WaMu fails, government steps in

Washington Mutual, even with Goldman Sachs working on its behalf, ran out of time Thursday. Things had deteriorated to the point that the FDIC had no choice but to step in. They seized the thrift in what amounts to the largest failure of a financial institution ever. They then sold much of the company to JPMorgan--buyer of last resort?-- for $1.9 billion. That will create the largest retail bank in the country, surpassing Bank of America, according to the Washington Post. The FDIC acted to protect WaMu's assets and not drain the government's insurance funds. WaMu, in the end, had degenerated into a toxic company that no one else would touch on its own. Depositors were getting antsy, and the bank's bond rating had plummeted. It couldn't fund normal operations. So who's next? The dominoes keep falling.

For more:
- here's a Washington Post article

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