Bankruptcy

Biggest Bank Failure In U.S. History: Washington Mutual Siezed Last Night And Sold To J.P. Morgan Chase

By Scott Riddle

In the biggest bank failure in U.S. History, Washington Mutual (note the website has already been changed) was seized by federal regulators last night and immediately sold to J.B. Morgan Chase for $1.9 Billion.  See an article here.

Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July. ... The downfall of WaMu has been widely anticipated for some time because of the company's heavy mortgage-related losses. As investors grew nervous about the bank's health, its stock price plummeted 95 percent from a 52-week high of $36.47 to its close of $1.69 Thursday. On Wednesday, it suffered a ratings downgrade by Standard & Poor's that put it in danger of collapse.

If you are a WAMU customer, see the Chase website for a little information.

Full post as published by Georgia Bankruptcy Blog on September 26, 2008 (boomark / email).