1

                                   EXHIBIT 12

                Computation of Ratio of Earnings to Fixed Charges
                         J.P. Morgan & Co. Incorporated
                                  Consolidated



- --------------------------------------------------------------------------------
                                                                      Six Months
Dollars in millions                                                     1998
- --------------------------------------------------------------------------------
                                                                     
Earnings:
  Net income                                                            $ 718
  Add: income taxes                                                       384
  Less: equity in undistributed income
    of all affiliates accounted for by
    the equity method                                                       9
  Add: fixed charges, excluding interest
    on deposits                                                         4 275
- --------------------------------------------------------------------------------
  Earnings available for fixed charges,
    excluding interest on deposits                                      5 368

Add: interest on deposits                                               1 493
- --------------------------------------------------------------------------------
  Earnings available for fixed charges,
    including interest on deposits                                      6 861
- --------------------------------------------------------------------------------
Fixed charges:
  Interest expense, excluding interest on
    deposits                                                            4 249
  Interest factor in net rental expense                                    26
- --------------------------------------------------------------------------------
  Total fixed charges, excluding interest
    on deposits                                                         4 275
  Add: interest on deposits                                             1 493
- --------------------------------------------------------------------------------
Total fixed charges, including interest
    on deposits                                                         5 768
- --------------------------------------------------------------------------------
Ratio of earnings to fixed charges:
  Excluding interest on deposits                                         1.26(a)
  Including interest on deposits                                         1.19(a)
- --------------------------------------------------------------------------------


(a) For the six months ended June 30, 1998, the ratio of earnings to fixed
charges, excluding the second quarter 1998 after tax gain of $79 million ($131
million before tax) related to the sale of the firm's global trust and agency
services business and excluding the first quarter 1998 after tax charge of $129
million ($215 million before tax) related to restructuring of business
activities,was 1.27 excluding interest on deposits and 1.20 including interest
on deposits.

   2

                                   EXHIBIT 12

                       Computation of Ratio of Earnings to
              Combined Fixed Charges and Preferred Stock Dividends
                         J.P. Morgan & Co. Incorporated
                                  Consolidated



- --------------------------------------------------------------------------------
                                                                      Six Months
Dollars in millions                                                      1998
- --------------------------------------------------------------------------------
                                                                       
Earnings:
  Net income                                                            $ 718
  Add: income taxes                                                       384
  Less: equity in undistributed income
    of all affiliates accounted for by
    the equity method                                                       9
  Add: fixed charges, excluding interest
    on deposits and preferred stock
    dividends                                                           4 303
- --------------------------------------------------------------------------------
  Earnings available for fixed charges,
    excluding interest on deposits                                      5 396
  Add: interest on deposits                                             1 493
- --------------------------------------------------------------------------------
  Earnings available for fixed charges,
    including interest on deposits                                      6 889
- --------------------------------------------------------------------------------
Fixed charges:
  Interest expense, excluding interest on                            
  deposits                                                              4 249
  Interest factor in net rental expense                                    26
  Preferred stock dividends                                                28
- --------------------------------------------------------------------------------
Total fixed charges, excluding interest
    on deposits                                                         4 303
  Add: interest on deposits                                             1 493
- --------------------------------------------------------------------------------
Total fixed charges, including interest
    on deposits                                                         5 796
- --------------------------------------------------------------------------------
Ratio of earnings to fixed charges:
  Excluding interest on deposits                                         1.25(a)
  Including interest on deposits                                         1.19(a)
- --------------------------------------------------------------------------------


(a) For the six months ended June 30, 1998, the ratio of earnings to fixed
charges, excluding the second quarter 1998 after tax gain of $79 million ($131
million before tax) related to the sale of the firm's global trust and agency
services business and excluding the first quarter 1998 after tax charge of $129
million ($215 million before tax) related to restructuring of business
activities,was 1.27 excluding interest on deposits and 1.20 including interest
on deposits.