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Washington Mutual, the largest Bank Failure In US history; Clients withdraw $ 17bn
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by SOLARLIFE | September 26, 2008 at 12:38 am
369 views | 17 Recommendations | 6 comments
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Washington Mutual, the largest Bank Failure In US history; Clients withdraw $ 17bn
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Clients withdraw $ 17bn
2008 WaMu lost more than 90 percent of its stock market value. A downgrading of the rating agencies worthened the situation. Customers removed of $16.7 bn U.S. in assets from the accounts and brought Washington mutual bank in a Life threatening situation.
Federal regulators seized Washington Mutual (WM: 1.69, -0.57, -25.22%) on Thursday evening and sold most of the assets to JPMorgan Chase (JPM: 43.46, +2.96, +7.30%) in the largest bank failure in U.S. history.
The Federal Deposit Insurance Corp. said on its Web site that all WaMu deposit accounts and loans had been transferred to JPMorgan, though JPMorgan said that it was not taking ownership of the holding company.
WaMu reportedly had significant trouble finding a buyer, but on a conference call late Thursday, JPMorgan sounded like anything but an unwilling partner.
"We don't know and we don't care" what other bids may have been, a JPMorgan executive said. "We bid to win."
JPMorgan plans to conduct an $8 billion capital raising on Friday to help shore up its balance sheet
Most RecentMost Recommended Comments (6)
at 05:58 on September 26th, 2008
SOLARLIFE, I like this story. It's good stuff.
This may get worth then 1929.
at 06:06 on September 26th, 2008
Paschen, WaMu: "This may get worth than 1229"... Washington Mutual, the largest Bank Failure In US history; Clients withdraw $ 17bn, thanks for Flag
at 06:50 on September 26th, 2008
SOLARLIFE, I like this story. It's good stuff. So the money I owe them is gone too? I wish, Isn't it funny that they can go under but the debters must pay anyway.
at 08:01 on September 26th, 2008
Politsite..."WaMU the money I owe them is gone too? I had to read it twice, but why not? JP Morgan bought for $2bn peanuts WaMu. They sought the $ 700bn bail-out plan went through and they make big cash bail back. At the same moment today friday JPM trying to raise $8bn, makes no sense for me. Have they alredy gone too?
at 07:48 on September 26th, 2008
JPMorgan paid $2 billion for WaMu. This is the biggest bank failure so far in the weekly series, and ominously (it is ominous isn't it) it came early, on Thursday rather than the customary Friday.
at 08:04 on September 26th, 2008
Fairbanks...WaMu it came not friday, as usual. Well they may have to want benefited for the peanuts of $2bn in the bail out $700bn