JPMorgan buys troubled WaMu

Source: Exec Digital USA

Date :9/26/2008 9:59:25 AM

Following the biggest bank failure in history, JPMorgan Chase has acquired the banking assets of Washington Mutual for US$1.9 billion.

The troubled bank was seized by federal regulators yesterday, September 25, marking the biggest bank failure in the nation’s history. It is also the latest, and perhaps most stunning twist, in the ongoing credit crisis.

Under the deal, JPMorgan Chase will acquire all the banking operations of WaMu, including US$307 billion in assets and US$188 billion in deposits.

It is New York City-based JPMorgan Chase’s second major purchase this year following the mid-March acquisition of investment bank Bear Stearns Cos.

As a result of the acquisition, JPMorgan Chase will now boast some 5,400 branches in 23 states.

WaMu is the 13th bank to fail so far this year and earns the title of the nation’s biggest bank failure by assets on record.