JPMorgan Chase Could Bail From Downtown MoveMar 19, 2008
JPMorgan Chase & Co. said it is deserting plans to move its Downtown headquarters to the World Trade Center site in the wake of its deal to acquire the Bear Stearns Cos. Inc., according to numerous reports. Those reports note that spokesman Brian Marchiony confirmed that the company was scrapping plans to move the company’s investment-banking and trading operations to a building planned for the WTC site.
The future of WTC, and the state of Downtown as a whole, will be spotlighted on May 13 at RealShare Downtown New York.
The bank has a 90-year lease with the Port Authority of New York and New Jersey for the spot where the former Deutsche Bank building now stands near Ground Zero. The firm had expected to construct and occupy a 1.3-million-sf tower on the site, as GlobeSt.com previously reported.
Published reports say that JPMorgan spokesman Joe Evangelisti explained that the bank plans instead to move employees to the 383 Madison Ave. skyscraper that houses Bear Stearns’ offices. Evangelisti said alternate uses would be considered. Evangelisti and JPMorgan media spokespersons did not return GlobeSt.com queries before deadline.
Although reports say that the Port Authority of New York and New Jersey believes JPMorgan’s commitment to the WTC is unchanged, calls to the Port Authority regarding that were also not returned by deadline.
As GlobeSt.com reported, JPMorgan acquired Bear Stearns for a stock-for-stock exchange. Based on the closing price of March 14, the transaction would have a value of approximately $2 per share. The transaction is expected to have an expedited close by the end of the calendar second quarter 2008.