Some of Bank One's portfolio is being bought out by JP Morgan. This may possibly mean credit cards in the future. Thu October 30, 2003 04:31 PM ET WASHINGTON, Oct 30 (Reuters) - The Federal Reserve said on Thursday it approved an application by J.P. Morgan Chase & Co. Inc. (JPM.N: Quote, Profile, Research) to acquire trust operations from Bank One Corp. "The proposed acquisition would have no adverse effect on the concentration of banking resources in any relevant banking market ... (and) competitive factors are consistent with approval," the Fed said in a statement. J.P. Morgan Chase said in July it would buy the trust operation from Bank One (ONE.N: Quote, Profile, Research) for $720 million, solidifying its position in the low-margin business of managing debt payments and other services for companies and municipalities. The deal for Bank One's portfolio of about $1 trillion would allow the No. 2 U.S. bank to expand its already sizable trust business, and lets Bank One focus on retail banking and credit cards. J.P. Morgan will oversee a portfolio of more than $4.5 trillion once the purchase is completed. Corporate trust services include managing bond payments and acting as a trustee after the sale of a new bonds by corporations, and state and local governments. The trust business also acts as a custodian for retirement plans and other corporate accounts.
This is not true. All Bank One is doing is getting rid of a low margin business by selling it to Chase. Bank One will buy others and not be bought out. They will end-up as one of the last ones stading.
Sorry RichGuy but Luvjdm is right on. Of all the issuers, Bank1 offers the highest limits and carholders that don't use the card risk getting it sold. Now that Fleet/BofA merged, and Citi bought Sears, I am sure this will not be the last of the mergers. Who knows, if Providian cleans up enough, someone might make a pitch for it's prime customers....One never knows. Whatever happens, Bank1 will remain intact along with Citi and MBNA. Everyone else is vulnerable to having pieces of its portfolio sold or acquired.
