INSTANT VIEW: JPMorgan to acquire Wamu's deposits: WSJ
NEW YORK (Reuters) - JPMorgan Chase & Co has agreed to acquire the deposits of struggling savings and loan Washington Mutual Inc in a government-brokered deal, the Wall Street Journal reported on Thursday. Earlier, JPMorgan, the third-largest U.S. bank, said it would hold an investor conference call later on Thursday night but did not say why it was doing so. JPMorgan officials were not immediately available for comment. Wamu shares, which plunged 25 percent in the main session, were up 5.9 percent in after-hours trading. JPMorgan shares were up 1.8 percent. The following is reaction from investors, industry analysts: NANCY BUSH, ANALYST, NAB RESEARCH, ANNANDALE, NEW JERSEY "It's very unsurprising. It had been speculated for a long time that JPMorgan was going to buy Washington Mutual or Wachovia, and Washington Mutual presented itself first. JPMorgan got branches from Bank of New York, and revamped them. So they've have plenty of experience in revamping retail franchises, which is what they'll be doing with these branches." "Washington Mutual had been teetering on the brink for quite awhile. It is surprising that it has hung on for as long as it has." RICK MECKLER, CHIEF INVESTMENT OFFICER, LIBERTYVIEW CAPITAL MANAGEMENT, NEW YORK, NY "JPMorgan is a strong hand, they're a good operator. It probably is a good deal for them." "I think it's really just showing you that the problems have become not only so large but in some ways they fed on themselves -- the more distressed sales you have, the more it creates problems for other security holders." "I think what (Dimon) did right is he appeared to have built up the fire power to step into these situations, in terms of having the capital, in terms of having avoided some of the problems that other people had. "He has been a good risk manager, he has been able to reap the benefits." MATT MCCORMICK, PORTFOLIO MANAGER AT BAHL & GAYNOR INVESTMENT COUNSEL, INC. IN CINCINNATI, OHIO "Jamie Dimon is clearly feeling that he has an opportunity to grab market share, and get it at firesale prices. There will clearly be two types of banks: those that survive, and those that don't. Dimon will survive and dominate. He's becoming an acquisition machine." (Reporting by Dan Wilchins and Elinor Comlay) ʘ
