Thursday, January 17, 2008

JP Morgan shopping for WaMu?

In today's WSJ.

"It's time to pounce for JP Morgan & Co. Chief Executive James Dimon and other top bosses of financial companies that have avoided a serious battering from the credit crunch...

But the real excitement likely is yet to come. After a three-year drive to slash costs and invest heavily in technology and core businesses, Mr. Dimon yesterday declared that the battered financial landscape "just may make it more likely" that J.P. Morgan will make acquisitions, as analysts and investors have widely anticipated.

"In terms of buying assets or buying companies, we are very open-minded," Mr. Dimon said in a conference call with analysts.

Mr. Dimon has long coveted institutions like Atlanta's SunTrust Banks Inc. and Washington Mutual Inc. of Seattle. Shares of both those banks have fallen sharply since the credit crunch struck in August, making them potentially cheaper targets. Washington Mutual, the country's biggest thrift, has been hit especially hard by its exposure to the mortgage industry."

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