Former Chase Manhattan chairman Walter Shipley dies
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