J. P. Morgan Unit to Lead Stock Offering : Banking: Morgan Securities becomes the first commercial bank affiliate since the Depression to manage the sale of an initial offering.

A unit of J. P. Morgan & Co. on Thursday became the first U.S. commercial bank affiliate since the Depression to lead-manage an initial public offering of stock.

J. P. Morgan Securities, the unit of the nation’s fourth-largest banking company, will act as the chief underwriter in an international share offering for a Philippine property company, Ayala Land Inc.

Under Depression-era legislation, U.S. commercial banks were effectively prohibited from managing share offerings anywhere in the world.

The lead manager oversees the offering, putting together the issue and ultimately being responsible for its sale. A co-lead manager works for the lead manager and sells a portion of the offering.

Morgan last lead-managed a public share offering about 60 years ago. It co-managed an offering announced in February.

Last September, the Federal Reserve gave J. P. Morgan the go-ahead to trade and underwrite stocks.

The Glass-Steagall Act of 1933 separated the banking and securities businesses. It was enacted to prevent abuses in the banking industry.

The Fed granted similar powers to Bankers Trust Co. a few months after Morgan.

Ayala Corp. will raise about $90 million by selling up to 96 million shares of its real estate subsidiary at 26 pesos, or about $1 each. The international portion will amount to 38 million shares.