As the dust settles on JP Morgan’s acquisition of Washington Mutual, brokers worry that JP Morgan will unleash a flood of retail space onto New York’s commercial real-estate market by closing local WaMu branches.
Crain’s New York: One day after J.P. Morgan Chase & Co. agreed to purchase Washington Mutual Inc.’s banking business and take over all of its retail branches, real estate brokers worried that Chase will shutter dozens of retail locations in New York City and send a flush of retail space onto the market…
“There is a fair amount of overlap between Chase Manhattan and WaMu branches, and I suspect a bunch will close,” said Steve Gillman, a Northwest Atlantic broker who represents WaMu’s retail. He expects Chase to close more than 10% of WaMu’s locations in the city.
Complicating the issue, Chase may find it difficult to find tenants willing to incur the expense of converting a bank branch into suitable retail space.
Still, the deal creates a 240,000-employee bank, making JPMorgan Mutual (?) better equipped to compete with an equally sizable BofA/Merrill conglomerate.
Crain’s New York: By snapping up Washington Mutual moments after it went into the record books late Thursday as the largest bank failure in U.S. history, J.P. Morgan Chase Chief Executive Jamie Dimon has created overnight a 240,000-employee behemoth that will duke it out with Bank of America Corp. to dominate banking for years to come…
Indeed, the bank’s new total of $904 billion in consumer deposits gives it a clear—$100 billion—lead over BofA. J.P. Morgan will also become the largest credit-card issuer, according to Fitch Ratings, with $181 billion of card loans outstanding. Meanwhile, J.P. Morgan’s forest of 5,400 branches across the country now ranks as second only to that of BofA, which boasts 6,100 branches.
WaMu’s brand-new CEO, meanwhile, hired 18 days before the firm’s collapse, may lose his job, but if he departs he could reap an $11 million severance package.
Crain’s New York: With J.P. Morgan’s takeover of Washington Mutual, it’s unclear what role Alan Fishman—who was hired only 18 days ago as WaMu’s new CEO—will play in the combined company.
But if Mr. Fishman leaves the thrift, it’s pretty clear that he would be well-compensated for his short stint on the job.
Mr. Fishman appears set to collect a payout worth $11.62 million if he leaves the company “with cause” or because of “constructive termination,” according to a copy of his employment agreement, which was disclosed in a regulatory filing on Sept. 11.
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