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                                   EXHIBIT 12

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



                                                                   Twelve Months
  Dollars in millions                                                  1998
                                                                
  Earnings:
    Net income                                                         $  963
    Add: income taxes                                                     454
    Less: equity in undistributed income
      of all affiliates accounted for by
      the equity method                                                    44
    Add: fixed charges, excluding interest
      on deposits                                                       8 584
- --------------------------------------------------------------------------------
  Earnings available for fixed charges,
    excluding interest on deposits                                      9 957
Add: interest on deposits                                               2 823
- --------------------------------------------------------------------------------
  Earnings available for fixed charges,
    including interest on deposits                                     12 780
- --------------------------------------------------------------------------------
Fixed charges:
  Interest expense, excluding interest on
    deposits                                                            8 537
  Interest factor in net rental expense                                    47
- --------------------------------------------------------------------------------
  Total fixed charges, excluding interest
    on deposits                                                         8 584
  Add: interest on deposits                                             2 823
- --------------------------------------------------------------------------------
Total fixed charges, including interest
    on deposits                                                        11 407
- --------------------------------------------------------------------------------
Ratio of earnings to fixed charges:
  Excluding interest on deposits                                         1.16(a)
  Including interest on deposits                                         1.12(a)
- --------------------------------------------------------------------------------


(a) For the twelve months ended December 31, 1998, the ratio of earnings to
fixed charges, excluding the fourth quarter 1998 after tax charge of $86 million
($143 million before tax) related to cost reduction programs; third quarter 1998
after tax gain of $34 million ($56 million before tax) related to the sale of
the firm's investment management business in Australia; 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 1.17 excluding
interest on deposits and 1.13 including interest on deposits.

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                                   EXHIBIT 12

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



Dollars in                                                         Twelve Months
millions                                                               1998
                                                                
Earnings:
  Net income                                                           $  963
  Add: income taxes                                                       454
  Less: equity in undistributed income
    of all affiliates accounted for by
    the equity method                                                      44
  Add: fixed charges, excluding interest
    on deposits                                                         8 637
- --------------------------------------------------------------------------------
  Earnings available for fixed charges,
    excluding interest on deposits                                     10 010
  Add: interest on deposits                                             2 823
- --------------------------------------------------------------------------------
  Earnings available for fixed charges,
    including interest on deposits                                     12 833
- --------------------------------------------------------------------------------
Fixed charges:
 Interest expense, excluding interest on
 deposits                                                               8 537
 Interest factor in net rental expense                                     47
 Preferred stock dividends                                                 53
- --------------------------------------------------------------------------------
Total fixed charges, excluding interest
    on deposits                                                         8 637
  Add: interest on deposits                                             2 823
- --------------------------------------------------------------------------------
Total fixed charges, including interest
    on deposits                                                        11 460
- --------------------------------------------------------------------------------
Ratio of earnings to fixed charges and preferred stock dividends:
  Excluding interest on deposits                                         1.16(a)
  Including interest on deposits                                         1.12(a)
- --------------------------------------------------------------------------------


(a) For the twelve months ended December 31, 1998, the ratio of earnings to
fixed charges and preferred stock dividends excluding the fourth quarter 1998
after tax charge of $86 million ($143 million before tax) related to cost
reduction programs; third quarter 1998 after tax gain of $34 million ($56
million before tax) related to the sale of the firm's investment management
business in Australia; 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 1.17 excluding interest on deposits and 1.13 including
interest on deposits.