Chemical Banking Corp

Chase Manhattan Corp., the largest U.S. bank, said it will cut 4,500 jobs, or 6.5% of its staff, to reduce costs and invest in more profitable businesses. The bank will take a $320-million charge in the first quarter to pay for the cuts, its second round of firings since its 1996 merger with Chemical Banking Corp. Chase said it will fire about 2,200 employees, with the remaining cuts coming from leaving vacant positions unfilled.

Two Major Bank Mergers Completed: The last day of 1991 saw the nation's third- and fourth-largest banks created. Chemical Banking Corp. completed its merger with Manufacturers Hanover Corp. to form Chemical Banking Corp., with assets of about $140 billion. It is the third-biggest bank, behind the scheduled combination of BankAmerica Corp. and Security Pacific Corp. NationsBank Corp., the Charlotte, N.C.-based bank created by NCNB Corp. and C&S/Sovran Corp., became the No.

Chemical, Chase Warn of Higher Merger Costs: Chemical Banking Corp. and Chase Manhattan Corp. said the cost of their merger will be higher than anticipated, reducing first-quarter profit by $1.7 billion before taxes. Chemical and Chase, both based in New York, said one-time costs to merge the two will come to $1.9 billion, $400 million more than originally announced. The banks also said annual savings from the merger will total $1.7 billion, $200 million more than first estimated.

PNC Bank Corp. to Acquire 84 Chemical Bank Branches: The company would expand into New Jersey with the acquisition of the branches from Chemical Banking Corp. in a deal worth about $504 million. The branches serve about 200,000 households in the southern and central parts of the state. Chemical, based in New York, would keep 40 branches in northeastern New Jersey that serve commuters to New York who bank at Chemical offices in both states.

Approval of the application of Chemical Banking Corp. will enable the bank to underwrite and deal in all types of securities, including common and preferred stock. Chemical is the third-largest U.S. bank, with total assets of $149.4 billion. It now will be able to deal in direct and indirect equity ownership interests in corporations and other entities. It proposes to conduct those activities worldwide through its Chemical Securities Inc. subsidiary.

Chemical Banking Corp., one of the nation's largest banking companies, on Thursday reported a 26% jump in its fourth-quarter profit and record earnings for 1988. The firm cited a decrease in its provision for loan losses. Net income for the quarter ended Dec. 31 totaled $288.5 million. For all 1988, its profit totaled a record $753.6 million, contrasted with a year-ago loss of $853.7 million. The 1988 results also included full-year earnings from Texas Commerce Bancshares, which earned $2.

UAL Corp. stock fell sharply Monday following a report that Chemical Banking Corp. has pulled out of the group of five banks that are interested in financing a planned $4.4-billion employee buyout of the Chicago-based airline company, traders said. UAL fell $6.125 to $156.875 a share on the New York Stock Exchange following reports that Chemical Bank had withdrawn temporarily as a possible lender because of concerns about the proposal's lack of cash financing.

N.Y. Group Buys Brazil Rail Line: Brazil sold a 600-mile stretch of railroad to a consortium that includes Chemical Banking Corp. and New York-based holding company Noel Group Inc. for $63 million. The sale--the first of six such rail lines the government plans to auction--fetched 3.6% more than the government sought. It is the first privatized company to be purchased exclusively by foreign investors.

In a report that is likely to disappoint nervous technology stock investors, Intel Corp. reported lower-than-expected fourth-quarter earnings Tuesday, blaming the results on falling prices and weaker-than-expected demand for personal computer motherboards. Separately, Sun Microsystems Inc. said its profit grew 54% for its fiscal second quarter as the company enjoyed stronger sales of its workstations.

The Federal Reserve Board on Friday approved the largest banking merger in U.S. history, the $10-billion marriage of Chemical Banking Corp. and Chase Manhattan Corp. The move, by a 6-0 vote, means Chase and Chemical need only the New York State Banking Department's approval to complete the acquisition. "We expect that shortly," Chemical spokesman John Stefans said. Swift approval by New York regulators could allow Chase and Chemical to complete the acquisition before March 31, the bank's goal.

Chemical Banking Sells Portion of CIT Stake: The New York-based institution sold 20%, or half its stake, of finance company CIT Group to Dai-Ichi Kangyo Bank for about $430 million. The transaction, along with the recently completed sale of most of the bank's New Jersey branches to PNC Bank Corp. for $490 million, will generate about $1 billion for Chemical Banking Corp. to invest elsewhere. Chemical expects to use the money to buy back stock after it merges with Chase Manhattan Corp.

Chase Manhattan Corp. and Chemical Banking Corp. on Wednesday said they will launch an $18.1-billion, five-year nationwide community-investment program following their merger early next year. But some community groups quickly said the program has serious problems. In a joint announcement, the two banks, whose merger would create the largest bank in the country, said the program would be the largest in U.S. banking. Of the total, $4.2 billion would go to New York state, with $3.

Who's next? Will Wells Fargo combine with First Interstate? Will GlenFed buy CalFed? Will Bank of America acquire Bank of Boston or be acquired by NationsBank? These are among the questions buzzing around the banking industry in the wake of Monday's announcement that Chemical Banking Corp. will mate with Chase Manhattan Corp. to create the nation's largest bank. The three giant California-based banking companies--Wells Fargo & Co., First Interstate Bancorp and BankAmerica Corp.