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JPMorgan Chase will acquire the deposits of Washington Mutual, CNBC has learned. The deal is expected to be announced during a Thursday night conference call at 9:15 p.m. ET. This deal will mark the end of independence for what once was the largest U.S. thrift.
Federal regulators have been heavily involved in putting together the transaction, which comes as WaMu is besieged by a huge number of bad mortgage loans on its books.
The exact details of the deal aren't known as yet, but JPMorgan [JPM 43.46 2.96 (+7.31%) ] is expected to acquire WaMu's deposits and branches, as well as other operations. The deal isn't expected to expected to result in any hit to the bank-insurance fund.
Originally posted by jefwane
Hey we all knew WaMu was the walking dead for a while now right? IMHO the timing of this is to put a sense of urgency on Congress to pass a bailout quickly. It's a day early for a bank failure right? They usually come on Friday evening.
Originally posted by Storm4555
Could someone tell me what this would mean for someone who had a WaMu account?
Originally posted by Rizen
I'd like to provide a different perspective.
I posted a new thread but it was just deleted and not moved by the mod, so I have to re type everything. Thanks.
Anyway, I'm an long time investor so I know my stuff.
Most people who invested in Wamu didn't believe the corrupt S&P ratings and Moody's ratings. We look at the financial statements of the company.
Now, Wamu's stock was shorted like crazy, but their deposits were safe. No runs on the banks. Their market cap shriveled to 1-2 billion, but their deposits were at 120 Billion.
There is no way they would have failed. And, they didn't.
Where are the BK papers?
There were NO RUNS ON THE BANK like INDYMAC.
WHY WAS IT TAKEN OVER and my shares sh*tted on?
JP Morgan got Bear Sterns, and now WM? For pennys on the dollar?
Wamu is the biggest depositor in the US with 120 something Billion in deposits....... THEY DIDN"T FAIL!!!! WHY WERE THEY STOLEN TO BE GIVEN TO JPM???????????????????
Originally posted by grimreaper797
WaMu had to get bought out. It is better than having them go under. Also, they won't close shop tomorrow. You won't have to file for FDIC stuff either.
When a company gets bought out like this, it will be a phase out process much like TD Bank from canada bought out Commerce Bancorp. The deal was completely March 31, 2008, and they will start to rebrand the banks toward the end of this year and into next year.
You don't lose your money, they just became JPMorgan now. You might want to move your account, thats a matter of personal preference. I can't see why you would want to though as JPMorgan is one of the strong banks we have in the market.
As I said last week, JPMorgan was the bank to invest in long term, and this just futher proves why.
Youll have to file a claim with the FDIC to get your money. If you have over 100k in there then you get your 100k but anything over you lose.