JPMorgan acquires WaMu deposits JPMorgan Chase has acquired the banking operations of Washington Mutual which was seized by US regulators on Thursday night in the biggest bank failure in US history. Under the deal, which was brokered by government, JPMorgan will pay $1.9bn to the banking regulator, and acquire all insured and uninsured deposits, assets and some of the liabilities of WaMu's banking operations, including its troubled mortgage portfolio. JPMorgan will not acquire claims by equity, subordinated and senior debt holders, said the Federal Deposit Insurance Corporation, which facilitated the transaction.
JPMorgan Chase has acquired the banking operations of Washington Mutual which was seized by US regulators on Thursday night in the biggest bank failure in US history.
Under the deal, which was brokered by government, JPMorgan will pay $1.9bn to the banking regulator, and acquire all insured and uninsured deposits, assets and some of the liabilities of WaMu's banking operations, including its troubled mortgage portfolio.
JPMorgan will not acquire claims by equity, subordinated and senior debt holders, said the Federal Deposit Insurance Corporation, which facilitated the transaction.
This sounds like a reasonable deal - JPM gets real assets in exchange for dubious liabilities (ie they will pay for the good assets over time), and not just the shareholders, but also the creditors of WaMu get wiped out, as they should. In the long run, we're all dead. John Maynard Keynes
Wachovia approaches potential buyers Wachovia approached potential buyers, including Citigroup, Wells Fargo and Spain's Banco Santander, on Friday after a 27 per cent plunge in its shares deepened fears over the future of the sixth-largest US bank.
Wachovia approached potential buyers, including Citigroup, Wells Fargo and Spain's Banco Santander, on Friday after a 27 per cent plunge in its shares deepened fears over the future of the sixth-largest US bank.
