Biz/Tech
(2008-09-26)
A woman walks into a Washington Mutual bank
For the second time in six months, JPMorgan Chase is taking over a major financial institution crippled by bad bets in the mortgage market.
JPMorgan Chase came to the rescue of Washington Mutual Incorporated Thursday, buying the thrift's banking assets. The move came after WaMu was seized by the Federal Deposit Insurance Corporation in the largest failure ever of a U.S. bank.
The deal will cost JPMorgan Chase 1.9 billion dollars. The bank says in a statement it plans to write down WaMu's loan portfolio by approximately 31 billion dollars.
JPMorgan Chase, which acquired Bear Stearns last March, also says it will sell 8 billion dollars in common stock to raise its capital position.
The FDIC, which insures bank deposits, says it won't have to dip into the insurance fund as a result of the seizure.
© Copyright 2012, Associated Press
