Chase Bank was founded in 1799 as the Manhattan Company
Chase Bank's roots go back to 1799, when the Manhattan Company was chartered in New York. The company started as a water supply utility but quickly pivoted into banking, opening the Bank of the Manhattan Company that same year. This bank operated under that name for more than a century before eventually becoming known as Chase Bank.
The institution that most people recognize as Chase today took its current name in 1955, when the Bank of the Manhattan Company merged with Chase National Bank—itself founded in 1877. That merger created Chase Manhattan Bank, which later shortened its name to Chase Bank. The combined entity became one of the largest banks in the United States and has remained so through multiple mergers and expansions over the following decades.
Key Takeaways
- The Manhattan Company, Chase's earliest predecessor, was chartered in 1799 and began banking operations that same year.
- Chase National Bank, a separate institution founded in 1877, merged with the Bank of the Manhattan Company in 1955 to form Chase Manhattan Bank.
- The merged entity adopted the name Chase Bank and grew into one of the largest financial institutions in the United States.
- Chase has continued to expand through acquisitions and mergers, including the purchase of Washington Mutual in 2008 during the financial crisis.
The Manhattan Company's early years as a water utility
When the Manhattan Company received its charter in 1799, its stated purpose was to supply fresh water to New York City residents. The company was founded by Aaron Burr and other investors who saw an opportunity to address the city's water shortage. However, the charter included a clause that allowed the company to use any surplus capital for banking operations—a provision that proved far more lucrative than water delivery.
The banking side of the Manhattan Company grew quickly and soon overshadowed the water business. By the early 1800s, the Bank of the Manhattan Company was a major financial player in New York, and the water utility eventually faded from the company's operations. This shift from utilities to finance set the stage for what would eventually become Chase Bank.
Chase National Bank's separate founding in 1877
Chase National Bank was established in 1877 as an independent institution, decades after the Manhattan Company had already become a major bank. Chase National Bank grew rapidly during the late 1800s and early 1900s, becoming one of the largest banks in the country. The two institutions—Chase National and the Bank of the Manhattan Company—operated as separate competitors for nearly 80 years.
By the mid-20th century, consolidation in the banking industry was accelerating. Mergers between large banks were becoming common as institutions sought to increase their size and reach. The decision to merge Chase National Bank with the Bank of the Manhattan Company in 1955 reflected this broader trend and created a financial powerhouse.
The 1955 merger that created Chase Manhattan Bank
The merger of Chase National Bank and the Bank of the Manhattan Company in 1955 was one of the largest banking combinations of its time. The new entity, called Chase Manhattan Bank, combined the resources, customer base, and branch networks of both institutions. This merger positioned Chase as a major player not just in New York but across the entire United States.
David Rockefeller, who became the bank's chief executive officer shortly after the merger, led Chase Manhattan through decades of growth and expansion. Under his leadership, the bank opened branches internationally and became involved in major corporate financing deals. The merger proved to be a strategic success, and Chase Manhattan Bank became synonymous with American banking power.
Chase's growth through the 20th century and beyond
After the 1955 merger, Chase continued to expand through both organic growth and additional acquisitions. The bank opened offices around the world and became a leader in corporate banking, investment services, and consumer banking. By the late 20th century, Chase was one of the "Big Three" banks in the United States, alongside Bank of America and Citibank.
In 2000, Chase Manhattan Bank merged with J.P. Morgan & Co., creating JPMorgan Chase & Co. This merger brought together two of the most prestigious names in American banking history. The combined institution became the largest bank in the United States by assets and has maintained that position since. Today, JPMorgan Chase operates thousands of branches and serves millions of customers worldwide.
What Chase Bank looks like today
JPMorgan Chase & Co., which operates under the Chase brand for consumer and business banking, is headquartered in New York City—the same city where the Manhattan Company was founded over 200 years ago. The bank offers checking and savings accounts, credit cards, mortgages, auto loans, and investment services to consumers and businesses. Chase has become one of the most recognizable banking brands in the United States.
The bank's long history—stretching back to 1799—reflects the evolution of American finance itself. From its origins as a water utility with a banking sideline to its current status as a global financial institution, Chase has adapted to changing markets and economic conditions. Understanding this history provides context for how Chase operates today and why it holds such a prominent position in the American banking system.
Frequently Asked Questions
Is Chase Bank the same as JPMorgan Chase?
Chase Bank is the consumer and business banking division of JPMorgan Chase & Co. When you open a Chase checking account or use a Chase credit card, you are dealing with JPMorgan Chase. The parent company also operates investment banking, asset management, and other financial services under different divisions.
Who founded Chase Bank originally?
The Manhattan Company, Chase's earliest predecessor, was founded by Aaron Burr and other investors in 1799. Chase National Bank, which merged with the Manhattan Company in 1955, was founded separately in 1877. Neither institution was founded by a single person named Chase—the name comes from Salmon P. Chase, a 19th-century Treasury Secretary and Chief Justice.
When did Chase become a national bank?
The Bank of the Manhattan Company operated as a state-chartered bank for most of its history. Chase National Bank, founded in 1877, was chartered as a national bank from the start. When the two merged in 1955, the combined entity operated as a national bank under the name Chase Manhattan Bank.
Has Chase Bank always been in New York?
Yes, Chase's roots are in New York City, where the Manhattan Company was chartered in 1799. The bank has remained headquartered in New York throughout its history, even as it expanded to other cities and countries. Today, JPMorgan Chase's global headquarters is still located in New York City.