J.P. Morgan Chase & Co. announced late Thursday an agreement to purchase many of the assets of Washington Mutual Inc. bringing to an end the troubled bank's auction. The Federal Deposit Insurance Corp. apparently took control of the bank's holding company at the request of the Office of Thrift Supervision, and brokered a deal to sell branches and deposits to J.P. Morgan for $1.9 billion. The deal closed immediately, and J.P. Morgan is now the owner of Washington Mutual's branches, deposits and other assets.
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J.P. Morgan
said it is acquiring "Washington Mutual's banks, not the holding
company." Being left on behind
are the assets and liabilities of Washington Mutual Inc., the holding
company which includes unsecured senior debt, subordinated debt and
preferred of Washington Mutual's banks. The unsecured debt amounts to
roughly $20 billion.
New York-based J.P. Morgan gets the Seattle
thrift's 2,300 branches and $143 billion in deposits.
In additional to the acquisition, J.P. Morgan Chase also said it was
making an $8 billion offering of its common stock for sale to the
public.
Shares of Washington Mutual were down 25.2% at the close of trading on Thursday. The bank had a market capitalization of $2.87 billion. -
George WhiteSee highlights from the conference callSee capital raise press releaseSee acquisition press release
Comments
Dear Sirs,
What do you see happening to WAMUQ from here? It seems to have many Assets and $5 Billion in a JPM Bank Account? At least if JPM lets WAMUQ access their own Money.
Sincerely,
John Sullivan