VEP: J.P. Morgan Chase 2003 (Vault Employer Profile)

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VAULT EMPLOYER PROFILE: J.P. MORGAN CHASE

Vault Inc.

EMPLOY PROFILE VAULT EMPLOYER PROFILE:

J.P. MORGAN CHASE

© 2002 Vault Inc.

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EMPLOY PROFILE VAULT EMPLOYER PROFILE:

J.P. MORGAN CHASE

BY THE STAFF OF VAULT

© 2002 Vault Inc.

Copyright © 2002 by Vault Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Vault Inc. Vault, the Vault logo, and “the insider career networkTM” are trademarks of Vault Inc. For information about permission to reproduce selections from this book, contact Vault Inc., 150 W22nd Street, New York, New York 10011, (212) 366-4212. Library of Congress CIP Data is available. ISBN 1–58131–230–X Printed in the United States of America

J.P. Morgan Chase

INTRODUCTION

1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 J.P. Morgan Chase at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

THE SCOOP

3

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 League Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

ORGANIZATION

25

CEO’s Bio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Business Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Major Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Key Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

VAULT NEWSWIRE

29

Select Recent Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

OUR SURVEY SAYS

35

GETTING HIRED

39

Hiring Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Questions to Expect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 Questions to Ask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 To Apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

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CAREER LIBRARY

vii

ON THE JOB

47

Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 A Day in the Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

FINAL ANALYSIS

53

RECOMMENDED READING

55

J.P. Morgan Chase

Introduction Overview J.P. Morgan Chase & Co. (known informally as Morgan Chase) is the product of a massive merger between two diversified financial institutions, J.P. Morgan and Chase Manhattan. Although both firms had long histories as pillars of the financial community, they came together in September 2000 in order to compete against bulge bracket investment banks such as Goldman Sachs and Morgan Stanley, and financial superstores such as Citigroup and Bank of America. By the time the two banks merged in September 2000, both J.P. Morgan and Chase Manhattan had evolved into full-service financial firms. J.P. Morgan had evolved slowly since the Great Depression, replacing the securities operations it shed after regulatory changes. Meanwhile, Chase Manhattan, a commercial bank, grew by building business lines through mergers. Today J.P. Morgan Chase, the combined company, offers investment banking, asset management and commercial and consumer banking services, and is the second-largest bank in the U.S. behind Citigroup.

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J.P. Morgan Chase at a Glance Headquarters 270 Park Avenue New York, NY 10017 Phone: (212) 270-6000 www.jpmorganchase.com

DEPARTMENTS Asset Management Commercial Banking Consumer Banking Credit Cards Diversified Consumer Lending Global Markets Investment Banking Private Banking Private Equity Treasury and Securities Services

THE STATS President and CEO: William Harrison Employer Type: Public Company Stock Symbol: JPM (NYSE) 2001 Revenues: $50.4billion 2001 Net Income: $1.7 billion No. of Employees: 95,800 No. of Offices: 66

UPPERS • Diverse workforce • Global reach due to merger

DOWNERS • Lacks definite culture and character due to merger • Not at the top of the league tables

THE BUZZ

WHAT EMPLOYEES AT OTHER FIRMS ARE SAYING

• “One of the more aggressive and opportunistic banks in the world” • “Bad marriage” • “Handling the merger pretty well” • “A mess” • “Deep relationships with corporate America” • “Jumble of product lines” • “Good brand image” • “Mega-bank, Enron tainted”

KEY COMPETITORS Bank of America Citigroup Credit Suisse First Boston Deutsche Bank

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J.P. Morgan Chase

The Scoop History Chase Manhattan: in the beginning, a historic duel Chase Manhattan’s beginnings can be traced back to 1799, when The Manhattan Company was chartered to supply water to New York City. Included in the company charter was a provision that capital not needed for the water-supply business could be diverted toward the founding of a bank. Thus, the Bank of The Manhattan Company was formed. Historians are unclear whether Aaron Burr, one of the backers of The Manhattan Company’s water business, intentionally inserted the clause so a bank rivaling Alexander Hamilton’s could be formed. The two Founding Fathers had a long-running dispute, which came to an abrupt end in 1804 when Burr killed Hamilton in a duel. (The pistols have been preserved as part of Chase’s historical collection.) The bank continued to grow, surviving the Great Depression (with a little assistance from the Rockefeller family) and two World Wars. In 1955 the Bank of The Manhattan Company merged with Chase National, a bank founded in 1877 by currency expert John Thompson and named after former Secretary of the Treasury Salmon Chase. The Chase Manhattan Bank, as it became known, went seeking another commercial merger partner in the mid1990s, settling on Chemical Bank, the third-largest bank in the U.S. after its 1992 merger with Manufacturers Hanover. The 1996 coupling made Chase Manhattan one of the largest banks in the U.S.

Building by buying The merger madness left Chase Manhattan a leader in commercial banking, but that wasn’t enough for the bank. Many among the company’s leadership looked to break into the lucrative investment banking market, especially equity underwriting. Chase decided its best bet would be acquisition. The first target was Hambrecht & Quist, a respected San Francisco-based tech boutique. H&Q was acquired by Chase in December 1999 for $1.35 billion in a deal that was met with skepticism by industry observers. “Even with H&Q, Chase’s equity operation will still be slim,” wrote The Wall Street Journal.

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J.P. Morgan Chase The Scoop

Chase tried to fatten up said equity operation by adding Robert Flemings Holdings in April 2000. Again, the deal, and especially its $7.9 billion price tag, was questioned by some. “[The price is] stratospheric,” Martin Cross, an analyst at Teather & Greenwood, told The Daily Deal. Despite the question of price, Flemings represented a boost to Chase’s underwriting capabilities, especially in Asia, and also brought Flemings’ asset management operations. Chase rounded out its investment banking buying spree by purchasing The Beacon Group, a New York M&A firm run by Geoffrey Boisi, a former Goldman Sachs partner. Chase reportedly paid between $400 million and $500 million for Beacon; the deal was completed in July 2000. Boisi was named head of investment banking at Chase and served as vice chairman of investment banking in the new J.P. Morgan Chase before resigning in May 2002.

J.P. Morgan: starting in London J.P. Morgan began as many great financial institutions do: humbly. Though history dictates that the firm can trace its roots back to the 1838 founding by George Peabody of a merchant banking firm in London, most Morgan historians would rather point to 1854, when Junius Morgan became Peabody’s partner, as the company’s real birthday. Within a decade of Junius attaining a partnership in the operation, the elder Morgan had taken control of the bank – which he renamed J.S. Morgan and Company. Under Morgan’s leadership, the firm had a successful tenure in London for the remainder of the century. In 1862, though, the Morgan family forever changed the course of both its company and the United States. In the midst of the Civil War, Junius’ son, J. Pierpont, started his own venture in New York City. The firm, J. Pierpont Morgan and Company, sold securities underwritten by the elder Morgan’s company in Europe. The younger Morgan’s venture benefited greatly from his father’s overseas assets, the Morgan name grew in prestige, and the firms began to increasingly draw business from major companies and governments on two continents. Junius died in 1890, but the heir of Morgan was determined to keep the legendary financier’s creation from dying with him. J. Pierpont centralized the activities of Morgan’s four related firms – New York, Philadelphia, London and Paris – into J.P. Morgan & Company, headquartered on Wall Street. Under J. Pierpont’s guidance, J.P. Morgan became one of the most powerful institutions in the U.S., a feat best illustrated by the firm’s nearly exclusive financing of the American railroad system. Contemporaries of J.P. Morgan that owe their existence to the pioneering bankers include U.S. Steel, General

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J.P. Morgan Chase The Scoop

Electric and International Harvester. The role J.P. Morgan played in the rise of America as a major industrial power is undeniable. During the panic of the early years of the 20th century, J.P. Morgan shepherded a group of bankers in an effort to prevent a full-blown economic depression. J.P. Morgan was less successful in preventing the stock market crash of 1929, and the Great Depression changed the firm’s fortunes. The Glass-Steagall Act of 1933 forced J.P. Morgan to make the difficult decision of whether to pursue commercial banking or investment banking. Weighing the choices carefully – as well as considering the needs of a still-wounded nation – J.P. Morgan opted for commercial banking and began to restructure its operations. The investment-banking operations became Morgan Stanley – today one of the world’s top investment banks. J.P. Morgan remained a force during World War II, when the firm helped finance the war efforts of America and a number of its allies. In 1942 J.P. Morgan went public. In 1959, then-chairman Henry Clay Alexander engineered a merger with Guaranty Trust of New York – a firm roughly four times larger than J.P. Morgan. In the 1960s and 1970s, the firm ventured back into investment banking businesses such as equity underwriting – albeit in London, where no regulations like the Glass-Steagall Act held the firm back. The firm began aggressively pursuing such business in the U.S. in the 1980s. In 1989, the Federal Reserve gave the bank permission to underwrite corporate bonds; in 1990, Morgan was given permission to underwrite stocks. J.P. Morgan, investment bank, had returned to the United States.

Coming together The merger, which was announced in September 2000 and completed on the first day of 2001, was valued at approximately $38.6 billion. The combination resulted in approximately 8,000 layoffs. William Harrison, formerly chairman at Chase Manhattan, was named Morgan Chase’s president and CEO; J.P. Morgan’s CEO Douglas Warner was initially appointed chairman. In September 2001, Warner announced his retirement, effective year-end, handing the chairman’s role to Harrison. “The challenge of integrating J.P. Morgan and Chase has been successfully concluded,” Warner bragged, “and a superb platform is now in place to build the premier global financial institution.”

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Unholy alliance? Immediately following the merger, management, shareholders and industry pundits hailed the union as beneficial to both companies. They said Chase would have access to an established I-banking business and expand its reach in Europe, while J.P. Morgan would gain a foothold in the consumer market and greater exposure in Asia. But many employees did not share their optimism. Concerns about culture clashes abounded; some questioned how Morgan’s traditionally blue-blooded, independent environment would fare as part of a more mainstream company comprised of workers from a hodgepodge of prior mergers. Increased merger costs and a less-than-spectacular fourth quarter in 2000 for both companies contributed to employee insecurities, and definitely had a negative impact on both stocks. The companies announced in December 2000 that the cost of the merger had increased by $4 million, bringing the total cost to $3.2 billion. Another sore point: Chase, as the acquiring company, had control in terms of board seats (eight from Chase’s former board to five from Morgan), but some Chase employees seemed mystified with Morgan preceding Chase in the new corporate name. Morgan employees pointed to the name as yet another sign that Chase couldn’t go it alone and married Morgan to enhance its prestige.

The honeymoon’s over The mixed feelings about the merger proved prescient. The new company’s first year was a rough one. J.P. Morgan Chase had to weather a recession, an economic collapse in Argentina, the bankruptcy of a major client and the effects of the terrorist attacks on the World Trade Center in New York. “One year after the J.P. Morgan/Chase merger, the jury is still out,” Mike Mayo, a banking analyst at Prudential Securities, told Reuters in January 2002. He cited concerns that the firm might have laid off too many workers in critical areas (Morgan Chase cut approximately 8,000 jobs as a result of the merger) and potential inefficiencies in areas like risk management that may have led to large financial losses. For example, Morgan Chase was a major lender to Enron, the Houston, Texas-based energy giant that declared bankruptcy in December 2001. Analysts estimate that J.P. Morgan Chase might have lost $800 million in bad loans to Enron in the fourth quarter of 2001 alone. Additionally, the firm was an adviser on Enron’s proposed merger with Dynegy. That engagement fell through after it Enron’s financial woes became apparent, causing J.P. Morgan Chase millions in fees. The firm had less trouble, relatively speaking, in Argentina; that country’s economy

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J.P. Morgan Chase The Scoop

virtually collapsed in late 2001, causing it to default on its debt. Morgan Chase was believed to have less exposure than its rivals in that country, especially in the consumer debt area. Like most Wall Street firms, J.P. Morgan Chase was affected by the terrorist attacks of September 11. The firm had a major branch in the mall underneath the complex. Luckily, all the employees from that location made it out of the building safely. However, two Morgan Chase employees who had a meeting elsewhere in the World Trade Center were killed in the attacks. Also, the firm might be on the hook for some property stored in its vault at the WTC branch. Many Morgan Chase clients lost cash, jewelry and other valuables. Some customers saying the firm was negligent in not building more sturdy boxes, filed a class-action suit as a result. (Morgan Chase initially had said that everything stored in the vault was irretrievable but some materials were recovered in December 2001.) The suit is still pending. Shortly after the terrorist attacks, the firm announced that Chairman Sandy Warner would retire at year’s end. CEO William Harrison assumed his duties. The two sides stressed that the decision was mutual, but some were skeptical, believing that Warner was the victim of a cost-cutting initiative. “It sends a signal that the bank is being aggressive about cost cutting, and that extends to the highest levels,” Reilly Tierney, an analyst at Fox-Pitt Kelton, told Investment News. Still, there’s optimism the firm can turn things around. “Once the economy recovers, things won’t look so dire,” Steven Wharton, an analyst at Loomis, Sayles & Co., told The New York Times in February 2002. “The question is whether J.P. Morgan can weather the near term, because obviously that will be difficult.”

M&A, IPO report card J.P. Morgan, which attempted to bolster its stocks business, ranked number nine among competitors in its share of global equity and equity-related underwriting in 2001 and 2000. The firm fell from No. 5 in 2000 to No. 6 in 2001 in worldwide merger advisory, though it did manage to have a hand in 14 out of the 35 top U.S. M&A deals of 2001. The firm was the lead acquirer adviser in Comcast’s buyout of AT&T Broadband, valued at $71 billion in July 2001; Phillips Petroleum Co.’s purchase of Conoco for $23.6 billion in November 2001; and Procter & Gamble Co.’s takeover of Connectiv, for $5 billion in May 2001. J.P. Morgan was the lead manager of eight IPOs in 2001. Among the largest deals was The Princeton Review’s $59.4 million offering in June 2001. The firm also lead managed Wright Medical Group’s July 2001 IPO worth $93.8 Visit the Vault Finance Career Channel at http://finance.vault.com — with insider firm profiles, message boards, the Vault Finance Job Board and more.

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J.P. Morgan Chase The Scoop

million and co-led Aramark Worldwide’s $690 million offering in December 2001. J.P. Morgan was also busy in the secondary market. The biggest deals to note: Sprint PCS’s $1.7 billion offering in August 2001; Northrop Grumman’s in November 2001 for $708 million offering, and a $779 million deal for King Pharmaceuticals in November 2001.

IPO no no In April 2002, the National Association of Securities Dealers (NASD) notified J.P. Morgan that the firm could face civil charges for commissions violations made during the tech boom of 1999 and 2000. The charges were a part of two year NASD investigation of several Wall Street firms that supposedly gave investors big blocks of coveted IPO stocks in return for investors’ profits from the offerings. Investor kickbacks to banks were allegedly disguised as commissions. Before implicating J.P. Morgan, the NASD hit Credit Suisse First Boston, the leading tech stock underwriter during 1999 and 2000, with a hefty fine for its commission violations.

Enron dealings hit the floor In July 2002, a U.S. Senate hearing revealed that J.P. Morgan Chase, along with Citigroup, pocketed more than $200 million in fees for work on transactions that helped Enron and other energy firms raise cash flow and bury debt. During the year before it filed for bankruptcy, Enron raised more than $5 billion from J.P. Morgan Chase, Citigroup and other banks through deals labeled as energy trades. The deals, called prepays, were believed to have kept Enron’s debts off the balance sheet. Evidence presented in the hearings suggested that J.P. Morgan and Citigroup were aware of Enron’s plan to keep debt off its books through the transactions. Both banks denied any wrongdoing, testifying that it is not their responsibility to police how clients account for deals. As a result of the news, J.P. Morgan Chase stock plummeted 18 percent in one day to $20 a share, down from a March 2000 high of $67. (The following day, though, the firm’s stock rebounded by 16 percent.) In a conference call with analysts and investors, J.P. Morgan Chase CEO William Harrison said the firm “acted properly and with integrity in all the Enron matters.” An SEC and U.S. Department of Justice investigation into the matter is pending.

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J.P. Morgan Chase The Scoop

League Tables Global Debt & Equity Offerings: Jan 1, 2001 - December 31, 2001

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Merrill Lynch CSFB J.P. Morgan Chase Goldman Sachs Morgan Stanley Lehman Brothers UBS Warburg Deutsche Bank BofA Securities Bear Stearns ABN Ambro Barclays Capital BNP Paribas DK Wasserstein INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

486.9 432.7 346.9 315.1 302.5 277.6 260.6 252.8 224.4 162.5 134.7 90.0 72.9 55.0 53.1 4,075.1

11.9 10.6 8.5 7.7 7.4 6.8 6.4 6.2 5.5 4.0 3.3 2.2 1.8 1.4 1.3 100.0

1,574 2,012 1,312 1,094 795 929 861 949 770 728 427 776 314 216 272 16,748

2,401.7 1,940.9 1,641.0 1,037.5 2,111.1 1,976.0 972.7 888.2 745.3 465.8 230.0 353.4 121.8 207.7 251.2 18,159.6

Source: Thomson Financial

RANK

Global Debt & Equity Offerings: Jan 1, 2002 - Jun 30, 2002

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Merrill Lynch J.P. Morgan Chase CSFB Goldman Sachs Deutsche Bank Lehman Brothers Goldman Sachs UBS Warburg BofA Securities Bear Stearns Barclays Capital ABN Amro Royal Bank of Scotland HBSC Holdings INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

244.8 197.0 183.2 175.4 152.5 143.4 143.0 135.1 132.2 97.3 69.8 50.8 46.2 33.5 32.9 2,199.0

11.1 9.0 8.3 8.0 6.9 6.5 6.5 6.1 6.0 4.4 3.2 2.3 2.1 1.5 1.5 100.0

797 811 627 656 534 588 438 372 507 529 236 211 295 115 204 8,234

1,346.3 753.4 690.1 811.4 688.1 501.5 446.1 647.3 364.8 292.1 150.9 147.9 125.8 39.5 91.3 8,745.2

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Source: Thomson Financial

RANK

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J.P. Morgan Chase The Scoop

Global M&A Transactions (announced): RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Goldman Sachs Merrill Lynch Morgan Stanley CSFB J.P. Morgan Chase Citigroup/Salomon SB UBS Warburg Deutsche Bank Lehman Brothers Dresdner Kleinwort Wass. Lazard Rothschild Bear Stearns Quadrangle CIBC World Markets INDUSTRY TOTAL

RANK VALUE ($BILLIONS)

# OF DEALS

602.8 477.0 460.6 395.3 388.4 264.9 227.9 224.1 123.2 120.7 103.5 90.1 78.2 72.5 37.1 1,751.9

339 255 313 455 403 331 239 253 148 89 161 168 71 2 101 28,885

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

Global M&A Transactions (announced): RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER CSFB Goldman Sachs Citigroup/Salomon SB Morgan Stanley J.P. Morgan Chase UBS Warburg Merrill Lynch Deutsche Bank Lehman Brothers Rothschild Lazard BNP Paribas Cazenove Dresdner Kleinwort Wass. RBC Capital Markets INDUSTRY TOTAL

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RANK VALUE ($BILLIONS)

# OF DEALS

124.5 110.9 108.3 95.9 94.2 93.5 90.8 75.2 69.7 68.5 42.0 23.1 18.9 18.2 16.5 590.3

191 123 117 132 155 109 102 80 84 76 87 40 4 43 34 11,585

© 2002 Vault Inc.

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

Global Equity & Equity-related Issues: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Merrill Lynch Citigroup/Salomon SB Goldman Sachs Morgan Stanley CSFB UBS Warburg Lehman Brothers Deutsche Bank J.P. Morgan Chase Societe Generale Nomura BofA Securities ABN Amro BNP Paribas Credit Agr. Indo-Laz Frere INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

61.3 60.9 48.8 45.4 42.2 29.7 18.4 16.9 14.6 7.6 6.1 5.7 4.8 4.8 4.5 425.7

14.4 14.3 11.5 10.7 9.9 7.0 4.3 4.0 3.4 1.8 1.4 1.3 1.1 1.1 1.1 100.0

206 129 1,482 98 161 160 66 81 60 27 82 26 47 25 7 2,472

1,219.9 1,576.8 1,026.1 1,083.8 934.7 469.0 418.0 276.2 281.0 146.0 215.2 163.4 70.7 51.7 80.0 8,926.8

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

Global Equity & Equity-related Issues: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Goldman Sachs Merrill Lynch CSFB Morgan Stanley Deutsche Bank J.P. Morgan Chase UBS Warburg Lehman Brothers Societe Generale Cazenove BofA Securities BNP Paribas Nomura Bear Stearns INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

31.2 27.5 24.5 16.6 12.6 12.2 11.2 9.0 7.0 4.3 3.7 3.3 3.2 2.8 2.2 201.1

15.5 13.7 12.2 8.2 6.3 6.0 5.6 4.5 3.5 2.1 1.8 1.6 1.6 1.4 1.1 100.0

118 57 81 84 45 50 48 72 34 18 16 18 12 34 22 1,180

802.4 473.9 524.4 489.6 337.3 147.5 221.6 151.3 206.8 45.6 24.7 82.1 26.2 89.3 99.7 4,218.2

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Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

Global Debt (Including MBS, ABS & Tax Munis): RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Merrill Lynch CSFB J.P. Morgan Chase Goldman Sachs Lehman Brothers Morgan Stanley UBS Warburg Deutsche Bank BofA Securities Bear Stearns ABN Ambro Barclays Capital BNP Paribas DK Wasserstein INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

429.3 367.4 303.7 299.2 238.7 237.9 255.7 220.8 206.8 156.2 130.7 83.0 72.3 49.8 49.2 3,609.7

11.9 10.2 8.4 8.3 6.6 6.6 7.1 6.1 5.7 4.3 3.6 2.3 2.0 1.4 1.4 100.0

1,345 1,778 1,130 1,026 649 756 796 773 680 700 402 723 312 189 259 14,033

1,157.5 640.5 696.1 725.6 445.4 456.9 730.4 372.0 461.5 302.4 116.4 240.2 206.1 149.4 168.9 8,372.6

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

Global Debt (Including MBS, ABS & Tax Munis): RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

12

ADVISER Citigroup/Salomon SB Merrill Lynch J.P. Morgan Chase CSFB Goldman Sachs Lehman Brothers Deutsche Bank UBS Warburg Goldman Sachs BofA Securities Bear Stearns Barclays Capital ABN Amro Royal Bank of Scotland HBSC Holdings INDUSTRY TOTAL

CAREER LIBRARY

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

213.6 172.5 172.1 158.8 139.9 136.0 131.2 123.3 107.6 93.9 67.6 50.8 44.7 33.5 31.2 1,997.9

10.7 8.6 8.6 8.0 7.0 6.8 6.6 6.2 5.4 4.7 3.4 2.5 2.2 1.7 1.6 100.0

679 730 579 572 489 404 538 435 315 511 214 211 279 115 196 7,054

543.9 228.9 468.5 321.7 350.7 239.3 354.0 213.5 173.5 210.0 51.2 147.9 120.6 39.5 72.0 4,536.0

© 2002 Vault Inc.

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. Debt & Equity Offerings: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Merrill Lynch CSFB J.P. Morgan Chase Goldman Sachs Lehman Brothers Morgan Stanley UBS Warburg BofA Securities Deutsche Bank Bear Stearns ABN Ambro Royal Bank of Scotland Countrywide Securities Wachovia INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

394.5 350.0 278.7 248.0 244.1 232.0 189.7 180.8 160.2 133.4 132.3 38.5 36.0 26.0 23.8 2,880.1

13.7 12.2 9.7 8.6 8.5 8.1 6.6 6.3 5.6 4.6 4.6 1.3 1.2 0.9 0.8 100.0

1,277 1,741 1,029 869 624 758 644 595 715 404 420 539 116 457 161 12,269

1,807.4 1,399.8 1,178.1 782.1 1,737.2 809.5 1,463.1 462.8 458.4 314.5 219.2 104.7 9.3 40.6 31.1 11,437.2

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

195.8 169.1 148.5 145.0 126.8 118.6 103.9 94.5 93.9 82.7 69.2 25.8 18.1 16.8 15.0 1,537.4

12.7 11.0 9.7 9.4 8.3 7.7 6.8 6.1 6.1 5.4 4.5 1.7 1.2 1.1 1.0 100.0

635 706 504 513 368 397 288 343 518 308 234 85 198 93 119 5,796

1,042.0 6,006.3 536.1 605.8 396.1 574.0 504.0 221.6 279.9 283.4 145.9 6.1 6.3 36.1 26.3 5,720.4

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

U.S. Debt & Equity Offerings: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Merrill Lynch J.P. Morgan Chase CSFB Lehman Brothers Morgan Stanley Goldman Sachs UBS Warburg BofA Securities Deutsche Bank Bear Stearns Royal Bank of Scotland Countrywide Securities Bank One Wachovia INDUSTRY TOTAL

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CAREER LIBRARY

13

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. M&A Transactions (announced with U.S. targets): Jan 1, 2001 - December 31, 2001

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

RANK VALUE

ADVISER

($BILLIONS)

Goldman Sachs Merrill Lynch Morgan Stanley CSFB J.P. Morgan Chase Citigroup/Salomon SB Deutsche Bank Lehman Brothers UBS Warburg Bear Stearns Quadrangle Lazard Dresdner Kleinwort Wass. BofA Securities Greenhill INDUSTRY TOTAL

410.3 289.2 285.0 272.6 234.1 144.2 118.4 87.3 81.3 75.3 72.5 32.0 24.5 23.5 20.4 825.7

# OF DEALS 167 112 138 199 149 112 62 86 66 60 2 37 30 57 11 7,533

Source: Thomson Financial

RANK

U.S. M&A Transactions (announced with U.S. targets): RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER CSFB Goldman Sachs Citigroup/Salomon SB J.P. Morgan Chase Morgan Stanley UBS Warburg Merrill Lynch Lehman Brothers Deutsche Bank BofA Securities Lazard Bear Stearns Dresdner Kleinwort Wass. Rothschild ABN Amro INDUSTRY TOTAL

14

CAREER LIBRARY

RANK VALUE ($BILLIONS)

# OF DEALS

56.9 52.9 44.3 39.6 39.3 32.7 19.7 18.2 15.1 13.6 9.0 8.0 7.3 6.4 5.5 206.5

105 47 39 49 50 42 42 35 26 37 23 16 11 9 4 3,242

© 2002 Vault Inc.

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. Equity & Equity-related Issues: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Goldman Sachs Merrill Lynch Citigroup/Salomon SB CSFB Morgan Stanley Lehman Brothers UBS Warburg J.P. Morgan Chase BofA Securities Deutsche Bank Bear Stearns FleetBoston Financial CIBC World Markets ABN Amro Friedman Billings Group INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

43.6 39.9 31.3 29.7 28.7 13.7 10.4 9.6 5.7 4.6 2.7 1.0 1.4 0.9 0.7 228.9

19.1 17.4 13.7 13.0 12.5 6.0 4.5 4.2 2.5 2.0 1.2 0.4 0.6 0.4 0.3 100.0

94 157 108 120 70 51 63 42 25 36 17 8 12 6 14 769

1,331.4 863.1 668.4 724.6 791.8 333.0 273.7 206.1 162.5 100.2 94.0 20.0 39.4 23.0 38.8 5,893.9

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

U.S. Equity & Equity-related Issues: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Merrill Lynch Goldman Sachs CSFB Morgan Stanley J.P. Morgan Chase Lehman Brothers UBS Warburg Deutsche Bank BofA Securities Bear Stearns Friedman Billings Group CIBC World Markets RBC Capital Markets Thomas Weisel INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

21.1 20.2 16.2 13.4 9.4 7.7 5.5 3.6 3.4 3.3 2.2 1.0 0.5 0.5 0.5 112.8

18.7 17.9 14.3 11.9 8.4 6.8 4.8 3.2 3.0 2.9 2.0 0.9 0.4 0.4 0.4 100.0

73 66 39 68 31 36 32 46 25 18 22 13 9 2 4 460

611.3 435.3 381.2 432.8 287.7 162.3 190.8 120.0 96.1 81.8 99.1 51.5 19.7 17.6 23.5 3,183.6

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CAREER LIBRARY

15

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. Initial Public Offerings 2001: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

Goldman Sachs Merrill Lynch Citigroup/Salomon SB CSFB Morgan Stanley Lehman Brothers UBS Warburg J.P. Morgan Chase BofA Securities Deutsche Bank Bear Stearns FleetBoston Financial CIBC World Markets ABN Amro Friedman Billings Group INDUSTRY TOTAL

11,915.6 8,511.8 5,510.3 4,457.1 1,470.1 1,427.0 695.2 561.2 529.1 426.2 332.0 179.4 162.3 135.7 124.0 37,095.4

32.1 22.9 14.9 12.0 4.0 3.8 1.9 1.5 1.4 1.1 0.9 0.5 0.4 0.4 0.3 100.0

18 12 15 8 10 14 7 4 8 4 3 1 2 1 2 106

517.4 333.1 197.3 140.9 83.3 67.3 30.8 33.1 29.9 27.8 21.4 10.9 10.9 4.1 8.1 1,556.8

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

U.S. Initial Public Offerings: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

16

ADVISER

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

Citigroup/Salomon SB CSFB Merrill Lynch Morgan Stanley Deutsche Bank Goldman Sachs UBS Warburg Lehman Brothers Bear Stearns Cazenove Jefferies US Bancorp J.P. Morgan Chase Legg Mason ING INDUSTRY TOTAL

5,979.6 2,508.9 2,238.6 1,497.4 693.1 691.9 554.7 537.8 384.2 121.5 115.2 103.5 85.5 85.0 78.6 15,954.6

37.5 15.7 14.0 9.4 4.3 4.3 3.5 3.4 2.4 0.8 0.7 0.6 0.5 0.5 0.5 100.0

7 11 8 5 4 4 5 6 4 2 1 1 1 1 1 55

244.8 119.6 99.8 76.6 33.5 45.6 34.7 33.4 24.1 3.7 8.1 6.3 2.6 6.0 3.4 756.4

CAREER LIBRARY

© 2002 Vault Inc.

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. Debt (Including MBS, ABS & Tax Munis): RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Merrill Lynch CSFB J.P. Morgan Chase Lehman Brothers Goldman Sachs UBS Warburg Morgan Stanley BofA Securities Deutsche Bank Bear Stearns ABN Amro Royal Bank of Scotland Countrywide Securities Wachovia INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

355.1 306.4 248.4 238.0 214.6 198.1 168.3 154.6 153.9 128.6 128.5 37.8 36.0 26.0 23.0 2,618.0

13.6 11.7 9.5 9.1 8.2 7.6 6.4 5.9 5.9 4.9 4.9 1.4 1.4 1.0 0.9 100.0

1,124 1,558 888 822 669 513 516 539 688 363 396 533 116 457 150 11,271

926.9 462.8 446.9 565.1 381.1 330.4 142.4 509.6 295.8 213.3 111.2 81.7 9.3 40.6 16.6 4,801.7

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

U.S. Debt (Including MBS, ABS & Tax Munis): RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB Merrill Lynch J.P. Morgan Chase CSFB Lehman Brothers Morgan Stanley UBS Warburg BofA Securities Goldman Sachs Deutsche Bank Bear Stearns Royal Bank of Scotland Countrywide Securities Bank One Wachovia INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

174.7 148.8 140.8 131.6 121.4 109.1 90.9 90.5 87.7 79.3 67.0 25.8 18.1 16.8 14.7 1,424.6

12.3 10.4 9.9 9.2 8.5 7.7 6.4 6.4 6.2 5.6 4.7 1.8 1.3 1.2 1.0 100.0

561 640 468 445 336 366 296 500 249 283 212 85 198 93 113 5,335

430.7 171.0 373.8 172.9 205.3 286.3 101.6 198.2 123.0 187.3 46.9 6.1 6.3 36.1 13.9 2,536.8

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CAREER LIBRARY

17

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. High Yield Debt: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

CSFB Citigroup/Salomon SB Goldman Sachs J.P. Morgan Chase BofA Securities Morgan Stanley Deutsche Bank Lehman Brothers Merrill Lynch UBS Warburg Bear Stearns Jeffereies Wachovia TD Securities CIBC World Markets INDUSTRY TOTAL

12,811.7 9,664.7 9,312.8 8,069.9 7,363.0 6,014.6 5,394.6 5,097.5 4,753.2 2,902.4 2,646.4 661.8 476.6 348.0 332.5 76,319.2

386,103.9 291,263.3 280,658.2 243,201.1 221,897.4 181,260.9 162,576.1 153,622.4 143,246.3 87,469.1 79,754.1 19,944.5 14,363.2 10,487.6 10,020.5 100.0

60 39 36 48 345 18 31 25 22 18 17 5 4 3 3 261

62.3 86.4 34.6 23.6 43.9 63.5 14.1 22.7 38.6 8.4 10.7 0.0 0.0 0.0 5.3 414.7

ADVISER

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

CSFB Citigroup/Salomon SB BofA Securities Deutsche Bank Lehman Brothers J.P. Morgan Chase Goldman Sachs UBS Warburg Morgan Stanaley Merrill Lynch Bear Stearns CIBC World Markets Dresdner KW Wachovia Jefferies INDUSTRY TOTAL

7,003.7 4,342.3 3,767.7 3,609.3 3,523.1 3,507.4 3,158.9 2,400.7 2,297.0 986.4 887.0 531.4 519.8 505.6 335.3 38,641.4

18.1 11.2 9.8 9.3 9.1 9.1 8.2 6.2 5.9 2.6 2.3 1.4 1.3 1.3 0.9 100

46 26 26 22 18 24 9 14 12 6 9 6 4 6 2 164

15.5 29.7 2.9 8.3 41.3 17.9 17.5 2.5 5.4 0.0 4.3 2.0 2.1 0.0 0.4 163.5

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

U.S. High Yield Debt: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

18

CAREER LIBRARY

© 2002 Vault Inc.

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. Investment Grade Debt: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB J.P. Morgan Chase Lehman Brothers Merrill Lynch Morgan Stanley CSFB Goldman Sachs BofA Securities UBS Warburg Deutsche Bank Bear Stearns Bnak One Barclays Capital ABN Amro BNP Paribas INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

140.1 94.2 66.0 59.6 5.8 51.1 46.6 43.6 20.1 16.3 12.2 7.0 5.5 3.6 3.0 638.5

21.9 14.8 10.3 9.3 0.9 8.0 7.3 6.8 3.1 2.6 1.9 1.1 0.9 0.6 0.5 100.0

321 286 164 206 129 138 111 148 66 50 35 36 21 23 6 1,189

657.8 383.9 219.2 287.9 297.3 255.3 212.7 199.6 82.4 64.4 50.3 23.8 21.3 12.5 13.9 2,825.1

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

78.4 59.9 39.5 32.1 31.4 25.9 23.5 20.3 11.6 9.7 5.2 4.0 3.6 3.1 1.9 357.7

21.9 16.7 11.0 9.0 8.8 7.2 6.6 5.7 3.2 2.7 1.4 1.1 1.0 0.9 0.5 100.0

242 227 97 292 73 112 80 70 44 38 28 21 23 11 182 1,059

323.6 252.4 118.6 168.9 183.3 99.7 104.7 73.5 47.3 62.7 20.6 18.8 9.8 9.7 26.4 1,552.3

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

U.S. Investment Grade Debt: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB J.P. Morgan Chase Lehman Brothers BofA Securities Morgan Stanley Merril Lynch CSFB Deutsche Bank Goldman Sachs UBS Warburg Bank One Barclays Capital Wachovia Bear Stearns In Capital INDUSTRY TOTAL

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CAREER LIBRARY

19

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

All Municipal Bond Issues: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Salomon Smith Barney UBS PaineWebber Merrill Lynch Morgan Stanley Bear Stearns Goldman Sachs Lehman Brothers J.P. Morgan Securities BofA Securities Piper Jaffray A.G. Edwards RBC Dain Rauscher Morgan Keenan George K. Baum Bank One INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

39.6 33.6 19.6 19.1 17.5 16.5 16.3 10.0 6.4 6.3 6.2 5.7 5.1 4.4 3.4 283.5

14.0 11.8 6.9 6.8 6.2 5.8 5.7 3.5 2.3 2.2 2.2 2.0 1.8 1.5 1.2 100.0

111 62 108 119 107 73 67 44 54 47 36 22 18 8 11 13,235

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

23.5 23.5 11.6 11.5 11.5 9.4 8.4 5.5 4.3 3.3 3.1 3.0 2.9 2.7 1.8 160.8

14.6 14.6 7.2 7.2 7.2 5.8 5.2 3.4 2.7 2.0 2.0 1.9 1.8 1.7 1.1 100.0

330 446 85 133 136 91 184 85 276 147 272 143 68 228 69 6,555

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

All Municipal Bond Issues: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

20

ADVISER Salomon Smith Barney UBS PaineWebber Bear Stearns Lehman Brothers Merrill Lynch Goldman Sachs Morgan Stanley J.P. Morgan Securities RBC Dain Rauscher BofA Securities Piper Jaffray RBC Dain Rauscher Morgan Keenan George K. Baum Bank One INDUSTRY TOTAL

CAREER LIBRARY

© 2002 Vault Inc.

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. Asset-Backed Securities: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER Citigroup/Salomon SB CSFB J.P. Morgan Chase Deutsche Bank Lehman Brothers BofA Securities Bear Stearns Morgan Stanley Merill Lynch Wachovia Royal Bank of Scotland Bnak One Countrywide Securities Goldman Sachs UBS Warburg INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

49.2 48.8 43.4 34.6 30.7 23.5 20.5 17.8 15.4 13.2 12.1 10.2 8.6 6.9 3.3 349.1

1,440.6 1,427.8 1,270.6 1,013.0 897.2 687.6 599.9 521.9 451.7 387.6 355.1 297.5 252.2 202.6 97.1 100.0

88 130 70 77 82 59 55 48 46 37 30 25 19 23 19 785

91.2 72.7 64.0 78.7 60.9 44.5 8.5 35.2 19.0 5.1 5.0 17.5 9.6 6.4 2.8 529.6

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

27.6 25.3 24.6 24.0 23.7 16.3 16.0 10.6 8.9 8.8 8.7 7.9 6.0 4.7 3.1 223.1

12.4 11.3 11.0 10.7 10.6 7.3 7.2 4.7 4.0 4.0 3.9 3.6 2.7 2.1 1.4 100.0

41 76 49 47 46 38 54 34 13 23 16 17 21 12 5 453

37.9 23.0 24.0 55.5 26.6 6.4 23.7 4.9 15.2 15.0 14.5 1.8 3.0 1.7 3.4 260.7

Source: Thomson Financial

Jan 1, 2001 - December 31, 2001

U.S. Asset-Backed Securities: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER J.P. Morgan Chase CSFB BofA Securities Deutsche Bank Citigroup/Salomon SB Morgan Stanley Lehman Brothers Bear Stearns Merill Lynch Wachovia Royal Bank of Scotland Bnak One Countrywide Securities Goldman Sachs UBS Warburg INDUSTRY TOTAL

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CAREER LIBRARY

21

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

U.S. Mortgage-Backed Securities: Jan 1, 2001 - December 31, 2001

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ADVISER UBS Warburg Goldman Sachs Bear Stearns CSFB Lehman Brothers Citigroup/Salomon SB BofA Securities Royal Bank of Scotland J.P. Morgan Chase Merrill Lynch Countrywide Securities Morgan Stanley Deutsche Bank Securities Sales & Trading Wachovia INDUSTRY TOTAL

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

86.1 82.3 72.5 67.1 61.5 58.1 36.7 21.7 20.8 19.6 8.7 8.0 6.2 5.3 3.4 586.1

14.7 14.0 12.4 11.4 10.5 9.9 6.3 3.7 3.6 3.3 1.5 1.4 1.1 0.9 0.6 100.0

111 62 108 119 107 73 67 44 54 47 36 22 18 8 11 838

DISCLOSED FEES ($MILLIONS) 0.0 0.0 1.3 0.0 1.5 0.0 0.9 1.8 0.0 0.5 0.6 3.2 11.8 0.0 0.0 21.5

Source: Thomson Financial

RANK

U.S. Mortgage-Backed Securities: RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

22

ADVISER UBS Warburg CSFB Bear Stearns Lehman Brothers Goldman Sachs Citigroup/Salomon SB BofA Securities Royal Bank of Scotland Merrill Lynch J.P. Morgan Chase Countrywide Securities Securities Sales & Trading Morgan Stanley Nomura Deutsche Bank INDUSTRY TOTAL

CAREER LIBRARY

PROCEEDS ($BILLIONS)

MARKET SHARE (%)

# OF ISSUES

DISCLOSED FEES ($MILLIONS)

52.4 45.7 39.6 38.3 36.1 25.5 19.0 18.6 15.0 13.6 6.5 4.1 3.1 2.7 2.4 330.2

15.9 13.8 12.0 11.6 10.9 7.7 5.8 5.6 4.5 4.1 2.0 1.3 0.9 0.8 0.7 100.0

47 62 66 70 39 31 37 28 28 26 35 5 9 8 9 470

0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.6

© 2002 Vault Inc.

Source: Thomson Financial

Jan 1, 2002 - Jun 30, 2002

J.P. Morgan Chase The Scoop

Compensation Pay Analyst, Investment Banking: 1st year: $55,000 per year (base salary), plus bonus, depending on the department and performance. First-year analysts also receive a $6,000 relocation allowance. Associate, Investment Banking: 1st year: $80,000 (base salary), $25,000 (signing bonus), $25,000 (performance bonus). Associate, Investment Management: 1st year: $80,000 per year (base salary), $25,000 (signing bonus), plus performance bonus.

Perks • Profit sharing • Three weeks paid vacation for analysts; four weeks for associates • Tuition reimbursement for full-time employees attending school part-time • Subsidized lunches • Subsidized health plan • On-site medical department in New York • Same-sex domestic partner benefits • Company athletic leagues • Travel and entertainment discounts • 12-week paid child care for primary care giver • One-week paid child care for partner of primary caregiver • Dinner allowance after 8 p.m. • Car service after 8:30 p.m.

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CAREER LIBRARY

23

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J.P. Morgan Chase

Organization CEO’s Bio William Harrison: The man behind the mergers When it comes to big-time mergers, J.P Morgan Chase CEO William B. Harrison doesn’t have the best timing in the business. In 1999, as chief executive of Chase Manhattan, Harrison orchestrated the acquisition of tech investment-banking boutique Hambrecht & Quist just six months before the tech industry crashed. And when Harrison merged Chase with J.P. Morgan in 2000 in order to solidify Chase’s positions in the securities business, he did so in the midst of an ailing investment-banking industry. Even so, the lowkey, six-foot-four inch, 58 year-old Harrison is confident he can create a toptier investment bank – and do so by 2007, when he and his top insiders stand to reap millions in performance-based compensation. A third generation banker, Harrison grew up in Rocky Mount, N.C., where his grandfather started Peoples’ Bank and Trust in 1931. After graduating from the University of North Carolina (where, during his freshman year, he played on the school’s basketball team under legendary basketball coach Dean Smith), Harrison landed a job at Chemical Bank in 1967. He rose the ranks at Chemical and, as the bank’s vice chairman, played a major role in its $10 billion merger with Chase in 1996. Harrison remained as vice chairman postmerger and oversaw Chase’s wholesale banking business, which included the investment banking and capital markets units. In 1999 Harrison was named Chase’s CEO. The choice of Harrison as the bank’s chief came as such a surprise because of his low-profile nature that the New York Post, upon Harrison’s appointment, joked, “Bill Who?” N evertheless, Harrison’s unique-to-the-Street, laid back, southern-boy attitude has catapulted him into the top position at the country’s second largest bank. BusinessWeek has described Harrison as a guy who “quietly worked his way up the executive ranks by showing a flair for diplomacy rather than knock-your-socks-off charisma.” Facing internal and external opposition as Chase’s CEO, Harrison was able to use his diplomatic skills in convincing Chase insiders and investors that the bank needed to get into the securities business. After eyeing J.P. Morgan for five years, Harrison finally got his wish. For his efforts in putting together the untimely J.P Morgan/Chase merger, Harrison earned a special $10 million bonus – and stands to pocket $16 million more if, by 2007, J.P. Morgan Chase’s stock hits Visit the Vault Finance Career Channel at http://finance.vault.com — with insider firm profiles, message boards, the Vault Finance Job Board and more.

CAREER LIBRARY

25

J.P. Morgan Chase Organization

$52 a share, the price of Chase’s stock the day the merger closed. (As of midAugust 2002, the stock was trading at $25.50 a share.)

Business Units J.P. Morgan Chase conducts most of its investment banking operations under the J.P. Morgan name and most of its commercial banking operations under the Chase name. The company can be further broken down into six business units: investment banking, J.P. Morgan Partners, investment management and private banking, treasury and security services, retail and middle market financial services, and LabMorgan.

Investment Banking J.P. Morgan Chase’s investment-banking unit operates under the J.P. Morgan name. The unit combines the I-banking operations of J.P. Morgan, Chase Manhattan and Chase’s late-1990s acquisitions, Hambrecht & Quist, Robert Fleming and the Beacon Group. In 2001 J.P. Morgan was a leader in several sectors, including U.S. investment-grade debt (No. 2), U.S. Asset-backed securities (No. 3), U.S. M&A (No. 5), and U.S. debt and equity issues (No. 4).

J.P. Morgan Partners J.P. Morgan Partners is the firm’s private equity unit. The unit, which has a portfolio worth $31 billion (as of fiscal year end 2001), invests in the telecommunications, manufacturing, media and technology, financial services and life sciences industries. JPMorgan Partners has participated in 1,800 transactions since its inception and holds 550 board seats (as of fiscal year end 2001).

Investment Management and Private Banking The company’s investment management business operates under the brand name JP Morgan Fleming Asset Management. The firm was one of the top five asset managers in 2000 with approximately $638 in assets under management. The JPMorgan Private Bank is the largest private bank in the U.S. and the second-largest worldwide with $320 billion in client assets. The firm brags of relationships with 35 percent of the individuals listed on the Forbes 400 richest people in the world.

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Treasury and Securities Services J.P. Morgan Chase’s Treasury and Securities Services unit provides custodial, liquidity and issuer trustee services to corporations and governments. JPMorgan Investor Services handles custodial accounts (accounts that store assets for institutions, including mutual funds and corporations) and has $6 trillion in assets under custody, including $2.3 in global custody assets. JPMorgan Treasury Services provides cash management, payment and liquidity services to its corporate clients. JPMorgan Institutional Trust Services offers conventional and structured debt payment, securities clearance, collateral management and American depository receipt services.

Retail and Middle Market Financial Services The Retail and Middle Market Financial Services offers banking services to individuals and small businesses. The unit has 30 million customers and offers banking, credit investment and financing products. J.P. Morgan Chase is one of the top mortgage, auto loan and credit card issuers in the U.S.

LabMorgan LabMorgan is the firm’s e-finance venture. The unit develops, both internally and externally, e-commerce strategies and investments. It offers technology, e-consulting, incubation, investment and business development services. LabMorgan has approximately $500 million invested in 60 companies.

Major Locations U.S. • New York, NY (HQ) • Atlanta, GA • Boston, MA • Chicago, IL • Los Angeles, CA • San Francisco, CA • Washington, DC

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J.P. Morgan Chase Organization

International • Brussels, Belgium • Hong Kong • London, UK • Rome, Italy • Singapore • Tokyo, Japan

Key Officers Chairman and CEO: William B. Harrison, Jr. Co-Head, Investment Banking: Walter T. Gubert Head, Retail and Middle Market Financial Services; Co-Head, Investment Banking: Donald H. Layton Co-Head, Investment Banking: James B. Lee, Jr. Co-Head, Investment Banking; Investment Management and Private Banking: David A. Coulter Head, Technology Council: Thomas B. Ketchum Head, Finance, Risk Management and Administration: Marc J. Shapiro Head, J.P. Morgan Partners: Jeffrey C. Walker

Ownership J.P. Morgan Chase is publicly traded on the New York Stock Exchange under the symbol JPM.

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Vault Newswire July 2002: J.P. Morgan’s slick dealings exposed? A U.S. Senate investigation revealed that J.P. Morgan Chase, along with Citigroup, pocketed more than $200 million in fees for work on transactions that helped Enron and other energy firms raise cash flow and bury debt. Evidence presented in the hearings suggested that J.P. Morgan and Citigroup were aware of Enron’s plan to keep debt off its books through the transactions. Both banks denied any wrongdoing, testifying that it is not their responsibility to police how clients account for deals. A further investigation into the matter is pending.

May 2002: Bye Bye Boisi J.P. Morgan announced the resignation of Geoffrey Boisi, the firm’s co-head of investment banking. According to a J.P. Morgan Chase spokesman, it was no secret that Boise and Morgan Chase CEO Bill Harrison had conflicting opinions on the future of the bank. “Bill Harrison was looking at the future and looking for ways to improve J.P. Morgan,” the spokesman said. “After he made those changes, Geoff decided to step down.” David Coulter, J.P. Morgan’s vice chairman, was tapped as the new head of investment banking.

April 2002: NASD to probe J.P. Morgan The National Association of Securities Dealers (NASD) notified J.P. Morgan that the firm could face civil charges for commissions violations made during the tech boom of 1999 and 2000.

January 2002: Enron and Argentina force less than rosy report J.P. Morgan Chase announced that bad loans to Enron and Argentina amounted to an $807 million reduction in revenue for the fourth quarter 2000. Morgan Chased wrote off $456 million in bad credits to the bankrupt energy firm, and booked $351 million in losses on loans to the ailing South American country. Morgan Chase reported a $332 million net loss for the quarter.

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J.P. Morgan Chase Vault Newswire

January 2002: Forget gold, Morgan Chase goes for platinum J.P. Morgan Chase acquired credit card portfolio Providian Master Trust from Providian National Bank for an estimated $2.9 billion. The deal included over $8 billion in credit card loans, covering 3.3 million credit card accounts, most of which were platinum card accounts.

September 2001: Warner retires J.P. Morgan Chase Chairman Douglas Warner announced his retirement in late September 2001, effective by the end of the year. Saying, “[T]he challenging job of integrating J.P. Morgan and Chase has been successfully concluded,” Warner handed the reins to William Harrison, Jr., who already served as president and CEO.

September 2001: Rohatyn jumps ship Nicolas Rohatyn, whom the Financial Times called a “rising star,” left J.P. Morgan Chase to pursue those ever-compelling “personal interests,” according to the firm. Rohatyn had been in charge of LabMorgan, J.P. Morgan’s incubator unit, before J.P. Morgan/Chase Manhattan union. After the merger, Rohatyn, who was once considered by some observers as a possible successor to Sandy Warner, shared the position as head of LabMorgan with Denis O’Leary, a Chase Manhattan tech executive.

August 2001: J.P. Morgan Chase cuts costs, and jobs The firm announced an initiative to cut costs by 15 to 20 percent. As part of its cost-cutting measures, J.P. Morgan Chase cut an unspecified number of jobs, starting with positions in London. The company also banned guaranteed bonuses, tying compensation more to profits.

April 2001: J.P. Morgan hit with bias suit A former public finance associate at J.P. Morgan filed a lawsuit claiming the firm discriminated against women and fired her unjustly in November 1998. The associate, Amy Segal, first complained to the Equal Opportunity Employment Commission in August 2000 that the firm had a “practice and policy of precluding women from positions of power.” The EEOC upheld her complaint and Segal filed suit seeking $25 million in damages. Among her

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complaints was the charge that an exotic dancer at a 1997 holiday party left her feeling “humiliated and disgusted.”

February 2001: Harrison named “Banker of the Year” J.P. Morgan Chase President and CEO William Harrison, Jr., was named “Banker of the Year” by American Banker. The publication cited his role in arranging the acquisitions that made Chase Manhattan a major player in the financial services industry and his role in the J.P. Morgan/Chase Manhattan merger.

January 2001: Done deal The merger of J.P. Morgan and Chase Manhattan officially closed on the first of January and J.P. Morgan Chase was born. The final price of the deal was $33 billion. Approximately 8,000 jobs were cut as a result of the deal.

September 2000: Morgan Chased away The firms announced a $30.9 billion merger in early September. The combined firm will be name J.P. Morgan Chase & Co. Morgan’s Douglas Warner will be chairman; Chase’s William Harrison will be president and CEO. Investment banking operations will be conducted under the J.P. Morgan name and commercial business will fall under the Chase name.

February 2000: Mendoza leaves J.P. Morgan J.P Morgan stalwart Roberto Mendoza’s departure was originally called a retirement; he became a managing director at Goldman Sachs in London in June 2000.

May 1999: Morgan banker named one of Latin America’s 50 leaders for the new millennium J.P. Morgan I-banking managing director Susana de la Puente was named by Time magazine as one of “50 Latin American Leaders for the New Millennium.” De la Puente is in charge of investment banking for the Andean region. J.P. Morgan is generally considered the leading investment bank in South America.

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J.P. Morgan Chase Vault Newswire

Select Recent Transactions • In June 2002, J.P. Morgan lead managed an $84 million IPO for Hub International, a provider of insurance brokerage services. • In June 2002, J.P. Morgan co-lead managed (along with Goldman Sachs) the $1.1 billion IPO for Medco Health Solutions, an operator of prescription drug and healthcare benefits programs. • J.P. Morgan acted as co-adviser to New York-based cable operator NTL, Inc. on its $10.6 billion sale to bondholders in April 2002. Morgan Stanley, CSFB, Salomon Smith Barney and Rothschild served as NTL’s other advisers on the deal, which was the largest announced transaction for the first six months of 2002. • J.P. Morgan was one of the advisors to Lattice Group PLC on its $9.4 billion merger with National Grid Group PLC announced in April 2002. • J.P. Morgan advised IBM on its $2.05 billion sale of its hard disk drive business to Hitachi. The deal was announced in April 2002. • In a transaction announced in April 2002, J.P. Morgan advised South African Breweries PLC on it s $5.6 billion acquisition of Miller Brewing Company. • In March 2002, J.P. Morgan lead managed $95 million IPO for Tsakos Energy Navigation Limited. • J.P. Morgan co-advised Rodamco-Real Estate Assets on its $5.3 billion sale to an investor group. ING Barings acted as Rodamco’s other advisor on the deal, which was announced in January 2002. • In December 2001, J.P. Morgan co-lead managed Lawson Software’s $196 million IPO. • J.P. Morgan co-led Aramark Worldwide’s $690 million initial public offering in December 2001. • In November 2001, J.P. Morgan Chase advised Phillips Petroleum on its purchase of Conoco for $23.6 billion. • J.P. Morgan co-lead managed Northrop Grumman’s $708 million secondary offering in November 2001. • J.P. Morgan co-ead managed DJ Orthopedics’ $153 million IPO in November 2001.

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• In November 2001, J.P. Morgan Chase co lead managed a $779 million secondary offering for King Pharmaceuticals. • J.P. Morgan co-lead managed Sprint PCS’s $1.7 billion secondary offering in August 2001. • J.P. Morgan lead managed Wright Medical Group’s July 2001 IPO worth $93.8 million. • In July 2001, J.P. Morgan Chase advised Comcast on its $71 billion buyout of AT&T Broadband. • J.P. Morgan Chase lead managed Princeton Review’s $59.4 million IPO in June 2001. • Procter & Gamble Co.’s takeover of Connectiv, for $5 billion in May 2001. • The firm co-led an 485.5 million IPO for Select Medical Corporation in April 2001. • In March 2001, J.P. Morgan Chase co-led a $49 million IPO for Seattle Genetics. • J.P. Morgan co-led a $115.5 million IPO for Optical Communication Products in November 2000. • In August 2000, J.P. Morgan lead managed a $76.5 million IPO for Large Scale Biology Company. • Also in August 2000, the firm led an $80 million offering for The Medicines Co. • In April 2000, Morgan led a tasty $63 million IPO for Krispy Kreme Doughnuts. • J.P. Morgan lead-managed a $306 million IPO for France’s Activcard SA in March 2000. • Also in March 2000, Chase Manhattan led a $5 billion debt offering for Ford Motor Credit. • Chase Manhattan was a co-manager for Mediacom Communications Corp.’s $437 million IPO in February 2000. • In 1999, Morgan co-led a $778.6 million secondary offering for Network Solutions, Inc.

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J.P. Morgan Chase Vault Newswire

• Morgan acted as co-advisor to Pharmacia and Upjohn in its $26.2 billion sale to Monsanto. The deal was announced in December 1999. • Morgan acted as an advisor to AT&T in its $5 billion joint venture with British Telecommunications. The deal was announced in September 1999. • In August 1999, Morgan lead-managed the $75.6 million IPO for Interactive Pictures Corp. • In 1999, Morgan also acted as advisor to the Iams Company in its $2.3 billion sale to Proctor & Gamble.

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Our Survey Says Mix is a match Blending the cultures of Chase Manhattan and J.P. Morgan has proven to be a considerable challenge. While the popular public image of Morgan was that of a starched-shirt, mahogany-paneled firm cloistered in 19th-century beliefs and manners, the company was known on Wall Street as being rather progressive. Chase, on the other hand, was in a state of flux even before the Morgan merger. Although the commercial bank had a reputation among its customers as being focused on customer service, it had been in search of a corporate identity as it sought to combine previous acquisitions into a cohesive unit. Following the merger, rumors flourished that loyalists from both firms were eyeing each other with suspicion. And many expressed little confidence in the marriage prospering. But, according to many insiders, especially those among the lower ranks, the combination was agreeable. “From day one of the announcement, it was business as usual,” says a Morgan associate, formerly with Chase Manhattan’s investment banking unit. “I was staffed on deals right away.” He adds, “Nobody cares whether you’ve been in this organization or that one. There’s no bullshit about whether you’re from Chase or J.P. Morgan. It was a very easy transition.” The contact goes on to say that “overall, the merger was good. If anybody has anything negative to say, I believe it’s more a result of the bad market.” A sales associate agrees. “The merger hasn’t gone incredibly smoothly, but it’s more a function of the market than the merger itself. Any difficulties we experienced more or less happened at any other firm.” Although this contact admits, “There is a little of that looking down at Chase people,” he says, “everyone’s on equal footing.” He adds that the huge firm-wide layoffs, a result of the merger and the poor economy, “should be over.” Another insider predicts that other I-banks might soon be going through mergers not unlike the Morgan/Chase marriage. “Eventually, all those old security firms such as Goldman and Merrill will need a big balance sheet to get things done. It’s moving towards the Citibank/Solomon way of doing things. So you can come here and work at a place that’s already gone through their merger. Or you can go somewhere else, and go through their merger. We’re done with the hard part.” The pay off for doing so, the same contact says, could be big. “If you’ve got the time, and you can take a chance on a new platform, you’ll probably get a little more responsibility than somewhere else. And if it flies, you’re in good shape – especially considering 401(k) and stock price.” Visit the Vault Finance Career Channel at http://finance.vault.com — with insider firm profiles, message boards, the Vault Finance Job Board and more.

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J.P. Morgan Chase Our Survey Says

A (mostly) happy step-family Most insiders have only good things to say about their experiences working at Morgan Chase. “They’re serious about business, but it’s a pretty human and laid back place,” says one banker. “It’s an organized, well-managed place, where it’s important to have a personality. People talk to each other about their holidays and interests, sports and the news.” Another associate agrees, calling the firm “relaxed, not too uptight, but professional.” An analyst says, “I would say that the job isn’t perfect, but management is committed to making the analyst experience worthwhile. People are always willing to help their coworkers, the lifestyle is great and the pay is quite good.” A co-worker agrees that “working here is fulfilling,” and even though dealing with “the bureaucracy isn’t, things are improving.” Furthermore, little time is “spent on internal or dead-end projects,” freeing analysts and associates up to learn more about developing deals. One analyst says he’s lucky to work with someone who “has delegated responsibility downward, so I can get my hands on as much as I feel comfortable with – and sometimes more.” Others caution that not all the bosses at Morgan Chase will hand over the reins of responsibility so freely. One insider moans, “Analysts are first and foremost data retrievers.” However, this contact deems it a necessary function because “it forces the analyst to understand the business.” As for interaction with senior bankers, associates and analysts say they feel respected by managers and receive good feedback from them. According to one contact, “senior bankers typically show concern for the development of junior resources.” Another says he enjoys working at Morgan Chase because “analysts are praised for doing good work.” Proclaims one confident insider: “I take my job seriously, and as a result, the senior guys pay attention – and don’t give me trouble when I argue with them.” One sales associate says he enjoys the firm’s “hands-off” attitude. He explains, “Managers let you run your own business. If you’re hitting numbers, no one cares what you do or how you do it.” An experienced commercial banker has a similar, but slightly different spin. She says, “Most managers are reactive but like their subordinates to be proactive.” According to one investment banker, “Relationships with one another outside of work are encouraged – group heads encourage MDs to interact with analysts and associates. And different groups work really well together. It’s very normal to mix all together. In our group, people go out for monthly drinks.”

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Looking for ladies Employees, for the most part, give the firm high marks for diversity, especially regarding women. A New York source says the firm actually “seeks out women and minorities.” Another agrees, saying the firm “goes out of its way” in this area. Reports one source, “There are quite a few women, including senior MDs.” And an insider, in consumer banking, says there’s “lots of female AVPs and VPs,” but admits, “you don’t really see too many senior VPs.” One contact thinks the firm “could use more women,” and says, “we’re trying to hire more.” He adds, “At a certain level, I think managers’ compensation is linked to hitting diversity targets, so some MDs actually fight over qualified women.” A London insider says, with respect to the firm’s hiring practices in Europe, “We have every nationality, especially in our core markets – French, German and Italian. I also work with Russians, Hungarians and Lebanese. Actually, Brits and Americans are minorities.” However, he adds, “I don’t think Europe is as far along as the U.S. in hiring people of African descent.” Even prior to the merger, the parent companies had records of being diversityfriendly. Before combining, each firm made several appearances on the “50 Best Companies in America for Minorities” list, as compiled by Fortune. J.P. Morgan had also instituted a Diversity Steering Committee (DSC), composed of managing directors from each business group to oversee the issues affecting the firm on a global basis. Additionally, J.P. Morgan was the first firm on Wall Street to grant benefits for partners in same-sex relationships.

Dressed for success? Both firms have casual dress codes. Unfortunately, say some employees, the firm is becoming a little too casual for their tastes. While officially, “no jeans, exposed toes, navels or tattoos” are allowed in the office, some report that it’s “slipped to the point where some people are coming in wearing jeans.” One insider finds the attire violations disturbing. “I think it hasn’t improved the overall attitude. Wearing a tie on the trading floor didn’t slow me down before.” One bemused analyst describes his co-workers’ style of dress as “J. Crew and Banana Republic at war.” Some, however, report that insiders welcome the dressed-down look. An investment-banking associate, with a bit more exotic taste than the mass market, says, “I usually wear a Hawaiian shirt every Friday. If I don’t have it on, secretaries scold me. Even the MDs like it. Basically, if it’s not interrupting work, people appreciate that kind of stuff.”

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J.P. Morgan Chase

Getting Hired Hiring Process Separate but equal Morgan and Chase separately hire new associates and analysts in much the same way as they both did before the merger. Each entity recruits at a number of the top-tier schools, but candidates from other schools are also considered. For both Morgan and Chase, at least two rounds of interviews are required. The final round is typically conducted in a Super Saturday format, with candidates spending the day at the firm and interviewing with a number of managers – at least four to six people. While some interviewers will ask complex questions intended to measure an individual’s quantitative skills, others may simply engage in a few minutes of small talk to gauge how well an individual will fit into the organization. After offers are extended, candidates are often invited to a sell day, during which they meet more managers and learn more about the firm before deciding to accept the offer.

Joining J.P. The Morgan side of the J.P Morgan Chase empire recruits at about 50 undergraduate and business schools for positions in global markets, investment banking, asset management services and consulting. Typically, Morgan makes on-campus presentations, giving a company-wide overview of its business, and later makes division-specific presentations in association with school clubs. Some of these are social events such as cocktail parties or lunches, and lucky schools such as UCLA get “beer blasts.” Morgan also hosts “get to know you” dinners at the major business schools. “The people at the early events keep track of who they met,” says one insider. “And if they have something to say about you, it’s funneled to the decision makers at the firm.” First interviews tend to be lengthy and require speaking with various levels of employees, including associates, VPs and MDs. Often candidates go through two first round interviews, which are generally conducted on campus, unless the candidate applied online and doesn’t attend one of the schools where Morgan recruits. In which case, the candidate is interviewed by phone. Second-round interviews often follow the familiar Super Saturday format, in which a candidate will interview with anywhere from five to eight people in total. Depending on the position, offers are normally extended from Visit the Vault Finance Career Channel at http://finance.vault.com — with insider firm profiles, message boards, the Vault Finance Job Board and more.

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J.P. Morgan Chase Getting Hired

a few days up to a month following second round interviews. For one investment management associate, though, “It was a relatively quick interview process. The second round was held the day after my two oncampus interviews. And I literally walked in the door after the second round and the phone was ringing.” According to another associate, candidates can expect questions such as “What do you think of the market?” and “What do you like to do?” The contact adds, “I was never asked to lever and unlever a beta, and there were no math questions. The interviews were more or less to see if you can interact without being a total goof.” Another source says, “Personal fit is first priority. They want to know your background and thought process.” He admits there were “some technical questions, which mostly came during the second round interviews with two MDs, who played a blatant good cop, bad cop routine.” A research analyst, who did not attend one of the firm’s target schools, says he interviewed with managers from three different industry groups. This source says the questions he was asked ranged from the standard accounting and finance questions to other common questions such as “Why J.P. Morgan?” and “Why research?”

Chat with Chase Undergrads applying to Chase need at least a 3.0 cumulative GPA and “strong quantitative, analytical, and computer skills and excellent oral and written communication skills,” according to the firm. The same basic requirements go for MBAs, although there’s no minimum GPA requirement. The first step is an on-campus interview, and then it’s on to a Super Saturday. Usually, on the Friday night before the Super Saturday, undergrads have a dinner with Chase analysts. On Saturday, candidates typically interview with four bankers. The MBA process is pretty much the same, excluding the dinner. For MBAs, “Final rounds are five two-on-one interviews, and all interviewers must agree [in order] to hire a particular candidate,” reports one source. In general, Chase bankers note that interviewers are trying to “get a feel for who you are.” Says one source, “It is really about your personality and vision, which should be clear.” Typically, offers are extended the Monday or Tuesday following Super Saturday.

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Questions to Expect 1. What interests you about banking? J.P. Morgan Chase hires people from all backgrounds, but if you don’t have finance-related experience, you better be ready to say why you find the business so interesting. 2. Why have you chosen this particular group? The firm likes to emphasize its “group” structure based on development programs. Showing that you know what makes each group unique will demonstrate that you have done your homework. 3. Describe a situation in which you have worked with a team. Teamwork is the buzzword in banking today. Be ready with an example about how working together enabled you to accomplish something that would not have been possible without cooperation. Show how you were a leader as a member of the team you are describing. 4. Company A is considering acquiring Company B. Company A’s P/E ratio is 55 times earnings, whereas Company B’s P/E ratio is 30 times earnings. After Company A acquires Company B, will Company A’s earnings per share rise, fall, or stay the same? Company A’s earnings-per-share will rise because of the following rule: when a higher P/E company buys a lower P/E company, the acquirer’s earningsper-share increases. The deal is said to be “accretive” as opposed to “dilutive” to the acquirer’s earnings. 5. Walk me through the major line items on a Cash Flow Statement. First, the Beginning Cash Balance, then Cash from Operations, then Cash from Investing Activities, then Cash from Financing Activities, then the Ending Cash Balance. 6. How would you go about valuing a company whose stock you were considering buying? One answer is to discount the projected cash flows by the company’s riskadjusted discount rate. After projecting the first five or ten years, you add in a “terminal value,” which represents the present value of all the future cash flows that are too far into the future to project. You can calculate the terminal value in one of two ways: (1) you take the earnings of the last year you projected, say year 10, and multiply it by some market multiple like 20 times earnings, and that’s the terminal value; or (2) you take the last year, say year 10, and assume some constant growth rate after that like 10 percent – the present value of this constant growth rate is the terminal value. You should

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J.P. Morgan Chase Getting Hired

also mention other methods of valuing a company, including looking at “comparables,” or how other similar companies were valued recently. 7. What directions do you think the banking industry will take in the future? You do not have to be right about this, but this is your chance to show that you read more than the sports page. Discuss issues like the breaking down of barriers between commercial and investment banking and whether retail distribution will be increasingly necessary to compete in the underwriting business as well as recent mergers and acquisitions in the finance community. 8. Characterize J.P. Morgan from other banks. This will gauge how much interest you have specifically in J.P Morgan. Interviewers will try to find out if you’ve at least looked at the company’s web site and know the recruiting buzzwords. 8. How do you deal with adversity? Show that you can learn from your mistakes. A question like this can also be an opportunity once again to show off your team-oriented approach to problem solving. 9. What do you see yourself doing in 10 years? You do not have to answer that you want to be working for J.P. Morgan, but you should be prepared to talk about the skills that you expect to learn from working for the firm. 10. Discuss a difficult ethical decision that you recently faced. Tell a story where you ended up doing the right thing. 11. Are you worried about working long hours? Yes, you are aware that you will be working long hours at J.P. Morgan, but worried? No. Discuss how you have worked very hard in other situations. 12. What item on your resume tells us the most about you? Pick something that your interviewer might have otherwise overlooked. 13. What have you read in the paper that interests you? 14. What’s your opinion on the market? The economy? 15. What other banks are you talking to? Interviewers would rather hear that you’re interviewing with similar types of banks to J.P. Morgan, as opposed to small banks or companies in another field. Again, this question gauges your seriousness in finding a position in the I-banking industry.

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Questions to Ask “No matter what you do when you’re in an interview, don’t ask nothing.” – a current J.P. Morgan associate 1. Where is J.P. Morgan Chase headed in the next five years? Be prepared to talk about the merger and to listen to how the firm plans to integrate and grow. 2. Can you tell me more about the training program in this group? J.P. Morgan is proud of its specialized training programs; show that you know something about them but want to learn more. 3. Is it possible to interact with other departments? You do not want to mention switching to other departments, but you do want to demonstrate that you are interested in the firm as a whole. 4. How has the firm changed since you first arrived? Besides the merger, of course. 5. How is J.P. Morgan’s one-stop shopping model a strategic advantage? How is the balance sheet used to get deals? These questions show that you’ve done your homework and know about J.P. Morgan’s most obvious difference from most of its competitors – its backing of a huge commercial bank in Chase. According to a former Morgan banker, “It’s important to ask questions that show you have a high level of knowledge and interest in the firm.” 6. I heard you just hired Jane Doe from Acme Investment Banking Group. How are you finding her transition into the firm? If you can, find out something specific about a new major hire (such as a head of sales and trading, or a head of investment banking) and ask how that has affected or will affect the bank or a specific unit. This shows you’ve done your research and are interested in J.P. Morgan.

To Apply For detailed descriptions of positions, listings of available opportunities, or to apply online, go to the firm’s career section of its web site at careers.jpmorganchase.com. Note: For departments not listed below, you must either apply on-campus via your career services center, or apply online.

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J.P. Morgan Chase Getting Hired

For General Inquiries: Human Resources J.P. Morgan Chase & Co. 270 Park Avenue New York, NY 10017

Corporate Finance/M&A New York Campus Recruiting Attn: Corporate Finance/M&A Analyst Program 277 Park Avenue, 2nd Floor New York, NY 10172 Campus Recruiting Attn: Corporate Finance/M&A Associate Program 277 Park Avenue, 2nd Floor New York, NY 10172 New York (summer junior internship program) Campus Recruiting Attn: Junior Intern Program 277 Park Avenue, 2nd Floor New York, NY 10172 San Francisco Campus Recruiting Attn: Corporate Finance/M&A Analyst Program One Bush Street, 15th Floor San Francisco, CA 94104 Campus Recruiting Attn: Corporate Finance/M&A Associate Program One Bush Street, 15th Floor San Francisco, CA 94104 Texas Campus Recruiting Attn: IB Analyst Program P.O. Box 2558 Houston, TX 77002-8029

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J.P. Morgan Chase Getting Hired

Campus Recruiting Attn: IB Associate Program P.O. Box 2558 Houston, TX 77002-8029

Markets Campus Recruiting Attn: Markets Analyst Program 277 Park Avenue, 2nd Floor New York, NY 10172 Attn: Equities MBA Associate Program. Fax: (646) 534-0018 (include cover letter and resume) Attn: Fixed Income MBA Associate Program. Fax: (646) 534-0018 (include cover letter and resume) New York summer junior internship program Campus Recruiting Attn: Junior Intern Program 277 Park Avenue, 2nd Floor New York, NY 10172

Equity Research Campus Recruiting Attn: Equity Research Junior Analyst Program 277 Park Avenue, 2nd Floor New York, NY 10172 Investment Management JPMorgan Fleming College Recruiting Attn: Investment Management Analyst Program 345 Park Avenue, 4th Floor New York, NY 10154-1002

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J.P. Morgan Chase Getting Hired

JPMorgan Fleming Associate Recruiting 345 Park Avenue, 4th Floor New York, NY 10154 Attn: Franklin Mayers

Private Banking JPMorgan Private Bank College Recruiting Attn: Private Banking Analyst Program 345 Park Ave., 4th Floor New York, NY 10154-1002 JPMorgan Private Bank Associate Recruiting 345 Park Avenue, 4th Floor New York, NY 10154 Attn: Franklin Mayers

Middle Market New York JPMorgan Chase Attn: Middle Market Analyst Program 1166 Avenue of the Americas, 17th Floor New York, NY 10036 Texas JPMorgan Chase Attn: College Recruiter – Middle Market P.O. Box 2558 Houston, TX 77252

Planning and Analysis J.P. Morgan Chase Attn: Recruiting Manager Planning and Analysis Associate Program 95 Wall Street, 12th floor New York, NY 10005

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J.P. Morgan Chase

On the Job Job Descriptions Analyst, Investment Banking I-banking analysts hold the position for two or three years, joining either the advisory, debt capital markets, or equity capital markets. Most analysts begin in New York; others join Morgan offices in Chicago, Houston, Los Angeles, and San Francisco. General responsibilities include: performing financial and valuation analyses, maintaining databases, building computer models and preparing presentation materials.

Associate, Investment Banking An investment banking associate advises corporations on their overall financial strategies. The banking associate executes evaluations for client companies and writes reports for them, making financial recommendations such as the most effective means of raising capital. Associates spend a significant portion of their time interacting with clients, giving presentations, and listening to their feedback. One M&A associate warns that hours for the position “oscillate tremendously.” Daily activities include: • Preparing exhibits for presentations to clients, including industry overviews. • Preparing financing case studies. • Attending presentations of financing recommendations at client’s offices. • Writing sales memoranda for distribution to J.P. Morgan institutional sales force in connection with stock or bond offerings. • Assigning exhibits and analysis to analyst on deal team. • Preparing common stock comparisons, merger runs, and LBO analyses. • Assembling and editing pitchbooks.

Summer Analyst and Summer Associate, Investment Banking Typically, summer analysts at J.P. Morgan Chase have completed their junior year of college, while summer associates have completed their first year of business school. The interns work with a specific group, though they have a chance to learn about the business practices of the entire firm. Interns are charged with intensive quantitative analysis such as reviewing figures for a particular proposal or presentation. Interns also have the chance to attend Visit the Vault Finance Career Channel at http://finance.vault.com — with insider firm profiles, message boards, the Vault Finance Job Board and more.

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J.P. Morgan Chase On the Job

meetings with clients and meet with senior personnel. The undergraduate internship lasts at least 10 weeks. The firm asks for 12 weeks from MBA interns, but requires a 10-week minimum. Each intern gets two mentors: a “buddy,” who is an associate or analyst, and a senior mentor (a vice president or managing director). These mentors don’t have an “interventionist” role – their job is not to see that the intern gets an offer. A number of events for mentors and interns are held. J.P. Morgan encourages summer mentors to get together and hold roundtables. Mentors are expected to stay in touch once the summer’s over, by sending reprints of interesting articles, etc. Each intern is given a mid-summer review. These are generally oral, although they sometimes involve a written summary. Each of the firm’s business group has its own system for giving full-time offers, but in general these offers are based on written forms filled out by senior people who work with the intern. The groups have business-specific evaluation forms (sometimes specifically created for the internship program) that measure things like tech skills and attitude. Getting a full-time offer as a summer hire is no sure thing, though the firm reports that over 50 percent do receive one.

A Day in the Life Associate, Investment Banking 8:00 a.m.: Check voicemail while getting dressed. Read Journal on subway to work. 8:30 a.m.: Arrive at work. Check and return e-mails. 8:45 a.m.: Meet with an analyst (undergrad). Review what he or she put together from the night before for a 9:00 a.m. meeting. Make last minute changes. 9:00 a.m.: Internal meeting with deal team – deal teams typically consists of an analyst, an associate, a VP and an MD – followed by conference call with client. 10:30 a.m.: “Crank” on a financial model using Excel. 11:30 a.m.: Meet with an analyst (a different one than you met with at 8:45) to discuss a different deal (“I could be working on four deals at a time.”). Agree to check in with the analyst at 3:00 PM. (“It’s important to stay ahead

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of schedule. Make sure you have time for the analysts. If you have too many things on your list, you’re going to screw someone on the bottom.”) 12:30 p.m.: Lunch at your desk (“usually just run out to grab a sandwich.”). Check with production department on timing of delivery of pitchbooks for a marketing meeting tomorrow. 1:00 p.m.: Pick up pitchbooks for tomorrow’s meeting. Go through books with yet another analyst. 1:15 p.m.: Hop into a cab with an MD to go meet with a client or co-advisor out of the office. 1:30 p.m.: Meeting with client or co-advisor out of the office. (“This is the highlight of your day. You get to leave the office and talk to a client and an MD. The upside is you answer two questions fairly articulately and the MD thinks you’re a superstar. The downside is the MD walks away from the meeting with 14 ideas that he wants analyzed. Though, you’ll probably only get back to him with two of them.”) 3:00 p.m.: Call your analyst on the way home from the meeting (“tell him what a good job he did on the books for the meeting”) and go over a gameplan for the rest of the day. 3:15 p.m.: Back at the office. Check in with the analyst who you met with at 11:30 a.m. (“See what they need, what kind of gathering they’ve done.”) 4:45 p.m.: Check with secretary to see if your travel plans for tomorrow’s meeting were made. (“They often mess up your tickets, but fortunately, it’s only a two-minute fix.”) 5:00 p.m.: Make phone calls. (“Client calls that a VP gave you to make. Usually some crappy task that screws up your afternoon.”) 6:00 p.m.: Before leaving the office for the day, MDs assign you work, which includes writing a credit memorandum and an outline on who’s doing what on a particular deal. (“As MDs walk out the door, they shell you with ideas that you and an analyst have to try to figure out what to do with. If you’re a first–year associate, you usually spend about 45 minutes extra trying to figure out how to do something.”) 8:00 p.m.: Order dinner and eat at desk. (“Dinner’s always a little later than you want it to be. You eat at eight if you’re lucky. Sometimes, you’ll be stuck on a call until nine.” “In the London office, the cafeteria closes at nine and there’s nothing to walk to close by. So, if the cafeteria is closed when you

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J.P. Morgan Chase On the Job

want to eat, you hike five blocks to the nearest McDonald’s and eat crap again for the ninth night in a row.”) 9:00 p.m.: Work on projects given to you during the day. Help analysts with Excel modeling. 12:00 a.m.: Call car service and go home. (“It’s not unusual that you’re there until two, though.”)

Associate, Investment Management 6:30 a.m.: Read The Wall Street Journal on the subway ride to work. 7:00 a.m.: Check and return e-mail and voice mail (“From the morning and night before, you’ll probably have 20 e-mails – mostly analysts recapping what they think is important in the news, and clients telling me what they think is interesting in the news.”) 7:25 a.m.: Morning meeting. (“This is to get a daily agenda. Everyone fires questions at the marketing people, who answer the questions and give you a framework of what to talk about with your clients.”) 8:00 a.m.: Call portfolio managers and research analysts to discuss news, earnings releases and change of opinions. 8:30 a.m.: Call your list of clients. (“I have about a dozen clients; I put in anywhere from 15 to 35 calls a day into clients on average.” On client calls, “you pick out highlights of the morning meeting and add your own color. The more you get comfortable with your job, the less you rely on the morning call, and the more you pitch your own ideas.” “Half the time you’re on the phone with your clients you’re just bullshitting with them – though, it all depends on how well you get to know them.” “It’s important to get to know your clients and to get them to like you.”) 11:00 a.m.: Read research reports. Set up meetings between research analysts and clients. (“Every other week or so, I travel out of state with an analyst to go meet with a client.” “I act as a sort of buffer between [research] analysts and clients.”) 12:00 p.m.: Eat lunch at your desk (“Unlike traders, I can pretty much run out whenever I want. Mostly I just run out and get a sandwich and eat it at my desk.”). 12:30 p.m.: Review new issues coming to market this week. Check e-mails again. (“During the day, you’ll get a total of about 100 e-mails, mostly from

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analysts, about stuff like earnings releases and breaking news. At any time you could get a call from a client, so you always want to be up on what’s going on in the markets.”) 2:30 p.m.: Keep track of existing portfolio holdings. 3:30 p.m.: Meet with a company and a client out of the office, or drop in on investment conference, where you’ll listen to two 45-minute presentations including a 30-minute presentation by company management and 15 minutes of Q&A. (“Industry conferences are the most efficient way to quickly learn about several different companies and decide whether they’re worth your attention.”) 5:30 p.m.: Return to office. Check e-mail and voicemail. Write up a summary of the meeting for clients that didn’t attend. (“You’ll include the overall tone and other highlights.” “Writing memos to clients is always a good idea – anything you can do to generate business.”) 6:30 p.m.: Take subway home.

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J.P. Morgan Chase

Final Analysis The merger of J.P. Morgan and Chase Manhattan Bank produced a company that offers every conceivable financial product, from checking accounts and credit cards to venture capital and derivatives. J.P. Morgan Chase has access to virtually every major market, with offices in many of them. For these reasons alone, the firm has to be considered a big-time player in the finance industry. Add the respect that the former J.P. Morgan, by way of its rich history, commanded, and the remarkable growth of Chase Manhattan during the late 1990s, and J.P. Morgan Chase’s lure for a potential employee is undeniable. But beware of the lingering uncertainty surrounding the firm. Any merger has its share of culture clashes, and the joining of established players such as Morgan and Chase only exacerbate the problem. J.P. Morgan Chase’s corporate culture can charitably be called unsettled, and it might be for several years. Also consider the firm’s reputation, always a wild card when financial services firms mix.

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J.P. Morgan Chase

Recommended Reading A visit to J.P. Morgan Chase’s web site (www.jpmorganchase.com) details the firm’s operations and distinguishes between the firms that merged to make up the new behemoth. The site links to a J.P. Morgan section (www.jpmorgan.com), which describes the firm’s investment banking, investment management and private equity businesses. And there’s a link to the Chase Manhattan section (www.chase.com), which has information on the firm’s retail banking units. Note, too, that each firm lists its recruiting information separately. If you want some historical perspective, read Jean Strouse’s Morgan: American Financier and Ron Chernow’s The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance. We recommend the following recent articles on J.P. Morgan Chase and its predecessors: • “Luck or Pluck? Coulter Moves Up At J.P. Morgan,” The Wall Street Journal, May 29, 2002. • “Why J.P. Morgan Keeps Showing Up in the Wrong Place,” The Wall Street Journal, March 14, 2002. • “Weathering the Storm: Battered Shares of J.P. Morgan Chase start to attract bargain hunters,” Barron’s, March 11, 2002. • “Trading Charges: Lawsuit Spotlights J.P. Morgan’s Ties To the Enron Debacle,” The Wall Street Journal, January 25, 2002. • “Dispute Shows the Strains of Tougher Times,” Financial Times, April 16, 2001. • “Banker of the Year: Harrison Has the Helm,” American Banker, February 1, 2001. • “Chasing J.P. Morgan’s Assets and Prestige,” Fortune, October 2, 2000. • “J.P. Morgan, Chase to Form Behemoth,” The Wall Street Journal, September 14, 2000. • “The End of ‘High’ Finance,” The Wall Street Journal, September 14, 2000. • “Banking On Chase,” Fortune, June 26, 2000. • “J.P. Morgan Surpasses All Expectations,” Financial Times, April 15, 1999.

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