JPM pays $1.9bn for WaMu after biggest US bank failure

25 Sep 2008

Washington Mutual Bank became the latest casualty of the US banking crisis last night after the Federal Deposit Insurance Corp took control of the sixth-largest lender in the country. It is the biggest bank failure in US history.

JP Morgan stepped in with a $1.9bn payment to acquire WaMu’s assets and deposits and assumed all its qualified financial contracts.

Equity and preferred shareholders have been wiped out, but as EuroWeek went to press the fate of senior creditors is unclear.

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