Originally published July 15, 2009 at 2:50 PM | Page modified July 16, 2009 at 9:40 AM
Comments (67)
E-mail article
Print view
Share
Chase CEO Dimon: No more cuts in Seattle operations
JPMorgan Chase doesn't plan further cutbacks in the Seattle operations it acquired when it bought failed thrift Washington Mutual last September...
Seattle Times business reporter
JPMorgan Chase doesn't plan further cutbacks in the Seattle operations it acquired when it bought failed thrift Washington Mutual last September, CEO Jamie Dimon said Wednesday. And the New York financial giant hopes to add "a couple hundred" local business-banking jobs once an economic recovery takes hold.
In a round-table interview with local reporters, Dimon also said he hoped to sell WaMu Center, the thrift's former headquarters on Second Avenue downtown, "as soon as possible," but wouldn't comment on reports the 42-story building has been shopped to Tacoma-based Russell Investments.
Dimon also spoke to the Seattle Downtown Rotary club on the state of the U.S. banking industry. It was his first visit to Seattle since December, when he announced massive layoffs in WaMu's Seattle-based work force.
When federal regulators seized WaMu and sold most of its assets to JPMorgan Chase for $1.9 billion, the Seattle company employed about 4,200 people in its downtown headquarters. By the end of this year, only 800 or so will still have jobs with Chase.
One of Chase's goals for its local operations is to expand lending to small and mid-sized businesses, Dimon said. WaMu, which as a thrift kept most of its lending tied to real estate, never developed much business banking.
Chase plans to serve small businesses mainly through the extensive branch network built by WaMu, Dimon said, while bankers serving mid-sized and larger businesses will work out of "a different space" — likely the former WaMu headquarters, now Chase's Northwest regional office.
Dimon acknowledged that some former WaMu customers are unhappy with Chase's way of doing business. Customers have complained about, among other things, deposits not being made available quickly, longer holds on checks, account mix-ups and confusion when mortgage borrowers have tried to get their loans modified.
"Conversions are hard, and we know some customers aren't happy," Dimon said. "We always try to listen to what they have to say and try to accommodate them."
But, he said, so far Chase has held onto nearly all the retail banking customers it acquired from WaMu.
JPMorgan Chase will maintain its level of charitable giving in Washington state, though the mix will change, Dimon said.
Chase's decision to drop sponsorship of the Independence Day fireworks show at Lake Union sparked concerns the bank was scaling back from WaMu's level of corporate philanthropy.
WaMu gave about $2.6 million in the state in 2008 and had sponsored the fireworks show since 2002. After Chase acquired WaMu, it said it would continue WaMu's level of corporate giving this year and agreed to pick up most of the $500,000 cost for this month's fireworks show.
![]()
But Chase's charitable giving typically takes the form of grants to nonprofits rather than sponsorships, said Dimon and Phyllis Campbell, Chase's head of Northwest operations.
"Sponsorships really aren't in the sweet spot for us," Campbell said.
Going forward, Dimon said Chase's philanthropy in Washington "will continue probably around that ($2.6 million) level" but added that "obviously there are going to be changes — some things are going to go down, some will go up."
Dimon was scornfully dismissive of several lawsuits brought by WaMu shareholders claiming JPMorgan Chase paid far too little for the assets it got and allege it secretly worked to undermine WaMu. He called such claims "pathetically ridiculous statements."
He noted that his company was the only bidder for WaMu's assets, saying, "We could have paid a dollar and still won." And he pointed out that more than $30 billion in estimated future loan losses are embedded in the mortgage portfolio it acquired from WaMu.
"If you want to have conspiracy theories, that won't fly," he said. "There are tons of lawsuits, and we're going to defeat them all."
Drew DeSilver: 206-464-3145 or ddesilver@seattletimes.com
Copyright © 2009 The Seattle Times Company
Chase shrugs off loss of CD investors
Sunday Buzz: Expedia, Intelius, Classmates slapped by Senate report
Denny Triangle gains skyline, but tenants slow to come
UPDATE - 04:28 PM
Senate Democrats at odds over health care bill
Your Funds: Money for nothing: Some investors pay for advice they never get

LA Galaxy's David Beckham
Los Angeles Galaxy's David Beckham talks about the upcoming MLS Cup final during after a team practice.
nwjobs

Post a comment

Michelle Goodman blogs about work/life balance.
How to tell your office you're gravely ill
Post a comment
nwautos

Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment
- 'The Road' takes Viggo Mortensen to Mount St. Helens and Astoria, Ore.
- Craigslist adoption ad: A plea by young mother-to-be? A scam?
- Italian lead prosecutor argues Knox motive was hatred
- Italian prosecutors request life sentence for UW student
- Child-support error costs nearly $21,000
- Man shot in chest on E. Union Street in Capitol Hill
- Tugboat sinks in Seattle's waterfront
- Washington state wines make annual best-of list
- Mariners Blog | A Mariners-Tigers swap makes a whole lot of sense for both teams
- Lynnwood is reinventing itself — again
- Senate vote clears hurdle
234 - Tight Senate vote launches health care over hurdle
119 - Child-support error costs nearly $21,000
116 - Palin excitement builds in Tri-Cities
114 - Vikings easily beat the Seahawks
108 - Prosecutor requests life in prison for Amanda Knox
87 - Cutting through breast-cancer confusion
86 - Game thread
70 - New York terror trials will restore faith in rule of law
51 - Chase shrugs off loss of CD investors
45
- Washington state wines make annual best-of list
- Nonprofits get creative using Twitter and Facebook to make donation easier
- It's possible to recover a life lost to hoarding
- Lynnwood is reinventing itself — again
- Great places to cross-country ski for free (or almost) in the Methow
- Child-support error costs nearly $21,000
- 'The Road' takes Viggo Mortensen to Mount St. Helens and Astoria, Ore.
- Recipes: Sesame Pork Roast, Sour Cream Mashed Potatoes, Gingerbread with Lemon Sauce and more
- Banff: powder, peaks & purity
- 175 foster kids in Washington get 'forever families'









