Chase Manhattan to buy J.P. Morgan for $33B

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New York--In one of the biggest deals in financial services history, Chase Manhattan Bank Corp. announced it will buy J.P. Morgan & Co. Inc. for about $36 billion in stock. In a nod to the brand power of the house that John Pierpont Morgan built, the new bank will be named J.P. Morgan Chase & Co. It will be a technology-geared bank, with units such as LabMorgan, J.P. Morgan's e-finance arm, and Chase Capital Partners, Chase's venture capital division. Ever since Credit Suisse Group announced last week that it will buy Donaldson, Lufkin & Jenrette Inc. for $13.4 billion, rumors that J.P. Morgan was in play were swirling on Wall Street. The Chase-J.P. Morgan deal underscores a b-to-b financial world that is undergoing its most marked transformation since the Great Depression. All big commercial banks are seeking to establish a global footprint and get additional assets under management in an effort to compete with Goldman Sachs & Co. and Morgan Stanley Dean Witter & Co. J.P. Morgan Chase & Co. will have some $660 billion in assets under management and offices around the globe.
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