Report:DOJ Approves of CVS-Aetna Merger

According to trade publication Reorg Research,the relevant US Department of Justice staff will not oppose the merger of drugstore chain/pharma benefits manager CVS Health with health insurer Aetna,sending a sigh of relief through the sector and an uptick in share prices.The 69 billion dollar transaction is a move seen at least partly as a reaction to the entry of electronic commerce giant Amazon into the health care field.Another possible reaction was by health insurer Cigna as it seeks to merge with pharma benefits manager Express Scripts.
In January 2018,Amazon,Berkshire Hathaway and JP Morgan Chase,which collectively employ more than 500,000 people,announced they are forming a joint enterprise to provide care for staff at a reasonable cost by enabling simplified,high quality and transparent health care through technology.JP Morgan Chase CEO Jamie Dimon explained:
The three of our companies have extraordinary resources,and our goal is to create solutions that benefit our US employees,their families,and,potentially,all Americans.*
Reorg Research provides automated docket updates;breaking news;and analysis for distressed debt investors;lawyers;and restructuring professionals.The New York-based company seeks to provide independent,insightful and timely market intelligence and analysis for better business and investment decisions.*
The DOJ staffers will submit their recommendation to their superiors for final approval at the end of July.*
Aetna Inc (AET),Cigna Inc (CI),CVS Health (CVS),Express Scripts (ESXR)

Focus on Banking:FDIC Takes Action

When depositors made a run on Washington Mutual,withdrawing some 16 billion dollars U.S.in a hurry,the Federal Deposit Insurance Corporation took control of the institution,selling it to J.P.Morgan Chase for 1.9 billion dollars U.S..WAMU executives were surprised by the move.JPM assumed all assets,posting a welcome message on WAMU's website.All holders of WAMU debt and equity were essentially wiped out.The acquisition gave JPM more than 5400 branches and the largest U.S. depository base.It will result in 1.5 billion in pretax savings by 2010.There is a 10% overlap of JPM and WAMU operations.JPM will also raise eight billion of capital by a share offering,and it will write down 31 billion in bad WAMU holdings.Once again,JPM was a godsend,helping the government manage the financial crisis,having earlier purchased failed investment bank Bear Stearns.It is doubtful,however,that JPM could handle anything else in the near future,making a rescue plan all the more necessary.Jamie Dimon is CEO of J.P.Morgan Chase.The FDIC acted again Sunday night,taking control of Wachovia Bank(WB),and selling its banking operations to Citigroup(C).Wachovia will retain its brokerage and wealth management units.Citi is paying 1.00 of Citi stock per Wachovia share.Sheila Bair is Chairman of the FDIC.