JPMorgan Chase combines with Washington Mutual -- an exceptional opportunity
Message from
Jamie Dimon
Tonight we announced our agreement with the Federal Deposit Insurance
Corporation (FDIC) to acquire all of the deposits, assets and certain
liabilities of Washington Mutual’s banks, effective immediately. This
transaction provides JPMorgan Chase with an exceptional opportunity to
expand our Retail franchise into highly attractive new markets, such as
California and Florida, and to bolster our presence in our significant
footprint states, including New York, Texas, Arizona and Illinois. The
acquisition of Washington Mutual’s banking operations will also extend the
reach of our commercial banking, business banking, credit card, consumer
finance and wealth management efforts. More details are available in the
attached press release.
Strategically, we've consistently said that we wanted to broaden our Retail
footprint beyond our current locations to attractive regions such as the
West Coast and Florida, as long as it made good sense from a shareholder
standpoint and if we could execute such a transaction effectively. The
Washington Mutual acquisition fits perfectly with this strategy and will be
compelling for our shareholders. And while there's significant work to be
done to maximize the benefits of this combination, I know our people are up to the challenge of integrating our two companies well and executing on
behalf of customers and shareholders.
Together, we have all worked hard over the years to build first-class
businesses, strengthen our balance sheet, upgrade systems and technology, and position our firm for profitable growth. These efforts are paying off -- and they positioned us well to step up and make this acquisition. But our work goes beyond simply doing what’s best for JPMorgan Chase. As a leading financial institution, we understand it’s also our responsibility to work with our government leaders and others to help strengthen our financial system and the communities where we do business, and we’ll continue to do so.
This has been an extraordinary year for our company and for many of you.
Your efforts during these often trying times have been exceptional. I'd
like to thank you for all you do and for helping put our company in a
position to make the acquisition we announced tonight. And I want to
acknowledge all of you who worked so hard these past several days to
complete this deal.
I also want to welcome the thousands of Washington Mutual employees who will be joining JPMorgan Chase. This has been a difficult and stressful
time for many of them. We should value and respect their efforts in
building their company, and we look forward to working with them.
We will be communicating with many of you over the coming days and weeks about next steps, new developments and opportunities. In the meantime, please don't hesitate to speak with your manager if you have any questions or concerns. Thank you.
Also, we thought it would be helpful to see some of the questions and
answers that we shared with our new colleagues.
Q&A for Washington Mutual Employees
What is JPMorgan Chase buying?
JPMorgan Chase is buying the banking operations of Washington Mutual. That means the business of the bank, including branches, checking and savings accounts, mortgages and credit card accounts.
Why is JPMorgan Chase doing this acquisition?
The combination of our two companies creates the nation’s second-largest
branch network, greatly expanding banking convenience for customers. Our combined network reaches 42% of the U.S. population, with strong positions in attractive markets such as California, Florida, New York, Texas,
Arizona, Illinois and Washington.
How big will the combined network be?
The combined company will have $900 billion in deposits, 5,400 branches and 14,000 ATMs in 23 states.
Do you expect job eliminations? If so, when will those occur?
It is too early to estimate the number of possible job eliminations. Over
time, we expect reductions in redundant roles across the combined company. We’ll be working with Washington Mutual management to make business decisions and understand the staffing requirements. Affected employees will be informed as soon as possible and we will work to provide other opportunities within our company.
How should I answer the phone? Washington Mutual or Chase?
We are still using the Washington Mutual brand today, so you should
continue to answer the phone as Washington Mutual, just as you do today.
It’s business as usual.
If I’m interested in a job at a Chase location, will I be able to transfer
to that position?
While there will be opportunities, we’ll ask you to stay in your current
role for now until we make business decisions and understand the staffing
requirements.
How are customers’ accounts affected?
It’s business as usual for you and your customers. They’ll continue to use
their same checks, account numbers, ATM and debit cards, PINs, credit
cards, and customer service phone numbers.
What should I say to customers who ask if their money is safe?
You can reassure customers that their deposits are safe. JPMorgan Chase is one of the strongest financial institutions in the U.S. with $1.8 trillion
in assets.
What do I tell customers about FDIC insurance coverage if they have deposit accounts in both banks?
You can tell your customers that their deposits are insured separately
today just as they were yesterday, and generally will be for another six
months. At that time, your deposits will be insured by the FDIC for up to
$100,000 per depositor (with an additional $250,000 for self-directed
retirement accounts), and will continue to be backed by the strength and
security of JPMorgan Chase.
Can Washington Mutual customers now bank at Chase, and vice versa?
Not yet! We’ll be working to combine systems so customers can begin to
enjoy expanded branch and ATM convenience. For now, both Washington Mutual and Chase customers should continue banking as they always have.
When will we officially become Chase? When do the signs change?
Washington Mutual’s retail businesses will continue with the Washington
Mutual name for now and will be re-branded to Chase over time.
When will our systems be consolidated?
We hope to complete most systems integrations and re-branding by the end of 2010.
Will we be closing branches? What do I tell customers about that?
For now, all Washington Mutual branches will remain open and operate as
they do today. Over time, where there is significant overlap, we expect to
consolidate branches. According to a preliminary review, we expect to close about 400 branches in overlapping markets over time, which is less than 10% of the combined company’s branches. You can tell your customer “for now, this branch is open and ready to serve you. If we do have a location change, I’ll be here to explain the details.”
"Strategically, we've consistently said that we wanted to broaden our Retail
footprint beyond our current locations to attractive regions such as the
West Coast and Florida, "
HHMMMM' sound familiar? The future of Chase mtg is RETAIL. He said it 2 years ago, Ive been saying it forever, you keep calling me a bitter nut. Whatever, Dude.
California and Florida? WOOHOO! Is he kidding?
Good luck with retail; hope those neg-ams get sucked up by the bail out.
TIC TOC, TIC, TOC....
_________________ All comments, although opinion, should be considered fact, because I suck less than you.
MTG. CHICK: "JDIMON...YOU ARE THE WINNER. LET US ALL WORSHIP THE GROUND YOU WALK ON. "
I picked up on the CA and FL thing too. Maybe he means that he can justify having a company paid beach house there or something. The only thing attractive about those markets are the woman. Well in CA anyway.
There will likely be few layoffs for WAMU except at the corporate level. Chase is not that big geographically. They want the retail outlets and the deposits. Deposits are the new model for investment banking.
The real question is how much longer Chase will stay in wholesale if they can reach new customers at the retail level.
[quote="Tobby"]There will likely be few layoffs for WAMU except at the corporate level. Chase is not that big geographically. They want the retail outlets and the deposits. Deposits are the new model for investment banking.
The real question is how much longer Chase will stay in wholesale if they can reach new customers at the retail level.[/quote]
Bingo. Its all about the cross-sell. Chase hates brokers.
_________________ All comments, although opinion, should be considered fact, because I suck less than you.
MTG. CHICK: "JDIMON...YOU ARE THE WINNER. LET US ALL WORSHIP THE GROUND YOU WALK ON. "
There will likely be few layoffs for WAMU except at the corporate level. Chase is not that big geographically. They want the retail outlets and the deposits. Deposits are the new model for investment banking.
The real question is how much longer Chase will stay in wholesale if they can reach new customers at the retail level.[/quote]
Bingo. Its all about the cross-sell. Chase hates brokers.
As a former WAMU employee who was let go during the April Home Loan Center closures, recruited to JP Morgan Chase....I am telling everyone I know who is still at WAMU the same thing. This was actually a blessing. From what I am hearing nothing will really change unless you are at Corp locations, admin or tech support staff. Then changes are inevitable. If you are in the bank branches originating loans, then this is definitely a blessing.You will now have more loan programs and consumer confidence. Everyone keep your head up!
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