|
J.P. Morgan goes e-route
|
 |
March 9, 2000: 10:01 a.m. ET
Investment bank launches LabMorgan to advance e-business initiatives
|
NEW YORK (CNNfn) - Investment bank J.P. Morgan Thursday unveiled a new e-business unit that will specialize in high-tech ventures that include electronic trading platforms for currencies, bonds and derivatives, a move it hopes will make it more competitive in the Internet age.
The new unit, called LabMorgan, will partner with J.P. Morgan's other business groups, funneling business to ensure that projects get the e-commerce touch. The New York-based investment bank plans to sink up to $1 billion into the project in its first year. The new unit will have a staff of 200 to advance e-business ideas, identify partners and commit investing capital.
The move coincides with similar large-scale investments in e-business initiatives by other financial institutions as they scramble to ensure they ride the crest of the tech wave rather than be swamped by it. Rival financial houses such as Goldman Sachs Group Inc. (GS: Research, Estimates), Merrill Lynch & Co. (MER: Research, Estimates), Chase Manhattan Corp. (CMB: Research, Estimates) and Citigroup (C: Research, Estimates) are pouring money into Web investments and in-house technology ventures.
"We expect LabMorgan to be a catalyst for transformative global growth for J.P. Morgan," Chairman Douglas Warner III said. "With our long track record of building businesses, we bring compelling strengths to entrepreneurs, potential partners, clients and our own people as they seek to create or realize market value," he said.
J.P. Morgan hopes to re-brand itself as a leader in the development of Internet-related ventures, persuading companies to knock on its door for advice and some cash to launch their ideas. It's also seeking better ways to make money from trading. Because commissions don't pay so much anymore, the bank is focusing on electronic platforms accessed through computers that execute trades and offer access to advice.
J.P. Morgan (JPM: Research, Estimates) shares fell 3/8 to 107 in early trading Thursday. 
|
|
|
|
|
|
J.P. Morgan
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
