Skip navigation


Current DateTime: 01:17:24 09 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/9/2012 1:18:24 PM

Current DateTime: 01:17:24 09 Feb 2012
LinksList Documentid: 23452000
Expiration DateTime: 2/9/2012 1:18:40 PM

Current DateTime: 01:17:24 09 Feb 2012
LinksList Documentid: 24355697

MOST SHARED


Current DateTime: 01:17:25 09 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/9/2012 1:18:45 PM

MOST POPULAR


Current DateTime: 01:17:25 09 Feb 2012
LinksList Documentid: 35819650
    • Road Warriors

        All the gadgets and gear a savvy frequent traveler needs to navigate the global economy.

HOT ON FACEBOOK

JPMorgan May Be Interested in Wachovia Bid: Sources

Published: Friday, 20 Jun 2008 | 2:30 PM ET
Text Size
By: Charles Gasparino,
On-Air Editor

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.

© 2012 CNBC.com

CNBC HIGHLIGHTS

  • United States Federal Reserve
  • Many have called to abolish the Federal Reserve. But what would happen if it was dissolved for good?
  • Handing Money Over
  • Entrepreneurs have increasingly been buying back their companies over the last three years.
  • San Francisco
  • Where are the best city locations for singles to take the online dating plunge?
  • Antonio Brown of The Pittsburgh Steelers
  • A Steelers fan spent a week with wide receiver Antonio Brown- and it was all due to tweeting.
  • Floppets Flip Flops
  • Here’s a look at the woman behind the newest collectible toy that kids love.
  • Hopslam Beer
  • Grab a brew—or not—and click ahead to experience the world’s most highly rated beers.


Current DateTime: 11:43:35 09 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 11:56:47 09 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 10:44:46 09 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 11:21:40 09 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters