J.P. Morgan acted as financial advisor on the proposed combination of Deutsche Bank AG and Bankers Trust Corporation, a transaction valued at approximately $9.7 billion that would create the world's largest financial institution by assets. The Firm has a long history of advising European institutions on cross-border combinations in the United States.

J.P. Morgan reported net income of $93 million, or $0.43 per fully diluted share, for the third quarter of 1998, reflecting trading losses associated with the Russian Federation default and broader emerging market volatility. Chairman and Chief Executive Sandy Warner noted that the Firm's diversified businesses and disciplined risk management have allowed it to remain profitable through one of the most difficult quarters for the global financial industry.

The RiskMetrics methodology, originally developed and published by J.P. Morgan in 1994, has been spun off as an independent company. RiskMetrics Group will continue to publish data sets and methodology documents for value-at-risk calculation and will provide advisory services to financial institutions implementing internal risk management frameworks.

J.P. Morgan Investment Management Inc. announced that institutional and private client assets under management have exceeded $300 billion. The asset management business serves pension funds, endowments, foundations, central banks and individual clients of the Firm's Private Banking division.