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JP Morgan success story। case study of jp morgan। story of world 's richest banker।

             The article covers the success story of jp morgan or Mr John Pierpont Morgan. He saved US government many times in recession and depression. He also saved many powerful companies by financing. He established many powerful companies. He borned in 1837 in a rich family. His father was a rich businessman and a successful person. His father managed different companies. An insurance company was driven by him(father). He was a financiar. It means he provided finance to companies. He was also a successful merchant banker. The work of merchant banker is to give financial advice to companies or help them to raise funds. The uncle of jp morgan was a music composer and song writer. He wrote the song,named 'Jingle Bells' for childrens and also composed the music. Initialy the song didn't perform good but later the song became superhit.

JP Morgan success story। case study of jp morgan।

          After graduation he joined duncan, sherman & company. This company was directed by his father. In this time period he came in contact with a captain of a ship. Captain told him that he bought huge coffee and he couldn't sell the coffee because he didn't find coffee's buyer. So he agreed to sell the coffee in low price. Jp morgan bought the full stock of coffee from the captain and after sometime he sold the coffee in high price. Thus he earned a good profit. When any type of business opportunity came to jp morgan he thought about it and worked on it. Most of the time he had to work with his father and he did any work as his father told to do. So he didn't get freedom in business. In 1890 his father was dead by car accident.  And from then jp morgan started to operate the business in his own style. He worked on all the opportunities that came to him. Besides this he focused on new innovative ideas. He was impressed by the work of Thomas Alva Edison. He hired edison to install the electricity in his home. He also helped edison by giving huge capital to form his company Edison Electricity. Later they established world's first power station. 


            In 1871 he formed a company with a banker,Anthony Drexel. The name of company was 'drexel, morgan & company'. Drexel, morgan & company provided finance to other companies. Manytimes they provided finance to US government. After the death of anthony drexel in 1893 all the controlling power came to jp morgan. So he changed the company name to 'jp morgan & company'. And on this time period or from 1893 a great depression came to the economy of united states. Many businesses were struggling and many businesses were closed their operations. On this time period railroad companies were struggling most. Seeing this opportunity he provided finance to railroad companies that were struggling most. He took under control the companies providing capital to them which needed emergency finance in us economic depression. Thus he took 20-25% railroad companies of united states under him.


         In 1901 Rusbelt became the president of united states. He observed that many businessmen continued their monopoly in different sector in u,s market. It means a person controls one whole sector. Using this monopoly many businessmen didn't pay the labours. Jp morgan continued his whole railroad companies through his company,named Northern Securities. Mr. Rusbelt watched that jp morgan continued monopoly in railroad sector. For this he started to investigate on northern securities depending on the anti-trust act. In 1904 supreme court of united states ordered morgan to break his monopoly on railroad sector and divide northern securities into small companies. 


          Jp morgan played a great role to establish big businesses in united states. In 1891 he did the merger of thomas alva edison 's company, edison general electric with thomson houston electric company and formed a new company, named General Electric. And later general electric became the biggest electric equipment manufacturing company in united states. And now general electric is considered as one of the biggest company of u,s. And its current market capitalization is about 56 billion dollar or 4 lakh 25 thousand crore rupees. In 1901 jp morgan bought 'Carnegie steel company' from Andrew Carnegie. Then he bought it in 480 million dollars. And later he did the merger of carnegie steel with his other small steel companies and established united states steel (uss) corporation. And it is also known as u,s steel. After this merger u,s steel became the world's first billion dollar company. Then its market capitalization was 1.4 billion dollars. And then it was a huge amount.


            Till then there was no central bank in united states. Such as india have Reserve Bank of India and united states have Federal Bank etc. For this when government faced problem then only one name came to government. And it was jp morgan. Because he was the biggest financier till then. He had the capability to finance anyone. He helped u,s government by giving finance in great depression of united states in 1893 and saved the government. Similiarly, on the recession of 1907 he also helped the u,s government. Gradually he brought the whole banking system of u,s under control using his power. Observing the growing power of jp morgan in banking sector u,s government established central bank, named Federal Reserve System. And now federal reserve bank of new york is the powerful reserve bank among the world. 


             On the recession time of 1907 many stock brokerage firms faced problems. Besides this the whole stock exchange, NYSE (New York Stock Exchange) faced problems. Then jp morgan helped stock brokerage firms and also nyse. And he saved them from collapsing. In his successful career he fully transformed the banking industries, railroad industries, finacial industries, power industries, steel industries. Most of the control of these sectors was under jp morgan. Later in 2000 his company,jp morgan was merged with Chase and the name of the merged company was decided 'JPMorgan Chase & CO'. Now jpmorgan chase & co is the 12th biggest company of the world. And its market capitalisation is about 278 billion dollar or 21 lakh crore rupees. And india's biggest company, Reliance Industries Limited 's market capitalisation is about 9.5 lakh crore rupees. JPMorgan Chase & Co is the biggest commercial bank of the world


              In his whole life jp morgan controlled many companies. In peak point of his successful career he was the board member of 48 companies. He didn't get succeed in his all bussiness. He had to face many failures in his career. But he always focused on the opportunity. He always detected the right opportunity and after finding the right opportunity he started to work on this. Once a person with a envelope came to jp morgan. He told jp morgan that there was the formula of success in the envelope and he could give it to you in change of 25,000 dollar. Jp morgan thought for a little while that what could be there in the envelope that could get him guaranteed succeed? He was confused about this. For this jp morgan told him that he didn't know the inner thing of the envelope and So if he(person) opened the envelope and showed the inner things and if the thing was liked by him then he would certainly pay 25,000 dollar to him(person). And then the person gave the envelope to jp morgan. He opened it and pulled out a paper. After reading this he immediately pay 25,000 dollar to the person. There was written the formula of guaranteed succeed in the paper. There was two formula:

1. Every morning make a list of your works.

2. Complete these works.

He told his 25,000 dollar guaranteed succeed formula everyone in free. In spite of knowing the formula few people followed the formula. 


          Everyone know the story of titanic. In april 1912 titanic pushed a iceberg and then it sank under the water. In this incident many people were dead. Jp morgan also did the booking of the titanic. But for his illness he had to cancel his titanic trip. In 1913 after one year of tiranic accident at the of 75 years he was dead in italy. U,S stock exchange stopped for two hours for his death. Today the world know jp morgan as the greatest banker and successful businessman. When he was dead his net income was 118 million dollars. And then it was 0.3% of the u,s gdp. Now gdp of u,s was 19 trillion dollar and its 0.3% means about 57 billion dollar or 430000 crore rupees. 


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