WaMu Takeover Could Mean Bye-Bye to Branches

As many as 40 branches of Chase and WaMu may be closed in the city.

By: John Noble J.P. Morgan Chase's emergency takeover of Washington Mutual could very well lead to the closure of 40 of WaMu's New York City Branches. Those branches would be closed by 2010, according to the purchase statement. Chase intends to close up to 10 percent of the franchises in markets that overlap, meaning that if there are more than a few branches in a single region, some of them will be closed. Chase already has 293 branches in New York City, compared to WaMu's 136, according to the FDIC. The 429 branches in a single area are a bit excessing, when they all essentially belong to the same bank. The 40 figure "could swing up or down," said a banking official familiar with the purchase, who asked not to be identified. The number basically dependson the branch's proximity to one-another, and the closing branches could be either Chase or WaMu, depending on the market saturation. Bill Melville, senior managing director for real estate firm Lansco Corporation, said the closures would affect different markets in different ways. "It could be a good thing, as a way in for people looking for space, but if they are in an area with a fair amount of space available it could further erode" pricing, he said. That leaves some residents wondering if the massive takeover will force further hicups in the Manhattan real estate market. Leasing prices could be affected, worries one Manhattan business owner, and if bank branches close, other business owners are worried about increased competition as other businesses move in.