Chase May Be Asked to Buy More Struggling Banks

May 5, 2009 No Comments »


JP Morgan Chase may be called upon to scoop up more ailing banks, according to a report from CNBC.

CNBC cited a webcast with CEO Jamie Dimon, in which he said the United States banking sector is likely to see further consolidation.

“There are still too many banks in the United States,” Dimon told Calyon Securities analyst Mike Mayo during the call.

Pretty annoying all that remaining competition right…

Dimon said Chase is still busy absorbing its latest acquisitions, which include failed thrift and former top mortgage lender Washington Mutual, along with defunct investment bank Bear Stearns.

But said regulators may “still look” to Chase to “do something” in terms of an acquisition, perhaps because it’s one of the few seemingly healthy banks still around.

Of course, Chase still has to deal with the fact that two-thirds of WaMu’s mortgages are impaired; back in late February, the company said it expected 41 percent of WaMu borrowers to be underwater by the end of 2010.

I’m trying to think of what big banks are still around that could fail and fall into the hands of Chase.

Meanwhile, Bank of America has successfully retired the Countrywide brand, with shiny new “Bank of America Home Loans” signs popping up all around the country.

Chase has simply been plopping up temporary banners emblazoned with its logo on the sides of old WaMu branches.

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