JPMorgan Chase CEO: We're getting a "very clean bank"
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JPMorgan Chase has now played savior in two of the three largest bank failures in U.S. history — Washington Mutual and First Republic Bank.
Why it matters: The two institutions were in vastly different conditions before needing to be rescued 15 years apart, but both offered attractive businesses for JPMorgan to consider.
Flashback: CEO Jamie Dimon had long eyed Washington Mutual and its substantial West Coast retail presence before the bank’s 2008 collapse, when 9% of its deposits flew out the door in 10 days amid the implosion of the subprime mortgage crisis.
- The addition of WaMu’s branches that year propelled JPMorgan to become the largest bank in the country by assets.
Today, with First Republic, JPMorgan gains about 150 financial advisers at a time when wealth management businesses provide predictable revenue to banks amid shrinking deals and trading activity.
What he’s saying: “[We]’re basically getting a very clean bank,” Dimon told analysts on a call following this morning’s announcement of a deal.
- “And, of course, we didn’t have the mortgage crisis sitting on top of Bear Stearns and WaMu there. So, we feel pretty good about it, but that doesn’t mean that something doesn’t pop its ugly head up down the road.”
Between the lines: Dimon has expressed regret about serving as a savior in the past, particularly when it comes to the legal headaches and fines JPMorgan inherited. But this deal is different, and his tune is now too.
- “I don’t like to cry over spilled milk, but sometimes I do,” he told reporters on a separate call.
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