I am delighted to see that Gord Nixon is prepared for a little prudent treasure hunting amid the wreckage of the U.S. financial system. This is encouraging in the wake of JP Morgan’s shotgun takeover of Washington mutual last night. JPM takes on an estimated $31 billion in troubled loans, but also gets a hold of America’s biggest savings and loan, reaching almost half of the country’s population, for a mere $1.9 billion. TD was one of several banks that had expressed interest in WaMu, but this big fish goes to the same bank that swallowed Bear Stearns las March at government behest.
When the smoke finally clears from this disaster, and it will, JP Morgan and Bank of America are going to be in a very powerfu position in the US financial market. Surely there are going to be some nice meals for Canadian banks too, if only we have the will to elbow our way to the table.
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