JPM Chase buys some assets of Washington Mutual for $1.9 bn
Published on Fri, Sep 26, 2008 at 09:00 | Source : CNBC-TV18
Updated at Fri, Sep 26, 2008 at 10:29
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JPM Chase buys some assets of Washington Mutual for $1.9 bn
US FDIC, or the US Federal Deposit Insurance Corporation, said JP Morgan Chase has acquired certain assets of Washington Mutual, or WaMu, for USD 1.9 billion after the large savings and loan association was closed by regulators on Thursday.
US FDIC, or the US Federal Deposit Insurance Corporation, said JP Morgan Chase has acquired certain assets of Washington Mutual , or WaMu, for USD 1.9 billion after the large savings and loan association was closed by regulators on Thursday.The acquisition will have no impact on WaMu's depositors or customers. The bank had USD 188.3 billion in deposits and the Office of Thrift Supervision, or OTS, described it as a USD 307 billion institution. OTS had shut down Washington Mutual due to insufficient liquidity.
JP Morgan will acquire WaMu's deposits and branches, as well as other operations. WaMu came under further pressure to sell when Standard & Poor's slashed its credit rating deep into junk territory. JP Morgan said the Washington Mutual deal would make the company the largest depository in the US.
Washington Mutual was United States' largest savings and loan association. It was founded as Washington National Building Loan and Investment Association on September 25, 1889. This helped Seattle residents rebuild after a fire torched the city's downtown.
