The future of WaMu
It was once the envy of the retail banking industry. But Washington Mutual stumbled on hard times long before the credit crunch really hit home. Now people are wondering how long it will survive as a standalone company. Reportedly, WaMu has held preliminary talks with JPMorgan Chase, which has fared relatively well through the crisis. A deal would likely come at a reduced premium. Business Week Online notes about 70 percent of the company's loans are in California and Florida. It also still has about $20 billion in subprime loans. So JPMorgan would appear to be bargaining from strength.
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