Jardine Fleming's Rise and Fall in Banking

Jardine Fleming was a leading investment bank in Asia, founded in 1969 by Jardine Matheson and Fleming Securities. It was a joint venture between two British companies, Jardine Matheson and Fleming Securities.

The bank quickly gained a reputation for its expertise in equity research and its ability to advise on mergers and acquisitions. Jardine Fleming's research reports were highly regarded by investors and were often cited in the media.

Jardine Fleming's success was largely due to its strong research team, which was led by a renowned analyst, who was known for his in-depth analysis of Asian companies. The bank's research reports were widely read and respected by investors.

However, Jardine Fleming's success was short-lived, and the bank faced significant challenges in the early 2000s, including increased competition from other investment banks and a decline in the Asian equity market.

Recommended read: Fleming Yaupon Holly

In 1984, Jardine Fleming made headlines for all the wrong reasons. The Monetary Authority of Singapore (MAS) revoked the merchant banking licence of Jardine Fleming.

The MAS cited lack of professional competence and care in its work, specifically in its advisory role for two major corporate transactions. These transactions included the S$400 million takeover of Straits Steamship by Keppel Shipyard.

Jardine Fleming was particularly criticized for overvaluing Straits Steamship, which was a major mistake in its advisory work.

J.P. Morgan Chase & Co. is selling its Jardine Fleming Bank to Standard Bank of South Africa for more than $120 million.

The deal is expected to be completed by the end of July, pending regulatory approval.

This sale is part of JPM-Chase's effort to eliminate service duplication following the merger of J.P. Morgan & Co. and Chase Manhattan Corp.

The Jardine Fleming unit will become part of the investment and private banking business of Standard Bank.

Standard's Hong Kong staff will increase to about 100 after the deal is finalized.

Fleming Bank was established in 1970 as the banking arm of the Jardine Fleming Group.

It has total assets of $1.8 billion and operates a Treasury business, trading in Hong Kong currency and money markets.

1984 was a significant year for the financial industry in Singapore. A test case emerged when Jardine Fleming was alleged to have committed gross mistakes in its advisory work.

The Monetary Authority of Singapore (MAS) revoked Jardine Fleming's merchant banking licence due to lack of professional competence and care. This was an unprecedented move by the MAS.

Jardine Fleming was taken to task for overvaluing Straits Steamship when advising Keppel Shipyard in its S$400 million takeover. The valuation was a major issue in the transaction.

Inadequate advice was also given to minority shareholders of Singapore Land in 1981. The MAS noted that Jardine Fleming failed to properly advise on the valuation of five cargo vessels that SingLand proposed to buy from Ocean Shipping Group.