[laid back acoustic music]
Virginia: From New York to Mumbai to Tokyo, JPMorgan Chase's footprints spans worldwide. Famed American banker, J. Pierpont Morgan, is the namesake and one of the founders of our firm. But it was his father, Junius's, move to London that first put the Morgan name on the international map and created a special relationship between the firm and the city of London that continues today.
The story begins in the 1850's. Junius Morgan was a successful New England merchant, but he was ready for something bigger. London was calling. London, at the time, was the capital of the vastly wealthy British empire and the epicenter of international finance. In 1854, Junius accepted an invitation to join American banker, George Peabody, in London. Junius eventually took over Peabody's firm which he renamed J.S. Morgan & Company. It oversaw several landmark transactions and became the most prominent American-owned merchant bank in London. The firm raised capital for the first transatlantic cable project in 1858, revolutionizing communications between Europe and the United States. Sending a message could take 10 days -- the time it took to physically post a letter by ship. With cable, it was a matter of minutes. This and later communication advancements would allow people on both sides of the Atlantic to share accurate information about the availability and pricing of goods. In time, trade flourished, money flowed, and banks gained ever greater importance.
In 1870, J.S. Morgan & Company arranged a much needed 10 million pound loan to the French government during the Franco-Prussian war. Few other banks were willing to take the financial risk, but France repaid ahead of schedule. This propelled J.S. Morgan further up the ranks of international finance and greatly enhanced its reputation in London and beyond. Around the same time, London-based Junius introduced his son, J. Pierpont Morgan, to Philadelphia banker, Anthony Drexel. Together, they founded the wildly successful New York-based private bank, Drexel, Morgan & Company, which Pierpont later renamed J.P.Morgan. Though they operated separate firms, Junius and Pierpont worked in tandem between New York and London building a special transatlantic relationship between the two cities. Raising money in both the United States and Europe, their combined efforts helped finance a number of international industries. Most notably, the American railroad. As track after track was laid and dollar after dollar made, the Morgan name gained even more prominence internationally. After Pierpont's death in 1913, his son, Jack, took over J.P.Morgan just before the start of World War I. It was Jack who provided a $500 million loan in 1915 to American allies, Britain and France -- the largest at the time in Wall Street history. Jack received personal letters of thanks from the prime minister and King of England for his efforts. Prime Minister: I wish to express, on behalf of His Majesty's government, our warmest and most sincere thanks for the invaluable assistance you have rendered to this country during the war. Virginia: The British connections were more than just business. Jack developed a warm relationship with the royal family, hosting them aboard his yacht and at his lodge in Scotland every summer. Throughout the 20th century, the firm's ties to London deepened as it became more physically present in the city. In 1959, J.P.Morgan & Co merged with the Guaranteed Trust Company of New York, the oldest U.S. bank in London. This expanded the bank's presence throughout the city. In 2010, the firm acquired the successful British investment bank, Cazenove. Soon after, it chose London as its European headquarters opening in England's financial center, Canary Wharf. For over 150 years, London has, and will continue to be, a city at the core of the JPMorgan Chase identity.