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.
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?