J.P. Morgan & Co., builder of the Old Economy, has officially unveiled its New Economy strategy, saying Thursday that it would devote $1 billion toward new ventures building and providing systems and services to enable e-commerce among financial institutions - a niche the banking company calls "e-finance."

The company formed LabMorgan, a unit that will act as an early-stage merchant bank focusing on attracting a client base of entrepreneurs, as well as on nurturing companies spun out of J.P. Morgan's own technology initiatives. The decision to specialize in e-finance allows Morgan to leverage its own expertise as a participant in the financial markets when it decides where to place its bets.

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