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One of those huge bank mergers Today's Chase Manhattan was formed in 1996 through the merger of two financial giants: Chemical Bank and the "old" Chase Manhattan. The merger makes the new company the largest banking institution in the U.S. with over $350 billion in assets and clients in more than 180 countries around the world. History? How about Hamilton, Burr, and the Rockefellers The earliest Chase predecessor was The Manhattan Company, a private firm chartered in 1799 to supply water to New York City. A clause in the bill which created the water company led to the establishment of the Bank of The Manhattan Company. Burr, an anti-Federalist, saw his bank as a rival of the New York City office of Alexander Hamilton's powerful Bank of the United States. The antagonism of these two early financiers raged until 1804, when Burr challenged Hamilton to a duel. Hamilton was mortally wounded in the duel, and Burr's reputation and political career were effectively destroyed. Happily, the pistols in the duel were perserved - and are part of Chase's historical collection. By 1930, Chase had become the world's largest bank thanks to a close relationship to the Rockefeller family. Chase's latest partner, Chemical Bank, became the third-largest bank in the U.S. through its 1992 merger with Manufacturers Hanover. While the Chemical-Hanover merger was a rocky one, the company learned its lesson. The more recent Chase-Chemical marriage has had a relatively smooth transition period. Building a brand - and an I-bank Chase is trying to build its brand name to build stronger bonds with customers as it competes with Citigroup for worldwide name recognition. In 1997, Chase spent more than $60 million on an advertising campaign which touted it was "The Relationship Bank." The emphasis on brand recognition by commercial banks like Chase and Citigroup has much to do with their strategies of offering one-stop supermarket-style services for consumers. Chase has also been trying to grow its corporate practice " the bank is by far the leader in the syndicated loan business. Thus far, however, it has not succeeded in building I-banking practices that threaten the established banks on Wall Street. Although Chase has built up respectable junk bond and M&A practices, it has lagged in equity (stock) underwriting. Dealing with Mellon In August 1999 Chase became the nation's largest mortgage-servicing company through the acquisition of Mellon Bank's residential-mortgage business for an estimated $700 million. As a result of the deal Chase now provides service to 3.1 million customers and commands a portfolio of $292 billion. The move is expected to improve profit margins in Chase's lending and servicing areas. Finally Chase took a step towards becoming a more serious I-bank in September 1999 when it acquired Hambrecht & Quist for $1.35 billion. The acquisition will give Chase a solid foundation in equity underwriting upon which it can hopefully build a strong I-banking division. Chase had been interested in entering the field for about a year and had reportedly been looking to strike a deal with Goldman Sachs or Merrill Lynch. The H&Q deal while substantial, does not give Chase the same clout as a potential Goldman or Merrill deal would have. As The Wall Street Journal reports; "Even with H&Q, Chase's equity operation will be small compared with its Wall Street rivals. " The move will still allow Chase, whose massive syndicated-loan business makes them a powerhouse already, to get in on the lucrative underwriting business. As The Wall Street Journal goes on to say: "The addition of H&Q could give Chase an earlier entree into the M&A process and bring with it the accoutrements of equity research and underwriting expertise." International I-banking Seeking to further it's I-banking business, especially overseas, Chase bought Robert Flemings Holdings, a London-based independent investment bank in April 2000. Analysts said that Chase, at $7.7 billion, overpaid for Flemings. "It's stratospheric," Martin Cross, analyst at Teather & Greenwood, told The Daily Deal. Whatever the price, Chase scooped up a significant underwriting presence, especially in Asia, as well as Flemings' coveted asset management business. "Flemings brings leadership positions in global asset management and international equities, excellent potential for earnings growth and a culture of partner ship," said Chase chairman and CEO William Harrison in an April release.
Chase Manhattan launched an extensive web site for career opportunities in the fall of 1998, - located at www.chase.com/on-campus. Applicants should consult the web site to obtain the regular mail or e-mail address of the proper recruiter. Prospective employees can also post their resumes online. Chase also conducts on-campus recruiting throughout the U.S. Although the company recruits at major business schools, one insider from a top-tier school advises that you "call the bank and set up an appointment to meet with someone informally." That source continues: "The people are very open. And just to simply get placed on the interview schedule, a great deal has to do with who knows your name, do they remember you, have you shown a sincere interest in the bank." Another insider says that "unfortunately, the banking industry requires networking and schmoozing. One really has to go to the information sessions and find opportunities to sell oneself wherever possible."
Great perks From employee contests to a variety of social and charitable events, "there is always something going on at Chase," says one employee. This includes tickets to events such as the U.S. Open and the NIT college basketball tournament. The bank's perks don't stop with events - there's dinner and taxi service for those who stay after 8 p.m., and free breakfast and snacks during a 10-week training period for new hires. Also, the company's headquarters provides perks like a company gym. Pay is described as "adequate, but probably not as high as salaries available to financial managers in industrial companies." Good diversity The company's international scope helps it to assemble "one of the most diverse workforces anywhere, let alone in the banking industry." Chase Manhattan has also introduced "flextime," a scheduling option that "helps a lot when it comes to having two small children," according to one working mother. (The firm also provides on-site back-up child care.) One insider notes that "statistically, white males still hold a large majority of the management positions. But there are so many positions that numerically there are many women and minorities in management." Chase also sends employees of color to top colleges nationwide as part of its diversity council headed by the company's chairman and new CEO. A nice place to work - little backstabbing Employees are satisfied at Chase. One financial analyst remarks it's a "good experience without completely insane hours." "For it's size, there is little to no backstabbing. Everyone is busy and doing their job. There is some politics, but it is really not bad," says one insider who joined Chase from a bulge-bracket I-banking firm. At Chase headquarters at 270 Park Avenue in New York, it's business dress always; other locations have business casual codes. Says one MBA intern: "It's a friendly culture, with generalist training for new people." Everyone at the company appreciates the "unparalleled reputation" that the Chase name carries to "the far corners of the earth."
John J. Farrell Human Resources
BankAmerica;Citibank/Citigroup;J.P. Morgan;Merrill Lynch More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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