In an enormous and startling turn of events, the Federal Deposit Insurance Corp. has taken over Washington Mutual (NYSE: WM), forcing it into an arranged marriage. According to reports in the Wall Street Journal, the FDIC reached out to the nation's biggest banks, asking them to make an offer. JPMorgan Chase (NYSE: JPM) was the one to step up to the plate, taking over the bank's deposits and branches. The value of the deal, and the fate of the bad assets, isn't currently known; but equityholders and senior debt holders will be wiped out.
Depositors leery of the bank's failure were part of the problem; $16.7 billion in deposits have been taken out of the bank since September 15. According to the WSJ, the FDIC fund won't be affected by the takeover.
Depositors leery of the bank's failure were part of the problem; $16.7 billion in deposits have been taken out of the bank since September 15. According to the WSJ, the FDIC fund won't be affected by the takeover.
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