1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K/A ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED COMMISSION FILE DECEMBER 31, 1998 NUMBER 1-5805 THE CHASE MANHATTAN CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 13-2624428 (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 270 PARK AVENUE, NEW YORK, N.Y. 10017 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 270-6000 The undersigned registrant hereby amends the following items, financial statements, exhibits or other portions of its Annual Report on Form 10-K for the fiscal year ended December 31, 1998, as set forth in the pages attached hereto: Exhibit 22.1-Annual Report on Form 11-K of the 401(k) Savings Plan of The Chase Manhattan Bank and Certain Affiliated Companies for the fiscal year ended December 31, 1998. PAGE 1 OF 47 EXHIBIT INDEX ON PAGE 45
2 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 (MARK ONE) |X| ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998 OR |_| TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO ----------------------- ---------------- COMMISSION FILE NUMBER 1-5805 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN AND CERTAIN AFFILIATED COMPANIES ------------------------------------------ (Full title of the plan) THE CHASE MANHATTAN CORPORATION -------------------------------------------------- (Name of issuer of securities pursuant to the plan) 270 PARK AVENUE NEW YORK, NEW YORK 10017 -------------------------------------- (Address of principal executive office) Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized. 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES BY: /s/ Joseph L. Sclafani ---------------------- JOSEPH L. SCLAFANI THE CHASE MANHATTAN CORPORATION CONTROLLER (PRINCIPAL ACCOUNTING OFFICER) Date: June 25, 1999 ================================================================================
3 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES FINANCIAL STATEMENTS AND EXHIBITS INDEX Page Number(s) --------- Financial Statements and Schedules: Independent Auditors' Report......................................................... 4 Statement of Net Assets Available for Benefits, with Fund Information at December 31, 1998 and 1997..................................................... 5-6 Statement of Changes in Net Assets Available for Benefits, with Fund Information for the Years Ended December 31, 1998 and 1997................................. 7-9 Notes to Financial Statements........................................................ 10-22 Schedule of Assets Held for Investment Purposes at December 31, 1998................. 23-36 Schedule of Assets Held for Investment Purposes That Were Both Acquired and Disposed of Within the Plan Year for the Year Ended December 31, 1998......... 37-43 Schedule of Five Percent Reportable Transactions for the Year Ended December 31, 1998.............................................................. 44 Exhibit Index........................................................................ 45 Signature of Principal Accounting Officer............................................ 46 Consent of Independent Auditors...................................................... 47 Schedules not required under line 27 of IRS Form 5500 which are not applicable have not been included. 3
4 INDEPENDENT AUDITORS' REPORT To the Participants and Plan Administrator of the 401(k) Savings Plan of The Chase Manhattan Bank and Certain Affiliated Companies: We have audited the accompanying statements of net assets available for benefits of the 401(k) Savings Plan of The Chase Manhattan Bank and Certain Affiliated Companies (the Plan) as of December 31, 1998 and 1997, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 1998 and 1997, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our 1998 audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary schedules of assets held for investment purposes at December 31, 1998, assets held for investment purposes that were both acquired and disposed of within the plan year for the year ended December 31, 1998 and five percent reportable transactions for the year ended December 31, 1998 are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 (ERISA). These supplemental schedules are the responsibility of the Plan's management. The Fund Information in the statement of net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. KPMG LLP New York, New York June 18, 1999 4
5 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1998 FUND INFORMATION ---------------------------------------------------------------------- SHORT-TERM STABLE INTERMEDIATE S & P TOTAL FIXED INCOME VALUE BOND 500 INDEX ----- ------------ ------ ------------ --------- Assets: The Chase Manhattan Corporation Common Stock $2,017,700,081 $ -- $ -- $ -- $ -- Registered Investment Companies 865,388,507 -- -- -- -- Collective Trust Funds 715,267,135 -- -- -- 715,267,135 Guaranteed Investment Contracts 645,347,257 -- 626,362,763 -- -- United States Government and Government Agency Obligations 143,420,418 33,689,222 -- 109,731,196 -- Loans to Participants 167,909,912 -- -- -- -- Certificate of Deposits 28,496,519 28,496,519 -- -- -- Corporate Debt Instruments 237,877,102 179,169,422 -- 58,707,680 -- Foreign Common Stocks 156,111,695 -- -- -- -- Interest Bearing & Money Market Funds 7,543,890 692,645 285,686 635 78,934 Other Investments 73,896,907 22,901,581 -- 51,778,929 -- -------------- ------------ ------------ ------------ ------------ Total Investments at Value (See Note 3) 5,058,959,423 264,949,389 626,648,449 220,218,440 715,346,069 Cash 9,501,397 3,259 -- -- 2,897 Dividends and Interest Receivable 3,867,872 1,893,438 -- 1,436,849 -- Receivable for Securities Sold 13,303,798 -- -- 12,816,369 -- Interfund Transfer Receivables (Payables), Net -- 938,483 27,189,201 1,662,375 1,931,295 -------------- ------------ ------------ ------------ ------------ Total Assets 5,085,632,490 267,784,569 653,837,650 236,134,033 717,280,261 -------------- ------------ ------------ ------------ ------------ Liabilities: Payable for Securities Purchased 65,167,828 -- -- 65,167,828 -- Other 483,938 -- 41,777 129,149 23,845 -------------- ------------ ------------ ------------ ------------ Total Liabilities 65,651,766 -- 41,777 65,296,977 23,845 -------------- ------------ ------------ ------------ ------------ Net Assets Available for Benefits $5,019,980,724 $267,784,569 $653,795,873 $170,837,056 $717,256,416 ============== ============ ============ ============ ============ FUND INFORMATION -------------------------------------------------------------------------- GROWTH & SMALL CAP INTERNATIONAL CHASE INCOME EQUITY EQUITY COMMON STOCK LOAN -------- --------- ------------- ------------ ---- Assets: The Chase Manhattan Corporation Common Stock $ -- $ -- $ -- $2,017,700,081 $ -- Registered Investment Companies 568,699,030 296,689,477 -- -- -- Collective Trust Funds -- -- -- -- -- Guaranteed Investment Contracts -- -- -- -- -- United States Government and Government Agency Obligations -- -- -- -- -- Loans to Participants -- -- -- -- 167,909,912 Certificate of Deposits -- -- -- -- -- Corporate Debt Instruments -- -- -- -- -- Foreign Common Stocks -- -- 156,111,695 -- -- Interest Bearing & Money Market Funds 103,718 82,454 -- -- 6,287,565 Other Investments -- -- (783,603) -- -- ------------ ------------ ------------ -------------- ------------ Total Investments at Value (See Note 3) 568,802,748 296,771,931 155,328,092 2,017,700,081 174,197,477 Cash 4,955 2,841 9,487,212 -- 195 Dividends and Interest Receivable -- -- 537,585 -- -- Receivable for Securities Sold -- -- 122,449 364,980 -- Interfund Transfer Receivables (Payables), Net (1,726,829) (289,866) (170,744) (7,391,438) (5,225,772) ------------ ------------ ------------ -------------- ------------ Total Assets 567,080,874 296,484,906 165,304,594 2,010,673,623 168,971,900 ------------ ------------ ------------ -------------- ------------ Liabilities: Payable for Securities Purchased -- -- -- -- -- Other -- -- 65,327 222,574 -- ------------ ------------ ------------ -------------- ------------ Total Liabilities -- -- 65,327 222,574 -- ------------ ------------ ------------ -------------- ------------ Net Assets Available for Benefits $567,080,874 $296,484,906 $165,239,267 $2,010,451,049 $168,971,900 ============ ============ ============ ============== ============ FUND INFORMATION ------------ FROZEN FIXED INCOME ------------ Assets: The Chase Manhattan Corporation Common Stock $ -- Registered Investment Companies -- Collective Trust Funds -- Guaranteed Investment Contracts 18,984,494 United States Government and Government Agency Obligations -- Loans to Participants -- Certificate of Deposits -- Corporate Debt Instruments -- Foreign Common Stocks -- Interest Bearing & Money Market Funds 12,253 Other Investments -- ------------ Total Investments at Value (See Note 3) 18,996,747 Cash 38 Dividends and Interest Receivable -- Receivable for Securities Sold -- Interfund Transfer Receivables (Payables), Net (16,916,705) ------------ Total Assets 2,080,080 ------------ Liabilities: Payable for Securities Purchased -- Other 1.266 ------------ Total Liabilities 1,266 ------------ Net Assets Available for Benefits $ 2,078,814 ============ THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS. 5
6 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1997 FUND INFORMATION ------------------------------------------------------------------------------- SHORT-TERM STABLE INTERMEDIATE S & P TOTAL FIXED INCOME VALUE BOND 500 INDEX ----- ------------ ------ ------------ --------- Assets: The Chase Manhattan Corporation Common Stock $1,443,838,968 $ -- $ -- $ -- $ -- Registered Investment Companies 834,978,719 -- -- -- -- Collective Trust Funds 560,048,934 -- -- -- 560,048,934 Guaranteed Investment Contracts 630,567,518 -- 585,812,361 -- -- United States Government Obligations 107,980,088 29,000,290 -- 78,979,798 -- Loans to Participants 152,583,764 -- -- -- -- Certificate of Deposits 39,000,368 39,000,368 -- -- -- Corporate Debt Instruments 241,760,038 185,824,640 -- 55,935,398 -- Foreign Common Stocks 144,018,333 -- -- -- -- Interest Bearing & Money Market Funds 32,875,533 26,878,150 42,425 162 142,694 Other Investments 49,436,269 21,000,000 -- 28,436,268 -- -------------- -------------- -------------- -------------- -------------- Total Investments at Value (See Note 3) 4,237,088,532 301,703,448 585,854,786 163,351,626 560,191,628 Cash 5,472,246 -- -- -- 10,526 Dividends and Interest Receivable 3,751,173 1,760,221 -- 1,487,270 -- Receivable for Securities Transactions 23,379,405 39,132 -- 8,437,227 -- Interfund Transfer Receivables (Payables), Net -- (400,785) 6,720,058 2,864,512 2,804,073 -------------- -------------- -------------- -------------- -------------- Total Assets 4,269,691,356 303,102,016 592,574,844 176,140,635 563,006,227 -------------- -------------- -------------- -------------- -------------- Liabilities: Payable for Securities Transactions 86,863,467 42,014,848 123,566 30,781,515 18,673 -------------- -------------- -------------- -------------- -------------- Total Liabilities 86,863,467 42,014,848 123,566 30,781,515 18,673 -------------- -------------- -------------- -------------- -------------- Net Assets Available for Benefits $4,182,827,889 $ 261,087,168 $ 592,451,278 $ 145,359,120 $ 562,987,554 ============== ============== ============== ============== ============== FUND INFORMATION -------------------------------------------------------------------------------- GROWTH & SMALL CAP INTERNATIONAL CHASE INCOME EQUITY EQUITY COMMON STOCK LOAN -------- --------- ------------- ------------ ---- Assets: The Chase Manhattan Corporation Common Stock $ -- $ -- $ -- $1,443,838,968 $ -- Registered Investment Companies 526,407,579 308,571,140 -- -- -- Collective Trust Funds -- -- -- -- -- Guaranteed Investment Contracts -- -- -- -- -- United States Government Obligations -- -- -- -- -- Loans to Participants -- -- -- -- 152,583,764 Certificate of Deposits -- -- -- -- -- Corporate Debt Instruments -- -- -- -- -- Foreign Common Stocks -- -- 144,018,333 -- -- Interest Bearing & Money Market Funds 44,156 102,439 -- 106,771 5,548,527 Other Investments -- -- -- 1 -- -------------- -------------- -------------- -------------- -------------- Total Investments at Value (See Note 3) 526,451,735 308,673,579 144,018,333 1,443,945,740 158,132,291 Cash 216,698 1 5,218,693 185 26,091 Dividends and Interest Receivable -- -- 503,682 -- -- Receivable for Securities Transactions -- -- 14,903,046 -- -- Interfund Transfer Receivables (Payables), Net 590,526 (2,454,931) (1,548,744) 5,092,140 (5,446,789) -------------- -------------- -------------- -------------- -------------- Total Assets 527,258,959 306,218,649 163,095,010 1,449,038,065 152,711,593 -------------- -------------- -------------- -------------- -------------- Liabilities: Payable for Securities Transactions -- -- 13,921,881 -- -- -------------- -------------- -------------- -------------- -------------- Total Liabilities -- -- 13,921,881 -- -- -------------- -------------- -------------- -------------- -------------- Net Assets Available for Benefits $ 527,258,959 $ 306,218,649 $ 149,173,129 $1,449,038,065 $ 152,711,593 ============== ============== ============== ============== ============== FUND INFORMATION -------------- FROZEN FIXED INCOME ------------ Assets: The Chase Manhattan Corporation Common Stock $ -- Registered Investment Companies -- Collective Trust Funds -- Guaranteed Investment Contracts 44,755,157 United States Government Obligations -- Loans to Participants -- Certificate of Deposits -- Corporate Debt Instruments -- Foreign Common Stocks -- Interest Bearing & Money Market Funds 10,209 Other Investments -- -------------- Total Investments at Value (See Note 3) 44,765,366 Cash 52 Dividends and Interest Receivable -- Receivable for Securities Transactions -- Interfund Transfer Receivables (Payables), Net (8,220,060) -------------- Total Assets 36,545,358 -------------- Liabilities: Payable for Securities Transactions 2,984 -------------- Total Liabilities 2,984 -------------- Net Assets Available for Benefits $ 36,542,374 ============== THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS. 6
7 401(K) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1998 FUND INFORMATION ------------------------------------------------------------------------- SHORT-TERM STABLE INTERMEDIATE TOTAL FIXED INCOME VALUE BOND ----- ------------ ------ ------------ Contributions: Contributing Employers' Contributions $ 104,756,620 $ 4,522,451 $ 6,248,359 $ 2,777,323 Reallocation of Net Participants' Forfeitures (Note 7) -- (5,735) (48,146) (8,305) ---------------- ---------------- ---------------- ---------------- Total Contributing Employers' Contributions 104,756,620 4,516,716 6,200,213 2,769,018 Participants' Contributions 173,634,567 10,240,443 14,680,237 7,671,298 ---------------- ---------------- ---------------- ---------------- Total Contributions 278,391,187 14,757,159 20,880,450 10,440,316 ---------------- ---------------- ---------------- ---------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock 37,399,725 -- -- -- Interest 85,006,379 14,829,837 38,222,412 9,715,349 Other Dividends 3,839,273 -- -- -- ---------------- ---------------- ---------------- ---------------- Total Investment Income 126,245,377 14,829,837 38,222,412 9,715,349 ---------------- ---------------- ---------------- ---------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year 456,872,183 34,302 -- 3,187,053 End of the Year 1,069,446,731 (57,705) -- 1,011,095 ---------------- ---------------- ---------------- ---------------- Change in Unrealized Appreciation (Depreciation) 612,574,548 (92,007) -- (2,175,958) ---------------- ---------------- ---------------- ---------------- Realized Net Gain (Loss): Proceeds from Sales and Redemptions 16,622,675,406 5,446,309,341 239,093,873 9,332,181,159 Cost of Investments Sold and Redeemed 16,523,296,745 5,446,389,200 239,093,873 9,327,491,779 ---------------- ---------------- ---------------- ---------------- Realized Net Gain (Loss) from Sales and Redemptions 99,378,661 (79,859) -- 4,689,380 ---------------- ---------------- ---------------- ---------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 838,198,586 14,657,971 38,222,412 12,228,771 Participants' Withdrawals (278,342,087) (23,579,002) (47,815,336) (10,372,316) Expenses (1,020,360) 79,297 (294,693) (341,508) Transfer To Other Plans, Net (Note 15) (74,491) -- (485) -- ---------------- ---------------- ---------------- ---------------- Net Change During the Year Before Interfund Transfers 837,152,835 5,915,425 10,992,348 11,955,263 Interfund Transfers, Net -- 781,976 50,352,247 13,522,673 ---------------- ---------------- ---------------- ---------------- Increase (Decrease) in Net Assets Available for Benefits 837,152,835 6,697,401 61,344,595 25,477,936 Net Assets Available for Benefits at Beginning of Year 4,182,827,889 261,087,168 592,451,278 145,359,120 ---------------- ---------------- ---------------- ---------------- Net Assets Available for Benefits at End of Year $ 5,019,980,724 $ 267,784,569 $ 653,795,873 $ 170,837,056 ================ ================ ================ ================ FUND INFORMATION -------------------------------------------------------------------------- S & P GROWTH & SMALL CAP INTERNATIONAL 500 INDEX INCOME EQUITY EQUITY --------- -------- --------- ------------- Contributions: Contributing Employers' Contributions $ 11,667,130 $ 10,555,427 $ 7,938,607 $ 4,142,900 Reallocation of Net Participants' Forfeitures (Note 7) (47,334) (31,575) (29,013) (17,364) ---------------- ---------------- ---------------- ---------------- Total Contributing Employers' Contributions 11,619,796 10,523,852 7,909,594 4,125,536 Participants' Contributions 32,571,659 28,980,570 22,817,420 11,665,861 ---------------- ---------------- ---------------- ---------------- Total Contributions 44,191,455 39,504,422 30,727,014 15,791,397 ---------------- ---------------- ---------------- ---------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock -- -- -- -- Interest 74,097 5,670,622 41,820 362,925 Other Dividends -- -- -- 3,839,273 ---------------- ---------------- ---------------- ---------------- Total Investment Income 74,097 5,670,622 41,820 4,202,198 ---------------- ---------------- ---------------- ---------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year 133,215,788 45,808,154 35,835,267 (12,302,012) End of the Year 281,574,901 66,848,039 39,887,718 (2,923,977) ---------------- ---------------- ---------------- ---------------- Change in Unrealized Appreciation (Depreciation) 148,359,113 21,039,885 4,052,451 9,378,035 ---------------- ---------------- ---------------- ---------------- Realized Net Gain (Loss): Proceeds from Sales and Redemptions 107,307,282 640,228,589 85,943,883 175,290,776 Cost of Investments Sold and Redeemed 96,748,190 593,096,074 81,077,997 164,837,781 ---------------- ---------------- ---------------- ---------------- Realized Net Gain (Loss) from Sales and Redemptions 10,559,092 47,132,515 4,865,886 10,452,995 ---------------- ---------------- ---------------- ---------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 158,992,302 73,843,022 8,960,157 24,033,228 Participants' Withdrawals (33,751,184) (28,774,630) (16,608,573) (10,327,854) Expenses (85,791) 139,690 69,527 (802,702) Transfer To Other Plans, Net (Note 15) (905) (44,503) (7,049) (1,142) ---------------- ---------------- ---------------- ---------------- Net Change During the Year Before Interfund Transfers 169,345,877 84,668,001 23,141,076 28,692,927 Interfund Transfers, Net (15,077,015) (44,846,086) (32,874,819) (12,626,789) ---------------- ---------------- ---------------- ---------------- Increase (Decrease) in Net Assets Available for Benefits 154,268,862 39,821,915 (9,733,743) 16,066,138 Net Assets Available for Benefits at Beginning of Year 562,987,554 527,258,959 306,218,649 149,173,129 ---------------- ---------------- ---------------- ---------------- Net Assets Available for Benefits at End of Year $ 717,256,416 $ 567,080,874 $ 296,484,906 $ 165,239,267 ================ ================ ================ ================ FUND INFORMATION ---------------------------------------------------- CHASE FROZEN COMMON STOCK LOAN FIXED INCOME ------------ ---- ------------ Contributions: Contributing Employers' Contributions $ 56,904,423 $ -- $ -- Reallocation of Net Participants' Forfeitures (Note 7) 187,472 -- -- ---------------- ---------------- ---------------- Total Contributing Employers' Contributions 57,091,895 -- -- Participants' Contributions 45,007,079 -- -- ---------------- ---------------- ---------------- Total Contributions 102,098,974 -- -- ---------------- ---------------- ---------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock 37,399,725 -- -- Interest 234,841 12,871,974 2,982,502 Other Dividends -- -- -- ---------------- ---------------- ---------------- Total Investment Income 37,634,566 12,871,974 2,982,502 ---------------- ---------------- ---------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year 251,093,631 -- -- End of the Year 683,106,660 -- -- ---------------- ---------------- ---------------- Change in Unrealized Appreciation (Depreciation) 432,013,029 -- -- ---------------- ---------------- ---------------- Realized Net Gain (Loss): Proceeds from Sales and Redemptions 320,196,633 247,062,691 29,061,179 Cost of Investments Sold and Redeemed 298,437,981 247,062,691 29,061,179 ---------------- ---------------- ---------------- Realized Net Gain (Loss) from Sales and Redemptions 21,758,652 -- -- ---------------- ---------------- ---------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 491,406,247 12,871,974 2,982,502 Participants' Withdrawals (93,169,395) (11,556,425) (2,387,372) Expenses 443,383 (210,579) (16,984) Transfer To Other Plans, Net (Note 15) (9,947) (10,460) -- ---------------- ---------------- ---------------- Net Change During the Year Before Interfund Transfers 500,769,262 1,094,510 578,146 Interfund Transfers, Net 60,643,722 15,165,797 (35,041,706) ---------------- ---------------- ---------------- Increase (Decrease) in Net Assets Available for Benefits 561,412,984 16,260,307 (34,463,560) Net Assets Available for Benefits at Beginning of Year 1,449,038,065 152,711,593 36,542,374 ---------------- ---------------- ---------------- Net Assets Available for Benefits at End of Year $ 2,010,451,049 $ 168,971,900 $ 2,078,814 ================ ================ ================ THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS. 7
8 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES Statements of Changes in Net Assets Available for Benefits, with Fund Information FOR THE YEAR ENDED DECEMBER 31, 1997 FUND INFORMATION ------------------------------------------------------------------------- SHORT-TERM STABLE INTERMEDIATE TOTAL FIXED INCOME VALUE BOND ----- ------------ ------ ------------ Contributions: Contributing Employers' Contributions $ 101,590,145 $ 4,932,408 $ 6,498,575 $ 2,651,032 Reallocation of Net Participants' Forfeitures (Note 7) -- (296) (22,343) (327) ---------------- ---------------- ---------------- ---------------- Total Contributing Employers' Contributions 101,590,145 4,932,112 6,476,232 2,650,705 Participants' Contributions 168,113,127 11,315,318 14,810,963 6,909,663 ---------------- ---------------- ---------------- ---------------- Total Contributions 269,703,272 16,247,430 21,287,195 9,560,368 ---------------- ---------------- ---------------- ---------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock 31,463,083 -- -- -- Interest 41,736,108 15,007,430 2,200,142 8,253,787 Other Dividends 58,962,346 -- 36,084,734 -- ---------------- ---------------- ---------------- ---------------- Total Investment Income 132,161,537 15,007,430 38,284,876 8,253,787 ---------------- ---------------- ---------------- ---------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year 754,384,739 -- -- -- End of the Year 456,872,183 34,302 -- 3,187,053 ---------------- ---------------- ---------------- ---------------- Change in Unrealized Appreciation (Depreciation) (297,512,556) 34,302 -- 3,187,053 Realized Net Gain (Loss): Proceeds from Sales and Redemptions 16,586,352,919 4,624,844,735 370,607,466 5,491,111,251 Cost of Investments Sold and Redeemed 15,739,547,835 4,625,145,398 370,607,466 5,488,292,636 ---------------- ---------------- ---------------- ---------------- Realized Net Gain (Loss) from Sales and Redemptions 846,805,084 (300,663) -- 2,818,615 ---------------- ---------------- ---------------- ---------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 681,454,065 14,741,069 38,284,876 14,259,455 Participants' Withdrawals (270,798,978) (21,746,892) (48,832,625) (7,303,377) Expenses (1,909,742) 1,447 (466,312) (348,721) Transfer To Other Plans, Net (Note 16) (1,484,657) (608,267) (54,897) (25,186) ---------------- ---------------- ---------------- ---------------- Net Change During the Year Before Interfund Transfers 676,963,960 8,634,787 10,218,237 16,142,539 Interfund Transfers, Net -- 252,452,381 582,233,041 129,216,581 ---------------- ---------------- ---------------- ---------------- Increase (Decrease) in Net Assets Available for Benefits 676,963,960 261,087,168 592,451,278 145,359,120 Net Assets Available for Benefits at Beginning of Year 3,505,863,929 -- -- -- ---------------- ---------------- ---------------- ---------------- Net Assets Available for Benefits at End of Year $ 4,182,827,889 $ 261,087,168 $ 592,451,278 $ 145,359,120 ================ ================ ================ ================ FUND INFORMATION ------------------------------------------------------------------------- S & P GROWTH & SMALL CAP INTERNATIONAL 500 INDEX INCOME EQUITY EQUITY --------- -------- --------- ------------- Contributions: Contributing Employers' Contributions $ 11,036,807 $ 10,411,226 $ 8,152,248 $ 4,449,851 Reallocation of Net Participants' Forfeitures (Note 7) (3,313) (3,470) -- (432) ---------------- ---------------- ---------------- ---------------- Total Contributing Employers' Contributions 11,033,494 10,407,756 8,152,248 4,449,419 Participants' Contributions 29,965,837 28,166,987 22,934,967 12,731,760 ---------------- ---------------- ---------------- ---------------- Total Contributions 40,999,331 38,574,743 31,087,215 17,181,179 ---------------- ---------------- ---------------- ---------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock -- -- -- -- Interest 102,853 108,664 111,561 684,555 Other Dividends 21,344 18,531,942 -- 4,329,751 ---------------- ---------------- ---------------- ---------------- Total Investment Income 124,197 18,640,606 111,561 5,014,306 ---------------- ---------------- ---------------- ---------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year -- -- -- -- End of the Year 133,215,788 45,808,154 35,835,267 (12,302,012) ---------------- ---------------- ---------------- ---------------- Change in Unrealized Appreciation (Depreciation) 133,215,788 45,808,154 35,835,267 (12,302,012) Realized Net Gain (Loss): Proceeds from Sales and Redemptions 218,926,402 319,933,959 261,700,849 214,837,902 Cost of Investments Sold and Redeemed 214,875,709 263,187,274 252,583,199 205,409,948 ---------------- ---------------- ---------------- ---------------- Realized Net Gain (Loss) from Sales and Redemptions 4,050,693 56,746,685 9,117,650 9,427,954 ---------------- ---------------- ---------------- ---------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 137,390,678 121,195,445 45,064,478 2,140,248 Participants' Withdrawals (24,117,972) (25,415,158) (12,510,713) (8,315,749) Expenses (196,500) 2,328 1,424 (872,214) Transfer To Other Plans, Net (Note 16) (133,700) (97,822) (83,464) (49,068) ---------------- ---------------- ---------------- ---------------- Net Change During the Year Before Interfund Transfers 153,941,837 134,259,536 63,558,940 10,084,396 Interfund Transfers, Net 409,045,717 392,999,423 242,659,709 139,088,733 ---------------- ---------------- ---------------- ---------------- Increase (Decrease) in Net Assets Available for Benefits 562,987,554 527,258,959 306,218,649 149,173,129 Net Assets Available for Benefits at Beginning of Year -- -- -- -- ---------------- ---------------- ---------------- ---------------- Net Assets Available for Benefits at End of Year $ 562,987,554 $ 527,258,959 $ 306,218,649 $ 149,173,129 ================ ================ ================ ================ FUND INFORMATION ---------------- CHASE COMMON STOCK ------------ Contributions: Contributing Employers' Contributions $ 53,953,678 Reallocation of Net Participants' Forfeitures (Note 7) 30,181 ---------------- Total Contributing Employers' Contributions 53,983,859 Participants' Contributions 40,697,577 ---------------- Total Contributions 94,681,436 ---------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock 31,463,083 Interest 229,701 Other Dividends -- ---------------- Total Investment Income 31,692,784 ---------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year -- End of the Year 251,093,631 ---------------- Change in Unrealized Appreciation (Depreciation) 251,093,631 Realized Net Gain (Loss): Proceeds from Sales and Redemptions 1,328,114,272 Cost of Investments Sold and Redeemed 1,317,564,976 ---------------- Realized Net Gain (Loss) from Sales and Redemptions 10,549,296 ---------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 293,335,711 Participants' Withdrawals (76,406,472) Expenses 6,656 Transfer To Other Plans, Net (Note 16) (419,598) ---------------- Net Change During the Year Before Interfund Transfers 311,197,733 Interfund Transfers, Net 1,137,840,332 ---------------- Increase (Decrease) in Net Assets Available for Benefits 1,449,038,065 Net Assets Available for Benefits at Beginning of Year -- ---------------- Net Assets Available for Benefits at End of Year $ 1,449,038,065 ================ FUND INFORMATION --------------------------------------------------------------------- FROZEN LOAN FIXED INCOME FUND A FUND B ---- ------------ ------ ------ Contributions: Contributing Employers' Contributions $ -- $ -- $ -- $ (5,736) Reallocation of Net Participants' Forfeitures (Note 7) -- -- -- -- --------------- --------------- --------------- --------------- Total Contributing Employers' Contributions -- -- -- (5,736) Participants' Contributions -- -- 1,335 36,658 --------------- --------------- --------------- --------------- Total Contributions -- -- 1,335 30,922 --------------- --------------- --------------- --------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock -- -- -- -- Interest 10,796,427 3,973,295 2,461 (40,371) Other Dividends -- -- -- -- --------------- --------------- --------------- --------------- Total Investment Income 10,796,427 3,973,295 2,461 (40,371) --------------- --------------- --------------- --------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year -- -- 440,156 -- End of the Year -- -- -- -- --------------- --------------- --------------- --------------- Change in Unrealized Appreciation (Depreciation) -- -- (440,156) -- Realized Net Gain (Loss): Proceeds from Sales and Redemptions 259,703,772 36,875,467 102,101,125 384,628,903 Cost of Investments Sold and Redeemed 259,728,201 36,875,467 101,660,969 384,628,903 --------------- --------------- --------------- --------------- Realized Net Gain (Loss) from Sales and Redemptions (24,429) -- 440,156 -- --------------- --------------- --------------- --------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 10,771,998 3,973,295 2,461 (40,371) Participants' Withdrawals (7,929,619) (2,701,916) (1,046,176) (6,095,443) Expenses -- (37,850) -- -- Transfer To Other Plans, Net (Note 16) -- (128) (380) (380) --------------- --------------- --------------- --------------- Net Change During the Year Before Interfund Transfers 2,842,379 1,233,401 (1,042,760) (6,105,272) Interfund Transfers, Net 22,416,212 (36,467,647) (102,908,759) (384,446,524) --------------- --------------- --------------- --------------- Increase (Decrease) in Net Assets Available for Benefits 25,258,591 (35,234,246) (103,951,519) (390,551,796) Net Assets Available for Benefits at Beginning of Year 127,453,002 71,776,620 103,951,519 390,551,796 --------------- --------------- --------------- --------------- Net Assets Available for Benefits at End of Year $ 152,711,593 $ 36,542,374 $ -- $ -- =============== =============== =============== =============== FUND INFORMATION --------------------------------- FUND C FUND D ------ ------ Contributions: Contributing Employers' Contributions $ -- $ (8,322) Reallocation of Net Participants' Forfeitures (Note 7) -- -- --------------- --------------- Total Contributing Employers' Contributions -- (8,322) Participants' Contributions 39,516 9,991 --------------- --------------- Total Contributions 39,516 1,669 --------------- --------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock -- -- Interest 27,638 38,571 Other Dividends -- -- --------------- --------------- Total Investment Income 27,638 38,571 --------------- --------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year (2,373,778) 423,373,564 End of the Year -- -- --------------- --------------- Change in Unrealized Appreciation (Depreciation) 2,373,778 (423,373,564) Realized Net Gain (Loss): Proceeds from Sales and Redemptions 301,797,101 1,028,366,295 Cost of Investments Sold and Redeemed 304,188,281 604,816,228 --------------- --------------- Realized Net Gain (Loss) from Sales and Redemptions (2,391,180) 423,550,067 --------------- --------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 10,236 215,074 Participants' Withdrawals (2,892,580) (10,163,998) Expenses -- -- Transfer To Other Plans, Net (Note 16) (413) (11,354) --------------- --------------- Net Change During the Year Before Interfund Transfers (2,843,241) (9,958,609) Interfund Transfers, Net (298,196,496) (856,745,407) --------------- --------------- Increase (Decrease) in Net Assets Available for Benefits (301,039,737) (866,704,016) Net Assets Available for Benefits at Beginning of Year 301,039,737 866,704,016 --------------- --------------- Net Assets Available for Benefits at End of Year $ -- $ -- =============== =============== THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS. 8
9 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES Statements of Changes in Net Assets Available for Benefits, with Fund Information FOR THE YEAR ENDED DECEMBER 31, 1997 FUND INFORMATION ----------------------------------------------------------------------------- FUND E FUND F FUND M FUND N FUND X ------ ------ ------ ------ ------ Contributions: Contributing Employers' Contributions $ -- $ -- $ -- $ -- $ -- Reallocation of Net Participants' Forfeitures (Note 7) -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- Total Contributing Employers' Contributions -- -- -- -- -- Participants' Contributions 14,257 -- -- -- -- ------------- ------------- ------------- ------------- ------------- Total Contributions 14,257 -- -- -- -- ------------- ------------- ------------- ------------- ------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock -- -- -- -- -- Interest 285 230 945 223 1,630 Other Dividends -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- Total Investment Income 285 230 945 223 1,630 ------------- ------------- ------------- ------------- ------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year 8,232,961 -- -- -- 1,655,014 End of the Year -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- Change in Unrealized Appreciation (Depreciation) (8,232,961) -- -- -- (1,655,014) Realized Net Gain (Loss): Proceeds from Sales and Redemptions 55,380,081 25,773,314 4,363,830 101,326 6,124,317 Cost of Investments Sold and Redeemed 47,147,120 25,773,314 4,367,678 101,326 4,469,303 ------------- ------------- ------------- ------------- ------------- Realized Net Gain (Loss) from Sales and Redemptions 8,232,961 -- (3,848) -- 1,655,014 ------------- ------------- ------------- ------------- ------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 285 230 (2,903) 223 1,630 Participants' Withdrawals (517,514) (479,849) (121,270) (64,338) (58,663) Expenses -- -- -- -- -- Transfer To Other Plans, Net (Note 16) -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- Net Change During the Year Before Interfund Transfers (502,972) (479,619) (124,173) (64,115) (57,033) Interfund Transfers, Net (56,984,410) (25,258,314) (4,003,916) (1,166,912) (6,740,747) ------------- ------------- ------------- ------------- ------------- Increase (Decrease) in Net Assets Available for Benefits (57,487,382) (25,737,933) (4,128,089) (1,231,027) (6,797,780) Net Assets Available for Benefits at Beginning of Year 57,487,382 25,737,933 4,128,089 1,231,027 6,797,780 ------------- ------------- ------------- ------------- ------------- Net Assets Available for Benefits at End of Year $ -- $ -- $ -- $ -- $ -- ============= ============= ============= ============= ============= FUND INFORMATION ------------------------------------------------------------------------------ FUND Y FUND Z FUND 10 FUND 20 FUND 30 ------ ------ ------- ------- ------- Contributions: Contributing Employers' Contributions $ -- $ -- $ (97,645) $ (28,123) $ (52,303) Reallocation of Net Participants' Forfeitures (Note 7) -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- Total Contributing Employers' Contributions -- -- (97,645) (28,123) (52,303) Participants' Contributions -- -- 33,803 873 904 ------------- ------------- ------------- ------------- ------------- Total Contributions -- -- (63,842) (27,250) (51,399) ------------- ------------- ------------- ------------- ------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock -- -- -- -- -- Interest 41,843 10,961 80,886 5,813 32,058 Other Dividends -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- Total Investment Income 41,843 10,961 80,886 5,813 32,058 ------------- ------------- ------------- ------------- ------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year 96,778,666 -- -- (635,742) (374,180) End of the Year -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- Change in Unrealized Appreciation (Depreciation) (96,778,666) -- -- 635,742 374,180 Realized Net Gain (Loss): Proceeds from Sales and Redemptions 236,256,729 15,365,356 247,001,634 56,148,750 57,125,283 Cost of Investments Sold and Redeemed 139,478,063 15,364,756 247,001,634 56,850,117 57,538,088 ------------- ------------- ------------- ------------- ------------- Realized Net Gain (Loss) from Sales and Redemptions 96,778,666 600 -- (701,367) (412,805) ------------- ------------- ------------- ------------- ------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 41,843 11,561 80,886 (59,812) (6,567) Participants' Withdrawals (2,110,761) (235,511) (3,486,711) (858,317) (1,316,360) Expenses -- -- -- -- -- Transfer To Other Plans, Net (Note 16) -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- Net Change During the Year Before Interfund Transfers (2,068,918) (223,950) (3,469,667) (945,379) (1,374,326) Interfund Transfers, Net (303,799,488) (13,906,727) (227,133,893) (55,870,776) (95,946,266) ------------- ------------- ------------- ------------- ------------- Increase (Decrease) in Net Assets Available for Benefits (305,868,406) (14,130,677) (230,603,560) (56,816,155) (97,320,592) Net Assets Available for Benefits at Beginning of Year 305,868,406 14,130,677 230,603,560 56,816,155 97,320,592 ------------- ------------- ------------- ------------- ------------- Net Assets Available for Benefits at End of Year $ -- $ -- $ -- $ -- $ -- ============= ============= ============= ============= ============= FUND INFORMATION ------------------------------------------------------------- FUND 40 FUND 50 FUND 60 FUND 70 ------- ------- ------- ------- Contributions: Contributing Employers' Contributions $ (38,940) $ (124,470) $ (52,696) $ (87,445) Reallocation of Net Participants' Forfeitures (Note 7) -- -- -- -- ------------- ------------- ------------- ------------- Total Contributing Employers' Contributions (38,940) (124,470) (52,696) (87,445) Participants' Contributions 90,610 60,439 20,330 271,339 ------------- ------------- ------------- ------------- Total Contributions 51,670 (64,031) (32,366) 183,894 ------------- ------------- ------------- ------------- Investment Activities: Investment Income: Dividends from The Chase Manhattan Corporation Common Stock -- -- -- -- Interest 6,386 3,893 27,610 26,631 Other Dividends -- -- (5,425) -- ------------- ------------- ------------- ------------- Total Investment Income 6,386 3,893 22,185 26,631 ------------- ------------- ------------- ------------- Unrealized Net Appreciation (Depreciation) on Investments: Beginning of the Year -- 37,796,126 10,929 189,481,023 End of the Year -- -- -- -- ------------- ------------- ------------- ------------- Change in Unrealized Appreciation (Depreciation) -- (37,796,126) (10,929) (189,481,023) Realized Net Gain (Loss): Proceeds from Sales and Redemptions 145,077,535 243,775,993 82,728,011 467,581,261 Cost of Investments Sold and Redeemed 145,077,535 205,979,867 82,734,141 278,100,238 ------------- ------------- ------------- ------------- Realized Net Gain (Loss) from Sales and Redemptions -- 37,796,126 (6,130) 189,481,023 ------------- ------------- ------------- ------------- Increase in Net Assets Available for Benefits Derived from Investment Activities 6,386 3,893 5,126 26,631 Participants' Withdrawals (1,141,887) (2,267,882) (733,739) (1,927,486) Expenses -- -- -- -- Transfer To Other Plans, Net (Note 16) -- -- -- -- ------------- ------------- ------------- ------------- Net Change During the Year Before Interfund Transfers (1,083,831) (2,328,020) (760,979) (1,716,961) Interfund Transfers, Net (143,365,722) (246,966,040) (76,086,747) (371,957,338) ------------- ------------- ------------- ------------- Increase (Decrease) in Net Assets Available for Benefits (144,449,553) (249,294,060) (76,847,726) (373,674,299) Net Assets Available for Benefits at Beginning of Year 144,449,553 249,294,060 76,847,726 373,674,299 ------------- ------------- ------------- ------------- Net Assets Available for Benefits at End of Year $ -- $ -- $ -- $ -- ============= ============= ============= ============= THE NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THESE STATEMENTS. 9
10 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 1. DESCRIPTION OF THE PLAN The 401(k) Savings Plan of The Chase Manhattan Bank and Certain Affiliated Companies (the "Plan") resulted from the merger of The Thrift-Incentive Plan of The Chase Manhattan Bank, N.A. (the "Old Chase Thrift Plan") into the Savings Incentive Plan of Chemical Bank and Certain Affiliated Companies (the "Chemical Plan"). The Chemical Plan was amended and renamed the 401(k) Savings Plan of The Chase Manhattan Bank and Certain Affiliated Companies effective January 1, 1997. All of the participants of the Chemical Plan and the Old Chase Thrift Plan had to make elections to transfer their account balances into new investment funds effective January 1, 1997. The following is brief description of the salient features of the Plan. Participants should refer to the plan document for a more complete description. The Plan enables eligible employees of The Chase Manhattan Bank (the "Bank") and certain affiliated companies thereof to accumulate a fund, the value of which is to be applied for their benefit upon retirement or earlier separation from service. Under the Plan, a participant may elect to have his or her eligible salary reduced on a pre-and/or post-tax basis by a specified percentage; the amount of such reduction is thereupon contributed on his or her behalf by the participant's contributing employer ("Contributing Employer") and allocated to such participant's account under the Plan. The Contributing Employer will make a matching contribution of 100% of the participant's pre-tax election up to 5% of the participant's eligible salary. Amounts contributed to a participant's account under the Plan by the participant and by his or her Contributing Employer are held in a Trust Fund (the "Trust Fund"). Generally, each employee of a Contributing Employer is eligible to become a participant ("Participant") in the Plan upon completing one year of service. Generally, any employee who is employed on an hourly, occasional, casual, temporary, seasonal or retainer basis, or an individual who is on a foreign currency payroll, or any individual who would be deemed to be an employee of a Contributing Employer under the employee leasing provisions of Section 414(n) of the Internal Revenue Code of 1986, as amended (the "Code"), is not eligible to participate in the Plan. The Plan, a defined contribution plan, complies with the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The Plan is designed to comply with Section 404(c) of ERISA and the regulations issued thereunder. As a result, the Plan's fiduciaries may be relieved of liability for losses that result from the Participants' investment decisions. 2. INVESTMENT PROGRAM The net assets available for benefits of the Plan at December 31, 1998 are held in a Trust Fund administered by the Bank, as trustee (the "Trustee"), to be invested and distributed in accordance with the Plan and the Trust Agreement under which the Trust Fund has been established. As of December 31, 1998, the Trust Fund is comprised of ten investment funds which represent the authorized investments of the Plan. The description of funds' investments is as follows: Short-Term Fixed Income Fund - Primarily short-term United States Government and Federal agency securities, certificates of deposit, commercial paper, bankers acceptances, short-term corporate bonds, municipal securities, floating rate securities and repurchase agreements. No security may have a maturity date greater than thirteen months from date of purchase and the weighted average maturity of the portfolio will not be more than 90 days. 10
11 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 2. INVESTMENT PROGRAM (CONTINUED) Stable Value Fund - Primarily benefits responsive contracts issued by insurance companies providing for the repayment of principal and the crediting of interest for a fixed period of time. Assets can also be invested in bonds, debentures, notes or other evidences of indebtedness, shares of preferred stock and any other property the rate of return of which is fixed by the instruments evidencing the investments, including futures and other derivatives and interests in trust funds consisting of fixed income securities. Intermediate Bond Fund - Primarily bonds, debentures, notes, asset backed securities or other evidences of indebtedness, both foreign and domestic, shares of preferred stock, insurance and bank contracts, repurchase agreements and any other property the rate of return of which is fixed by the instruments evidencing the investments, including futures and other derivatives and interests in trust funds consisting of fixed-income securities. S&P 500 Index Fund - Primarily a collective trust fund managed by Barclays Global Investors, N.A. which invests in stocks comprising the Standard & Poor's 500 Stock Index. Growth and Income Fund - Primarily the Institutional Shares of the Vista Growth and Income Select Fund, a mutual fund managed by the Bank, which generally invests at least 80% of its assets in common stocks. Small Cap Equity Fund - Primarily the institutional shares of the Vista Small Cap Equity Fund, a mutual fund managed by the Bank, which invests in the common stocks of smaller companies (generally, those with market capitalizations under $1 billion at the time of investment). International Equity Fund - Primarily an equity fund managed by Investment Advisers, Inc., which invests in securities of companies with market capitalizations in excess of $500 million located in Europe, Australia and the Far East. The fund may also invest in foreign currency contracts. Chase Common Stock Fund - Primarily common stock of The Chase Manhattan Corporation (the "Corporation"). Shares of the Corporation's Common Stock acquired for the Plan may be purchased directly from the Corporation from its authorized but unissued shares of common stock, its treasury stock, on the open market at prevailing prices or by the exercise of subscription, conversion or other rights. The Trustee, at its discretion, may invest in certain temporary investments pending the purchase of the Corporation's Common Stock. Loan Fund - Under a loan program, loans are granted from the Plan to eligible Participants as of a valuation date. This fund was established to account for all loan disbursements and repayments. Frozen Fixed Income Fund (former Fund G of the Chemical Plan) - Primarily benefits responsive group annuity contracts, managed by Dwight Asset Management. Investment in this fund is limited to those individuals who had balances in this fund as of December 31, 1992. As the annuity contracts mature the funds held are then transferred to the current Stable Value Fund of the Plan. In accordance with Plan provisions, Participants may elect to allocate their account balances and contributions (in one percent multiples) among the aforementioned investment funds once each month during the Plan year. The changes become effective as of the first day of the month for the Participants' elections received on or before the last day of the prior month. 11
12 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies followed in the preparation of the Plan's financial statements conform with generally accepted accounting principles. The following is a summary of the significant policies: INVESTMENT VALUATION The Plan values the underlying investments of the Trust Fund as follows: United States Government and government agency obligations and corporate debt instruments are valued at the last reported bid (quoted market) price. Guaranteed annuity contracts or group annuity contracts with insurance companies, which are benefits responsive, are carried at contract value (cost plus accrued income). Investments in mutual, commingled and group trust funds are valued at the per unit amounts reported by such funds, which approximates fair value. The Corporation's common stock is valued at the closing price reported on the composite tape of the New York Stock Exchange. Foreign securities are valued at the closing price reported of the major market on which the security is traded. Certificates of deposits, interest bearing & money market funds and loans to Participants are valued at cost, which approximates fair value. The Plan enters into transactions whereby securities are sold under agreements to repurchase those securities at an agreed upon price. Such agreements are carried at the purchase price which approximates fair value in the normal course. The market value of securities to be repurchased is monitored on a regular basis. Forward foreign currency contracts are valued at market forward rates obtained from independent market quotations and unrealized appreciation or depreciation is recorded. The Plan will realize a gain or loss upon the closing or settlement of the forward transaction. Exchange traded futures and options contracts are valued at market daily based upon the last reported sales price on the principal exchange on which the contract is traded with the resulting changes in contract value being recorded as realized net gain/loss. SECURITIES TRANSACTIONS Securities transactions are accounted for on a trade-date basis. Realized gains and losses are computed based on the average cost of securities sold. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis. Participants with investments in the Corporation's common stock may receive distributions of shares. The realized gain or loss resulting from distributions in kind is based on the difference between the average cost and the value of the stock distributed on the Valuation Date of the distribution. Securities, cash and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the prevailing market rates in effect on the valuation date. Income and expenses are translated at the exchange rates prevailing at the date of the transaction. PARTICIPANTS' WITHDRAWALS Participants' withdrawals are recorded when paid. Participants' withdrawals requested but not yet paid are not included in the financial statements. 12
13 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, changes therein and the disclosure of contingent assets and liabilities at the date the financial statements are prepared. Actual results could differ from those estimates. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500 The Plan calculates realized gains and losses and unrealized appreciation (depreciation) as the difference between current market value and cost. Internal Revenue Service ("IRS") Form 5500 calculates realized gains and losses and unrealized appreciation (depreciation) as the difference between current market value and market value at the prior period year-end. The Plan does not reflect as liabilities amounts allocated to accounts of Participants who have elected to withdraw from the Plan but have not yet been paid. The Department of Labor, however, requires that these amounts be reported as a liability on Form 5500. The following is a reconciliation of net assets available for benefits as disclosed in the financial statements to the Form 5500: DECEMBER 31, ------------ 1998 1997 -------------- -------------- Net assets available for benefits per the financial statements $5,019,980,724 $4,182,827,889 Amounts allocated to withdrawing Participants 22,356,453 17,006,375 -------------- -------------- Net assets available for benefits per the Form 5500 $4,997,624,271 $4,165,821,514 ============== ============== The following is a reconciliation of benefits paid to Participants as disclosed in the financial statements to the Form 5500: YEAR ENDED DECEMBER 31, ----------------------- 1998 1997 ------------ ------------ Benefits paid to Participants per the financial statements $278,342,087 $270,798,978 Add: Amounts allocated to withdrawing Participants at end of year 22,356,453 17,006,375 Less: Amounts allocated to withdrawing Participants at beginning of year 17,006,375 36,482,143 ------------ ------------ Benefits paid to Participants per the Form 5500 $283,692,165 $251,323,210 ============ ============ Amounts allocated to withdrawing Participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. 13
14 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 4. INVESTMENTS Investments by the same issuer that represent five percent or more of the Plan's net assets available for benefits at December 31, 1998 and 1997 are as follows: PRINCIPAL AMOUNT, NUMBER OF DESCRIPTION SHARES OR UNITS COST FAIR VALUE ----------- --------------- ---- ---------- INVESTMENTS AT FAIR VALUE: AT DECEMBER 31, 1998: - --------------------- The Chase Manhattan Corporation Common Stock 28,415,311 $1,334,593,421 $2,017,700,081 Barclays Global Investors Equity Index Fund 18,777,660 433,692,234 715,267,135 Vista Small Cap Equity Fund 12,534,410 256,801,759 296,689,477 Vista Growth and Income Select Fund 11,909,927 501,850,991 568,699,030 AT DECEMBER 31, 1997: - --------------------- The Chase Manhattan Corporation Common Stock 13,185,744 $1,192,745,338 $1,443,838,968 Barclays Global Investors Equity Index Fund 18,908,383 426,833,146 560,048,934 Vista Small Cap Equity Fund 13,416,137 272,735,873 308,571,140 Vista Growth and Income Fund 12,533,514 480,599,425 526,407,579 5. INVESTMENTS IN OPTIONS, FUTURES AND FOREIGN EXCHANGE CONTRACTS The Plan held investments in options and futures in the Intermediate Bond Fund and in foreign exchange contracts in the International Equity Fund. These investments are recorded in the schedule of assets available for plan benefits. Certain risks result from investing in foreign securities in the International Equity Fund that are in addition to the usual risks inherent in domestic investments. Such risks include future political, economic and currency exchange developments including investment restrictions and changes in foreign laws. FOREIGN CURRENCY CONTRACTS A foreign currency contract obligates one party to purchase and the other party to sell a specific currency at a set price on a future date. In order to hedge against foreign currency exchange rate risks on foreign currency denominated transactions and holdings or for investment purposes, the Plan may buy or sell foreign forward currency contracts. The Plan's risks include giving up the opportunity for profit in a hedge transaction and unanticipated movements in the value of a foreign currency relative to the U.S. dollar in transactions entered into for investment purposes. The Plan is also subject to the credit risk that the other party will not complete the obligation of the contract. 14
15 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. INVESTMENTS IN OPTIONS, FUTURES AND FOREIGN EXCHANGE CONTRACTS (CONTINUED) FOREIGN CURRENCY CONTRACTS (CONTINUED) The following represents foreign currency contracts at December 31, 1998 and 1997: NOTIONAL OR DESCRIPTION CONTRACT VALUE FAIR VALUE ----------- -------------- ---------- AT DECEMBER 31, 1998: Japanese Yen Forward Currency Contract JPY 917,954,391, Ex 3/02/99, Net Payable -- (623,094) Singapore Dollar Forward Currency Contract SGD 5,022,771, Ex 3/19/99, Net Payable -- (160,509) AT DECEMBER 31, 1997: Australian Dollar Spot Currency Contract AUD 81,556, Ex 1/02/98, Net Receivable -- 450 British Pound Forward Currency Contract GBP 3,201,635, Ex 1/09/98, Net Payable -- (92,780) British Pound Forward Currency Contract GBP 1,490,291, Ex 1/09/98, Net Receivable -- 23,353 Hong Kong Dollar Spot Currency Contract HKD 475,476, Ex 1/02/98, Net Payable -- (6) Hong Kong Dollar Forward Currency Contract HKD 6,536,000, Ex 10/07/98, Net Payable -- (3,115) Hong Kong Dollar Forward Currency Contract HKD 38,416,000, Ex 10/07/98, Net Receivable -- 133,653 Net Foreign Exchange Variation in the Value of Unsettled Foreign Security Transactions -- (2,689) OPTIONS AND FUTURES By writing options, the Plan receives a premium and becomes obligated during the term of the option to purchase or sell securities at a set price if the option is exercised. By purchasing options, the Plan pays a premium to buy or sell a security at a set price during a future fixed period. Futures contracts are contracts for delayed delivery of securities or money market instruments in which the seller agrees to make delivery at a specified future date of a specified instrument, at a specified price or yield. Upon entering into an options or futures contract, the Plan is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Plan each day. The Plan has the risk that the price volatility of the options and futures contract may not correlate with the prices of the portfolio securities. The Plan's activities in these contracts are conducted through regulated exchanges which do not result in counterparty credit risks since the exchanges assume the risk that a counterparty will not settle and generally require margin deposits of cash or securities as collateral to minimize potential credit risk. Liquidity risk may arise if there is insufficient trading activity on the options and futures exchange. 15
16 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED INVESTMENTS IN OPTIONS, FUTURES AND FOREIGN EXCHANGE CONTRACTS (CONTINUED) OPTIONS AND FUTURES (CONTINUED) A further risk in buying an option is that the Plan pays a premium whether or not the option is exercised. The risk in writing a call option is that the Plan gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Plan may incur a loss if the market price of the security decreases and the option is exercised. Risks arise from the possible inability of counterparties to meet the term of the contracts and from movement in securities values and interest rates. The Plan also has the risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. The following represents the contracts held by the Plan as of December 31, 1998 and 1997: NOTIONAL OR DESCRIPTION CONTRACT VALUE FAIR VALUE ----------- -------------- ---------- AT DECEMBER 31, 1998: Purchase Call Options Jan 99 Eurodollar Ex 1/15/99 38,865 14,350 Purchase Call Options Mar 99 Eurodollar Ex 3/15/99 78,074 130,625 Written Call Option US Treasury Bonds Ex 2/20/99 (51,674) (19,688) Written Call Option US Treasury Bonds Ex 2/20/99 (18,994) (4,688) Written Put Option US Treasury Bonds Ex 2/20/99 (50,012) (40,359) Written Put Option US Treasury Bonds Ex 2/20/99 (16,933) (22,687) Written Call Option Treasury Notes Ex 2/20/99 (17,302) (7,594) US Treasury Bond Futures Contracts Long Ex 3/99 287,294 -- US Treasury Bond Futures Contracts Short Ex 3/99 (43,657) -- 10 year US Treasury Note Futures Contracts Short Ex 3/99 (107,813) -- 5 year US Treasury Note Futures Contracts Long Ex 3/99 127,973 -- 5 year US Treasury Note Futures Contracts Short Ex 3/99 (3,533) -- AT DECEMBER 31, 1997: Purchase Call Options Eurodollar Ex 3/16/98 5,445 6,738 Purchase Call Options Eurodollar Ex 6/15/98 19,015 25,125 Written Put Option US Treasury Bonds Ex 2/20/98 (19,004) (12,187) Written Put Option US Treasury Bonds Ex 2/20/98 (20,445) (7,500) US Treasury Bond Futures Long Ex 3/98 59,860 -- US Treasury Bond Futures Short Ex 3/98 122,080 -- 10 year US Treasury Note Futures Short Ex 3/98 2,170 -- 5 year US Treasury Note Futures Long Ex 3/98 142 -- 5 year US Treasury Note Futures Short Ex 3/98 27,341 -- 6. CONTRIBUTIONS DEFERRED CONTRIBUTIONS AND VOLUNTARY CONTRIBUTIONS A Participant may elect to defer from 1% to 8% of such individual's Eligible Salary (as defined below) each pay period (in whole percentages) on a pre-tax basis and to have that amount contributed to the Plan by the Contributing Employer ("Deferred Contributions"). The maximum amount deferred for 1998 and 1997 Plan Years may not exceed the applicable statutory limit for calendar years 1998 and 1997. A Participant may contribute from 1% to 4% of Eligible Salary after applicable taxes ("Voluntary Contributions"), through payroll deductions. Amounts earned through the 16
17 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 6. CONTRIBUTIONS (CONTINUED) DEFERRED CONTRIBUTIONS AND VOLUNTARY CONTRIBUTIONS (CONTINUED) investment of Deferred and Voluntary Contributions will not be taxed until they are distributed. Eligible Salary, in general, means basic compensation from a Contributing Employer for services rendered, including, to the extent applicable, amounts attributable to shift differentials and, for employees of certain affiliated companies, all or a portion of the amounts attributable to draw or commissions and overrides. COMPANY CONTRIBUTIONS Each Contributing Employer will, on behalf of each Participant in the Plan, make a matching contribution in an amount equal to 100% of the Participant's Deferred Contributions for each pay period up to 5% of the Participant's Eligible Salary ("Matching Contributions"). Of such amounts 50% will be invested in the Chase Common Stock Fund of the Plan, which will generally consist of common stock of the Corporation. The remaining Matching Contributions will be invested in the same manner as such Participants' Deferred Contributions and Voluntary Contributions. Upon attaining age 45 with 5 or more years of service, a Participant may direct 100% of the Matching Contributions made on his or her behalf by a Contributing Employer to be invested in the same manner as such Participant's Deferred Contributions. 7. VESTING In general, Participants vest in Matching Contributions after three years of service. However, in connection with the merger of the Chemical Plan and the Old Chase Thrift Plan, eligible employees who had one year of service as of December 31, 1996 and who were employed by a Contributing Employer on January 1, 1997 became 100% vested in the value of Matching Contributions at January 1, 1997. Forfeited amounts reduce the future contributions with respect to the Matching Contributions of the Contributing Employer that originally made the contributions that were forfeited. Forfeitures that arise from contributions of a Contributing Employer that is no longer a Contributing Employer will reduce future contributions of the Bank. 8. DISTRIBUTIONS WITHDRAWAL OF CONTRIBUTIONS Under the Plan, a Participant may withdraw in cash all or any portion of such Participant's vested account balance attributable to Voluntary Contributions or contributions rolled over, or transferred to the Plan from another qualified plan or an individual retirement account. In general an individual who was a participant in the Old Chase Thrift Plan may also withdraw all or any part of his or her nonforfeitable company contributions account balance under such plan as of December 31, 1996, subject to certain restrictions. If a Participant has withdrawn all amounts permissible under the preceding paragraph, the Participant may request to withdraw up to the remaining amount of such individual's vested account balance only upon attaining age 59 1/2 or for reasons of financial hardship; provided, however, that earnings realized after December 31, 1988 on Deferred Contributions and certain other deferred contributions under the Chemical Plan are not available for hardship withdrawal. 17
18 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 8. DISTRIBUTIONS (CONTINUED) PAYMENT OF VESTED BENEFITS When a Participant terminates employment with a Contributing Employer and is not then employed by a non-contributing affiliate of the Bank, the Participant will receive the vested benefits under the Plan. In the event of the death of the Participant, these fully vested benefits will be distributed to the Participant's spouse or, with the spouse's consent, to either a beneficiary, if the Participant has named one, or to such other beneficiary as may be specified in the Plan. If a valid beneficiary designation is not on record or if the named beneficiary predeceases the Participant or dies before distribution is made, such amounts will be distributed to the Estate. A Participant whose account balances under the Plan total more than $5,000 may elect to be paid in a lump-sum, or may defer distribution up to the time the Participant attains age 70 -1/2, or elects to be paid in quarterly or annual installments of at least $500 over a period not exceeding life expectancy. If no election is made by the time such individual has attained age 65, a distribution of benefits will be made in a lump sum distribution in cash as soon as administratively practicable after attaining age 65. If the Participant's vested account balance does not exceed $5,000, payment will be made in a lump-sum distribution as soon as practicable following termination of service, with or without the Participant's consent. Distributions not deferred will be made to the Participant, Participant's spouse or beneficiary following the first Valuation Date occurring on or after the termination or death, in each case, as soon as administratively practicable. Deferred distributions will be made following the first Valuation Date occurring on or after the deferred date elected, or as soon as administratively practicable. 9. LOANS TO PARTICIPANTS (LOAN FUND) A Participant may borrow a portion of his/her account balance according to the terms of the Plan. The maximum aggregate amount of all loans to any Participant under the Plan is the lesser of $50,000 (reduced by the highest loan balance outstanding during the 12 month period preceding the date of the new loan) or 50% of the vested value of the Participant's account balance under the Plan (excluding the amount of any Voluntary Contributions). A Participant is limited to one loan per month with no more than six loans outstanding at any given time. 10. NUMBERS OF PARTICIPANTS AND UNIT VALUES There were 54,483 Participants or former Participants in the Plan at December 31, 1998 and 51,879 Participants or former Participants in the Plan at December 31, 1997. Participants may elect more than one investment fund option for their Deferred Contributions and Voluntary Contributions and also, in certain circumstances, with respect to Matching Contributions. At December 31, 1998 and 1997, the number of Participants or former Participants in each Fund and Unit 18
19 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 10. NUMBERS OF PARTICIPANTS AND UNIT VALUES (CONTINUED) Values are as follows: NUMBER OF PARTICIPANTS UNIT VALUES ---------------------- ----------- INVESTMENT FUND 1998 1997 1998 1997 - --------------- ---- ---- ---- ---- Short-Term Fixed Income 11,370 14,857 $ 5.5983 $ 5.2902 Stable Value 14,015 22,154 5.6944 5.3381 Intermediate Bond 10,551 13,137 5.9994 5.5646 S&P 500 Index 26,119 31,341 8.5934 6.4781 Growth & Income 25,535 32,054 7.5178 6.5372 Small Cap Equity 21,659 27,885 6.1494 5.9226 International Equity 14,415 19,406 5.8806 5.0471 Chase Common Stock 30,574 47,712 18.1254 13.6999 Frozen Fixed Income 1,827 2,048 7.0311 6.4538 Loan Fund 16,772 16,843 1.0000 1.0000 11. PLAN EXPENSES Unless paid by the Contributing Employers, the Trustee will pay the expenses of the Plan. The following expenses could be paid by the Plan: (a) taxes upon or with respect to the assets in the Trust Fund or income therefrom, (b) brokerage costs, (c) other expenses in connection with the purchase and sale of property by the Trustee, (d) fees paid for asset management or record keeping and (e) certain overhead expenses directly attributable to the administration of the Plan. 12. TAX STATUS AND FEDERAL INCOME TAXES The IRS has determined and informed the Bank, by a letter dated December 28, 1998, that the Plan is qualified and the Trust established under the Plan, as designed, is in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan's financial statements. The Plan's administrator is not aware of any course of action or series of events which have occurred that might adversely affect the Plan's qualifying status. Participants are not taxed currently on Contributing Employer contributions or income earned by the Trust. When a Participant, or his or her beneficiary or estate, receives a distribution under the Plan such distribution may be taxable. The tax treatment of the value of such distribution depends on the event giving rise to the distribution and the method of distribution selected and the use of the proceeds. 19
20 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 13. TRUST FUNDS TRANSACTIONS WITH AFFILIATED PARTIES The following is a summary of transactions with parties affiliated with the Plan for the years ended December 31, 1998 and 1997: AGGREGATE PROCEEDS FROM SALES, REDEMPTIONS AND AGGREGATE COST DISTRIBUTIONS TO FOR THE YEAR ENDED DECEMBER 31, 1998 OF PURCHASES PARTICIPANTS ------------------------------------ ------------ ------------ The Chase Manhattan Bank Domestic Liquidity Fund $757,184,549 $756,122,023 The Chase Manhattan Corporation Common Stock 207,299,493 54,879,874 The Chase Manhattan Bank Enhanced Cash Investment Fund 1,350,634 1,546,663 Vista U.S. Government Money Market Fund 241,185,141 267,370,646 Vista Growth and Income Select Fund 553,126,632 52,600,000 Vista Growth and Income Fund -- 526,407,579 Vista Small Cap Equity Fund 21,005,922 41,805,922 FOR THE YEAR ENDED DECEMBER 31, 1997 ------------------------------------ The Chase Manhattan Bank Domestic Liquidity Fund $1,481,146,390 $1,478,081,680 The Chase Manhattan Corporation Common Stock 685,638,594 1,491,615,043 The Chase Manhattan Bank Enhanced Cash Investment Fund 31,865,941 73,547,230 Vista U.S. Government Money Market Fund 267,783,073 240,904,923 Vista Growth and Income Fund 487,020,234 304,832,971 Vista Small Cap Equity Fund 228,471,626 18,861,387 14. INVESTMENTS IN GROUP ANNUITY CONTRACTS ISSUED BY INSURANCE COMPANIES Group Annuity Contracts with insurance companies held in the Stable Value Fund and Frozen Fixed Income are reported at the December 31, 1998 and 1997 contract value of $645,347,257 and $630,567,518 respectively. The projected fair value at December 31, 1998 and 1997 is $667,195,548 and $635,810,577 respectively, which is equal to the sum of the discounted values of all contracts. Each contract payment is projected based on the December 31, 1998 and 1997 contract value using the contractually guaranteed rate as well as the duration of each payment. The projected payments are then discounted using the December 31, 1998 and 1997 duration-matched swap rate, which approximates the appropriate discount rate, for each payment. 20
21 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 14. INVESTMENTS IN GROUP ANNUITY CONTRACTS ISSUED BY INSURANCE COMPANIES (CONTINUED) Information with respect to Group Annuity Contracts with insurance companies is as follows: STABLE FROZEN FIXED AT DECEMBER 31, 1998 TOTAL VALUE FUND INCOME FUND - -------------------- ----- ---------- ------------ Contract Value $645,347,257 $626,362,763 $18,984,494 ============ ============ =========== Projected Fair Value $667,195,548 $647,535,236 $19,660,312 ============ ============ =========== Crediting interest rate 6.65% 8.56% Average yield for the year ended December 31, 1998 6.68% 8.86% STABLE VALUE FROZEN FIXED AT DECEMBER 31, 1997 TOTAL FUND INCOME FUND - -------------------- ----- ---- ------------ Contract Value $630,567,518 $585,812,361 $44,755,157 ============ ============ =========== Projected Fair Value $635,810,577 $589,553,294 $46,257,283 ============ ============ =========== Crediting interest rate 6.75% 8.66% Average yield for the year ended December 31, 1997 6.76% 8.68% The Stable Value Fund of the Plan had an investment of $7,638,978 and $6,956,166 at December 31, 1998 and 1997, respectively, in an insurance contract issued by Mutual Benefit Life. Due to the financial difficulties experienced by Mutual Benefit Life in July 1991, New Jersey State regulators assumed control of Mutual Benefit Life. The New Jersey courts approved a rehabilitation plan for Mutual Benefit Life and the Plan's management accepted a restructured contract which was assumed and reinsured by MBL Life Assurance Corporation on April 29, 1994. The contract was separated into two components; 80% was placed in a "wrapped" contract issued by a consortium of various insurance carriers, and 20% was placed in a "covered" contract guaranteed by New York State. Principal and interest will be paid out under the terms and conditions of the restructured contracts. The wrapped contract was repaid in June 1999 and the covered contract will be repaid in one installment on December 31, 1999. During 1998 and 1997, interest amounts of $682,812 and $485,397 respectively, were credited to the contracts. The amounts credited during 1998 were at an annual rate of 10.90% and 5.10% for the wrapped and covered contracts, respectively. The corresponding amounts credited in 1997 for the two contracts were at an annual rate of 9.75% and 5.10% respectively. 15. ASSETS TRANSFERRED FROM THE PLAN TO OTHER PLANS DURING 1998 During 1998, the Bank sold certain operations and, accordingly, assets with a total fair value of $74,491 were transferred from the Plan to the Mechanics Savings Bank 401(k) Plan. 21
22 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES NOTES TO FINANCIAL STATEMENTS - CONTINUED 16. ASSETS TRANSFERRED FROM THE PLAN TO OTHER PLANS DURING 1997 During 1997, the Bank sold certain operations, accordingly, assets with a total fair value of $1,484,657 were transferred from the Plan to the Education First Marketing 401(k) Plan ($1,208,449), CIT Group Savings Plan ($156,424), Army National Bank Savings Plan ($107,256) and the First Data Corporation Savings Plan ($12,528). 17. PLAN TERMINATION While there is no intent to do so, the Bank has the right to amend or terminate the Plan at any time. In the event of termination, the value of Participants' accounts will be paid in accordance with the provisions of the Plan and the provisions of ERISA. 22
23 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR NUMBER OF UNITS COST FAIR VALUE ------------------ ---- ---------- SHORT-TERM FIXED INCOME FUND - ---------------------------- CERTIFICATES OF DEPOSIT: Deutsche Bank AG New York 5.70%, due 04/06/99 1,500,000 $ 1,499,815 $ 1,499,815 First National Bank Chicago Ill 5.75%, due 05/10/99 5,000,000 4,999,157 4,999,157 PNC Bank NA Floating, due 10/14/99 10,000,000 10,000,000 10,000,000 Rabobank Nederland Institutional Certificate 5.63%, due 03/24/99 10,000,000 9,997,814 9,997,814 Swiss Bank Corporation NY BRH Institutional Certificate 5.75%, due 05/07/99 1,000,000 999,810 999,810 Swiss Bank Corporation 5.64%, due 02/26/99 1,000,000 999,923 999,923 ----------- ----------- Total Certificates of Deposit $28,496,519 $28,496,519 ----------- ----------- UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS: Federal Farm Credit Bank Consolidated Systemwide Discounted Note 0.00%, due 3/12/99 11,000,000 $10,880,222 $10,880,222 Federal Home Loan Mortgage Corporation Discounted Note 0.00%, due 1/14/99 11,900,000 11,878,041 11,878,041 Federal National Mortgage Association Discounted Note 0.00%, due 02/16/99 11,000,000 10,930,959 10,930,959 ----------- ----------- Total United States Government and Government Agency Obligations $33,689,222 $33,689,222 ----------- ----------- CORPORATE DEBT INSTRUMENTS: American Express Centurion Bank Floating, due 05/11/99 11,000,000 $11,000,000 $11,001,100 Archer Daniels Midland Company Discounted Note 0.00%, due 3/05/99 5,000,000 4,955,813 4,955,813 Associates First Capital Corporation Puttable Floating, due 04/05/09 11,000,000 11,000,000 10,997,140 Banco Nacional De Comerce Discounted Note 0.00%, due 4/12/99 10,000,000 9,861,125 9,861,125 Cargill Inc. Discounted Note 0.00%, due 03/05/99 10,000,000 9,911,975 9,911,975 Caterpillar Financial Services Corporation Bond Quarterly Floating, due 11/02/99 10,000,000 10,000,000 9,991,400 Daimler Benz North America Corporation Discounted Note 0.00%, due 2/25/99 3,000,000 2,975,153 2,975,153 Daimler Benz North America Corporation Discounted Note 0.00%, due 4/27/99 3,000,000 2,954,277 2,954,277 Daimler Benz North America Corporation Discounted Note 0.00%, due 5/03/99 3,000,000 2,949,472 2,949,472 23
24 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR NUMBER OF UNITS COST FAIR VALUE ------------------ ---- ---------- SHORT-TERM FIXED INCOME FUND (CONTINUED): - ----------------------------------------- CORPORATE DEBT INSTRUMENTS (CONTINUED): Deere John Capital Corporation Shelf 11 6.00%, due 02/01/99 $ 5,000,000 $ 5,006,000 $ 5,002,500 Den Danske Corporation Discounted Note 0.00%, due 04/01/99 8,000,000 7,893,583 7,893,583 E.I. Du Pont Nemours & Company, Inc. Discounted Note 0.00%, due 01/12/99 10,000,000 9,983,867 9,983,867 General Electric Capital Corporation Discounted Note 0.00%, due 5/03/99 5,000,000 4,917,650 4,917,650 Goldman Sachs Group LP Medium Term Note Floating, due 1/12/00 11,000,000 11,000,000 10,997,800 IBM Credit Corporation Medium Term Notes B Entry 5.69%, due 03/09/99 2,000,000 1,999,814 2,001,840 Merrill Lynch & Company Inc. Bond Floating, due 5/25/99 5,000,000 5,011,700 4,997,200 Merrill Lynch & Company, Inc. Bond 5.565%, due 2/16/99 6,500,000 6,499,919 6,499,350 National Rural Utilities Coop. Financial Bond Floating, due 11/23/99 5,000,000 5,000,000 5,001,500 Nationwide Building Society Discounted Note 0.00%, due 3/15/99 5,000,000 4,948,794 4,948,794 Norwest Corporation Medium Term Senior Note Floating, due 10/28/99 3,000,000 3,000,000 2,997,660 Silver Tower US Funding LLC Discounted Note 0.00%, due 2/16/99 6,000,000 5,958,063 5,958,063 Toyota Motor Corporation Discounted Note 0.00%, due 3/12/99 11,500,000 11,392,666 11,392,666 Travelers Property CAS Corporation Series Notes Semi-Annual, 6.25%, due 10/01/99 5,000,000 5,048,050 5,024,100 Triple-A- One Funding Corporation Discounted Note 0.00%, due 2/18/99 8,087,000 8,030,283 8,030,283 USAA Capital Corporation Discounted Note 0.00%, due 1/22/99 7,000,000 6,978,562 6,978,562 Walt Disney Company Discounted Note 0.00%, due 02/19/99 8,000,000 7,945,229 7,945,229 Walt Disney Company Note 5.50%, due 2/26/99 3,000,000 3,002,370 3,001,320 ----------- ----------- Total Corporate Debt Instruments: $179,224,365 $179,169,422 ----------- ----------- INTEREST BEARING & MONEY MARKET FUNDS: Vista U.S. Government Money Market Fund *** 692,645 $692,645 $692,645 ----------- ----------- 24
25 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR NUMBER OF UNITS COST FAIR VALUE ------------------ ---- ---------- SHORT-TERM FIXED INCOME FUND (CONTINUED): - ----------------------------------------- OTHER INVESTMENTS: Connecticut State Taxable Ref Series B Municipal Bond 5.650%, due 8/02/99 5,000,000 $ 4,998,665 $ 5,025,360 New York City Prerefunded Series C Municipal Bond 9.750%, due 8/15/12 1,800,000 1,905,678 1,876,221 Repurchase Agreement With Greenwich Capital Securities 5.20%, due 1/05/99 16,000,000 16,000,000 16,000,000 ----------- ----------- Total Other Investments: $ 22,904,343 $ 22,901,581 ------------ ------------ Total Short-Term Fixed Income Fund $265,007,094 $264,949,389 ============ ============ STABLE VALUE FUND - ----------------- GUARANTEED INVESTMENT CONTRACTS: Allstate Life Insurance Company Group Annuity Contract #GA-5990, 6.81%, due in one installment on 12/16/02 22,866,226 $ 22,866,226 $ 22,866,226 Allstate Life Insurance Company Group Annuity Contract #GA-6132, 5.58%, due on 3/31/03 12,055,468 12,055,468 12,055,468 American International Life Insurance Company Group Annuity Contract #18232, 7.09%, due in one installment on 9/20/01, with annual interest payments beginning 9/20/95 26,497,872 26,497,872 26,497,872 American International Life Insurance Company Group Annuity Contract #18281, 6.81 %, due 12/16/02 with annual interest payments beginning 12/15/98 25,072,303 25,072,303 25,072,303 American International Life Insurance Company Group Annuity Contract #18252, 5.81%, due in one installment on 6/15/02 with annual interest payments beginning 6/15/97 10,312,693 10,312,693 10,312,693 Canada Life Insurance Company Group Annuity Contract #P45963, 6.90%, due 6/15/02 28,522,061 28,522,061 28,522,061 Canada Life Insurance Company Group Annuity Contract #P45964, 6.87%, due in two installments on 12/15/02 and 6/15/03 22,742,816 22,742,816 22,742,816 Commonwealth Life Insurance Company Group Annuity Contract #ADA00814FR, 7.00% due 9/30/03 11,334,776 11,334,776 11,334,776 Commonwealth Life Insurance Company Group Annuity Contract #ADA00823FR, 6.48% due 9/30/03 11,114,421 11,114,421 11,114,421 Hartford Life Insurance Company Group Annuity Contract #9512-AA,6.68%, due in three installments on 1/1/99, 1/1/00 and 1/01/01 18,819,794 18,819,794 18,819,794 25
26 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR FAIR VALUE OR NUMBER OF UNITS COST CONTRACT VALUE ------------------- ----------- -------------- STABLE VALUE FUND (CONTINUED): - ------------------------------ GUARANTEED INVESTMENT CONTRACTS (CONTINUED): Hartford Life Insurance Company Group Annuity Contract #30030, 7.75%, due 1/01/00 10,812,871 $10,812,871 $10,812,871 John Hancock Mutual Life Insurance Company Group Annuity Contract #7017-10001, 6.60%, due on 9/20/01 9,970,870 9,970,870 9,970,870 John Hancock Mutual Life Insurance Company Group Annuity Contract #7202-10000, 5.53%, due 6/15/01 23,771,626 23,771,626 23,771,626 John Hancock Mutual Life Insurance Company Group Annuity Contract #7202-10001, 5.53%, due in two installments, 50% of balance on 12/15/99 and the remainder on 12/15/01 15,448,129 15,448,129 15,448,129 John Hancock Mutual Life Insurance Company Group Annuity Contract #7355-10000, 6.05%, due in two installments, 50% of balance on 12/15/99 and the remainder on 12/15/00 9,789,577 9,789,577 9,789,577 John Hancock Mutual Life Insurance Company Group Annuity Contract #7817-10000, 7.30%, due on 6/15/00 12,845,558 12,845,558 12,845,558 John Hancock Mutual Life Insurance Company Group Annuity Contract #7017-10000, 6.60%, due on 12/15/00 21,871,758 21,871,758 21,871,758 Metropolitan Life Insurance Company Group Annuity Contract #13523-069, 6.05%, due in two installments, 50% on 12/15/99 and the remainder on 12/15/01 15,272,249 15,272,249 15,272,249 Metropolitan Life Insurance Company Group Annuity Contract #13428-069, 7.09%, due in one installment on 7/15/99 12,086,625 12,086,625 12,086,625 Metropolitan Life Insurance Company Group Annuity Contract #13236-169, 7.35%, due on 1/1/99 21,930,142 21,930,142 21,930,142 Metropolitan Life Insurance Company Group Annuity Contract #13887-069, 7.84%, due in one installment on 6/15/99 16,194,741 16,194,741 16,194,741 Mutual Benefit Life Group Annuity Contract GA-64963 "Wrapped" Contract 9.75%, due in one installments in June 1999 6,267,735 6,267,735 6,267,735 26
27 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR FAIR VALUE OR NUMBER OF UNITS COST CONTRACT VALUE ------------------- ----------- -------------- STABLE VALUE FUND (CONTINUED): - ------------------------------ GUARANTEED INVESTMENT CONTRACTS (CONTINUED): Mutual Benefit Life Group Annuity Contract GA-94963 "Covered" Contract 5.10%, due in one installments on 12/31/99 1,371,243 $ 1,371,243 $ 1,371,243 New York Life Insurance Company Group Annuity Contract #30660-002, 6.72%, due on 12/15/00 & 6/15/03 40,117,830 40,117,830 40,117,830 New York Life Insurance Company Group Annuity Contract #30660, 6.79%, due on 12/17/01 30,089,293 30,089,293 30,089,293 Principal Life Insurance Company Group Annuity Contract #4-34795, 6.01%, due 12/15/03 41,739,601 41,739,601 41,739,601 Principal Mutual Life Insurance Company Group Annuity Contract #4-11357-01, 5.83%, due in two installments, 50% of balance on 12/15/99 and the remainder on 12/15/01 39,484,970 39,484,970 39,484,970 Principal Mutual Life Insurance Company Group Annuity Contract #4-11357-03, 6.00%, due on 12/15/99 & 12/15/00 9,896,391 9,896,391 9,896,391 Principal Mutual Life Insurance Company Group Annuity Contract #4-11357-04, 8.21%, due on 6/15/00 5,482,035 5,482,035 5,482,035 Principal Mutual Life Insurance Company Group Annuity Contract #4-11357-05, 6.40%, due on 6/15/00 18,714,726 18,714,726 18,714,726 Principal Mutual Life Insurance Company Group Annuity Contract #4-11357-07, 6.30%, due on 6/15/02 20,710,601 20,710,601 20,710,601 Prudential Asset Management Company Group Annuity Contract #6687-212, 9.77%, due 1/1/00 5,281,774 5,281,774 5,281,774 TransAmerica Life Insurance Company Group Annuity Contract #51495, 6.40%, due 6/30/03 26,824,863 26,824,863 26,824,863 TransAmerica Life Insurance Company Group Annuity Contract #51495-01, 6.07%, due 12/15/03 21,049,125 21,049,125 21,049,125 ------------ ------------ Total Guaranteed Investments Contracts $626,362,763 $626,362,763 ------------ ------------ INTEREST BEARING & MONEY MARKET FUNDS: The Chase Manhattan Bank Domestic Liquidity Fund *** 285,686 $ 285,686 $ 285,686 ------------ ------------ Total Stable Value Fund $626,648,449 $626,648,449 ============ ============ Note: All interest rates are net of administrative service fees. 27
28 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR FAIR VALUE OR NUMBER OF UNITS COST CONTRACT VALUE ------------------- ----------- -------------- INTERMEDIATE BOND FUND - ---------------------- UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS: Federal Home Loan Mortgage Corporation PC Group #D09084, 8.00%, due 5/01/17 348,144 $ 358,806 $ 360,862 Federal Home Loan Mortgage Corporation TBA Gold SF 15 years Jan, 5.50%, due 1/15/49 7,560,000 7,453,977 7,465,500 Federal Home Loan Mortgage Corporation TBA Gold SF 30 years Jan, 7.50%, due 1/15/49 1,600,000 1,641,500 1,643,248 Federal National Mortgage Assn. Discounted Notes 0.00%, due 2/17/99 900,000 893,962 893,962 Federal National Mortgage Assn. Pass Thru Certificate Pool #303323, 9.00%, due 11/01/21 322,801 344,490 343,377 Federal National Mortgage Assn. Guaranteed Mortgage #403305, 7.00%, due 12/01/27 1,533,854 1,537,629 1,564,531 Federal National Mortgage Assn. Pass Thru Certificate Pool #250430, 6.00%, due 9/01/25 564,198 535,957 557,321 Federal National Mortgage Assn. Pass Thru Certificate Pool #303641, 6.00%, due 11/01/25 439,745 417,723 434,798 Federal National Mortgage Assn. Pass Thru Certificate Pool #305210, 6.00%, due 11/01/25 40,036 38,030 39,573 Federal National Mortgage Assn. Pass Thru Certificate Pool #319233, 6.00%, due 11/01/25 720,301 684,229 711,520 Federal National Mortgage Assn. Pass Thru Certificate Pool #320079, 6.00%, due 8/01/25 69,520 66,039 68,672 Federal National Mortgage Assn. Pass Thru Certificate Pool #320543, 6.00%, due 12/01/25 383,742 364,522 379,064 Federal National Mortgage Assn. Pass Thru Certificate Pool #324668, 6.00%, due 10/01/25 732,297 695,629 723,370 Federal National Mortgage Assn. Pass Thru Certificate Pool #326130, 6.00%, due 9/01/25 244,571 232,326 241,590 Federal National Mortgage Assn. Pass Thru Certificate Pool #326864, 6.00%, due 10/01/25 313,193 297,511 309,375 Federal National Mortgage Assn. Pass Thru Certificate Pool #328607, 6.00%, due 11/01/25 694,440 659,664 685,975 Federal National Mortgage Assn. Pass Thru Certificate Pool #329948, 6.00%, due 11/01/25 71,523 67,942 70,651 Federal National Mortgage Assn. Pass Thru Certificate Pool #330005, 6.00%, due 11/01/25 104,921 99,667 103,642 Federal National Mortgage Assn. Pass Thru Certificate Pool #332173, 6.00%, due 12/01/25 841,457 799,313 831,200 Federal National Mortgage Assn. Pass Thru Certificate Pool #332911, 6.00%, due 12/01/25 364,596 346,336 360,152 Federal National Mortgage Assn. TBA SF 30 years Jan 6.00%, due 1/15/49 10,800,000 10,654,526 10,659,924 Federal National Mortgage Assn. TBA SF 30 years Jan 6.50%, due 1/15/49 6,100,000 6,154,481 6,140,992 28
29 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR FAIR VALUE OR NUMBER OF UNITS COST CONTRACT VALUE ------------------- ----------- -------------- INTERMEDIATE BOND FUND (CONTINUED): - ----------------------------------- UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (CONTINUED): Federal National Mortgage Assn. TBA SF 30 years Jan 7.50%, due 1/15/49 2,500,000 $2,570,313 $2,567,975 Government National Mortgage Assn. II Jumbo Floating, due 7/20/22 1,167,623 1,195,537 1,186,597 Government National Mortgage Assn. II Jumbo Floating, due 10/20/22 823,743 843,307 835,967 Government National Mortgage Assn. Pool # 446720 6.50%, due 9/15/28 992,145 990,912 1,002,067 Government National Mortgage Assn. Pool # 464834 6.50%, due 9/15/28 988,527 987,297 998,412 Government National Mortgage Assn. Pool # 780601 7.00%, due 7/15/27 3,641,881 3,701,061 3,727,210 Government National Mortgage Assn. Pool # 08076 Floating, due 11/20/22 1,277,483 1,307,823 1,296,249 Government National Mortgage Assn. Pool # 416004 7.00%, due 10/15/25 781,348 797,708 799,655 Government National Mortgage Assn. Pool # 458848 7.00%, due 2/15/28 337,720 343,102 345,528 Government National Mortgage Assn. Pool # 484438 6.50%, due 9/15/28 595,121 594,381 601,072 Government National Mortgage Assn. Pool # 416805 7.00%, due 12/15/25 939,296 958,963 961,304 Government National Mortgage Assn. Pool # 484308 6.50%, due 9/15/28 987,457 986,234 997,332 Government National Mortgage Assn. I SF 30 years Jan 6.00%, due 1/15/49 7,300,000 7,248,594 7,236,125 Government National Mortgage Assn. I SF 30 years Jan 6.50%, due 1/15/49 6,600,000 6,668,031 6,667,056 Government National Mortgage Assn. I SF 30 years Jan 7.00%, due 1/15/28 6,400,000 6,539,938 6,548,032 Government National Mortgage Assn. I SF 30 years Jan 7.50%, due 1/15/49 3,300,000 3,403,125 3,402,102 United States Treasury Bond Stripped Principal 0.00%, due 2/15/23 1,640,000 463,303 440,110 United States Treasury Bond 10.00%, due 5/15/10 660,000 852,225 842,431 United States Treasury Bond Floating, due 4/15/28 9,120,000 9,089,814 8,976,500 United States Treasury Bond 5.50%, due 8/15/28 2,200,000 2,291,823 2,302,784 United States Treasury Bond 6.125%, due 11/15/27 120,000 135,206 134,324 United States Treasury Bond 6.375%, due 8/15/27 5,276,000 5,977,353 6,064,076 29
30 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR FAIR VALUE OR NUMBER OF UNITS COST CONTRACT VALUE ------------------- ----------- -------------- INTERMEDIATE BOND FUND (CONTINUED): - ----------------------------------- UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (CONTINUED): United States Treasury Note Floating, due 1/15/07 10,260,000 $ 10,169,001 $ 10,271,058 United States Treasury Note Floating, due 1/15/08 4,050,000 4,021,641 4,035,197 United States Treasury Note 5.625%, due 12/31/02 1,600,000 1,656,044 1,653,248 United States Treasury Note 5.75%, due 10/31/02 100,000 99,656 103,594 United States Treasury Note 6.50%, due 5/31/01 1,100,000 1,131,453 1,145,892 ------------ ------------ Total United States Government and Government Agency Obligations $109,368,104 $109,731,196 ------------ ------------ CORPORATE DEBT INSTRUMENTS: Advanta Mortgage Loan Trust 1998-1 Class A-1 Floating, due 5/25/12 1,669,096 $ 1,669,096 $ 1,667,677 Asset Securitization Corporation 6.92%, due 2/14/29 1,376,458 1,380,544 1,443,821 Asset Securitization Corporation Commercial Mortgage 7.40%, due 10/13/26 280,000 294,131 304,525 Boeing Company Debenture 6.6250%, due 2/15/38 430,000 428,979 435,973 Brazos Student Financial Corporation Student Loan Floating, due 6/01/23 1,300,000 1,300,000 1,264,859 British Aerospace Financial Inc. Guaranteed Bond 7.50%, due 7/01/27 1,750,000 1,737,577 1,905,173 Comtel Brasileira Ltd. Secondary Note 10.75%, due 9/26/04 400,000 372,422 314,000 Connecticut Light & Power Company 7.875%, due 10/01/24 1,000,000 1,022,070 1,037,400 Contimortage Home Equity Loan 1997-5 Floating, due 10/15/12 1,479,463 1,479,463 1,475,232 Continental Cablevision Inc. Senior Subordinate 9.00%, due 9/01/28 900,000 1,014,210 1,064,502 Ford Motor Company Del Debenture 6.625%, due 10/01/28 40,000 39,557 41,077 Ford Motor Company Del Debenture 7.40%, due 11/01/46 2,500,000 2,415,582 2,789,125 General Motors Bond 6.75%, due 5/01/28 760,000 751,902 786,091 Green Tree Financial Corporation Series 1994-A Class A, 6.90%, due 2/15/04 1,854,528 1,863,425 1,840,230 Keystone Owner Trust 1998-PI Asset Floating, due A45311/25/08 612,472 612,453 611,706 30
31 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR FAIR VALUE OR NUMBER OF UNITS COST CONTRACT VALUE ------------------- ----------- -------------- INTERMEDIATE BOND FUND (CONTINUED): - ----------------------------------- CORPORATE DEBT INSTRUMENTS (CONTINUED): Korea Electric Power Corporation Note 6.375%, due 12/01/03 460,000 $ 405,592 $ 392,049 Lehman Brothers Holdings Inc. 6.50%, due 9/25/03 2,000,000 1,987,323 2,018,580 Loews Corporation Senior Note 7.625%, due 6/01/23 2,200,000 2,115,167 2,219,976 Macerich Scg Funding Corporation Commercial Mortgage 7.081%, due 3/15/06 2,500,000 2,512,012 2,669,531 Master Financial Asset Securitization 1998-2 Floating, due 9/20/09 2,445,784 2,445,784 2,443,491 Master Financial Asset Securitization Trust 6.50%, due 3/20/16 1,900,000 1,899,907 1,922,610 Merrill Lynch Mortgage Investments Inc. Mortgage 6.96%, due 11/21/28 1,400,000 1,418,928 1,488,046 Nationscredit Home Equity Loan 1997-1 6.50%, due 10/15/28 642,135 641,910 645,145 News Amer, Inc., Senior Note 6.75%, due 1/09/38 300,000 297,158 307,023 Niagara Mohawk Power Corporation Senior Note Series D 7.25%, due 10/01/02 700,000 696,502 707,868 Niagara Mohawk Power Corporation Senior Note Series G 7.75%, due 10/01/08 580,000 578,604 633,818 Nomura Asset Securities Corporation Commercial Mortgage Pass Thru, 7.12%, due 4/13/36 1,900,000 1,904,156 2,049,986 PDVSA Finance Ltd. Note 7.50%, due 11/25/28 1,500,000 1,420,891 1,272,135 Petroleos Mexicanos Global Guaranteed Note 8.85%, due 9/15/07 1,600,000 1,600,100 1,408,000 Petroliam Nasional Berhad Bond 7.125%, due 10/18/06 260,000 241,600 210,720 Petroliam Nasional Berhad Note 7.125%, due 8/15/05 310,000 256,556 241,940 Petroliam Nasional Berhad Note 7.625%, due 10/15/26 810,000 737,745 554,283 RJR Nabisco Inc. Note 8.75%, due 8/15/05 2,100,000 2,108,316 2,173,500 Salmon Brothers Mortgage Securities VII, Inc., Mortgage Floating, due 3/30/28 2,523,286 2,523,286 2,503,074 Seagram Joseph E. & Sons, Inc., Bond 6.80%, due 12/15/08 500,000 497,728 498,205 Seagram Joseph E. & Sons, Inc., Senior Note 7.50%, due 12/15/18 1,420,000 1,417,536 1,428,392 Seagram Joseph E. & Sons, Inc., Senior Note 6.40%, due 12/15/03 710,000 707,340 701,622 SLM Student Loan Trust Loan Backed Note Series Floating, due 4/25/06 2,643,418 2,643,418 2,609,962 31
32 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR FAIR VALUE OR NUMBER OF UNITS COST CONTRACT VALUE ------------------- ----------- -------------- INTERMEDIATE BOND FUND (CONTINUED): - ----------------------------------- CORPORATE DEBT INSTRUMENTS (CONTINUED): SLM Student Loan Trust Loan Backed Note Series Floating, due 10/25/11 700,000 $ 700,219 $ 676,375 Sprint Capital Corporation Bond 6.125%, due 11/15/08 500,000 499,635 510,915 TCI Communication Financial III Bond 9.65%, due 3/31/27 2,260,000 2,260,000 2,790,739 TCI Communication, Inc., Senior Note 8.75%, due 8/01/15 100,000 116,524 124,229 Time Warner Inc. Debenture 9.15%, due 2/01/23 3,000,000 3,296,160 3,963,390 Tokai Bond 9.98%, due 12/29/49 1,040,000 973,444 884,000 Zurich Cap Trust 8.376%, due 6/01/37 1,500,000 1,502,691 1,676,685 ------------ ------------- Total Corporate Debt Instruments $ 56,787,643 $ 58,707,680 ------------ ------------ INTEREST BEARING & MONEY MARKET FUNDS: The Chase Manhattan Bank Domestic Liquidity Fund *** 635 $ 635 $ 635 ------------ ------------ OTHER INVESTMENTS: Argentina (Republic of) Government Bond Floating, due 3/31/05 2,796,500 $ 2,331,876 $ 2,373,529 Federal Republic of Brazil Government Bond Floating, due 4/15/06 1,334,400 1,128,982 871,964 Federal Republic of Brazil Government Bond 8.00%, due 4/15/14 1,954,849 1,662,286 1,168,022 Federal Republic of Brazil Government Bond 8.00%, due 4/15/14 423,943 270,374 251,822 Manitoba Province of Canada Bond Series EE 9.50%, due 9/15/18 820,000 1,129,107 1,140,620 Mexico (United Mexican States) Government Bond 11.50%, due 5/15/26 1,340,000 1,551,158 1,443,013 Russian Federation Bond 12.75%, due 6/24/28 400,000 394,892 120,000 Repurchase Agreement with Greenwich Capital Securities 5.10%, due 1/04/99 44,360,000 44,360,000 44,360,000 Purchase Call Option Jan 99 Eurodollar Ex 1/15/99 82 38,865 14,350 Purchase Call Option Mar 99 Eurodollar Ex 3/15/99 95 78,074 130,625 Written Call Option US Treasury Bonds Ex 2/20/99 (63) (51,674) (19,688) Written Call Option US Treasury Bonds Ex 2/20/99 (30) (18,994) (4,688) Written Put Option US Treasury Bonds Ex 2/20/99 (63) (50,012) (40,359) Written Put Option US Treasury Bonds Ex 2/20/99 (11) (16,933) (22,687) 32
33 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR FAIR VALUE OR NUMBER OF UNITS COST CONTRACT VALUE OR SHARES ------------------- ----------- -------------- INTERMEDIATE BOND FUND (CONTINUED): - ----------------------------------- OTHER INVESTMENTS (CONTINUED): Written Call Option US Treasury Notes Ex 2/20/99 (18) ($17,302) ($7,594) US Treasury Bond Futures Contracts Long Ex 3/99 183 287,294 0 US Treasury Bond Futures Contracts Short Ex 3/99 (29) (43,657) 0 10 year US Treasury Note Futures Contracts Short Ex 3/99 (102) (107,813) 0 5 year US Treasury Note Futures Contracts Long Ex 3/99 145 127,973 0 5 year US Treasury Note Futures Contracts Short Ex 3/99 (4) (3,533) 0 ----------- ---------- Total Other Investments $53,050,963 $51,778,929 ----------- ----------- Total Intermediate Bond Fund $219,207,345 $220,218,440 ============ ============ S&P 500 INDEX FUND - ------------------ COLLECTIVE TRUST FUNDS: Barclays Global Investors Equity Index Fund 18,777,660 $433,692,234 $715,267,135 INTEREST BEARING & MONEY MARKET FUNDS: The Chase Manhattan Bank Domestic Liquidity Fund *** 78,924 78,924 78,924 Barclays Domiciled Money Market Fund 10 10 10 ------------ ------------ Total Interest Bearing & Money Market Funds $ 78,934 $ 78,934 ------------ ------------ Total S & P 500 Index Fund $433,771,168 $715,346,069 ============ ============ GROWTH AND INCOME FUND - ---------------------- REGISTERED INVESTMENT COMPANIES: Vista Growth and Income Select Fund *** 11,909,927 $501,850,991 $568,699,030 INTEREST BEARING & MONEY MARKET FUNDS: The Chase Manhattan Bank Domestic Liquidity Fund *** 103,718 103,718 103,718 ------------ ------------ Total Growth and Income Fund $501,954,709 $568,802,748 ============ ============ 33
34 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR NUMBER OF UNITS FAIR VALUE OR OR SHARES COST CONTRACT VALUE ------------------- ----------- -------------- SMALL CAP EQUITY FUND - --------------------- REGISTERED INVESTMENT COMPANIES: Vista Small Cap Equity Fund *** 12,534,410 $256,801,759 $296,689,477 INTEREST BEARING & MONEY MARKET FUNDS: The Chase Manhattan Bank Domestic Liquidity Fund *** 82,454 82,454 82,454 ------------ ------------ Total Small Cap Equity Fund $256,884,213 $296,771,931 ============ ============ INTERNATIONAL EQUITY FUND - ------------------------- FOREIGN COMMON STOCK: Australia: Boral 1,006,444 $ 2,514,519 $ 1,432,165 Broken Hill Proprietary Company 548,156 5,502,443 4,040,991 Commonwealth Bank of Australia 245,143 2,386,141 3,482,809 M.I.M. Holding, Ltd. 4,261,014 5,944,738 1,881,746 Belgium: C. M. B 15,600 1,123,532 697,044 Finland: Fortum Oyj 99,080 644,360 606,603 Orion-Yhtyma Oyj 65,450 1,638,539 1,582,150 UPM-Kymmene Oyj 174,740 4,535,296 4,900,465 France: CNP Assurances 102,312 2,989,191 3,109,930 Danone 18,923 3,559,465 5,419,964 Dexia France 34,707 3,230,436 5,349,419 Eridania Beghin-Say 34,633 6,244,257 5,995,190 Suez Lyonnaise Des Eaux 29,321 2,668,485 6,025,694 Germany: BASF AG 38,770 1,766,925 1,480,415 Bayer AG 87,353 3,498,500 3,647,586 BHF Bank 53,240 1,567,775 2,141,625 Deutsche Bank AG 16,130 1,303,595 949,538 Deutsche Telekom AG 132,390 3,305,248 4,355,784 Veba AG 50,670 2,820,291 3,033,030 Hong Kong: National Mutual Asia 756,000 531,769 565,998 Italy: Telecom Italia Spa 1,067,438 5,949,835 6,732,431 Japan: EISAI Company 337,000 5,854,863 6,572,892 Hitachi, Ltd. 848,000 7,634,178 5,262,570 Mazda Motor Corporation 869,000 3,043,201 3,389,818 Namco Limited 125,600 4,153,916 2,527,665 Nippon Telegraph & Telephone Corporation 872,000 4,838,776 4,878,090 Nippon Yusen KK 1,406,000 6,003,584 4,449,974 Sekisui Chemical Company 894,140 5,207,414 6,024,528 34
35 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR NUMBER OF UNITS FAIR VALUE OR OR SHARES COST CONTRACT VALUE ------------------- ----------- -------------- INTERNATIONAL EQUITY FUND (CONTINUED): - -------------------------------------- FOREIGN COMMON STOCK (CONTINUED): Netherlands: K.L.M. (Koninklijke Luchtvaart Mij) 85,960 $ 2,534,233 $ 2,601,670 New Zealand: Carter Holt Harvey Limited 1,772,520 3,842,411 1,591,792 Portugal: Banco Pinto & Sottomayor SA 166,626 2,150,083 3,159,162 Brisa (Auto-Estradas De Portugal) 82,004 3,850,354 4,827,113 Singapore: Singapore Airlines Limited 584,240 3,757,279 4,284,536 United Overseas Bank 282,553 1,130,816 1,815,235 Spain: Fuerzas Electric De Cataluna SA 194,414 1,832,877 2,243,315 Iberdrola SA 269,432 3,451,605 5,048,458 Switzerland: Swatch Group 9,020 5,733,396 5,582,163 Swisscom AG 5,761 1,467,492 2,411,808 United Kingdom: Blue Circle Industries 568,310 3,356,536 2,931,217 Britannic 77,990 1,635,396 1,697,257 BTR 1,781,230 4,220,443 3,674,876 Enterprise Oil 291,080 2,618,071 1,428,681 Greenalls Group 485,392 3,152,109 2,576,228 Rolls Royce 978,162 4,195,410 4,052,389 Tomkins 640,347 2,947,437 3,020,434 United Biscuits (Holdings) 109,196 432,059 429,674 United States: Jardine Strategic Holdings 1,516,947 5,482,790 2,199,573 ------------- ------------- Total Foreign Common Stock $ 158,252,069 $ 156,111,695 ------------- ------------- OTHER INVESTMENTS: Japanese Yen Forward Currency Contracts Payable JPY 917,954,391 on 11/27/98 @ 121.1725 Ex 3/02/99 $ 0 ($623,094) Singapore Dollar Forward Currency Contracts Payable SGD5,022,771 on 9/22/98 @1.7302 Ex 3/19/99 0 (160,509) ------------- ------------- Total Other Investments (Net cost) $ 0 ($783,603) ------------- ------------- Total International Equity Fund $ 158,252,069 $ 155,328,092 ============= ============= 35
36 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1998-CONTINUED (IRS FORM 5500 - LINE 27a) PRINCIPAL AMOUNT OR NUMBER OF UNITS FAIR VALUE OR OR SHARES COST CONTRACT VALUE ------------------- ----------- -------------- CHASE COMMON STOCK FUND - ----------------------- The Chase Manhattan Corporation Common Stock *** 28,415,311 $1,334,593,421 $2,017,700,081 -------------- -------------- Total Chase Common Stock Fund $1,334,593,421 $2,017,700,081 ============== ============== LOAN FUND - --------- LOANS TO PLAN PARTICIPANTS: Loans to Participants 16,772* $167,909,912 $167,909,912 INTEREST BEARING & MONEY MARKET FUNDS: The Chase Manhattan Bank Domestic Liquidity Fund *** 6,287,565 6,287,565 6,287,565 ------------ ------------ Total Loan Fund $174,197,477 $174,197,477 ============ ============ FROZEN FIXED INCOME FUND - ------------------------ GUARANTEED INVESTMENT CONTRACTS: Hartford Life Insurance Company Group Annuity Contract #9284, 7.75%**, due in two installments, 40% on 1/1/99 and the remainder on 1/1/00 8,875,312 $8,875,312 $8,875,312 Prudential Asset Management Company Group Annuity Contract #6687, 9.77%, due 1/1/00 10,109,182 10,109,182 10,109,182 ------------ ----------- Total Guaranteed Investment Contracts: $18,984,494 $18,984,494 INTEREST BEARING & MONEY MARKET FUNDS: The Chase Manhattan Bank Domestic Liquidity Fund *** 12,253 12,253 12,253 -------------- -------------- Total Frozen Fixed Income Fund $18,996,747 $18,996,747 ============== ============== TOTAL INVESTMENTS $3,989,512,692 $5,058,959,423 ============== ============== * Represents number of Participants with Loans outstanding. ** Interest rate is net of administrative service fees. *** Party-in-interest investments. 36
37 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR FOR THE YEAR ENDED DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27a) DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE, Identity of Issue, Borrower, Lessor or Similar Party Rate of Interest, Collateral, Par or Maturity Value - ---------------------------------------------------- --------------------------------------------------- SHORT-TERM INVESTMENTS Banque Nationale De Paris N.Y. 5.46%, 9/24/98, $11,000,000 Ford Credit Europe 0.00%, 6/05/98, $10,000,000 Ford Motor Credit Company Discounted Note 0.00%, 2/05/99, $11,000,000 General Motors Acceptance Corporation Discounted note 0.00%, 7/10/98/ $8,000,000 International Lease Finance Corporation Discounted Note 0.00%, 2/05/99, $11,900,000 Metlife Funding Inc. Discounted Note 0.00%, 1/28/99, $11,900,000 Tri Party Repo W/Greenwich Capital Securities 4.70%, 12/03/98, $32,500,000 Tri Party Repo W/Greenwich Capital Securities 4.53%, 11/25/98, $38,000,000 Tri Party Repo W/Greenwich Capital Securities 4.65%, 12/04/99, $38,000,000 Tri Party Repo W/Greenwich Capital Securities 4.72%, 12/04/99, $12,000,000 Triple-A-One Fund Discounted Note 0.00%, 10/20/98, $11,000,000 CORPORATE DEBT INSTRUMENTS Boeing Company Debentures 6.625%, 2/15/38, $810,000 Goldman Sachs Group L.P. Medium Notes 11/12/99, $11,000,000 Goldman Sachs Group L.P. 5/11/99, $11,000,000 IBM Corporation 6.5%, 1/15/28, $1,220,000 Sprint Capital Corporation 6.875%, 11/15/28, $ 1,650,000 US West Capital Funding Inc. Debenture 6.5%, 1/15/18, $580.000 Aesop Funding. II LLC 98-1 Rent Car 6.14%, 5/20/06, $2,000,000 Argentina Republic Bond 11.375%, 1/30/17, $590,000 Goldman Sachs Group L.P. Medium Notes 8/13/99, $11,000,000 Goldman Sachs Group L.P. Medium Notes 12/14/99, $11,000,000 Goldman Sachs Group L.P. Medium Notes 9/14/99, $11,000,000 GS Mortgage Securities Corporation II Commercial Mortg Pass 6.562%, 4/13/31, $2,800,000 Korea Development Bank Bond 7.25%, 5/15/06, $ 470,000 COST OF PROCEEDS OF Identity of Issue, Borrower, Lessor or Similar Party Acquisitions Dispositions - ---------------------------------------------------- ------------ ------------ SHORT-TERM INVESTMENTS Banque Nationale De Paris N.Y. $11,000,000 $11,000,000 Ford Credit Europe 9,858,175 9,956,989 Ford Motor Credit Company Discounted Note 10,813,290 10,915,789 General Motors Acceptance Corporation Discounted note 7,963,333 7,986,889 International Lease Finance Corporation Discounted Note 11,800,536 11,802,400 Metlife Funding Inc. Discounted Note 11,812,337 11,814,965 Tri Party Repo W/Greenwich Capital Securities 32,500,000 32,500,000 Tri Party Repo W/Greenwich Capital Securities 38,000,000 38,000,000 Tri Party Repo W/Greenwich Capital Securities 38,000,000 38,000,000 Tri Party Repo W/Greenwich Capital Securities 12,000,000 12,006,293 Triple-A-One Fund Discounted Note 10,952,431 10,991,597 CORPORATE DEBT INSTRUMENTS Boeing Company Debentures 808,056 808,056 Goldman Sachs Group L.P. Medium Notes 11,000,000 11,000,000 Goldman Sachs Group L.P. 11,000,000 11,000,000 IBM Corporation 1,210,777 1,185,200 Sprint Capital Corporation 1,647,294 1,702,998 US West Capital Funding Inc. Debenture 576,671 592,801 Aesop Funding. II LLC 98-1 Rent Car 1,999,125 1,995,234 Argentina Republic Bond 572,300 579,749 Goldman Sachs Group L.P. Medium Notes 11,000,000 11,000,000 Goldman Sachs Group L.P. Medium Notes 11,000,000 11,000,000 Goldman Sachs Group L.P. Medium Notes 11,000,000 11,000,000 GS Mortgage Securities Corporation II Commercial Mortg Pass 2,828,000 2,877,438 Korea Development Bank Bond 386,382 419,503 37
38 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR FOR THE YEAR ENDED DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27a) DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE, Identity of Issue, Borrower, Lessor or Similar Party Rate of Interest, Collateral, Par or Maturity Value - ---------------------------------------------------- --------------------------------------------------- CORPORATE DEBT INSTRUMENTS (CONTINUED) News America Inc. Note 144A 6.75%, 1/09/38, $300,000 Niagara Mohawk Power Corporation SR Note Ser B 7.00%, 10/01/20, $650,000 SLM Student Loan Trust Loan Backed Note Ser 97-1 01/25/10, $2,600,000 Vnesheconombank 12/15/15, $560,000 CORPORATE STOCK - COMMON AEM Italy, 19612 Banca Popolare Di Milano Italy, 23557 Cable and Wireless Optus Australia, 267120 Cookson Group United Kingdom, 375831 Michelin (Cie Gle Des Etabl.) France, 86946 Paribas (Ex Banque Paribas) France, 26010 Rhodia France13604 Sears United Kingdom, 254270 Sedgwick Group United Kingdom, 718330 Selfridges United Kingdom, 254270 Swire Pacific Hong Kong, 842000 Valmet Corporation Finland, 67779 GUARANTEED INVESTMENT CONTRACTS John Hancock Mutual Life Insurance Company GIC - 5872-10001, 8,777,424 OTHER INVESTMENTS - ----------------- STATE & MUNICIPAL SECURITIES: Long Island Power Authority NY Electricity System 5.125%, 12/01/22, 400,000 COST OF PROCEEDS OF Identity of Issue, Borrower, Lessor or Similar Party Acquisitions Dispositions - ---------------------------------------------------- ------------ ------------ CORPORATE DEBT INSTRUMENTS (CONTINUED) News America Inc. Note 144A 297,120 297,120 Niagara Mohawk Power Corporation SR Note Ser B 648,837 649,851 SLM Student Loan Trust Loan Backed Note Ser 97-1 2,592,688 2,575,723 Vnesheconombank 397,152 347,755 CORPORATE STOCK - COMMON AEM 18,580 22,594 Banca Popolare Di Milano 160,571 184,961 Cable and Wireless Optus 367,707 454,826 Cookson Group 1,225,666 994,719 Michelin (Cie Gle Des Etabl.) 5,361,735 3,451,185 Paribas (Ex Banque Paribas) 1,813,521 1,625,100 Rhodia 316,344 376,224 Sears 1,883,186 832,771 Sedgwick Group 1,834,034 2,440,972 Selfridges 1,380,494 865,352 Swire Pacific 5,827,958 2,591,083 Valmet Corporation 930,801 1,166,003 GUARANTEED INVESTMENT CONTRACTS John Hancock Mutual Life Insurance Company 8,777,424 8,777,424 OTHER INVESTMENTS - ----------------- STATE & MUNICIPAL SECURITIES: Long Island Power Authority NY Electricity System 390,452 395,692 38
39 ; 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR FOR THE YEAR ENDED DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27a) DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE, Identity of Issue, Borrower, Lessor or Similar Party Rate of Interest, Collateral, Par or Maturity Value - ---------------------------------------------------- --------------------------------------------------- OTHER INVESTMENTS (CONTINUED) - ------------------------------ FOREIGN GOVERNMENT AND AGENCY SECURITIES ETC.: Argentina Republic Bond 5.75%, 3/31/23, 500,000 Argentina Republic Bond 9.75%, 9/19/27, 1,000,000 Brazil (Federative Republic Of) 1/01/01, 2,616,700 Brazil (Federative Republic Of) 10.125%, 5/15/27, 460,000 Korea Republic of 8.875%, 4/15/08, 2,130,000 Rights, Warrants etc.: Banco Pinto & Sottomayor SA Sub Rights 7/7/98, 163,904 Lafarge New FRF, Sub Rights 8/4/98, 53,566.000 BCO Com Portugal Rights Ex: 4/27/98 PURCHASE OPTIONS: Purchase Call December 98 Eurodollar Future Ex 12/14/98, 77.000 Purchase Call December 98 Eurodollar Future Ex 12/14/1998, 38.000 Purchase Call December 98 Eurodollar Future Ex 12/14/1998, 59.000 Purchase Call December 98 USA Treasury Notes Ex 11/21/1998, 32.000 Purchase Call December 98 USA Treasury Notes Ex 11/21/1998, 4.000 Purchase Call June 98 Eurodollar Future Ex 6/15/1998, 29.000 Purchase Call June 98 USA Treasury Bonds Ex 6/18/1998, 28.000 Purchase Call June 98 USA Treasury Bonds Ex 5/16/1998, 23.000 Purchase Call Mar 98 Eurodollar Ex 3/16/1998,28.000 Purchase Call Sep 98 USA Treasury Bonds Ex 8/22/1998, 19.000 Purchase Call Sep 98 USA Treasury Bonds Ex 8/22/1998, 63.000 Purchase Call Sep 98 USA Treasury Bonds Ex 8/26/1998, 70.000 Purchase Call Sep 98 Eurodollar Ex 7/10/1998, 49.000 Purchase Call Sep 98 Eurodollar Ex 9/14/1998, 125.000 Purchase Call Sep 98 Eurodollar Ex 9/14/1998, 9.000 COST OF PROCEEDS OF Identity of Issue, Borrower, Lessor or Similar Party Acquisitions Dispositions - ---------------------------------------------------- ------------ ------------ OTHER INVESTMENTS (CONTINUED) - ------------------------------ FOREIGN GOVERNMENT AND AGENCY SECURITIES ETC.: Argentina Republic Bond 373,438 376,250 Argentina Republic Bond 936,100 696,523 Brazil (Federative Republic Of) 2,404,092 2,499,754 Brazil (Federative Republic Of) 452,410 451,030 Korea Republic of 2,043,694 1,993,148 Rights, Warrants etc.: Banco Pinto & Sottomayor SA - 1 Lafarge - 50,528 BCO Com Portugal - 190,523 PURCHASE OPTIONS: Purchase Call December 98 Eurodollar Future 28,140 - Purchase Call December 98 Eurodollar Future 20,235 - Purchase Call December 98 Eurodollar Future 25,955 - Purchase Call December 98 USA Treasury Notes 18,740 131,370 Purchase Call December 98 USA Treasury Notes 905 9,095 Purchase Call June 98 Eurodollar Future 7,468 16,095 Purchase Call June 98 USA Treasury Bonds 10,132 408 Purchase Call June 98 USA Treasury Bonds 14,548 16,718 Purchase Call Mar 98 Eurodollar 1,960 - Purchase Call Sep 98 USA Treasury Bonds 6,080 - Purchase Call Sep 98 USA Treasury Bonds 60,988 54,028 Purchase Call Sep 98 USA Treasury Bonds 22,838 - Purchase Call Sep 98 Eurodollar 52,430 - Purchase Call Sep 98 Eurodollar 33,800 23,490 Purchase Call Sep 98 Eurodollar 405 - 39
40 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR FOR THE YEAR ENDED DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27a) DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE, Identity of Issue, Borrower, Lessor or Similar Party Rate of Interest, Collateral, Par or Maturity Value - ---------------------------------------------------- --------------------------------------------------- OTHER INVESTMENTS (CONTINUED) - ------------------------------ PURCHASE OPTIONS (CONTINUED): Purchase Call Sep 98 Eurodollar Ex 9/14/1998, 44.000 Purchase Put June 98 USA Treasury Bonds Ex 6/20/1998, 21.000 Purchase Put Sep 98 USA Treasury Bonds Ex 8/22/1998, 3.000 Purchase Put Sep 98 USA Treasury Bonds Ex 7/25/1998, 19.000 Purchase Put Sep 98 USA Treasury Notes Ex 8/20/1998, 13.000 FUTURES CONTRACTS: Eurodollar-CME Futures Long Ex 12/31/1998, 371.000 Eurodollar-CME Futures Short Ex 12/31/1998, 68.000 Treasury Bonds-CBT Futures Long Ex 12/31/1998, 88.000 Treasury Bonds-CBT Futures Short Ex 12/31/1998, 108.000 10 Year US Treasury Notes-CBT Futures Short Ex 12/31/1998, 143.000 5 Year US Treasury Notes-CBT Futures Long Ex 12/31/1998, 349.000 5 Year US Treasury Notes-CBT Futures Short Ex 12/31/1998, 14.000 Eurodollar-CME Futures Long Ex 6/30/1998, 67.000 Muni Bond Index-CBT Futures Contracts Long Ex 6/30/1998, 21.000 Treasury Bonds-CBT Futures Long Ex 6/30/1998, 35.000 Treasury Bonds-CBT Futures Short Ex 6/30/1998, 23.000 10 Year US Treasury Notes-CBT Futures Short Ex 6/30/1998, 62.000 5 Year US Treasury Notes-CBT Futures Long Ex 6/30/1998, 251.000 5 Year US Treasury Notes-CBT Futures Short Ex 6/30/1998, 99.000 Eurodollar-CME Futures Long Ex 3/31/1998, 11.000 10 Year US Treasury Notes-CBT Futures Long Ex 3/31/1998, 12.000 Eurodollar Futures Short Ex 9/30/1998, 85.000 Eurodollar-CME Futures Long Ex 9/30/1998, 158.00. Treasury Bonds-CBT Futures Short Ex 9/30/1998, 44.000 10 Year US Treasury Notes-CBT Futures Short Ex 9/30/1998, 121.000 COST OF PROCEEDS OF Identity of Issue, Borrower, Lessor or Similar Party Acquisitions Dispositions - ---------------------------------------------------- ------------ ------------ OTHER INVESTMENTS (CONTINUED) - ------------------------------ PURCHASE OPTIONS (CONTINUED): Purchase Call Sep 98 Eurodollar 12,430 - Purchase Put June 98 USA Treasury Bonds 20,220 - Purchase Put Sep 98 USA Treasury Bonds 773 - Purchase Put Sep 98 USA Treasury Bonds 6,674 14,358 Purchase Put Sep 98 USA Treasury Notes 2,941 - FUTURES CONTRACTS: Eurodollar-CME Futures Long - 82,057 Eurodollar-CME Futures Short - 42,044 Treasury Bonds-CBT Futures Long - (12,851) Treasury Bonds-CBT Futures Short - (77,386) 10 Year US Treasury Notes-CBT Futures Short - (276,989) 5 Year US Treasury Notes-CBT Futures Long - 394,930 5 Year US Treasury Notes-CBT Futures Short - (28,835) Eurodollar-CME Futures Long - 9,966 Muni Bond Index-CBT Futures Contracts Long - 63,718 Treasury Bonds-CBT Futures Long - (49,088) Treasury Bonds-CBT Futures Short - (37,345) 10 Year US Treasury Notes-CBT Futures Short - (90,024) 5 Year US Treasury Notes-CBT Futures Long - 68,063 5 Year US Treasury Notes-CBT Futures Short - (47,118) Eurodollar-CME Futures Long - 8,619 10 Year US Treasury Notes-CBT Futures Long - 19,883 Eurodollar Futures Short - 7,331 Eurodollar-CME Futures Long - 76,088 Treasury Bonds-CGT Futures Short - (102,316) 10 Year US Treasury Notes-CBT Futures Short - (416,409) 40
41 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR FOR THE YEAR ENDED DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27a) DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE, Identity of Issue, Borrower, Lessor or Similar Party Rate of Interest, Collateral, Par or Maturity Value - ---------------------------------------------------- --------------------------------------------------- OTHER INVESTMENTS (CONTINUED) - ------------------------------ FUTURES CONTRACTS (CONTINUED): 5 Year US Treasury Notes-CBT Futures Long Ex 9/30/1998, 333.000 5 Year US Treasury Notes-CBT Futures Short Ex 9/30/1998, 45.000 WRITTEN OPTIONS: Argentina FRB Call Options Ex 10/16/98, 500.000 Brazil c Bond Call Options Ex 10/08/98, 720.000 Brazil c Bond Call Options Ex 10/08/98, 940.000 Written Call Eurodollar Futures Options Ex 12/14/1998, 38.000 Written Call USA Treasury Bonds Options Ex 9/19/1998, 22.000 Written Call USA Treasury Bonds Options Ex 11/21/1998, 27.000 Written Call USA Treasury Bonds Options Ex 11/21/1998, 24.000 Written Call USA Treasury Bonds Options Ex 11/21/1998, 19.000 Written Call USA Treasury Bonds Options Ex 11/21/1998, 22.000 Written Call USA Treasury Bonds Options Ex 11/21/1998, 25.000 Written Call USA Treasury Bonds Options Ex 11/21/1998, 24.000 Written Call USA Treasury Notes Options Ex 11/21/1998, 20.000 Written Call USA Treasury Notes Options Ex 11/21/1998, 24.000 Written Call Eurodollar Futures Options Ex 6/15/1998, 55.000 Written Call USA Treasury Bonds Options Ex 5/16/1998, 34.000 Written Call USA Treasury Bonds Options Ex 3/21/1998, 23.000 Written Call USA Treasury Bonds Options Ex 4/18/1998, 44.000 Written Call USA Treasury Bonds Options Ex 5/16/1998, 100.000 Written Call USA Treasury Bonds Options Ex 5/16/1998, 30.000 Written Call USA Treasury Bonds Options Ex 5/16/1998, 1.000 Written Call USA Treasury Bonds Options Ex 5/16/1998, 83.000 Written Call USA Treasury Bonds Options Ex 2/21/1998, 56.000 Written Call USA Treasury Bonds Options Ex 2/21/1998, 53.000 COST OF PROCEEDS OF Identity of Issue, Borrower, Lessor or Similar Party Acquisitions Dispositions - ---------------------------------------------------- ------------ ------------ OTHER INVESTMENTS (CONTINUED) - ------------------------------ FUTURES CONTRACTS (CONTINUED): 5 Year US Treasury Notes-CBT Futures Long - 512,122 5 Year US Treasury Notes-CBT Futures Short - (39,128) WRITTEN OPTIONS: Argentina FRB Call Options (10,735) - Brazil c Bond Call Options (19,700) - Brazil c Bond Call Options (27,705) - Written Call Eurodollar Futures Options (14,915) - Written Call USA Treasury Bonds Options (8,429) - Written Call USA Treasury Bonds Options (11,610) - Written Call USA Treasury Bonds Options (12,195) (75,727) Written Call USA Treasury Bonds Options (18,920) (41,408) Written Call USA Treasury Bonds Options (16,679) (32,415) Written Call USA Treasury Bonds Options (12,313) (8,391) Written Call USA Treasury Bonds Options (14,445) (5,055) Written Call USA Treasury Notes Options (13,288) (5,775) Written Call USA Treasury Notes Options (6,945) - Written Call Eurodollar Futures Options (16,338) (1,788) Written Call USA Treasury Bonds Options (33,386) (18,490) Written Call USA Treasury Bonds Options (18,374) (8,438) Written Call USA Treasury Bonds Options (21,670) (9,955) Written Call USA Treasury Bonds Options (35,188) (5,275) Written Call USA Treasury Bonds Options (15,713) (1,147) Written Call USA Treasury Bonds Options (336) (20) Written Call USA Treasury Bonds Options (61,440) (5,513) Written Call USA Treasury Bonds Options (34,674) (18,826) Written Call USA Treasury Bonds Options (32,150) (12,520) 41
42 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR FOR THE YEAR ENDED DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27a) DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE, Identity of Issue, Borrower, Lessor or Similar Party Rate of Interest, Collateral, Par or Maturity Value - ---------------------------------------------------- --------------------------------------------------- OTHER INVESTMENTS (CONTINUED) - ------------------------------ WRITTEN OPTIONS (CONTINUED): Written Call USA Treasury Bonds Options Ex 2/21/1998, 23.000 Written Call USA Treasury Bonds Options Ex 2/21/1998, 16.000 Written Call Eurodollar Futures Options Ex 3/15/1999, 39.000 Written Call USA Treasury Bonds Options Ex 3/25/1999, 44.000 Written Call USA Treasury Bonds Options Ex 2/20/1999, 20.000 Written Call USA Treasury Bonds Options Ex 2/20/1999, 24.000 Written Call USA Treasury Bonds Options Ex 8/22/1998, 59.000 Written Call USA Treasury Bonds Options Ex 8/22/1998, 16.000 Written Call USA Treasury Bonds Options Ex 8/22/1998, 40.000 Written Call USA Treasury Bonds Options Ex 7/25/1998, 13.000 Written Call USA Treasury Bonds Options Ex 8/22/1998, 42.000 Written Call USA Treasury Bonds Options Ex 9/19/1998, 22.000 Written Put USA Treasury Bonds Options Ex 11/21/1998, 19.000 Written Put USA Treasury Bonds Options Ex 11/21/1998, 39.000 Written Put USA Treasury Bonds Options Ex 11/21/1998, 208.000 Written Put USA Treasury Bonds Options Ex 11/21/1998, 66.000 Written Put USA Treasury Bonds Options Ex 11/21/1998, 50.000 Written Put USA Treasury Bonds Options Ex 11/21/1998, 69.000 Written Put USA Treasury Bonds Options Ex 5/16/1998, 24.000 Written Put USA Treasury Bonds Options Ex 4/18/1998, 5.000 Written Put USA Treasury Bonds Options Ex 5/16/1998, 1.000 Written Put USA Treasury Bonds Options Ex 2/21/1998, 25.000 Written Put USA Treasury Bonds Options Ex 1/24/1998, 11.000 Written Put USA Treasury Bonds Options Ex 3/21/1998, 54.000 Written Put USA Treasury Bonds Options Ex 2/20/1999, 88.000 Written Put USA Treasury Bonds Options Ex 3/15/1999, 52.000 Written Put USA Treasury Bonds Options Ex 10/24/1998, 8.000 COST OF PROCEEDS OF Identity of Issue, Borrower, Lessor or Similar Party Acquisitions Dispositions - ---------------------------------------------------- ------------ ------------ OTHER INVESTMENTS (CONTINUED) - ------------------------------ WRITTEN OPTIONS (CONTINUED): Written Call USA Treasury Bonds Options (15,999) (1,969) Written Call USA Treasury Bonds Options (9,880) (870) Written Call Eurodollar Futures Options (13,695) (3,705) Written Call USA Treasury Bonds Options (25,170) (32,449) Written Call USA Treasury Bonds Options (20,475) (13,900) Written Call USA Treasury Bonds Options (21,945) (8,055) Written Call USA Treasury Bonds Options (50,714) (41,115) Written Call USA Treasury Bonds Options (16,989) - Written Call USA Treasury Bonds Options (19,075) (20,925) Written Call USA Treasury Bonds Options (3,965) (910) Written Call USA Treasury Bonds Options (32,498) (6,221) Written Call USA Treasury Bonds Options (11,179) (1,884) Written Put USA Treasury Bonds Options (14,701) (2,518) Written Put USA Treasury Bonds Options (38,911) (21,058) Written Put USA Treasury Bonds Options (148,351) (64,716) Written Put USA Treasury Bonds Options (32,771) (11,620) Written Put USA Treasury Bonds Options (19,157) - Written Put USA Treasury Bonds Options (44,764) - Written Put USA Treasury Bonds Options (3,945) (5,430) Written Put USA Treasury Bonds Options (2,072) (3,163) Written Put USA Treasury Bonds Options (274) (226) Written Put USA Treasury Bonds Options (12,453) - Written Put USA Treasury Bonds Options (5,589) - Written Put USA Treasury Bonds Options (35,455) (16,305) Written Put USA Treasury Bonds Options (55,372) (2,018) Written Put USA Treasury Bonds Options (58,110) (17,453) Written Put USA Treasury Bonds Options (3,190) - 42
43 401(k) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR FOR THE YEAR ENDED DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27a) DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE, Identity of Issue, Borrower, Lessor or Similar Party Rate of Interest, Collateral, Par or Maturity Value - ---------------------------------------------------- --------------------------------------------------- OTHER INVESTMENTS (CONTINUED) - ------------------------------ WRITTEN OPTIONS (CONTINUED): Written Put USA Treasury Notes Options Ex 10/24/1998, 20.000 Written Put USA Treasury Bonds Options Ex 9/19/1998, 22.000 Written Put USA Treasury Bonds Options Ex 8/20/1998, 13.000 Written Put USA Treasury Bonds Options Ex 7/25/1998, 16.000 Written Put USA Treasury Bonds Options Ex 7/25/1998, 13.000 Written Put USA Treasury Bonds Options Ex 8/22/1998, 19.000 Written Put USA Treasury Bonds Options Ex 7/25/1998, 21.000 Written Put USA Treasury Bonds Options Ex 5/25/1998, 24.000 SECURITIES SOLD SHORT: Federal National Mortgage Association Pass Thru Certificate Pool 7.00%, 10/01/29, 200,000.000 Government National Mortgage Association TBA Single Family 30 years 7.00%, 2/15/28, 4,100,000.000 COST OF PROCEEDS OF Identity of Issue, Borrower, Lessor or Similar Party Acquisitions Dispositions - ---------------------------------------------------- ------------ ------------ OTHER INVESTMENTS (CONTINUED) - ------------------------------ WRITTEN OPTIONS (CONTINUED): Written Put USA Treasury Notes Options (4,850) - Written Put USA Treasury Bonds Options (8,429) - Written Put USA Treasury Bonds Options (2,543) - Written Put USA Treasury Bonds Options (8,130) (1,979) Written Put USA Treasury Bonds Options (4,168) - Written Put USA Treasury Bonds Options (6,389) (4,893) Written Put USA Treasury Bonds Options (10,343) (11,314) Written Put USA Treasury Bonds Options (11,070) (12,180) SECURITIES SOLD SHORT: Federal National Mortgage Association Pass Thru Certificate Pool (203,859) (203,859) Government National Mortgage Association TBA Single Family 30 years (4,169,828) (4,170,789) 43
44 401(K) SAVINGS PLAN OF THE CHASE MANHATTAN BANK AND CERTAIN AFFILIATED COMPANIES SCHEDULE OF FIVE PERCENT REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1998 (IRS FORM 5500 - LINE 27D) ACQUISITIONS DISPOSITIONS --------------------- ------------------------------------------------- DESCRIPTION OF ASSETS NUMBER COST NUMBER PROCEEDS COST REALIZED GAIN --------------------- ------ ---- ------ -------- ---- ------------- SINGLE TRANSACTIONS UNDER SECTION 2520, 103-6 (c)(1)(i) - ------------------------------------------------------- Vista Growth and Income Fund 1 $526,407,579 $480,599,425 $45,808,154 Vista Growth and Income Select Fund 1 $526,407,579 SERIES TRANSACTIONS UNDER SECTION 2520, 103-6 (c)(1)(ii) - -------------------------------------------------------- The Chase Manhattan Corporation Common Stock 49 207,299,493 12 54,879,874 42,016,330 12,863,544 The Chase Bank Domestic Liquidity Fund 723 757,184,549 550 756,122,023 756,122,023 -- Vista Growth and Income Select Fund 22 553,126,632 11 52,600,000 51,275,641 1,324,359 Vista Growth and Income Fund 1 526,407,579 480,599,425 45,808,154 Vista U. S. Government Money Market Fund 151 241,185,141 90 267,370,646 267,370,646 -- Note the threshold for reporting transactions under Department of Labor provisions is five percent of the fair value of the Plan's assets at the beginning of the year of $4,182,827,889. This amount for the year ended December 31, 1998 is $209,141,395. 44
45 EXHIBIT INDEX EXHIBIT NO. EXHIBIT PAGE - ----------- ------- ---- 23 Consent of Independent Auditors 47 45
46 SIGNATURE Pursuant to the requirements of the Securities Exchange of Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. THE CHASE MANHATTAN CORPORATION By: /S/ Joseph L. Sclafani ------------------------------- Joseph L. Sclafani The Chase Manhattan Corporation Controller (Principal Accounting Officer) Date: June 25, 1999 46
1 CONSENT OF INDEPENDENT AUDITORS To the Participants and Plan Administrator of the 401(k) Savings Plan of The Chase Manhattan Bank and Certain Affiliated Companies: We consent to the incorporation by reference in the registration statement (No. 33-01776) on Form S-8 of The Chase Manhattan Corporation of our report dated June 18, 1999, relating to the statement of net assets available for benefits of the 401(k) Savings Plan of The Chase Manhattan Bank and Certain Affiliated Companies as of December 31, 1998 and 1997, and the related statement of changes in net assets available for benefits for the years then ended, and all related schedules, which report appears in the December 31, 1998 annual report on Form 11-K of the 401(k) Savings Plan of The Chase Manhattan Bank and Certain Affiliated Companies. KPMG LLP New York, New York June 25, 1999 47