You might think JPMorgan Chase got everything in the Washington Mutual deal, which briefly accomplished the impossible by doubling the number of Chase branches in New York City. But the wily Jamie Dimon isn’t finished: He wants WaMu to pay him for the pleasure of owning their crappy bank.
JPMorgan and the “carcass” of WaMu’s parent are fighting over the scraps. The former thinks $1.9 billion was way too much for WaMu, preferring that the latter effectively pay it $2 billion for taking the bank of its hands. The carcass thinks that money should go to its creditors. The courts have yet to decide.
But WaMu’s remaining $4 billion in cash isn’t all Jamie wants. Having already sold the bank’s Seattle headquarters, JPMorgan wants $4 billion in trust-preferred securities, $3 billion in federal tax refunds, WaMu’s employee pension fund and the rights to the name “Washington Mutual,” which must be worth at least $10.
For its part, the carcass wants to keep all of that, and wants its art collection back. Its sole remaining piece is worth just $25,000, and is apparently not pretty enough for JPMorgan to desire.
WaMu Is Gone, but the Parent Is Fighting On [WSJ]