Breaking News: Washington Mutual to be Acquired by JPMorgan Chase (Update1)
Update1: From USA Today…
JPMorgan Chase (JPM) acquired the banking operations of Washington Mutual, (WM) the nation’s largest savings and loan, for $1.9 billion Thursday night in a deal brokered by the Federal Deposit Insurance Corp.
“For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks,” said FDIC Chairwoman Sheila Bair. “For bank customers, it will be a seamless transition. There will be no interruption in services, and bank customers should expect business as usual come Friday morning,” Bair said.
Original: Apparently JPMorgan Chase & Co. (JPM) is close to a deal to acquire Washington Mutual (WM). Federal regulators have apparently been heavily involved in the negotiations.
While the exact structure of the deal isn’t know, the FDIC apparently won’t be on the hook for any of the costs. That being said, the Wall Street Journal is reporting that it’s likely that “another arm of government” will bear at least a portion of the costs. This makes me wonder if the government might not be picking up some of WaMu’s bad debt to sweeten the pot for Chase. Details should be forthcoming, as Chase has a conference call scheduled for 9:15 PM EST (about 5 minutes from now).
See also: Is WaMy on the Cusp of Failure?
Source: WSJ.com
Disclaimer: Discover is a paid advertiser of this site.
Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.
Modified on November 16th, 2011 - 5 Comments
Filed under: Banking, Economy
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
Related articles...
» WaMu Trial Deposits Posted, Account Active» Is WaMu on the Cusp of Failure?
» Inside the Washington Mutual Takeover
» WaMu Improves Their Online CD Offer
» Breaking News: Citi to Acquire Wachovia
» WaMu Drops Interest Rate, Alternatives Abound
» HSBC Drops APY, FNBO Direct and WaMu Hold Steady
» WaMu Increases Online Savings Interest Rate
Was this article useful? Please sign up to receive our content via e-mail:
5 Responses to “Breaking News: Washington Mutual to be Acquired by JPMorgan Chase (Update1)”
Leave a Reply
Top Cards by Category
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
Bonus Miles: Earn 30,000 bonus miles toward Award Travel after you spend $500 on the Card within the first three months of Cardmembership. Earn As You Spend: Get 2X miles on Delta purchases and 1X miles for all other eligible dollars spent.
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
The SimplyCash(R) Business Card from American Express aims to help your business succeed with a generous cash-back rewards program. Many businesses can benefit from cash back categories such as U.S. office supply stores, wireless telephone services purchased directly from U.S. service providers and U.S. gas stations. This card not only offers a low introductory purchase APR but also doesn't charge an annual fee.
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math
- Dish Network Customer Service SUCKS
- $8,000 Homebuyer Tax Credit
- Pay Off Mortgage Early or Invest?
- How to Claim the First-Time Homebuyer Tax Credit
- Termite Control: Sentricon vs. Termidor
- How Much Should You Pay a Babysitter?
- Reduced Credit Limits? Share Your Experience
- Ethanol Blended Gas = Lower Mileage?
- $15,000 Homebuyer Tax Credit
- Buying Furniture off the Back of a Truck
- Will Mac OS X Lion Kill Quicken 2007?
How to save money on insurance
- How to help your family after you are gone
- Will Social Security be gone before I retire?
- Refund, or no refund?
- This battle of the sexes has no winner
- What to look for when buying an energy-efficient home
- The hidden savings in a rent payment
- How to save money on vacations using social media and new technologies
- How to budget without regular paychecks
- What do you do with your windfalls?
- Don't believe the bull
September 25th, 2008 at 9:22 pm
From what I just heard on cnbc, they’ll be acquiring assets – deposits and such, but not the stock. Those who own stock and bonds in WaMu will lose the money. At least this is what I heard. There probably will be more details and all of that could be wrong….
Nope, I don’t own either WM or its bonds, but I think all of us own it in our mutual funds and in 401K. Probably some bond funds own their debt too. They specifically said all this money will be lost.
They might say something different now…
September 25th, 2008 at 11:19 pm
There is no doubt in my mind that this is an illegal transaction conducted on the premise that the big bail out bill is coming. If the big bailout bill doesn’t pass then all hell may break loose.
September 26th, 2008 at 2:17 am
This is unfortunate, but it should serve as a wake up call to all American investors. If you want to protect your money, you need to diversify and invest at least some of it overseas. These are hard times for American investing firms. I personally use offshore bank accounts and they have helped me with diversification and asset protection.
Best,
Frank Miller
September 26th, 2008 at 8:12 am
…so now it’s obvious why Washington Mutual was offering that ‘great’ 4.0% interest rate — they were bankrupt and desperate for cash just to survive one more week.
Now, today — we have the largest bank failure in U.S. history.
Luckily, no one was fooled by that interest rate offer; wise depositors & financial advice-givers avoided unsound banks… no matter what the “advertised” interest rate {?}
There will be hundreds more bank failures.
Who do you trust with your money ?
September 26th, 2008 at 8:38 am
Damn… I actually liked WaMu, where as I pretty much hate Chase as a company.
My last credit card is with WaMu and I have a 0% balance transfer deal the lasts until July. I have a feeling that offer is going to go away a lot sooner than July now.