[IP] Morgan-Chase-BankOne: 10,000 fewer jobs; one larger conglomerate
And thus we improve our productivity (less people)
Begin forwarded message:
From: Jim Warren <jwarren@xxxxxxxx>
Date: June 15, 2004 5:41:50 PM EDT
To: "Dave Farber: ;Declan McCullagh" <declan@xxxxxxxx>
Subject: Morgan-Chase-BankOne: 10,000 fewer jobs; one larger
conglomerate
http://ap.tbo.com/ap/breaking/MGBA0199HVD.html
Fed Approves Merger of J.P. Morgan Chase and Bank One to Form
Second-Largest Bank
By Marcy Gordon The Associated Press
Published: Jun 14, 2004
WASHINGTON (AP) - The Federal Reserve has cleared the way for Wall
Street powerhouse J.P. Morgan Chase to combine with and absorb
Chicago-based Bank One, forming the nation's second-largest bank with
more than $1 trillion in assets.
The Fed's board of governors, including Chairman Alan Greenspan, voted
6-0 Monday to approve the megamerger, finding that it would not
threaten competition or unduly concentrate banking resources.
The central bank's order noted that J.P. Morgan Chase and Bank One
compete directly in seven markets in Delaware, Florida and Texas. It
said that the Justice Department, in a separate review, also concluded
and advised the Fed that the merger "likely would not have a
significantly adverse effect on competition in any relevant market."
Following the Fed's announcement, the two companies said they had set
12:01 a.m. EDT on July 1 as the effective time of their merger.
Shareholders of the two approved the all-stock merger in separate votes
last month, and state regulators have blessed it.
The $58 billion merger will erase about 10,000 jobs by 2006 and the
Bank One name sooner, in one of a crop of new consolidations in the
financial services industry. Some experts believe the combination will
shift the U.S. banking industry landscape, setting off a cascade of
deals among mid-sized institutions ... <SNIP> ...
========
Once upon a time, corporations were actually expected to benefit the
people of the state that granted them their charter. Why ... some
states even <gasp!> cancelled corporate charters when their
corporations were seen as being harmful to their communities or the
states that granted them.
Much has already been said about the "benefits" of media conglomerates
controlling almost everything we see and read (except online [so far]).
Now, we have Morgan-Chase-BankOne (or whatever it'll call itself). We
know these mega-mergers benefit the top executives of the surviving
corporations. And perhaps those who are sufficiently well-off to risk
investing in the market. (Well, at least initially -- e.g. the
Time-Warner-Disney-AOL debacle.)
But -- in our blind religious fervor for unfettered capitalism and
"efficiency," at any cost -- might we EVER give a tiny moment's
consideration to the value and benefits -- or harms! -- that the
communities, and We the People, derive from having ever-larger
monoliths controlling ever-more of our lives? And jobs? (In India as
well as the USA! ;-)
--jim
-------------------------------------
You are subscribed as roessler@xxxxxxxxxxxxxxxxxx
To manage your subscription, go to
http://v2.listbox.com/member/?listname=ip
Archives at: http://www.interesting-people.org/archives/interesting-people/