So JPM is looking to buy a "super-regional" bank, possibly WaMu. This idea is either terrible or brilliant. Jamie Dimon is supposed to be one shrewd operator. If that's true then WaMu may be perfect for him.
"WaMu is one craptastic sorry ass cobbled together turd pie," we were told by our computer screen as we typed those words. We don't know if we are the only one who remembers this article from Fortune in '04. But the guys at WaMu couldn't find their ass with both hands, and google maps.
So there's an opportunity for a shrewd business man to take it over and really improve things. And, Jamie, son!, you really know your deal making, having served under THE master for all those years. But is WaMu too much of a shit show, to even be worth the time? According to the aforementioned Fortune article:
"In a half-dozen years it purchased no fewer than ten major lenders coast to coast, from Great Western in California to Dime Bancorp in New York" and "WaMu still uses an amazing nine separate systems to originate loans, including one called LoanWorks that it has employed since its days as a small thrift and others that it picked up from acquisitions. The systems have great trouble talking to one another. According to former executives, the Tower of Babel situation drove up costs and led to long delays in closing mortgages this year and last, allowing competitors to poach loads of business."
If you can pull this off, it'll rival what Sandy did at Corn Beef With Lettuce cleaning out the back office operations of whatever ancient white shoe firm it was he bought way back before we were born.
--Everett Stuckey, DealBreaker correspondent.
Posted by just me , Jan 11, 2008 2:06PM
Great idea buying a bank that lends to middle to low income peeps. Oh well, another great name slowly dies....
Posted by , Jan 11, 2008 2:11PM
ehh, did anyone see the story on cnbc about the merrill lynch trade who pissed on his boss's desk
Posted by jag , Jan 11, 2008 2:12PM
I, for one, welcome our new Chemical-Corn Exchange-Texas Commerce-Manufacturer's-Hanover Manhattan-Bank One-First Chicago-First Bancgroup-City National-Drexel/JS/JP Morgan Guaranty Trust Chase & Co.-Washington Mutual overlords.
Posted by , Jan 11, 2008 2:31PM
WaMu has great locations in CA, Oregon, Wash State, which are great places where Chase is totally lacking. Re the tower of babel systems, that can be fixed. Also re systems, they're actually kind of zippy in NY. No tellers. For those rare occasions when you cash a check for say $18.18 (a birthday gift from yr superstitious grandma - some of you know what I'm talking about here), you see a sales person who does this code thing that you bring to a machine that like magic spits out the dollars and cents.
Posted by s75 , Jan 11, 2008 3:11PM
oh lets not forget idaho, or all the vegas branches
yeah the cash thing is actually pretty cool but the expense of converting that to a "real" bank branch is a nightmare
the problem with fortune reports from 2004 is they are four years out of date. last i checked the multiple systems had been worked out.
Posted by Jim , Jan 11, 2008 3:14PM
For all their problems (and there are many), WaMu still has strong retail market penetration, which could add to JPMC's national footprint.
All the systems....that really doesn't matter, does it? I mean, if JPMC buys them, they'd replace it all anyway, even if it did work in the first place.
Posted by Jim , Jan 11, 2008 3:17PM
For all their problems (and there are many), WaMu still has strong retail market penetration, which could add to JPMC's national footprint.
All the systems....that really doesn't matter, does it? I mean, if JPMC buys them, they'd replace it all anyway, even if it did work in the first place.
Posted by Ken Houghton , Jan 11, 2008 5:15PM
I always write those checks for $18 even (or, these days, $36 or $54). For once, I feel young.
Rumours of JPMChaChemBOMH's abilities at systems integration are exaggerated. Otoh, better than WaMu's is COLD.
Posted by , Jan 14, 2008 11:39AM
That article is from 4 years ago, and all your qoutes seem to come from the said article. Please come up with your own material when posting a blog. Regurgitating old material is lame.