History of Our Firm (2024)

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Rachel: You might be surprised to find out that JPMorgan Chase began by supplying water to Lower Manhattan. By the end of the 18th century, there were close to 60,000 people living in New York City. Most New Yorkers had no easy access to clean water. Unsanitary conditions prompted concern about the spread of disease. But it wasn't until an outbreak of yellow fever reached its peak in 1798, that a group of people decided to take action. And the two men who led the charge were none other than Alexander Hamilton and Aaron Burr. In 1799, Hamilton and Burr presented a charter for the governor's signature that would provide clean water to New York City residents through a private company, the Manhattan Company. But there was a catch. Burr had added a clause into the charter that would allow the directors of the Manhattan Company to start a bank with excess capital not needed by the water company. The charter, with its unusual clause, was successfully passed. In order to transport water through the growing city, six miles of wooden pipes were laid in just the first year, providing clean water to 400 homes, shops, and businesses. This service continued until 1842 when New York City established its own municipal water system, and the Manhattan Company's Waterworks closed its operations. Though the Manhattan Company moved out of the water business, it remained a household name. Remember the clause that Aaron Burr included in the original charter in 1799? Within just six months of securing the charter for the water company, the directors voted to open a bank with their excess capital. And the Bank of the Manhattan Company was born. The Manhattan Company's groundbreaking charter became a template for the establishment of other banks within New York. In 1955, the Bank of the Manhattan Company merged with Chase National Bank, the third largest in the United States, to form Chase Manhattan Bank. And in 2000, Chase Manhattan merged with JPMorgan & Co, to form today's JPMorgan Chase.

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Elizabeth: With a rich history tracing back over 200 years, JPMorgan Chase has preserved a unique collection of artifacts and records that help tell the story of our firm. In our collection are two legendary pistols that changed the course of history. How did these artifacts impact a young nation and forever change the lives of two famous statesmen and how did they come to be part of our collection? These pistols, made in 1797 are linked to Alexander Hamilton and Aaron Burr. Hamilton and Burr were highly accomplished men who contributed much to the early growth of the United States. Hamilton was a Founding Father and Secretary of the Treasury. Burr was a Revolutionary War hero and Vice President of the United States. They were both lawyers, traveled in the same circles and were both instrumental in founding JPMorgan Chase's earliest predecessor, the Manhattan Company in 1799. But working together was the exception. Hamilton and Burr's personal and political differences fueled an animosity that played out in public as early as the 1790s. Aaron Burr ran for president in 1800. He tied with Thomas Jefferson but lost the re-vote, thanks in part to Hamilton, who had been campaigning heavily against him. Hamilton: "As for Burr, there was nothing in his favor. He is bankrupt beyond redemption except by the plunder of his country. His public principles have no other spring or aim than his own aggrandizement." Elizabeth: As was the law back then, Burr was instead appointed vice president, a concession he wasn't happy about. Four years later, he ran for New York governor, but lost. He learned afterward that Hamilton had again been slandering him. A scorned Burr did what men of distinction often did back then; he challenged Hamilton to a duel. Burr: "You have invited the course I am about to pursue and now by your silence impose it upon me. Elizabeth: Hard to imagine now, but in early America, the practice of a duel, or prearranged fight, was a respected means of settling a score. There were even rules and guidelines about what could and could not transpire. The goal was to defend what the law would not defend, a man's honor. On July 11, 1804, Hamilton and Burr met in Weehawken, New Jersey. Hamilton carried with him a set of pistols owned by his brother-in-law John Church. As the challenged man, it was his right to select the guns. Hamilton fired his shot in the air. Burr aimed directly at Hamilton and mortally wounded him. The two men returned by boat to New York City where Hamilton died the following morning. Burr, the Vice President was indicted for murder in both states. The charges were dropped, but his political career was destroyed. The pistols survived and in 1930, the Bank of the Manhattan Company, JPMorgan Chase's earliest predecessor, purchased them from the Church family. Years later, in the 1970s, long hidden details were revealed. Both pistols were equipped with a hidden mechanism called a hair trigger, which, if engaged, would allow its user to fire faster than normal. Hamilton, who procured the pistols, would have likely known about this feature and it could have given him an advantage. So, how did he lose? We'll never know for sure, but we're proud to preserve these two pieces of American history and explore their role in a pivotal moment in time.

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Virginia: From New York to Mumbai to Tokyo, JPMorgan Chase's footprints spans worldwide. Famed American banker, J. Pierpont Morgan, is the namesake and one of the founders of our firm. But it was his father, Junius's, move to London that first put the Morgan name on the international map and created a special relationship between the firm and the city of London that continues today.

The story begins in the 1850's. Junius Morgan was a successful New England merchant, but he was ready for something bigger. London was calling. London, at the time, was the capital of the vastly wealthy British empire and the epicenter of international finance. In 1854, Junius accepted an invitation to join American banker, George Peabody, in London. Junius eventually took over Peabody's firm which he renamed J.S. Morgan & Company. It oversaw several landmark transactions and became the most prominent American-owned merchant bank in London. The firm raised capital for the first transatlantic cable project in 1858, revolutionizing communications between Europe and the United States. Sending a message could take 10 days -- the time it took to physically post a letter by ship. With cable, it was a matter of minutes. This and later communication advancements would allow people on both sides of the Atlantic to share accurate information about the availability and pricing of goods. In time, trade flourished, money flowed, and banks gained ever greater importance.

In 1870, J.S. Morgan & Company arranged a much needed 10 million pound loan to the French government during the Franco-Prussian war. Few other banks were willing to take the financial risk, but France repaid ahead of schedule. This propelled J.S. Morgan further up the ranks of international finance and greatly enhanced its reputation in London and beyond. Around the same time, London-based Junius introduced his son, J. Pierpont Morgan, to Philadelphia banker, Anthony Drexel. Together, they founded the wildly successful New York-based private bank, Drexel, Morgan & Company, which Pierpont later renamed J.P.Morgan. Though they operated separate firms, Junius and Pierpont worked in tandem between New York and London building a special transatlantic relationship between the two cities. Raising money in both the United States and Europe, their combined efforts helped finance a number of international industries. Most notably, the American railroad. As track after track was laid and dollar after dollar made, the Morgan name gained even more prominence internationally. After Pierpont's death in 1913, his son, Jack, took over J.P.Morgan just before the start of World War I. It was Jack who provided a $500 million loan in 1915 to American allies, Britain and France -- the largest at the time in Wall Street history. Jack received personal letters of thanks from the prime minister and King of England for his efforts. Prime Minister: I wish to express, on behalf of His Majesty's government, our warmest and most sincere thanks for the invaluable assistance you have rendered to this country during the war. Virginia: The British connections were more than just business. Jack developed a warm relationship with the royal family, hosting them aboard his yacht and at his lodge in Scotland every summer. Throughout the 20th century, the firm's ties to London deepened as it became more physically present in the city. In 1959, J.P.Morgan & Co merged with the Guaranteed Trust Company of New York, the oldest U.S. bank in London. This expanded the bank's presence throughout the city. In 2010, the firm acquired the successful British investment bank, Cazenove. Soon after, it chose London as its European headquarters opening in England's financial center, Canary Wharf. For over 150 years, London has, and will continue to be, a city at the core of the JPMorgan Chase identity.

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Rachel: From colonial America to the pioneer West, paper currency fueled the growth of the nation. Everything from building cities and towns to facilitating the exchange of goods and services depended on an accepted means of payment. But you might be surprised to learn that the US government didn't issue money in the early 1800s. Instead banks printed their own bank notes. Many banks worked with specialized firms, like the American Bank Note Company, to assist in the design and printing of these notes. The notes were exceptionally beautiful, with elaborate ornamentation depicting portraits of public figures, scenes from everyday life, and allegorical images. With little government regulation and no standard template, the size, shape, and color of bank notes varied widely. Every note was a work of five or more artists, each a specialist in portraiture, landscapes, lettering, or borders. Such division of labor was a form of security to hinder counterfeiting. The designs were engraved on metal plates, a process which could take an artist several months to complete. Notes were printed on hand-operated presses, creating four notes from a single printing plate. Sometimes, single note plates were made, like those for our predecessor, the Waterbury Bank. As America's market economy extended nationwide, bank notes began drifting farther from their issuing institutions. With more than 1,500 banks in operation by 1860, and more than 7,000 different notes in circulation, counterfeiting had become a serious problem. The resulting chaos was a paradise for counterfeiters, like Jim the Penman, who became one of the most notorious forgers in the country. To combat this, counterfeit detectors were published which included signatures from authentic bank notes to help bankers identify fraudulent bills. They were hugely popular and boasted a circulation of more than 100,000 by 1855. As the ability to judge the veracity of bank notes deteriorated, the US government recognized the need for a more stable form of currency. In 1862, the federal government began printing its own paper money, marking an historic shift in the young nation's monetary system.

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Nancy: Did you know that the US dollar didn't always look the way it does today? American banks used to print their own paper money. And because there was no standard template, the look of these notes varied widely from bank to bank. With 1,500 banks, including many JPMorgan Chase predecessors issuing their own money, the system was chaotic and in need of change. In 1862, to address this situation and also to finance the Civil War, Salmon P. Chase, the US Secretary of the Treasury and one of our firm's namesakes, helped to create the Legal Tender Act. This gave the US government the ability to establish a uniform national currency. Unlike the notes still printed by banks, the government printed their bills on both sides using green ink on the back to prevent counterfeits. These notes were nicknamed greenbacks and became the primary currency of the Union. Salmon Chase even had his image on the first series of $1 greenbacks printed in 1862. And JPMorgan Chase owns the very first bill of that series. Unfortunately, these greenbacks didn't solve the country's currency problem because they were backed only by government credit and banks continued to issue their own notes, backed by gold and silver. To improve the system and standardize the look and feel of bank notes, a uniform template was adopted and the Bureau of Engraving and Printing in Washington DC took over the job of printing all notes issued by banks. Proofreaders, generally women, were hired to examine the notes for inconsistencies. It took until the 1930s to fully replace bank notes with Federal Reserve notes, the national currency in use today.

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Nancy: Did you know that the core values and business principles of JPMorgan Chase today were established over 150 years ago by three generations of Morgan men? The story begins with Junius Morgan, a New England businessman who established the Morgan name in the world's financial markets while working as a merchant banker in London in the 1800s. With Junius' guidance, his son, J. Pierpont Morgan, entered the banking business. In 1871, Pierpont joined forces with Anthony Drexel, a prominent Philadelphia-based banker, and established a new merchant bank in New York City. The Drexel-Morgan partnership initially operated as an American agent for Junius' European firm. It didn't take long, though, for it to become the preeminent private bank in the US. Under Pierpont's leadership the firm, later renamed J.P. Morgan and Company, was largely responsible for financing and organizing the railroads, steel, and utility companies that established the United States as a modern industrial power. Pierpont also played a critical role in times of financial crises, stemming international panics in both 1893 and 1907. He became known for his integrity and judgment, the same standards by which he measured his colleagues and clients. In a statement to the Senate Banking Committee in 1912, Pierpont noted that, 'the first thing is character,' before money or anything else'. After Pierpont's death in 1913, his son, J.P. Morgan Jr, better known as Jack, took over as senior partner of the firm. Jack left his own mark on J.P.Morgan through a series of landmark deals, leading the firm for three decades. Like his father, Jack embodied the same values of honesty and integrity, stating that, 'the idea of doing only first class business, and that in a first class way, has been before our minds.' And this concept is the way we do business today. In 1940, J.P.Morgan reorganized from a private partnership to a public company, with Jack as its first chairman. Over the next 60 years, the firm remained an innovative leader in the financial industry, and in 2000, merged with Chase Manhattan to form JPMorgan Chase.

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Nancy: What was J. Pierpont Morgan's role in stopping the Panic of 1907 and how did it shape the US economy? In the fall of 1907, the world is on the verge of economic collapse. US and international markets had been wildly unsettled for months. Six months earlier, the American stock market had crashed despite record corporate earnings. And stocks also plummeted on several foreign exchanges. When stock prices plunged again in the summer, the estimated loss was $1 billion. Surprising as it may seem, the US had no central bank to deal with the financial crisis and no money in reserve. As panic increased, customers rushed to their banks to withdraw whatever money remained. People sat overnight in camp chairs, bringing food and waiting for the banks to open in the morning. Some even earned up to $10 a day holding places in line. Banks took unconventional measures to deal with the crisis. Tellers slowly counted out money to limit withdrawals, and some banks prominently displayed piles of cash in order to reassure worried customers. To stem the panic, it was critical that someone with influence and insight come to the rescue. And the person who stepped in, was J. Pierpont Morgan. At the time, Morgan's firm, JPMorgan & Company, was the country's preeminent private bank. More importantly, Morgan had experience with similar financial crises, having rescued the US Treasury during the Panic of 1893. He'd become the lender of last resort. So in October 1907, the semi-retired Morgan called together New York's leading bankers to his library on East 36th Street in Midtown Manhattan. For two weeks, he led a team raising capital for the failing markets, contributing large sums of his own money, and functioning as the country's de facto central bank. Although the actual panic lasted only a few weeks, its aftermath brought on an economic decline that destroyed banks and other businesses and created mass unemployment. Financial experts consider Morgan's impressive handling of the panic as the work of a bold financier who clearly understood the big picture and took decisive action. In 1908, Congress passed a currency act allowing banks to form reserve associations that could issue money temporarily, in economic emergencies. And in 1913, shortly after Morgan's death, the US established its much-needed central bank, the Federal Reserve.

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Elizabeth: 1914 saw the start of a war like no one had ever seen before. Sparked by the assassination of Archduke Franz Ferdinand of Austria-Hungary, World War I tore nation after nation apart. It was unprecedented in scale. It demanded vast numbers of people and resources and was incredibly expensive. It was known as a total war because it affected every facet of society, including banking. How did a series of bold moves by banks and their employees help the Allied cause? In 1915, U.S. allies Britain and France were in dire financial straits. To help them, JPMorgan & Co arranged a much-needed $500 million loan to the two nations. At the time, it was the largest foreign loan in Wall Street history. The firm also acted as a purchasing agent for the Allies, helping to secure almost $3 billion worth of desperately needed munitions and raw materials. As fighting waged across continents, tensions in the Unites States were mounting. After nearly three years of declared neutrality, in April 1917, U.S. Congress declared war.

[patriotic music and cheers]

Singer: § Over there, over there... §

Elizabeth: The transition was swift and JPMorgan Chase predecessor banks were quick to respond at home and overseas. Banks organized Liberty Loan drives imploring patriotic citizens to lend money to the government for the war effort. These war bonds gave many Americans their first taste of investing in financial securities. Many bank executives also stepped in to lead various wartime committees like the Red Cross and the Council of National Defense. Banks were equally supportive on the front lines.

Guaranty Trust Company raised money for an ambulance and sent an armored mobile bank to service soldiers in France. Thousands of bank employees enlisted to fight in the war and sent home dramatic tales from the field that made their way into bank newsletters.

Soldier: "Our battalion has had two gas attacks and several Boche raids."

Soldier 2: "We saw shrapnel from the defense guns. It was bursting high in the air."

Soldier 3: "The mines upset and ruined the tanks. It was a masterly defense, one of the best military feats of the war."

Elizabeth: Women stepped in to fill vacant jobs as tellers, clerks and loan officers. In addition to their bank duties, these women were instrumental in fundraising and relief work. Partnering with the Red Cross, they knitted socks and sweaters and packaged surgical dressings for soldiers overseas. In November 1918, World War I came to an end. Many JPMorgan Chase predecessor banks advocated for the rehiring of veterans and erected memorials to honor bank employees who had given their lives for their country. Though international banking played an unprecedented role during the war, it was the banks' dedicated men and women, working at home and fighting overseas, who battled tyranny and enabled democracy to prevail for all.

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[END]

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Rachel: The blue octagon is an iconic and recognizable logo that's become synonymous with the Chase retail brand today. But did you know that its creation sparked a new movement in the design of corporate logos? In fact, when the octagon was first launched it represented a benchmark in corporate culture showing how firms were beginning to understand the significance of a strong brand and how they were perceived in what was already a fast paced world. But what prompted the bank to reassess its logo back in 1959? Shortly after the 1955 merger that created the Chase Manhattan Bank, then Vice Chairman, David Rockefeller, chose the design firm Chermayeff and Geismar Associates, to create a logo that would best reflect Chase Manhattan's increasing global reach and complement the modern design of the company's brand new 60 story headquarters in Lower Manhattan. The previous logo failed to capture the unique feel of the brand. Its complex design used five different elements from the company's two main heritage banks, the Bank of the Manhattan Company and Chase National Bank. Rockefeller knew the logo needed a strong graphic, something recognizable around the world. Inspired by a simple geometric shape the design firm hired by Rockefeller created the octagon logo, a visual that was sleek, attractive and timeless. On November 21st, 1960, the new logo was unveiled, one of the first abstract logos used in banking. With its clean lines and modern look the dynamic symbol mapped against Chase Manhattan's corporate vision demonstrating, as the designers put it, how all activity is centered around a square, implying growth from a central foundation. Just like any business, Chase and its logo have gone through subtle changes over the years. Although the original design featured multiple colors and patterns, in 2004 the solid blue octagon was adopted. While variations in the color and typeface have evolved over the years, the strength of the octagon remains the enduring symbol of the Chase brand.

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Steven: As early as 1799, JPMorgan Chase's predecessor banks used advertising to tell the public about their banking services and attract new customers. In the 200 years since our firm was founded, banks have relied on this powerful tool to bring in new business. Early advertisem*nts took the form of newspaper notices and text-heavy magazine ads. But that changed during the 1950s and '60s, a heyday of bank advertising that reached out with more creative content to a broader demographic of potential customers. The ad industry was coming of age and JPMorgan Chase's predecessor banks used the best in the business to craft attention-grabbing promotional campaigns. In print, radio, and TV, the banks advertising agencies worked hard to change consumers' perceptions of our banks, turning them from impersonal institutions to customer-friendly financial firms, providing services to make their lives easier and better. During this time, Chase Manhattan Bank unveiled its playful 'Nest Egg' campaign. The ads featured people trying to relax or have fun while shackled to giant eggs. Then there were the 'You Have a Friend at Chase Manhattan' ads, which sought to personalize the banking experience globally. This iconic campaign launched in 1960 and ran for over 15 years. Whether making a deposit in Malaysia, or wiring money from Mexico, the message around the world was that no matter where you are, Chase is there for you. In contrast to Chase's global focus, Chemical Bank targeted a more specific audience. TV ad spokesperson: The New York woman. When her needs are financial, her reaction is chemical. Chemical New York. Steven: This 1965 campaign was one of the first in the industry to market directly to women. It was right on trend as the decade saw women entering the workforce in greater numbers and gaining more economic power. With the standard of living on the rise, the 1960s also saw a boom in car sales and with that, auto focused ad campaigns. The Manufacturer's Hanover Auto Loan Department made its mark with its unusual 'Sponge on Wheels' advertisem*nts. The bank reminded customers that, like a sponge, their old, unreliable cars soaked up money in the form of frequent repairs and gasoline. But a Manufacturer's Hanover auto loan could put them into a new, more efficient car and help them save money. The campaign was a success, bringing in thousands of new loans for the bank. In 1971, the same department unveiled its head turning 'Any Car' campaign, showcasing a vehicle created from the parts of 22 different cars. It was the focal point of an aggressive auto loan program. The message? That the bank provided loans for any car, new or used. This amusing campaign featured these quirky composite cars and print, TV and radio ads and parked them in branches for customers to marvel at. During this mid-century Golden Age of Advertising, each of these banks used clever language and creative imagery to capture the spirit of the time and effectively communicate why it was a great idea to bank with us.

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Steven: Technology has revolutionized how bankers and consumers handle money in amounts ranging from the single penny to billions of dollars. Early banks, including those that would become part of JPMorgan Chase, added up dollars and cents by hand, a time consuming task that left a lot of room for error. Over the years, JPMorgan Chase and its predecessors pioneered technologies that saved money and dramatically increased the speed at which bank work could be accomplished. Around the turn of the 20th century, even simple advances improved the employee and customer experience. The hand cranked adding machine of the 1890s did the work of two people. The direct dial phone eliminated the need for a switchboard, while the electric coin counting machine tallied with accuracy and was up to five times faster than counting by hand. In the 1920s, check processing, the backbone of personal banking, was greatly improved with the Recordak. Bank employees used the machine to process large volumes of checks entering the bank by photographing them, saving hours of work a day, and guarding against forgery. But it was the introduction of the electronic computer in the 1950s that revolutionized banking, propelling the industry forward at an unprecedented pace. Computers quickly became a staple in back offices across the country, and many of our predecessor banks built entire data processing centers devoted to the new technology. In 1959, Chase Manhattan Bank installed an IBM 650 computer, which enabled the staff to process transactions at lightning speed. A few years later, Chase Manhattan opened its New York Automated Check Processing Center, one of the largest in the world. Relying on new computer technology, employees processed checks using a high speed sorter that could read magnetic ink characters. Within the first year, it was processing over a million checks per day. As computerization spread across the country, so too did the bank credit card, which transformed America's shopping habits. Now, instead of opening individual charge accounts with each store, bank clients could use one card for their purchases at any store. In 1969, Chemical Bank unveiled its cash machine, the precursor to the ATM. The ATM, the Automated Teller Machine, made banking on the go possible with the swipe of a card. ATMs appeared in malls, airports and overseas, making it possible to get cash and perform transactions 24 hours a day. The trend for banking whenever, wherever and however you'd like continued. With Bank One's Channel 2000, an early home computer banking program launched in 1980, customers could bank without ever leaving the house. The internet brought banking at home into the 21st century, allowing customers to complete transactions securely online through personal computers, while mobile apps like Chase Pay meant banking could be done with the swipe of a finger on a phone, tablet or watch from anywhere in the world. JPMorgan Chase has come a long way, from bankers computing numbers by hand to a global team of technologists working hard to keep us ahead of the curve. Behind the scenes, the firm is developing new technologies, deploying artificial intelligence and working in the cloud to advance the financial landscape. This culture of innovation is helping employees work smarter, and customers bank better, every day.

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Virginia: Hi, I'm Virginia, one of the archivists with the JPMorgan Chase Corporate History Program. We are responsible for preserving the history of the firm and its predecessor institutions, over 1200 of them. The firm today is a result of many bank mergers and acquisitions over the years, and is built on the legacy of those predecessor banks. Our valuable collection tells the story of JPMorgan Chase and will preserve our history for future generations to come. Let's take a look around. This is our climate controlled storage facility, a cool enough environment to prevent paper deterioration and mold growth. We collect and preserve everything, from documents to photos, to artifacts and artwork. We use that material to answer questions about the history of the firm and to better understand its business, past and present, around the world. Our department was founded by David Rockefeller, chairman of Chase Manhattan Bank, who understood that a bank's wealth is measured in more than just dollars and cents. From financing the US rail system to pioneering the ATM, our banks were vitally important. These stories can be told through what's found on these shelves and in the exhibits we design in corporate offices around the world. Our collection is constantly growing. In here, we maintain millions of records. That's over three miles of boxes. Items come from branches, employees, and alumni of the firm. We catalog them and integrate them into the larger collection. Elizabeth: Some of my favorite objects are scrapbooks. This one was from the Garfield Safe Deposit Company in New York. It was put together by an employee who was at the bank for over 40 years and he clipped all sorts of things - bank promotional items, forms, envelopes, really anything he thought would help tell the story of this bank's history. Virginia: Photographs are among the most requested items. We have over a million, many of which are stored in these filing cabinets. The images portray everything, from bank interiors and exteriors to employee activities. These drawers over here are filled with advertisem*nts, posters, and oversized photos. Steven: I love this collection of architectural renderings from the Valley National Bank, which was headquartered in Phoenix, Arizona. They're not only wonderful paintings, but they're an interesting view into what commercial bank architecture looked like during the 1950s. In fact, Valley National Bank had the only bank branch in the Grand Canyon. Virginia: These shelves are where things like artwork, artifacts, and ephemera have their own special home. From 19th century coin counters to 20th century teller cages, the artifacts we preserve help us to bring to life all aspects of banking. Rachel: Our firm started not as a bank, but actually as a water company. This is one of the original hollowed out wooden pipes that was used to transport water to the homes and businesses of Lower Manhattan. We've carefully preserved it, and our hope is that'll last for another 200 plus years. Virginia: Our legacy defines us, and it's through these items that we share stories of our firm and its tremendous impact on not just the financial industry, but the world at large.