According to Charlie Gasparino, the Dimon may be interested in buying Wachovia.
Comments
2
Posted by guest, Jun 20, 2008 2:24PM
not sure how this is possible..it would put JPM over the 10% deposit cap
3
Posted by guest, Jun 20, 2008 2:25PM
i wish all these interns would stop asking what the effect of every single story is going to have on their jobs.
dude if you can't figure these things out maybe you shouldnt be working in finance to begin with.
4
Posted by guest, Jun 20, 2008 2:34PM
@2:25 - agreed.
Here's a hint: 90% of Wachovia will be laid off, the other 10% will supplant JPM employees. No net new hires (see Bear Stearns, only WB doesn't have as much talent).
5
Posted by guest, Jun 20, 2008 2:35PM
they would probably just shut down the entire Wachovia investment bank.
6
Posted by guest, Jun 20, 2008 2:37PM
No more financial M&A w/o crystal clear visibility of these yahoo's balance sheets. This has gone to far. F-in CFOs don't even know their own exposures.
7
Posted by guest, Jun 20, 2008 2:48PM
2:35 - it's responses like yours that scare interns into asking the (stupid)2:24 questions.
They will not shut down the entire Wachovia bank, but rather do what they did with Bear, and that is pick and choose what's good and then offload the rest. Save the "NOTHING'S GOOD AT WACHOVIA!!!!!696969!!" comments because that's not entirely true.
They'll keep some of the good mid-market/growth clients WB has and the relationship managers and some of their staff.
Advice is, and this is applicable to everyone, get into a "good" group
9
Posted by blndebnker, Jun 20, 2008 2:56PM
Let's be serious now kids. JPM is in no position to swallow up another organization right now. Full focus is on the Bear integration. It would be foolish to pursue such an endeavor at this time. Plus I'm not sure what JPM would have to gain from Wachovia. Any insights on that?
10
Posted by guest, Jun 20, 2008 2:59PM
It also would violate the US Deposit cap by 2-3%. There are ways around it, but it would be tough.
12
Posted by guest, Jun 20, 2008 3:01PM
Great idea, JPM would have to sell like $300 billion in deposits to get below the cap. that is sort of like selling an entire wells fargo. unless they still have a gdw thrift charter to hide some of that stuff behind.
13
Posted by guest, Jun 20, 2008 3:01PM
IF Dimon is after Wachovia then its for their branch network NOT the clowns in the IB.
14
Posted by guest, Jun 20, 2008 3:02PM
A mega-bank is not the answer. Just look at citi, it's a complete clusterfuck.
15
Posted by guest, Jun 20, 2008 3:07PM
JP Bearcovia?
Morcovia Stearns?
Beargan & Covia?
WacBear Morgan?
I could go on and on...
16
Posted by lemmerdeur, Jun 20, 2008 3:10PM
TBTF.
17
Posted by guest, Jun 20, 2008 3:11PM
They gain retail footprint in the southeast and a platform that complements a JPM Private Bank. See the Texas Commerce Bank acquisition a few years back.
18
Posted by guest, Jun 20, 2008 3:12PM
@3:02 - seeing as Dimon had a hand in the clusterfuck, I'm sure he would say that it's a clusterfuck only because he was pushed out. So, I doubt that Citi will deter him from creating another megabank.
19
Posted by JimBob, Jun 20, 2008 3:18PM
JP Bearchoviatrustmutual of America
Yeah, that sounds about right.
Hope it stays member FDIC
20
Posted by MF, Jun 20, 2008 3:18PM
As 2:48 said, Wachovia is not going to offload the full IB team. In fact, the value that Wachovia brings to JPM is to increase the quality of the female talent at the firm.
JPM is notorious for occupying the sweet spot of mediocrity on the IB food chain (along with Citi). Not profitable enough to hire good looking female analysts solely for their office-candy attributes, but not douche enough to repel marginally qualified candidates that were denied offers at better firms.
Wachovia on the other hand, has never been able to recruit at any decent school. Therefore it has access to a deeper pool of female talent where being smart or possessing analytical or quantitative skills are not a prerequisite for being hired.
21
Posted by guest, Jun 20, 2008 3:21PM
blndebanker, JPM would have to gain an east coast consumer franchise. currently only really has scale in NY. but i agree, its not doable right now if ever
22
Posted by guest, Jun 20, 2008 3:23PM
If all y'all come from "decent schools" why is a trillion dollars being written off by IBs?
Sign me up for Everest College!
23
Posted by guest, Jun 20, 2008 3:29PM
Dimon said right after the Bear takeover that he was shopping for a regional bank, and that his team at JP Morgan was so good at integrating takeover institutions into their operations that they could integrate Bear and a regional bank at the same time.
Then he had a little trouble integrating Bear, which ran way behind schedule.
I don't think it dampened his ambitions, though.
24
Posted by JimBob, Jun 20, 2008 3:30PM
How many of it's counterparties can JP Stearns keep purchasing?
25
Posted by guest, Jun 20, 2008 3:32PM
I could name like 5 or 6 banks right now that would be better to buy than WB to get people on the ground in the mid-atlantic and southeast regions.
26
Posted by guest, Jun 20, 2008 3:39PM
Morgovia, hard to keep track of all these breakaway republics of the former Yugoslavia.
27
Posted by blndebnker, Jun 20, 2008 3:56PM
@3:21pm - Yeah totally makes sense.
28
Posted by BlackSwan06, Jun 20, 2008 4:04PM
@3:32 agreed... WB would be more pain than it's worth for the potential gains of a SE retail foothold and cherry-picking their best and brightest.
29
Posted by guest, Jun 20, 2008 4:04PM
I don't think JP really wants Wachovia's $125B worth of crap mortgages they got in their Golden West merger
31
Posted by guest, Jun 20, 2008 4:08PM
Where are the wachovia guys here to say JPM would use WB's top-tier CDO team from its vaunted IB to package and sell all those option ARMs? any takers?
32
Posted by guest, Jun 20, 2008 4:17PM
yeah or you just buy like, First Citizens and BankUnited and not get stuck with all the billions of terrible miami condo construction loans etc but i agree, sti > wb
34
Posted by JorgeCad, Jun 20, 2008 5:33PM
To be frank, I am even suprised Wachovia is even on the radar screen. Back Office (and Middle Office) just insturcted me not to trade with them.
That must suck for them.
geo
35
Posted by guest, Jun 20, 2008 6:43PM
Wachovia is full of morons, the head quant is a fat mofo and probably all the models are wrong. I am not surprised they are sinking.
36
Posted by guest, Jun 20, 2008 6:43PM
Wachovia is full of morons, the head quant is a fat mofo and probably all the models are wrong. I am not surprised they are sinking.
37
Posted by guest, Jun 20, 2008 6:43PM
Wachovia is full of morons, the head quant is a fat mofo and probably all the models are wrong. I am not surprised they are sinking.
38
Posted by guest, Jun 20, 2008 8:45PM
I was getting very worried about Charlie
......he didn't have an unconfirmed rumor all day
39
Posted by guest, Jun 20, 2008 10:12PM
@ 6:43 x 3. The quant may be a moron, but I am sure he knows how to post 1x on DB.
Maybe you are the UBS or Citi quant, hence their losses of 3x as much as anyone else.
Smitty, gimme the drums!
40
Posted by guest, Jun 21, 2008 8:43AM
You can't blame the quant for being fat. That's just a byproduct of being in the South. They're all fat down there... and stupid. Since there is no viable explanation, I will conclude with the fact that it must be the water.
41
Posted by guest, Jun 21, 2008 11:06AM
whether it be WB, ST, or something else, JPM can easily digest another non-IB acquistion... the merger playbook of each LOB has been updated and the know-how to execute both BAU/growth change efforts and integration efforts is there...for a retail play, the "target" systems and processes are are in place, hence no real effort needed to vet between what to keep / drop...in fact Retail/MM/CB are chomping at the bit to get the coast-to-coast footprint... it will happen soon
42
Posted by guest, Jun 21, 2008 2:08PM
JPM and WB is a great deal. They get arguably the best run retail bank in the country, one of the largest retail brokers in the country, and a phenomenal commercial banking franchise. All they would need to do is close the investment bank and retain all those that individuals that cater to the middle market firms where WB makes money. Only thing holding this back would be price, deposit cap, and possible further writedowns.
44
Posted by guest, Jun 21, 2008 7:21PM
Well, well, well. Once again, bloggers have sniffed out truth and justice the American way. I recently came across the astute observations of a guest blogger who had connected the dots beteen Gasbagarino, DB, the piece about Dick Bove and Mike Mayo. Apparently, Wall Street executives like Jimmy Cayne, John Thain, John Mack, Dick Fuld, Loyd Blankfein, etc have instructed their respective staffs to have no contact with Gasbagarumor due to his erroneous information, hostile nature and moronic observations. Despit this, the blogger has observed, Mike Mayo appears to be a frequent and anonymous source for the on-airhead editor. Oooops, he/she points out, watch yourself Mike - you're next to be fired!
So, here's the rub: I cut and posted this astute posting a number of times. However, it has been removed by someone with administrative access. Hmmm. One can only conclude that some collusion between Carney, the Gasbag and Mike Mayo to mislead the blogosphere is in play here. Big mistake guys - you don't want to lose your loyal followers! Better that the bad guys be exposed for what they truly are -fucking stupid.
45
Posted by guest, Jun 21, 2008 7:23PM
Well, well, well. Once again, bloggers have sniffed out truth and justice the American way. I recently came across the astute observations of a guest blogger who had connected the dots beteen Gasbagarino, DB, the piece about Dick Bove and Mike Mayo. Apparently, Wall Street executives like Jimmy Cayne, John Thain, John Mack, Dick Fuld, Loyd Blankfein, etc have instructed their respective staffs to have no contact with Gasbagarumor due to his erroneous information, hostile nature and moronic observations. Despit this, the blogger has observed, Mike Mayo appears to be a frequent and anonymous source for the on-airhead editor. Oooops, he/she points out, watch yourself Mike - you're next to be fired!
So, here's the rub: I cut and posted this astute posting a number of times. However, it has been removed by someone with administrative access. Hmmm. One can only conclude that some collusion between Carney, the Gasbag and Mike Mayo to mislead the blogosphere is in play here. Big mistake guys - you don't want to lose your loyal followers! Better that the bad guys be exposed for what they truly are -fucking stupid.
46
Posted by guest, Jun 23, 2008 8:04AM
"Only thing holding this back would be price, deposit cap, and possible further writedowns."
fucktard. think about what you just said.
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Posted by guest, Jun 20, 2008 2:24PM
What do you think the effects of this would be on the CIB in Charlotte?