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Failure of Washington Mutual - one of the biggest savings banks in the U.S. |
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Friday, 26 September 2008 |
U.S. government close Washington Mutual - one of the biggest savings banks in the country by allowing the JPMorgan Chase to buy the operations of Washington Mutual for 1.9 billion dollars, reported AFP.
Under the deal announced late Thursday from U.S. Federal Corporation for Insurance of deposits (FDIC), JPMorgan Chase acquired deposits, assets and part of the obligations of the bank based in Seattle.
Washington Mutual was severely affected by the mortgage crisis in the U.S. and its shares this year decreased by about 85 percent.
 For months to gamble that the bank may be another victim of the crisis, following which have played 11 banks in the country.
With the purchase of Washington Mutual, which is known as WaMu and has deposits of about 188 billion dollars, creating the largest savings institution in the U.S. with over 900 billion dollars deposits of customers claimed by JPMorgan Chase.
Earlier this year, JPMorgan acquired and Bear Stearns.
Before leaving the news on Thursday the market capitalization of Washington Mutual was still worth around 2.9 billion dollars, but recent estimates of Standard & Poor's obligations amounted to around 14.4 billion dollars.
Through the deal JPMorgan Chase will get around 5400 branches and increase their presence on the Pacific coast.
Earlier this month WaMu rating was lowered to make difficult plans to raise fresh capital. The Bank does not comply with their deepening crisis on the real estate market .
Last week Financial Times reported that bank deposits fell by 5 billion dollars in June because of panic covered its customers. |
Banking 
