American Banker Reports JPMorgan Eyes WaMu Assets

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American Banker is reporting “talks” JPMorgan Chase is having with Washington Mutual at the highest level. The American Banker reports this is not a government mandated negotiation, but my guess is JPMorgan wants WaMu’s profitable branch bank network with it’s $143 Billion on deposit.

WaMu Branches: Big American Banker

Even though Washington Mutual has $19 Billion of bad loans on the books, they remain one the biggest American banker with $143 Billion in deposits. Their branch bank network is the envy of the industry and JPMorgan Chase has been eyeballing ever since previous offers earlier this year fell apart.

Motlely Fool reports the old bid,

“Back in April, JPMorgan made a bid to buy WaMu for $8 per share. WaMu rejected that deal, some think because then-CEO Kerry Killinger didn’t want to lose his job. Well, now that he’s been ousted from the company he led for 18 years, JPMorgan could have an easier time completing a buyout.”

Given the recent credit rating cut, bad mortgage loan lossess, the stock dropping 30% this week, WaMu needs capital…fast. So, in the moment of weakness, other banks strike.

I hope Alan Fishman, the new CEO, can see if he sells the only thing “good” about his company, he’s doomed his shareholders. They might as well have owned stock in Fannie Mae or Freddie Mac.

I found a Bloomberg video clip

Good Luck!