The Bank of New York is reportedly in talks with JPMorgan Chase to exchange its retail banking business for a part of JPMorgan’s Worldwide Securities Services unit in a deal that could affect approximately 300 New York metropolitan branches and fetch more than $4 billion.
Though neither organization would comment on the market speculation, news sources have reported that it is JPMorgan’s trust division that will be swapped, in an asset exchange that will allow both banks to avoid substantial taxes that would result from a cash deal.
It has long been predicted that Bank of New York will spin off its lagging retail banking arm to focus on its securities processing business, and JPMorgan’s Chief Executive Jamie Dimon has made it known he wishes to solidify JPMorgan as New York’s “hometown bank.”
Sources familiar with the matter have predicted that the deal will close within two weeks.