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JP Morgan to Buy Bank One - Report
Reuters via Excite ^ | 1/14/04 | Anon.

Posted on 01/14/2004 2:19:53 PM PST by PAR35

NEW YORK (Reuters) - J.P. Morgan Chase & Co. Inc. has agreed to buy Bank One Corp. for about $60 billion, the Wall Street Journal's online edition said on Wednesday.

Citing a person familiar with the matter, the Journal reported that the purchase is expected to be announced later on Wednesday.

J.P. Morgan spokeswoman Kristin Lemkau and Bank One spokesman Tom Kelly both declined to comment.

A merger would preserve J.P. Morgan's position as the No. 2 U.S. bank by assets, behind Citigroup Inc..

No. 3 Bank of America Corp.'s pending purchase of FleetBoston Financial Corp. would vault that combination past the current J.P. Morgan.

"There is a real logic to it," said Bert Ely, a banking consultant at Ely & Co. in Alexandria, Virginia. "The only thing I would wonder about is might a competing bid come in."

The Journal reported on CNBC, the cable television network, that Bank One shareholders would receive 1.32 J.P. Morgan shares for each Bank One share. That would value Bank One at $51.77 per share, a 14.5 percent premium over Bank One shares' $45.22 closing price on the New York Stock Exchange, up 61 cents.

(Excerpt) Read more at money.excite.com ...


TOPICS: Business/Economy; Front Page News; US: Illinois; US: New York
KEYWORDS: banking; bankone; economy; jpmorgan; megabanks; thebank
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Bank One is the my least favorite of the Mega Banks, with Citibank in second place.
1 posted on 01/14/2004 2:19:53 PM PST by PAR35
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To: Willie Green
I'm pinging you since this one will probably result in a pile of layoffs.
2 posted on 01/14/2004 2:21:42 PM PST by PAR35
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To: PAR35
Sheesh! In Michigan, it was United Bank, bought out by NBD, then bought out by Bank1, and now bought out by JP Morgan?

I still call it NBD. I can't even remember the Bank 1 name.
3 posted on 01/14/2004 2:22:48 PM PST by 11th Earl of Mar
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To: PAR35
good for my ONE stock
4 posted on 01/14/2004 2:26:23 PM PST by finnman69 (cum puella incedit minore medio corpore sub quo manifestus globus, inflammare animos)
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To: 11th Earl of Mar
From the 15K banks in early 80s, we are down to approx. 7800. Shrinking almost daily.

I lament the passing of BOATMENS Bank. The oldest, and IMO the best bank west of the Mississippi. Nations Bank took them over. What an abortion THAT was! Then B of A bought out Nations. Better now, but still not BOATMENS!

5 posted on 01/14/2004 2:28:04 PM PST by donozark
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To: Howlin; Ed_NYC; MonroeDNA; widgysoft; Springman; Timesink; dubyaismypresident; Grani; coug97; ...
Before long we will all go to one institution for our financial needs: The Bank.

Just damn.

If you want on the list, FReepmail me. This IS a high-volume PING list...

6 posted on 01/14/2004 2:29:33 PM PST by mhking (I like my coffee extra crunchy, thank you...)
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To: mhking
The Bank or The Fed?
7 posted on 01/14/2004 2:33:01 PM PST by Jaded (Personally, I think they should bring back flogging and burning at the stake. /so)
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To: Jaded
The Bank or The Fed?

Nope. The Bank backed by the Fed. I figure the Fed would never advertise; The Bank would advertise everywhere.

No more Bank of America, Sun Trust, Chase, Citibank, Wachovia; just The Bank.

And watch - they'll get a cream spot on the Super Bowl.

8 posted on 01/14/2004 2:35:17 PM PST by mhking (I like my coffee extra crunchy, thank you...)
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To: PAR35
I hope not, I like my job there :)
9 posted on 01/14/2004 2:44:07 PM PST by chance33_98 (I am for a baby's right to choose, wonder what they would choose if they could talk?)
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To: PAR35
I'm pinging you since this one will probably result in a pile of layoffs.

In this case, good. Bank One is slime. I've banked at B.O. (pun intended), Chase and Citibank, and even the cold-hearted NYC "service" of Chase and Citi were like dealing with mom and dad compared to the crappy "screw you" attitude adopted by my local hometown bank the moment Bank One took it over. It was as if rudeness was literally mandated in the B.O. employee handbook. And let's not even begin to talk about the changes in banking services themselves, all for the benefit of B.O. and to the detriment of the local bank's customer base.

Nasty, NASTY company. Chase can only be an improvement.

10 posted on 01/14/2004 2:44:57 PM PST by Timesink (I'm not a big fan of electronic stuff, you know? Beeps ... beeps freak me out. They're bad.)
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To: Timesink
So much for BOB...Bank One Ballpark in Phoenix
11 posted on 01/14/2004 2:49:09 PM PST by kaktuskid
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To: donozark
From the 15K banks in early 80s, we are down to approx. 7800. Shrinking almost daily.

Are you sure the number has never stabilized or started growing? A number of new small (or at least comparatively smaller) banks have invaded major cities in the last couple years as they saw openings created by the increasingly impersonal service of the Chases and Citis. And brand new banks and credit unions have been springing up in smaller cities and towns as the conglomerates buy out the established local banks and make them impersonal and customer-hostile. At least three banks have opened in my home town in the last several years, and all are thriving as regular people leave their old banks in droves.

12 posted on 01/14/2004 2:50:53 PM PST by Timesink (I'm not a big fan of electronic stuff, you know? Beeps ... beeps freak me out. They're bad.)
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To: donozark
B of A bought out Nations

Nations Bank bought B of A, then kept the B of A name.

13 posted on 01/14/2004 2:55:13 PM PST by Rider on the Rain
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To: Timesink; donozark
As of 1/8/04 the FDIC shows 9,228 insured institutions. So donozark's numbers are low, but he right about the trend.

Here are the year end 2002 numbers.

http://www2.fdic.gov/sdi/sob/0212/all101.asp

December 31, 2002 Total
FDIC
Insured
December 31, 2001 9,613
December 31, 2002 9,354
Net change during the year (259)
Institutions beginning operation 94
Institutions ceasing operation (352)
Failed institutions 11
Other changes in classification (1)
14 posted on 01/14/2004 3:09:54 PM PST by PAR35
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To: Timesink
good points. I bank in Colorado at a small, customer-friendly bank (Heritage Bank) - it was started by a dairy farmer, our new Republican Congressman Bob Beauprez. I believe Bob had to disassociate from the bank due to his becoming a US Congressman...
15 posted on 01/14/2004 3:20:46 PM PST by mallardx
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To: PAR35
Bank One: stupid enough to dump huge sponsorship bucks behind the Chicago Bears
16 posted on 01/14/2004 3:25:55 PM PST by Hegewisch Dupa
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To: Timesink
Is Bank One the bank that a few years back dramatically changed their credit card terms-- it was something like eliminating the grace period-- and lost MILLIONS of customers very quickly?
17 posted on 01/14/2004 3:38:04 PM PST by Montfort
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To: Montfort
Is Bank One the bank that a few years back dramatically changed their credit card terms-- it was something like eliminating the grace period

Nothing that sophisticated. They would receive the payment checks before the deadline, and then hold them and not process them until after the payment deadline, so they could hammer you with a late payment fee. Of course, that is not how they spun it. They said that you wouldn't have any problem with late fees if you mailed the check at least 10 days before the due date.

First USA was a legitimate credit card operation before they were taken over by BankOne. Here is a quote about them:
"During the first half of 1999, the OCC received 2,793 complaints about First USA (about one-fifth of which alleged late posting of payments), more than for the next nine largest bank issuers combined."
http://www.findarticles.com/cf_dls/m1318/11_53/56952010/p1/article.jhtml?term=

18 posted on 01/14/2004 4:07:47 PM PST by PAR35
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To: Montfort
Actually Bank One is one the credit card issuers that I like. Why I am not sure. Bank One tries to lure you into not paying for a month, in other words, paying once in a two month span. Never had a problem with these guys. I think that the Bank you are thinking of is Bankfirst.
19 posted on 01/14/2004 4:16:13 PM PST by peter the great
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To: PAR35; Timesink
My source for bank info is Thomson Bank Directory. Dec.2002-May 2003. It shows 8236 banks operating in the USA. 65,639 branches.

The FDIC figure may include other type institutions. The lower figure I used of "7800" came to me by word of mouth and was a rough approximation. Has been a flurry of merger activity among banks of all sizes of late. Many mergers have not been finalized yet, or will take effect end of Q1.

Don't disagree that many "startups" of spun-off from larger entities. But now some of them are merging...

20 posted on 01/14/2004 4:31:09 PM PST by donozark
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