Washington Mutual washout being debated by JP Morgan

Calcutta News.Net
Friday 26th September, 2008

As the debate over a $700 billion bank bailout continued in Washington, the largest bank to fail by far in the country's history, went under.

Seattle-based Washington Mutual, which was founded in 1889, was defeated by souring mortgages and other risky debt.

Its $307 billion in assets eclipse those of Continental Illinois National Bank, which failed in 1984 with $40 billion in assets.

IndyMac, seized in July, had $32 billion in assets.

The sale of Washington Mutual’s assets to JPMorgan Chase has prevented the thrift's collapse from depleting the FDIC's insurance fund.

JPMorgan plans to write down Washington Mutual’s loan portfolio by about $31 billion, a figure that might change if the government succeeds with its bailout plan.

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