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Whoo-hoo! JPMorgan Chase Buys Washington Mutual

September 25, 2008 · Published By  

Washington Mutual Buyout

Whoo-hoo!  You can put those rumors and speculation to rest.  JPMorgan Chase announced it will acquire the deposits of the Seattle-based Washington Mutual, Inc — WAMU   The failing thrift was seized today by federal regulators in what is termed the biggest bank failure in U.S. history.

JPMorgan will pay $1.9 billion, according to Federal Deposit Insurance Corp.   FDIC reports that the buyout will be seamless and business will be usual for depositors on Friday.

Shares of the Seattle, Washington-based Washington Mutual have lost 80 percent of their value since the beginning of 2008.

Analysts and speculators expected the buyout to be a major step toward cleaing up U.S. housing debt.  Many of Washington Mutual’s assets are associated with mortgages that are failing due to housing slump, jobs and the economic downturn.

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