division also conducts awards programmes. The Excellence in Retail Financial Services programme establishes the best retail banks in each country according to a variety of criteria. It also grants product awards such as “best credit card” and “best customer experience.” The award has been cited in statements by organizations such as Citibank Singapore, Gulf Bank , OCBC, Public Bank, National Bank of Dubai, ICICI Bank, Standard Chartered Bank, Hong Leong Bank, GE Money and many others.

Another award series is The Asian Banker Leadership Achievement Awards, which looks at individual leadership. Past awards have been won by Jamie Dimon of JPMorgan Chase, Kannikar Chalitaporn of Siam Commercial Bank, Joseph Yam of the Hong Kong Monetary Authority, Jiang Jianqing of ICBC, David Morgan of Westpac Banking Corporation, Aditya Puri of HDFC, Vichit Suraphongchai of Siam Commercial Bank, Teresita “Tessie” Sy-Coson of SMI Holdings, and David Conner of OCBC.

The Asian Banker also has an IT implementation awards programme that looks at the collaboration between banks and IT vendors in implementing meaningful IT projects.

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Source : Wikipedia