First Class Business
First-class business in a first-class way
J.P. Morgan, Jr., wanted his bank to be known for 'doing only first-class business… in a first-class way.' The world is now so full of empty slogans and glib mission statements that it's easy to overlook the power and resonance of his message.
In fact, the thinking was revolutionary. It reinforced the link between means and ends - what we do and how we do it. It grows from a willingness to be judged on our achievements. It sets standards for ethics beyond reproach. It paved the way for major innovations in global financial services, from relationship management to the application of technology. Doing first-class business in a first-class way is about action and accountability. So what does it mean for J.P. Morgan in the 21st century? The answer is found in the day-to-day experiences of our working lives.
Whether you work as a research analyst, trader, investment banker, risk expert, portfolio manager, private banker, or something else entirely, you will be part of a culture that fosters and promotes exceptional achievement. It's not just that we expect great things of you; the business is organized to provide professional challenges, support networks and training facilities that will help you to do your best.
First-class business in a first-class way is more than a description of our culture and reputation. It's about the pride and job satisfaction our employees experience at J.P. Morgan. The desire and motivation to be the best today, and then better again tomorrow is what unites J.P. Morgan people as a global team, regardless of job title or level.
J.P. Morgan, Jr., first used this phrase in 1933 when he spoke to the banking and currency sub-committee of the US Senate. He believed a banker's role was to provide clients with exceptional service coupled with outstanding execution and unquestioned integrity. More than 70 years later, his statement is as relevant now as it was then.
Excerpt of J.P. Morgan, Jr.,'s statement to the banking and currency sub-committee of the US Senate:
'I have ventured to frame a brief statement of my views on the subject of duties and uses of bankers. The banker is a member of a profession practiced since the middle ages. There has grown up a code of professional ethics and customs, on the observance of which depend his reputation, his fortune, and his usefulness to the community in which he works.
Some bankers are not as observant of this code as they should be; but if, in the exercise of his profession, the banker disregards this code - which could never be expressed in legislation, but has a force far greater than any law - he will sacrifice his credit. This credit is his most valuable possession; it is the result of years of fair and honorable dealing and, while it may be quickly lost, once lost cannot be restored for a long time, if ever. The banker must at all times conduct himself so as to justify the confidence of his clients in him and thus preserve it for his successors.
If I may be permitted to speak of the firm of which I have the honor to be senior partner, I should state that at all times the idea of doing only first-class business, and that in a first-class way, has been before our minds. We have never been satisfied with simply keeping within the law, but have constantly sought so to act that we might fully observe the professional code, and so maintain the credit and reputation which has been handed down to us from our predecessors in the firm. Since we have not more power of knowing the future than any other men, we have made many mistakes (who has not during the past five years?), but our mistakes have been errors of judgment and not of principle.
The banker must be ready and willing at all times to give advice to his clients to the best of his ability. If he feels unable to give this advice without reference to his own interest he must frankly say so. The belief in the integrity of his advice is a great part of the credit of which I have spoken above, as being the best possession of any firm.
Another very important use of the banker is to serve as a channel whereby industry may be provided with capital to meet its needs for expansion and development. To this end the banker can serve well, since, as he has at stake not only his client's interests but his own reputation, he is likely to be especially careful. If he makes a public sale and puts his own name at the foot of the prospectus he has a continuing obligation of the strongest kind to see, so far as he can, that nothing is done which will interfere with the full carrying out by the obligor of the contract with the holder of the security.'
- J.P. Morgan, Jr., May 23, 1933
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