JPMorgan Gets OTS OK on New Thrift

Investment banking powerhouse J.P. Morgan Chase & Co., a major player in mortgages, has received final approval from the Office of Thrift Supervision to fund a new $1 billion thrift.The move is part of JPM's effort to restructure the way it originates and funds residential real estate. Based in Delaware, the de novo, federally chartered savings bank will fund first and second liens throughout the United States. The parent company plans to transfer 302 loan production offices (as well as administrative offices) to the new institution. However, in documents filed with the OTS, JPM makes it clear that it will not fund mortgages in New York, New Jersey, and Connecticut, key markets for its commercial bank affiliate. JPM will initially capitalize the thrift with $1 billion in cash.