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CNN Live At Daybreak
Money Marriage: J.P. Morgan Chase Buys Bank One for $58 Billion
Aired January 15, 2004 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' right now. J.P. Morgan is buying Bank One and you will not believe the price tag.
Carrie Lee joins us live from the Nasdaq market site.
So what is it?
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Fifty-eight billion dollars, Carol. This is a huge merger any way you slice it, J.P. Morgan buying Bank One, as you said. Together, these banks will create the nation's second largest bank behind Citigroup. They expect this deal to close in mid 2004.
And let me tell you a little bit about what this means for J.P. Morgan. It will extend the bank's reach through the midwest and southwest. Also lessen J.P. Morgan's dependence on investment banking and trading. And since Bank One is the world's largest Visa card issuer, J.P. Morgan is going to get a strong retail and credit card presence.
Now news of this deal started to leak out yesterday. The stocks ran up a little bit during the regular trading session. After hours, though, J.P. Morgan stock fell about 3.7 percent. J.P. Morgan is one of the Dow 30. So we'll see what the stock does today, see how it affects the Dow overall.
Also, J.P. Morgan, of course, trying to cut costs. We'll see some consolidation here. And as a result of that, J.P. Morgan expects to lose 10,000 jobs. So not necessarily a good story here, Carol, for investors or for J.P. Morgan employees.
On Wall Street, though, however, when you see a merger like this, it's generally a good sign that companies are feeling bullish about things. And so as far as Wall Street is concerned, they could see this as a positive, at least in the banking sector. We'll see.
Back to you -- Carol.
COSTELLO: Quick look at the futures.
LEE: Looking very weak this morning. We did see pretty decent gains yesterday. The Dow up over 100 points. The Nasdaq, the S&P 500 gaining ground as well. Three companies last night reporting profits, Intel, Apple, Yahoo!. All of those names falling in the after-hours session. Intel did post Q4 earnings and sales that were higher than expected. Not enough to keep that hot stock price, though, on the rise. So it could affect their stocks today. Looking very weak overall.
COSTELLO: All right. Carrie Lee, we'll get back to you in our next half hour. Thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Billion>
Aired January 15, 2004 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' right now. J.P. Morgan is buying Bank One and you will not believe the price tag.
Carrie Lee joins us live from the Nasdaq market site.
So what is it?
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Fifty-eight billion dollars, Carol. This is a huge merger any way you slice it, J.P. Morgan buying Bank One, as you said. Together, these banks will create the nation's second largest bank behind Citigroup. They expect this deal to close in mid 2004.
And let me tell you a little bit about what this means for J.P. Morgan. It will extend the bank's reach through the midwest and southwest. Also lessen J.P. Morgan's dependence on investment banking and trading. And since Bank One is the world's largest Visa card issuer, J.P. Morgan is going to get a strong retail and credit card presence.
Now news of this deal started to leak out yesterday. The stocks ran up a little bit during the regular trading session. After hours, though, J.P. Morgan stock fell about 3.7 percent. J.P. Morgan is one of the Dow 30. So we'll see what the stock does today, see how it affects the Dow overall.
Also, J.P. Morgan, of course, trying to cut costs. We'll see some consolidation here. And as a result of that, J.P. Morgan expects to lose 10,000 jobs. So not necessarily a good story here, Carol, for investors or for J.P. Morgan employees.
On Wall Street, though, however, when you see a merger like this, it's generally a good sign that companies are feeling bullish about things. And so as far as Wall Street is concerned, they could see this as a positive, at least in the banking sector. We'll see.
Back to you -- Carol.
COSTELLO: Quick look at the futures.
LEE: Looking very weak this morning. We did see pretty decent gains yesterday. The Dow up over 100 points. The Nasdaq, the S&P 500 gaining ground as well. Three companies last night reporting profits, Intel, Apple, Yahoo!. All of those names falling in the after-hours session. Intel did post Q4 earnings and sales that were higher than expected. Not enough to keep that hot stock price, though, on the rise. So it could affect their stocks today. Looking very weak overall.
COSTELLO: All right. Carrie Lee, we'll get back to you in our next half hour. Thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
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