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http://www.cnbc.com/id/26893741

JPMorgan to Acquire Washington Mutual's Deposits
Topics:Mergers & Acquisitions | Banking
Sectors:Financial Services | Banks
Companies:JPMorgan Chase and Co | Washington Mutual IncBy CNBC.com With Wires | 25 Sep 2008 | 07:32 PM ET Font size: 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.

Washington Mutual [WM 1.69 -0.57 (-25.22%) ] had been trying to sell itself the past two weeks. Interested banks included Citigroup [C 19.41 0.45 (+2.37%) ], HSBC Holdings [HBC 81.59 1.79 (+2.24%) ], Toronto-Dominion Bank [TD 62.00 --- UNCH (0) ] and Wells Fargo [WFC 34.12 -0.15 (-0.44%) ].

WaMu came under further pressure to sell Wednesday when Standard & Poor's slashed its credit rating deep into "junk" territory. The thrift replaced its chief executive this month after suffering losses totaling $6.3 billion over the previous three quarters.


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It has projected $19 billion in mortgage-related losses through 2011, but analysts have said credit losses could reach $30 billion.

Complicating the sale process is what to do with the thrift's $227 billion book of real estate loans, more than half of which consists of home equity loans, option adjustable-rate mortgages, and subprime mortgages.

It was not immediately clear how much of WaMu's troubled loans might be eligible for Washington's $700 billion financial industry bailout program.

WaMu has a significant presence in California and Florida, two of the states hardest hit by the nation's housing crisis. But its 2,239-branch network could appeal to many lenders looking to expand in retail banking, especially in the western United States and the New York City area.

WaMu ended August with $143 billion in retail deposits -- roughly triple the size of the entire Federal Deposit Insurance Corp fund that backs customer deposits. It has also said it expects to end the quarter with a "well-capitalized" status well in excess of federal minimums.

© 2008 CNBC
 

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somebody will notice, there will be no bailouts for you!!!!! if fact, there will be stiif punishments for the middleclass who dare to try to not pay back rediculous high interest loans!!!!!
 

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somebody will notice, there will be no bailouts for you!!!!! if fact, there will be stiif punishments for the middleclass who dare to try to not pay back rediculous high interest loans!!!!!
I wouldn't be surprised if I was charged a bail out fee to go along with their other fees.

.....oh, wait, never mind.
 

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BowHunter
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Ya know, they have been waiting till after business on Fridays to annouce this stuff, are they doing it so the market will get trashed tomorrow and it will help stampede congress into the bailout? Just had a flash on it.:juggle:
 

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Ya know, they have been waiting till after business on Fridays to annouce this stuff, are they doing it so the market will get trashed tomorrow and it will help stampede congress into the bailout? Just had a flash on it.:juggle:
They are probably doing it so people like Buffet can buy them out dirt cheap.

The Golden Rule

-those that have the gold make the rules.
 

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Once more we see what big gooberment and socialist lending practices forced upon banks does .


Good thing I just charged my new STG 556 and 2000 rounds to fight off the Obamazombies that are going to riot on 11/5 ...................:D:
 
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I had a mortgage with WaMu for 2 years then I sold my house. The loan was a 4 option loan like a credit card.
1st option min payment which was below interest only
2nd option interest only
3rd option 15 yr payment
4th option 30 yr payment
after 5 years your payment would readjust and if you paid the min you had alot of negative ammortization
Some lenders used the book rich dad poor dad to say you should make the min payment and invest the difference
These were very bad loans and very dangerous.
 

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This thread is mis-titled.
They are not dead, just bought out.
Lot's of people will lose jobs there though.
 
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Several months ago WAMU was running tv commercials like crazy where I live (and I don't even think there are any branches here in Al.) LMAO, today I received a pre approved credit card application from them in the mail...I just tore it up and thought ,how funny is that? They are desperate!
 

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Information is Ammunition
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somebody will notice, there will be no bailouts for you!!!!! if fact, there will be stiif punishments for the middleclass who dare to try to not pay back rediculous high interest loans!!!!!
heh, we need a bailout nazi
 
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