- For the Jobless, 10% is Harder Than Before
- Week Ahead: Stocks Search for Catalyst in Quiet Week
- Outlook: Dollar Likely to Ride Higher on Bleak Jobs Report
- Geithner: More Stimulus, Not a Bank Tax
- Windfall is Seen as Bank Bonuses are Paid in Stock
- Buffett's Berkshire Hathaway Says Net Income Tripled
- Cramer: Earnings, IPOs Dominate Next Week
- Buying Fear: How to Own Volatility
- Administration Rejects Plan to Buy Fannie Mae Credits
- Food Network, HGTV Drive Scripps Networks' Upside Surprise
- Tommy Lee, Medical Tourism and Nasty Santa, Your Emails
- U.S. Markets Gain 3% for the Week Despite 10.2% Unemployment
- Disney's 'Carol' Tests Widest 3-D Release Ever
- Stimulus II? Jobs Tax Credit=Cash For Clunkers
- Rockwell Automation Earnings: What Options Are Saying
- Gold Will Touch Higher Lows and Higher Highs: Analyst
- Is Misery Alive And Well in Your Office?
- Consumers Haven't Changed, They Are Just Pickier
MOST SHARED
- US Becomes Top Country Brand Under Obama: Survey
- Solar Market Heating Back Up?
- Sweeping Health Care Overhaul Bill Passes House
- Realty Execs See Pain Ahead
- Easy Money & Stocks
- Administration Rejects Plan to Buy Fannie Mae Credits
- Want the Homebuyer's Tax Credit? Here Are Some Tips
- Tommy Lee Looks to Rock On-Line
Text Size 
JPMorgan Chase CEO Jamie Dimon has made no secret he wants to buy another bank, and Wachovia is high on the firm's radar screen, JPMorgan insiders have told CNBC.
The possible deal fits nicely into JPMorgan’s game plan as publicly stated by Dimon, which is to expand the firm's commercial bank, particularly in the Southeast. Even with $30 billion in bad loans, Charlotte, N.C.-based Wachovia [WB
Loading...
()
] could fetch around $39 a share, says Deutsche Bank analyst Mike Mayo. (See the exclusive CNBC report in the accompanying video.)
For JPMorgan, there are several potential roadblocks with any Wachovia deal. A deal of this size would preclude other deals that JPMorgan [JPM
Loading...
()
] may be considering, including another bank in the Southeast that sources at JPMorgan say is on the radar screen: Suntrust [STI
Loading...
()
].
In addition to the $30 billion in writedowns, the deal would bring the combined bank above the Federal deposit cap that states that no bank can control more than 10 percent of all US deposits. JPMorgan already has 7 percent, while Wachovia has 6 percent.
That said, banking analysts say there are ways around the cap, and because shares are now trading cheap, JPMorgan has the money to buy the company even as it digests the Bear Stearns deal.
JP Morgan had no comment.
Print
Email
- Rumors abound that Oprah will leave her show to start a new network. What would this mean for daytime TV?
- A private equity specialist sponsored a stand-up comedy troupe in New York to prove that CEOs can, in fact, be funny.
- Cramer did the research and found eight stocks that lead the pack. Read on to get his top picks.
- Did Hideki Matsui’s performance make it more likely that the Yankees will pay to have him back?
- Which wines should you bring—or serve—with holiday meals this year? Ask a connoisseur.
- Two competitors in this year’s World Series of Poker in Las Vegas have stories fit for Hollywood.
Data is a real-time snapshot *Data is delayed at least 15 minutes