J.P.Morgan Chase buys Washington Mutual for U.S.D. 1.9 bn

New York, Sep 26 (PTI) J.P.Morgan Chase has acquired all
deposits, assets and certain liabilities of leading savings
and loan association Washington Mutual's banking operations
from the Federal Deposit Insurance Corporation (F.D.I.C.) for
around U.S.D. 1.9 billion.

"This deal makes excellent strategic sense for our
company and our shareholders. Our people have worked hard to
build a strong franchise and balance sheet - making this
compelling transaction possible," J.P.Morgan Chase Chairman
and C.E.O. Jamie Dimon said.

The acquisition would create largest U.S. depository
institution with over 900 billion dollar of customer deposits,
financial services firm J.P.Morgan said in a statement.

However, the transaction excludes senior unsecured debt,
subordinated debt and preferred stock of Washington Mutual's
banks, J.P.Morgan added.

Besides, J.P.Morgan would not be acquiring any assets or
liabilities of the banks' parent holding company (W.M.) or the
holding company's non-bank subsidiaries.

The acquisition would create the second-largest branch
network - with locations reaching 42 percent of U.S.
population and would expand the consumer branch network of
Chase into the states of California, Florida and Washington,
while the acquisition would extend Chase's retail branch
network to additional states of Georgia, Idaho, Nevada and
Oregon.

"... increasing our regional banking presence not only
strengthens our retail business, but also benefits other
business lines across our firm, including our commercial
banking, business banking, credit card, and asset management
groups," Dimon added.

The combined 5,400 branches in 23 states will also serve
as a base to extend the reach of the business banking,
commercial banking, credit card, consumer lending and wealth
management businesses, the statement said.

The bank plans to complete most systems integrations and
re-branding by year-end 2010, closing less than 10 percent of
branches in the combined network in overlapping markets.

"We look forward to welcoming Washington Mutual's
employees to J.P.Morgan Chase and working with them as we
build a great company together," Dimon said.

The acquisition of Washington Mutual's banking operations
is expected to be immediately accretive to earnings and would
add more than 50 cents per share in 2009.

Incorporated in 1889, Washington Mutual, was seen as
heavily exposed to the mortgage crisis and witnessed over 85
per cent drop in its share price this year.

Customers of both companies may continue banking as
usual, J.P.Morgan said adding that employees and vendors
should continue to operate business as usual.

In conjunction with this acquisition, J.P.Morgan Chase
would be marking down the acquired loan portfolio by around 31
billion dollar.

J.P.Morgan Chase intends to raise additional capital in
connection with this transaction to maintain the company's
strong capital position, the statement added.

Earlier this year, the banking giant also took over Bear
Stearns, one of the most high-profile victims of the U.S.
sub-prime property crisis