Waaa Hoooo! WaMu!Washington Mutual, used to be a bank holding company that had been in business since the late 1890ÃÂs to the third quarter of 2008. The company is known as Washington Mutual, but it not actually a mutual company. In the early 1980ÃÂs the company went public and started trade shares in the stock market. On September 25th, the 119th company anniversary, the Office of Thrift Supervision (OTS) confiscated the companyÃÂs assets. Then the Office of Thrift Supervision turned around and gave all of the seized assets to the Federal Deposit Insurance Corporation (FDIC). (2008) This evidently happened because Washington Mutual took a beating due to the current United States financial downslide. Another reason for the government appropriation seems to be the understanding that 17 billion dollars of Washington Mutual deposits that were withdrawn by its customers. (Strott, 2008)Once the Federal Deposit Insurance Corporation received the assests and liabilities, it then sold the Washington Mutual bundle to JPMorgan Chase.
A Washington Mutual in Naperville, Illinois prior ...
English: Washington Mutual Bank Español: Banco Wa...
English: A Washington Mutual branch office in San ...Some people are saying the Washington Mutual bank failure is the biggest in history. This is being said because of the 307 billion in assets and liabilities that are no longer belonging to Washington Mutual. (Strott, 2008) The assets in question now belong to JPMorgan Chase, because the company entered the situation and purchased most of the assets for 1.9 billion. That is quite a deal, 307 billion for 1.9 billion, which sets the worth coming out to about 166 times the value.
The benefits and disadvantages to this situation are many. The most advantageous aspect of this situation is the affect of the federal seizure has on the public. Since JPMorgan Chase bought everything from the FDIC for 1.9 billion dollars, there is no cost to tax payers and a federal department is infused with...