Friday, September 19, 2008

Local WaMu branches at mercy of buyer’s Chicago hopes

Crain's:
If Washington Mutual Inc. finds a buyer, the fate of its 117 Chicago-area branches would depend on which bank does the deal.

Mounting losses on subprime mortgages have forced the Seattle-based bank to seek a buyer five years after it entered Chicago with a flurry of branch openings across the city and suburbs. Possible suitors include New York-based J. P. Morgan Chase & Co. and San Francisco-based Wells Fargo & Co., according to people familiar with the matter. Others reportedly interested include Citigroup Inc. and some foreign banks.

J. P. Morgan, already the biggest bank in Chicago with 340 branches, would be expected to close most of WaMu’s locations here and move the deposits into its existing network, banking industry sources say.

On the other hand, Wells Fargo, the nation’s fourth-largest bank, would likely keep most of WaMu’s branches and use them as a launching pad into Chicago’s retail market. Wells Fargo has a commercial lending presence and a wealth management unit in Chicago but has been interested in a retail beachhead here for years.
It seemed one while there was a branch on every corner. Only exaggerating on that, but it safe to say that their aggressive expansion may not have helped them. Although perhaps there's a profit in selling these branches.

No comments:

Post a Comment

PLEASE READ FIRST!!!! Comment Moderating and Anonymous Comment Policy

While anonymous comments are not prohibited we do encourage you to help readers identify you so that other commenters may respond to you. Either read the moderating policy for how or leave an identifier (which could be a nickname for example) at the end of the comment.

Also note that this blog is NOT associated with any public or political officials including Alderman Roderick T. Sawyer!