26 September 2008 10:52 [Source: ICIS news]
“In terms of overall macro sentiment, it hasn’t changed much as the market has come to expect some of the events now,” said James McCormack, head of sovereign ratings for ?xml:namespace>
“It is not as damaging as the first ones and its not surprising,” McCormack said, comparing the WaMu sale to the recent collapse of Lehman Brothers and the unprecedented American International Group (AIG) rescue by the US Federal Reserve.
Song added that the possibility of any recovery in the US economy remains shaky but contented that the $700bn (€476bn) bailout proposal by the US Federal Reserve, if finalised and approved by Congress, would prop by the financial markets for a while.
WaMu was seized by the
The acquisition of WaMu by JP Morgan Chase would result in the largest
“JP Morgan Chase expects to incur pre-tax merger costs of approximately $1.5bn while achieving annual pre-tax cost savings of approximately $1.5bn by 2010,” said Jamie Dimon, chairman and CEO of the US banking giant.
The move came just as the White House, Federal Reserve and Congress continued to grapple with the controversial $700bn bailout proposal that still remained unfinalised after officials met at an emergency meeting on Thursday.
Talks to hammer out final details of the plan are expected to continue on Friday.
($1 = €0.68)
Pearl Bantillo contributed to this story
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