History of J.P. Morgan in Mexico

The history of J.P. Morgan in Mexico dates back more than 100 years, when John Pierpoint Morgan, the patriarch of the American merchant bank that bears his name, began developing a keen investor’s interest in Mexico’s modernization. As early as 1880, Pierpoint’s New York firm, as well as the London-based firm of his father, Junius S. Morgan, joined European investment houses in loan and bond issues for the Mexican government and many private enterprises within the country. Throughout the late 19th century and to the present day, J.P. Morgan has been an active financial partner with the Mexican government and the country’s private sector.

J.P. Morgan in Mexico

Timeline: 1886 - 1969 | 1970 - 1989 | 1990-1999 | 2000 - Present

2000 - Present

 

2009:

The Treasury Services business increased its market share through an increase in the line of products and services, such as factoring and credit operations.

 
 

2006:

The bank requested the Mexican Derivative Exchange and BBVA Bancomer’s F/30,430 Trust Fund authorization to act as a "clearance" partner representative of third parties for contracts of futures for TIIE and IPC. By August 15, 2006, the bank received confirmation to act as administrator of trust F/00265.

 
 

2005:

J.P. Morgan was named “Best Investment Bank in Latin America” by Latin Finance magazine.

 
 

2004:

J.P. Morgan Chase & Co. merged with Bank One Corporation. The new firm, with its corporate headquarters based in New York retained the name J.P. Morgan Chase & Co. The firm then renamed its holding company J.P. Morgan Chase & Co.

 
 

2003:

J.P. Morgan was named “Best Investment Bank over the past 15 years” by Latin Finance magazine. J.P. Morgan also received prestigious awards from Euromoney magazine, including “Best M&A house”; “Best Equity house”, and “Best debt house.”

 
 

2002:

The bank continued to operate actively in the debt, derivatives and currency exchange markets and improved operations efficiency.

 
 

2001:

On April 17th, 2001, the Mexican Ministry of Finance authorized the merger between Grupo Financiero Chase and J.P. Morgan Grupo Financiero. The merger concluded in on May 31, 2001. The firm changed its corporate name to J.P. Morgan Grupo Financiero, S.A. de C.V.

 
 

2000:

J.P. Morgan & Co. Incorporated merged with The Chase Manhattan Corporation. The new firm was named J.P. Morgan Chase & Co.

 

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1990 - 1999

 

1999:

IFR Latin America named J.P. Morgan “The Bank of the Year.” one of many prestigious awards. J.P. Morgan was joint bookrunner in a 1 billion U.S. dollar convertible bond issue for Teléfonos de México. This was the largest Latin American equity markets transaction since the 1994 Mexican peso devaluation. During that year, J.P. Morgan was also joint bookrunner in a 400 million Euro bond issuance for the Mexican Government.

 
 

1998:

J.P. Morgan advised Koch Industries Inc. as well as Isaac, Moises, Alberto, and Manuel Saba in the acquisition of their worldwide polyester production business of Hoechst A.G. to form KoSa. J.P. Morgan was also bookrunner of the USD1,085 billion loan for the acquisition.

 
 

1996:

J.P. Morgan and Swiss Bank Corporation were joint bookrunners in the Mexican government bond issue, raising a total 6 billion U.S. dollars. At that time, it was the biggest emerging markets Eurobond issuance.

 
 

1995:

In order for Mexico to regain access to global equity markets, J.P. Morgan advised the Mexican government during the economic crisis that surged after the peso’s devaluation.

 
 

1994:

In 1994, J.P. Morgan arranged a 700 million U.S. dollar syndicated loan for Petróleos Mexicanos, representing Mexico’s reentry into the international syndicated loan market after 12 years. This was just one of the notable transactions Morgan arranged for Mexican clients during the same year in which the firm received authorization from the government to establish a financial group.

 

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1970 - 1989

 

1988:

In 1988, under the aegis of Morgan Chairman Lewis T. Preston, the firm developed a landmark program that enabled the Mexican government to issue 2.6 billion U.S. dollars of bonds — called Aztec, or Morgan bonds — to credit banks in exchange for existing debt. The program was the basis for a model widely used in subsequent years to restructure the debt of many developing countries.

 
 

1980:

J.P. Morgan opened a representative office in Mexico City. Our clients included the Mexican government, banks and other financial institutions, as well as successful local companies.

 
 

1976:

After World War II, the firm continued arranging loans to various Mexican enterprises. In 1976, Morgan arranged a 1.2 billion U.S. dollar loan to the Mexican government after it was forced, for the first time in 21 years, to devaluate the peso.

 

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1886 - 1969

 

1926:

During the years between World Wars I and II, the firm — by now under the leadership of Pierpont’s son, Jack — maintained close ties to each of the successive Mexican administrations. Dwight Morrow, an influential partner of the firm, was appointed Ambassador to Mexico in 1926.

 
 

1918:

During the Mexican Revolution, when the government defaulted on the 5% external consolidated gold loan, Pierpont committed himself to finding a solution to the crisis because he felt an obligation to the loan’s bondholders in Mexico and the United States. In 1918, senior Morgan partner Thomas Lamont assumed the position of chairman of the International Committee of Bankers on Mexico, which was formed to help Mexico repay its external debt obligations.

 
 

1900-1901:

In 1900, Morgan underwrote a £25,000 of a £6 million sale of 5% first mortgage debentures for the Tucuman Sugar Refining Company. In 1901, it accepted participation of 150,000 British pounds in the Mexican National Railroad Company readjustment loan.

 
 

1899:

In 1899, the House of Morgan recorded a milestone in U.S. finance by participating in a historic bond issue for the Mexican government. The issue, known as the Mexican 5% external consolidated gold loan, totaled 22.7 million British pounds. The deal marked the first time an American firm acted as a manager, and was listed on the prospectus, for a foreign loan. As was the practice at the time, the loan was securitized by bonds that were sold through a syndicate to individual investors.

 
 

1886:

During the late 19th century, the House of Morgan – which was instrumental in financing the growing industrial infrastructure of America — also made significant investments in Mexico’s railroads and utilities. In 1886, Pierpoint, an early investor in the Central & South America Telephone Company, was elected to its board. He later became a director of the Mexican Telephone Company.

 

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