As we pointed out last week, one as yet underappreciated consequence of the financial crisis is
the sheer volume of integration work ahead as multiple major companies come together in hurry.
Now there's another big job to be done. In quick succession Thursday, the FDIC took over troubled Washington Mutual Bank, and J.P. Morgan Chase & Co. bought it from the Feds. WaMu had about 2,300 branches, $182 billion in customer deposits and $310 billion in assets at the end of June,
according to Bloomberg.
First things first: In making the deal, J.P. Morgan CEO Jamie Dimon and his team had to be most concerned with price, asset quality and exposure to risk. But then comes a myriad of other tasks, most notably the work of making a 5,400 branch retail network a coherent system. The branches will carry the Chase brand and be integrated by 2010. J.P. Morgan said.
Here's one angle to watch. Whatever its risk-management failures, WaMu is known for its
showcase branches. In the past, Chase has had to play catch-up in this regard. What will be the tone in the future--and who will set it? -
Kenneth Klee
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