Friday, April 27, 2007

Now JPMorgan's in the Chase? Read carefully


Well, I think this deal mentioned in the Tribune today is a non-starter. Even the story casts doubts on it, which makes me wonder why it was printed in the first place.

I'm no corporate guy, but I just think this one has regulatory problems written all over it. Let's combine the #1 and #2 banks in Chicago...right. But crazier things have happened.

The worst part of this deal is the bloodbath that would occur in layoffs. I can see huge, huge redundancies here, both in the back office and on the retail side. This is one deal I'd rather not see.

The only upside I could see is that you'd probably have a chance to pick up some bank branch buildings on the cheap, even cheaper if Chase would put restrictive covenants on the land.

One thing's for sure. There are a lot of lawyers billing a lot of hours on one deal.

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