Chase Bank was founded by the merger of two rival New York banks in 1955

Chase Bank as it exists today was created when Chase Manhattan Bank merged with The Bank of New York's predecessor, but the story starts earlier. The Chase National Bank was founded in 1877 by John Thompson, a wealthy New York merchant and banker. The Manhattan Company was founded in 1799 and originally chartered to supply water to New York City—banking was a side business that eventually became its main one. These two banks merged in 1955 to form Chase Manhattan Bank, which later became Chase Bank.

The 1955 merger created what was briefly the largest bank in the United States by assets. The combined institution kept the Chase name because it was better known in international banking circles. David Rockefeller, a member of the prominent Rockefeller family, became the bank's chief executive and shaped its growth through the second half of the 20th century.

Key Takeaways

  • Chase National Bank was founded in 1877 by John Thompson as a merchant bank in New York.
  • The Manhattan Company, founded in 1799 as a water utility, became a major bank before merging with Chase.
  • The 1955 merger of Chase National Bank and Manhattan Company created Chase Manhattan Bank, the largest U.S. bank at that time.
  • David Rockefeller led Chase Manhattan Bank for decades and expanded it into a global financial institution.
  • Chase Bank today is part of JPMorgan Chase & Co., formed in 2000 when Chase Manhattan merged with J.P. Morgan & Co.

John Thompson and the founding of Chase National Bank in 1877

John Thompson was a New York merchant and banker who established Chase National Bank in 1877. Thompson came from a banking family and saw an opportunity to create a bank focused on commercial and international trade. The bank was named after Salmon P. Chase, a former U.S. Secretary of the Treasury and Chief Justice of the United States, though Thompson founded it after Chase's death.

Chase National Bank grew steadily through the late 1800s and early 1900s, becoming known for its strength during financial panics and recessions. By the 1920s, it was one of the largest banks in New York and had expanded its international operations significantly. The bank survived the Great Depression, though like all banks it faced severe pressure during that period.

The Manhattan Company's unlikely path from water utility to bank

The Manhattan Company was chartered in 1799 to supply fresh water to New York City, which was then a growing port town with serious sanitation problems. The company's charter included an unusual clause that allowed it to use surplus capital for banking operations. The banking side of the business grew so profitable that it eventually overshadowed the water business entirely.

By the mid-1800s, the Manhattan Company was primarily a bank, though it retained its original charter. It became a major player in New York banking and maintained strong international connections. The company competed directly with Chase National Bank for decades before the two decided to merge.

Why Chase and Manhattan merged in 1955

By the 1950s, both Chase National Bank and the Manhattan Company were large regional banks, but neither was as dominant as they had been in earlier decades. American banking was consolidating, and larger institutions were forming to compete nationally and internationally. The merger made strategic sense: combining assets, customer bases, and international networks created a stronger competitor.

The merger was also driven by the need to compete with other large banks like Bank of America, which had grown significantly on the West Coast. Chase Manhattan Bank emerged from the 1955 merger as the largest bank in the United States by assets at that time, holding that position for several years. The combined bank had offices across the United States and in major financial centers worldwide.

David Rockefeller's role in building Chase Manhattan into a global bank

David Rockefeller became the chief executive of Chase Manhattan Bank and led the institution from the late 1950s through the 1980s. Rockefeller came from the prominent Rockefeller family and brought both banking expertise and extensive business connections to the role. Under his leadership, Chase Manhattan expanded aggressively into international markets, particularly in Europe, Asia, and Latin America.

Rockefeller positioned Chase Manhattan as a global bank serving multinational corporations and governments, not just American businesses. He also modernized the bank's operations and invested heavily in technology and infrastructure. His tenure established Chase as one of the world's leading financial institutions, a position it has largely maintained.

The 2000 merger that created JPMorgan Chase

In 2000, Chase Manhattan Bank merged with J.P. Morgan & Co., another major New York bank with a long history dating back to 1871. The combined institution became JPMorgan Chase & Co., which is the legal name of what most people call Chase Bank today. This merger reflected further consolidation in American banking and created one of the largest financial institutions in the world.

J.P. Morgan & Co. had been founded by J. Pierpont Morgan, a legendary banker and financier who shaped American banking in the late 1800s and early 1900s. The merger of these two historic institutions combined centuries of banking history and created a bank with even greater global reach and resources.

Chase Bank's structure and ownership today

Chase Bank operates as a subsidiary of JPMorgan Chase & Co., which is a publicly traded company listed on the New York Stock Exchange. JPMorgan Chase is owned by its shareholders, not by a single family or individual. The bank has a board of directors and a chief executive officer who report to shareholders.

Chase Bank itself is the consumer and commercial banking division of JPMorgan Chase. It operates thousands of branches across the United States and maintains a significant international presence. The parent company also owns investment banking, asset management, and other financial services divisions.

Frequently Asked Questions

Who was Salmon P. Chase, and why is the bank named after him?

Salmon P. Chase was a U.S. Secretary of the Treasury under President Abraham Lincoln and later served as Chief Justice of the United States. John Thompson named Chase National Bank after him in 1877, after Chase's death. Chase was a prominent political and financial figure of his era, and the name gave the new bank credibility and historical weight.

Is Chase Bank still owned by the Rockefeller family?

No. While David Rockefeller led Chase Manhattan Bank for many years, the bank became a publicly traded company and is now owned by its shareholders. JPMorgan Chase & Co., the parent company, is listed on the stock exchange and owned by thousands of investors worldwide, not by any single family.

What is the difference between Chase Bank and JPMorgan Chase?

Chase Bank is the consumer and commercial banking division of JPMorgan Chase & Co. JPMorgan Chase is the parent holding company that also owns investment banking, asset management, and other financial services. When you have a Chase checking account or visit a Chase branch, you are dealing with Chase Bank, which operates under the JPMorgan Chase umbrella.

How old is Chase Bank?

Chase National Bank was founded in 1877, making it over 145 years old. However, the current Chase Bank is technically the product of the 1955 merger of Chase National Bank and Manhattan Company, and the 2000 merger with J.P. Morgan & Co. The institution traces its roots back to 1799 through the Manhattan Company and to 1871 through J.P. Morgan & Co.