Friday, September 26, 2008

WaMu Becomes Latest Victim of Financial Meltdown

Eric Dash and Andrew Ross Sorkin of The New York Times report that late September 25, Washington Mutual, more commonly known as WaMu, became the most recent victim of the current financial meltdown engulfing the U.S. economic market. The article, titled “Government Seizes WaMu and Sells Some Assets,” explains that WaMu is among one of the “worst hit by the housing crisis.” Investors and government agencies alike began worrying about WaMu as early as last March. Thursday evening’s federal seizure and emergency sale of WaMu to J.P. Morgan Chase for $1.9 billion confirmed such apprehensions. According to the article, the transaction caused J.P. Morgan Chase to absorb approximately $31 billion in losses that would have otherwise fallen to the Federal Deposit Insurance Corporation (FDIC).

View the article here.

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