JP Morgan admits US slavery links

The US's economic history hides some unpleasant truths

Thousands of slaves were accepted as collateral for loans by two banks that later became part of JP Morgan Chase.

The admission is part of an apology sent to JP Morgan
staff after the bank researched its links to slavery in order to meet
legislation in Chicago.

Citizens Bank and Canal Bank are the two lenders that
were identified. They are now closed, but were linked to Bank One,
which JP Morgan bought last year.

About 13,000 slaves were used as loan collateral between 1831 and 1865.

'No excuse'   
   

Important dates                                                                                                    1831 Canal Bank formed 1833 Citizens Bank formed 1924 Citizens and Canal join to form Canal Commercial Trust & Savings Bank (CCTSB) 1931 Chase Bank takes control of Canal 1933 CCTSB fails during Great Depression and goes into liquidation 1933 National Bank of Commerce in New Orleans (NBCNO) formed with some Canal Bank deposits and loans 1971 NBCNO becomes First National Bank of Commerce 1998 First National Bank of Commerce merged into Bank One Louisiana 2004 Bank One merged with JP Morgan Chase & Co.

Because of defaults by plantation owners, Citizens and Canal ended up owning about 1,250 slaves. 

"We all know slavery existed in our country, but it is
quite different to see how our history and the institution of slavery
were intertwined," JP Morgan chief executive William Harrison and chief
operating officer James Dimon said in the letter.

"Slavery was tragically ingrained in American society, but that is no excuse."

"We apologise to the African-American community,
particularly those who are descendants of slaves, and to the rest of
the American public for the role that Citizens Bank and Canal Bank
played."

"The slavery era was a tragic time in US history and in our company's history."

JP Morgan said that it was setting up a $5m scholarship
programme for students living in Louisiana, the state where the events
took place.

The bank said that it is a "very different company than the Citizens and Canal Banks of the 1800s".