Washington Mutual seized by federal government
Sep 26, 2008 | Comments 1
Washington Mutual (WaMu) became the next big bank to be bailed out by the federal government on Thursday, WaMu is now considered as the biggest US bank failure in history.
WaMu whose venture into subprime mortgages led to the federal regulators seizing the company on Thursday after $1.9 billion of deposits and banking assets were brought by JPMorgan Chase. The falling house prices and Collapse of the mortgage market has kept WaMu struggling over the last year leaving investors anxious about the future of the bank.
WaMu’s was left holding billions of dubious loans, added to last week’s financial crisis in Wall Street the bank rapidly deteriorated loosing $16.7 billion between Sept. 15 and this past Wednesday. Finally JPMorgan Chase took over $134.7 billion in deposits from WaMu, previously $181.9 billion was held by WaMu.
No immediate action will be taken with WaMu’s 43,200 staff, although it is said that JPMorgan will take drastic measures to reduce its employees.
Read the full article in seattletimes
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Filed Under: Business News
What will happen to the mortgage loans serviced by WAMU, but not HELD in their portfolio, as so many of the sub-primes have been bundled and sold to investors?