JPMorgan Chase Acquires Banking Operations of Washington Mutual FDIC Facilitates Transaction that Protects All Depositors and Comes at No Cost to the Deposit Insurance Fund FOR IMMEDIATE RELEASE September 25, 2008 Media Contact: Andrew Gray (202) 898-7192 angray@fdic.gov JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation. All depositors are fully protected and there will be no cost to the Deposit Insurance Fund. "For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," said FDIC Chairman Sheila C. Bair. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning." JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired. "WaMu's balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses," Bair said. Washington Mutual Bank also has a subsidiary, Washington Mutual FSB, Park City, Utah. They have combined assets of $307 billion and total deposits of $188 billion. Thursday evening, Washington Mutual was closed by the Office of Thrift Supervision and the FDIC named receiver. WaMu customers with questions should call their normal banking representative, service center, 1-800-788-7000 or visit www.WaMU.com. The FDIC's consumer hotline is 1-877-ASK-FDIC (1-877-275-3342) or visit www.fdic.gov.
seriously? who bought the mortgage book of $50 yards of debt. jp morgan didnt. so what happened to the debts?
Shareholders will be wiped out. Debt/bond holders will either be wiped out or can stand in line for their turn to talk to the bankruptcy judge.