Jones Lang LaSalle
Bank of N.Y., Chase seal a deal
Sunday, April 9, 2006
By LARRY McSHANE
ASSOCIATED PRESS
NEW YORK -- The Bank of New York swapped its 338 tri-state retail branches and a regional small business operation for the corporate trust business of JPMorgan Chase in a long-rumored multibillion-dollar deal announced Saturday.
"I think it's a solid trade overall," Bruce Van Saun, chief financial officer of The Bank of New York, said in a conference call about the deal. "This was the strategic option that was best for our company."
The Bank of New York also will receive a $150 million cash payment from JPMorgan Chase under the agreement, which followed more than a year of on-and-off talks between the two sides.
JPMorgan Chase will take over Bank of New York's branches in New York, New Jersey and Connecticut, serving about 700,000 consumers and small businesses. The deal gives Chase the largest branch network in New York City and its suburbs, with more than 800 branch locations and 2,000 ATMs in the tri-state area.
It will also take over the bank's small business operation in the same area, serving about 2,000 clients. The Chase name should begin appearing on the bank branches in 2007.
"New York is an extremely important market to us," said Charlie Scharf, head of retail financial services for JPMorgan Chase, in a conference call. "It is the most attractive banking market in the whole country. This is a unique opportunity that we are absolutely thrilled about."
Because of overlap between retail locations, JPMorgan Chase expects to close down 5 to 10 percent of the branches -- although that did not necessarily mean any layoffs, Scharf said. The branches will be spruced up in both appearance and technology, he added.
The agreement was already approved by both company's boards of directors, and was expected to be completed before the end of the year. It was rumored for weeks before the announcement was made Saturday.
The Bank of New York will take over JPMorgan Chase's corporate trust operation, with 2,400 employees in more than 40 locations around the world. The operation represents more than $5 trillion in total debt outstanding.
"I think investors will like it," said Bank of New York president Gerald Hassell. "The rumors around this were already somewhat reflected in the stock prices."
On Friday, shares of Bank of New York rose 42 cents to $36.83.
The Bank of New York, founded with the help of Alexander Hamilton in 1784, is one of the nation's oldest banks.
It is among the nation's largest trust banks and makes the bulk of its money in securities processing, treasury management and investment management.
JPMorgan Chase, also based in New York, is the nation's third-largest bank by assets.
Copyright © 2006 North Jersey Media Group Inc.
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Bank of N.Y., Chase seal a deal
Sunday, April 9, 2006
By LARRY McSHANE
ASSOCIATED PRESS
NEW YORK -- The Bank of New York swapped its 338 tri-state retail branches and a regional small business operation for the corporate trust business of JPMorgan Chase in a long-rumored multibillion-dollar deal announced Saturday.
"I think it's a solid trade overall," Bruce Van Saun, chief financial officer of The Bank of New York, said in a conference call about the deal. "This was the strategic option that was best for our company."
The Bank of New York also will receive a $150 million cash payment from JPMorgan Chase under the agreement, which followed more than a year of on-and-off talks between the two sides.
JPMorgan Chase will take over Bank of New York's branches in New York, New Jersey and Connecticut, serving about 700,000 consumers and small businesses. The deal gives Chase the largest branch network in New York City and its suburbs, with more than 800 branch locations and 2,000 ATMs in the tri-state area.
It will also take over the bank's small business operation in the same area, serving about 2,000 clients. The Chase name should begin appearing on the bank branches in 2007.
"New York is an extremely important market to us," said Charlie Scharf, head of retail financial services for JPMorgan Chase, in a conference call. "It is the most attractive banking market in the whole country. This is a unique opportunity that we are absolutely thrilled about."
Because of overlap between retail locations, JPMorgan Chase expects to close down 5 to 10 percent of the branches -- although that did not necessarily mean any layoffs, Scharf said. The branches will be spruced up in both appearance and technology, he added.
The agreement was already approved by both company's boards of directors, and was expected to be completed before the end of the year. It was rumored for weeks before the announcement was made Saturday.
The Bank of New York will take over JPMorgan Chase's corporate trust operation, with 2,400 employees in more than 40 locations around the world. The operation represents more than $5 trillion in total debt outstanding.
"I think investors will like it," said Bank of New York president Gerald Hassell. "The rumors around this were already somewhat reflected in the stock prices."
On Friday, shares of Bank of New York rose 42 cents to $36.83.
The Bank of New York, founded with the help of Alexander Hamilton in 1784, is one of the nation's oldest banks.
It is among the nation's largest trust banks and makes the bulk of its money in securities processing, treasury management and investment management.
JPMorgan Chase, also based in New York, is the nation's third-largest bank by assets.
Copyright © 2006 North Jersey Media Group Inc.
Copyright Infringement Notice User Agreement & Privacy Policy
posted by Jones Lang LaSalle NJ News Blog at 3:41 PM
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