For­mer Chase Man­hat­tan chair­man Wal­ter Ship­ley dies

The Star Malaysia - StarBiz - - Foreign News -

NEW YORK: Wal­ter V. Ship­ley, the for­mer chair­man and chief ex­ec­u­tive of­fi­cer who led the friendly merger of Chem­i­cal Bank­ing Corp with Chase Man­hat­tan Corp. to cre­ate the big­gest US bank and pre­de­ces­sor of what is now JPMor­gan Chase, has died. He was 83.

Ship­ley who led both Chase Man­hat­tan and Chem­i­cal for more than 40 years, died on Fri­day. He had can­cer and passed away in Florida, a Chase spokesman said, with­out giv­ing fur­ther de­tails.

In fewer than five years, Ship­ley pro­pelled Chem­i­cal into the na­tion’s lead­ing bank with al­most US$300bil in as­sets -- first with the US$1.9bil pur­chase of Man­u­fac­tur­ers Hanover Corp in 1991 and then in 1995, with its US$10.9bil merger with Chase Man­hat­tan in which it took Chase’s name.

De­spite an im­pos­ing phys­i­cal stature of 6 feet 8 inches, Ship­ley was an un­der­stated pres­ence com­pared with charis­matic bankers of the era like Cit­i­group Inc’s Sandy Weill and John Reed.

“On Fri­day, the world lost a crit­i­cal force be­hind what is now JPMor­gan Chase and, more im­por­tantly, an in­di­vid­ual uni­ver­sally re­garded with praise for his char­ac­ter, gen­eros­ity and busi­ness acu­men,” Jamie Di­mon, the bank’s chair­man, said in note to em­ploy­ees.

Di­mon said: “Widely re­spected for be­ing a straight shooter, Wal­ter be­lieved there was no sub­sti­tute for tal­ent, drive and hard work.”

With the merger of Man­u­fac­tur­ers Hanover – lo­cated across Park Av­enue from Chem­i­cal’s mid­town Man­hat­tan head­quar­ters – to form the third-big­gest US len­der upon the deal’s com­ple­tion, Ship­ley in­sisted that some of the top jobs at the new com­pany go to man­agers from the ac­quired bank.

He re­lin­quished the CEO ti­tle to Man­u­fac­tur­ers Hanover’s chief, John McGillicuddy, un­til McGillicuddy’s sched­uled re­tire­ment two years later in 1993.

“Some peo­ple’s phi­los­o­phy is I win, you lose,” Ship­ley said, ac­cord­ing to a 1999 New York Times ar­ti­cle. “Our phi­los­o­phy is that the best is when both sides feel they’ve come out win­ners.”

When Ship­ley re­tired in 1999, Chase’s shares had gained eight­fold over the prior decade, giv­ing the bank a mar­ket cap­i­tal­i­sa­tion of US$95.8bil, ac­cord­ing to data com­piled by Bloomberg. Chase went on to ac­quire JP Mor­gan & Co in 2000 for about US$36bil in stock, at the time the world’s third-big­gest com­mer­cial bank merger.

That he was able to do the deals he did stemmed from his “very con­tained ego”, said Lawrence A. Bos­sidy, then chair­man of Al­lied Sig­nal Inc, ac­cord­ing to the 1999 Times ar­ti­cle. Ship­ley was “able to get peo­ple to work very hard for him and get re­sults”. — Bloomberg

In­done­sian au­thor­i­ties are work­ing to de­velop new in­vest­ment in­stru­ments with “good” re­turns in a bid to re­tain on­shore more than US$10bil that was repa­tri­ated un­der a tax amnesty pro­gramme three years ago, with of­fi­cials act­ing be­fore a lock-in pe­riod on the funds ex­pires later this year.

Bank In­done­sia, the Min­istry of Fi­nance and the Fi­nan­cial Ser­vices Au­thor­ity are pre­par­ing the prod­ucts, An­tara news agency re­ported, cit­ing cen­tral bank Deputy Gov­er­nor Dody Budi Waluyo, with­out giv­ing de­tails. In­vestors may not rush to with­draw the money from In­done­sia given at­trac­tive yields on do­mes­tic in­stru­ments and im­prov­ing fun­da­men­tals, Waluyo was cited as say­ing.

The tax amnesty be­gan in 2016 and un­earthed some US$360bil in pre­vi­ously undis­closed as­sets in In­done­sia and abroad, with more than 900,000 peo­ple tak­ing ad­van­tage of the re­prieve.

An es­ti­mated 147 tril­lion ru­piah (US$10.4bil) was repa­tri­ated from over­seas, with the re­turned funds locked in for a min­i­mum of three years in as­sets such as gold, prop­erty and in­fra­struc­ture.

In­done­sia’s ru­piah is the best-per­form­ing Asian cur­rency this year, re­bound­ing about 8% from a two-decade low last year, when it was caught up in an emerg­ing mar­kets sell­off trig­gered by ris­ing US in­ter­est rates. The lo­cal cur­rency’s rally has helped to spur gains in the na­tion’s bonds and stocks. — Bloomberg

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.