Chapter 609 Washington Mutual Bank
"Your Highness, after Washington Mutual Bank was taken over by the Federal Deposit Insurance Corporation on the 24th, JPMorgan Chase is actively negotiating with the other party to acquire most of the assets of Washington Mutual Bank ..."
Junning Zhang said softly to Barron:
"In order to complete this acquisition, JPMorgan Chase hopes to obtain at least US$5 billion in financing, and they took the initiative to convey this to BFT Fund. I have an intention. Mr. Duane Hurst called to ask for your opinion half an hour ago."
"Okay, I will call him back immediately."
"Then I'll go out first, Your Highness the Duke."
If Zhang Junning knew that his boss was a British aristocrat with astonishing wealth before serving as Barron's personal assistant, then it's time Now, as Zhang Junning is around Barron and exposed to more and more information, her awe for Barron has become stronger and stronger.
You must know that Morgan Stanley, Merrill Lynch, and JP Morgan Chase, before this, Zhang Junning knew what these names meant. They are established companies at the top of the food chain in the global financial system.
Now, with Barron’s simple words, they have either been acquired or held shares...
This feeling is the most shuddering from the heart. , not only involves billions of dollars in transactions, but also the experience of participating in major events that are enough to be written into history.
The reason why Zhang Junning needed to convey the call from BFT Fund CEO Duane Hurst to Barron was because they were now on a plane to China.
In August, the Yanjing Olympic Games was about to open, and Barron set off from New York to China.
It is worth mentioning that he went to China after meeting up with Fan Bingbing - Fan Bingbing came to the United States half a month ago to reshoot some scenes of "Succession" Shots from the second season, and also participated in some related activities.
Because it was on a plane and Barron was resting in his bedroom before, in order not to be disturbed, all incoming calls would first be answered by assistant Zhang Junning.
"It's me, Duane, about JPMorgan Chase..."
Barron quickly called Duane Hurst.
After acquiring the branches and assets of Merrill Lynch Group and IndyMac Bank, Standard Chartered Bank no longer participated in the competition for the assets of Washington Mutual Bank.
After all, integrating Merrill Lynch Industrial Bank and IndyMac Bank into the Standard Chartered Bank system is already a challenge they need to face.
Not to mention the overlap between various banking institutions, the previous acquisition of Merrill Lynch Group has not yet received final approval from U.S. regulatory agencies. There is no need for Standard Chartered Bank to cause trouble now.
Washington Mutual Bank, headquartered in Seattle, is the largest savings bank in the United States, with US$307 billion in assets and US$188 billion in deposits.
Its assets were much higher than those of Continental Illinois National Bank, which closed in 1984, and IndyMac, which was taken over by the government earlier this year - making Washington Mutual's collapse the largest bank failure in the United States to date.
After Washington Mutual Bank was taken over by the Federal Deposit Insurance Corporation, JPMorgan Chase attempted to acquire the bank's 5,400 branches in 23 states in the United States.
You know, in March this year, JPMorgan Chase just acquired Bear Stearns, the fifth largest investment bank on Wall Street. In that acquisition, JPMorgan Chase received nearly US$30 billion in financial support from the Federal Reserve. Now that it's about to acquire Washington Mutual's branches and depository business again, JPMorgan is also facing a cash crunch.
This time the Federal Reserve will not lend money to JPMorgan Chase to acquire the assets of Washington Mutual Bank, which has been taken over by the Federal Deposit Insurance Corporation.
JPMorgan Chase will need to raise the corresponding funds on its own.
According to analysis, if JPMorgan Chase acquires the branches and deposit business of Washington Mutual Bank, it will need to pay US$2 billion to US$3 billion - you know, the asset size and deposit scale of Washington Mutual Bank are nearly ten times that of India. DiMac Bank, this price can be said to be quite a bargain compared to the US$1.5 billion that Standard Chartered Bank paid for acquiring the branches and deposits of IndyMac Bank.
However, in contrast, because Washington Mutual Bank has been actively developing subprime mortgage and other risky mortgage loan businesses, while it is rapidly expanding, the risks it has accumulated are also ten times or even twenty times more than IndyMac Bank.
And unlike the disposal of IndyMac Bank, this time the Federal Deposit Insurance Corporation will not use its deposit insurance fund for Washington Mutual Bank - according to public data, earlier this year, India After the collapse of DeMac Bank, the Federal Deposit Insurance Corporation's deposit insurance fund plummeted to $45.2 billion from $52.4 billion at the end of last year, and federal regulators were criticized by many parties.
Therefore, JPMorgan Chase can acquire the branches and deposit business of Washington Mutual Bank, formerly the largest savings bank in the United States, at a lower price. The price they need to pay is that they need to spend considerable funds to handle some The non-performing assets left by Washington Mutual Bank were caused by depositors' deposits previously invested in the subprime mortgage business.
This is why JPMorgan Chase needs to raise funds to complete this acquisition.
Of course, even if this is done, the advantages outweigh the disadvantages for JPMorgan Chase. According to Duane Hurst revealed to Barron’s, once this acquisition is completed, JPMorgan Chase’s share price in 2009 will be Earnings increase by 50 cents.
Therefore, it is still very necessary to take this opportunity to invest in JPMorgan Chase. However, the specific investment plan requires continued negotiations between the two parties to determine.
......
The Devonshire landed at Yanjing Airport, and this time Barron will go to live in the "Grand Duke's Mansion" in the fourth courtyard.
He and Fan Bingbing's children had been sent to Yanjing when Fan Bingbing went to the United States and were taken care of by Fan Bingbing's parents and nanny.
When they arrived in Yanjing, they had already sent their two children here - Fan Bingbing missed them very much after not seeing them for a while.
Fan Bingbing is one year younger than Barron and has not yet celebrated her 27th birthday. Now she looks a little more mature than when Barron first met her.
It can be said that among his many women, Fan Bingbing is a very special one to Barron - not just because of her stunning appearance.
If we talk about beauty, there are many people around Barron who can be called stunning. Bonnie and Aaliya are not inferior to Fan Bingbing, but Fan Bingbing’s Chinese-style beauty is not as good as Barron’s. In terms of Lun, it has the bonus of the soul of the previous life.
Now, after the two have a son and a daughter, this feeling has changed at a deeper level.
Before they moved in here, this courtyard house had been cleaned in advance.
While Barron was playing with the children with Fan Bingbing, Alia was instructing the maids who came here with Barron to decorate the entire courtyard to make it a Barron-like place. The look Lun was most accustomed to - after all, he had almost never lived here before. The few times he came to Yandu, he always stayed in the "Little Duke's Mansion" near the Forbidden City.
(End of this chapter)