Which investment bank was formed from the split of J.P. Morgan in 1935?

Which investment bank was formed from the split of J.P. Morgan in 1935? Morgan Stanley was the result.

The U.S. Glass–Steagall Act of 1933 required banking organizations to separate commercial banking from investment banking. J.P. Morgan & Co. chose to remain focused on commercial banking, while partners Henry Sturgis Morgan and Harold Stanley helped establish the new investment-banking firm. Morgan Stanley formally opened on September 16, 1935, at 2 Wall Street in New York City.

The new firm was not simply a renamed J.P. Morgan branch. It was a separately organized securities business, initially backed by $6.6 million in nonvoting preferred stock from J.P. Morgan partners. In its first year, it claimed a 24% share of U.S. public offerings and private placements.

A common mix-up is confusing the 1935 Morgan Stanley with today’s company. The original firm merged with Dean Witter Discover in 1997 and restored the Morgan Stanley name in 2001. The commercial-bank successor later evolved through mergers into today’s JPMorgan Chase.