WaMu Is Now the Largest Bank Failure in History
Sep 26th, 2008 | By Contrarian Profits | Category: Financial News, Politics & EconomicsAnalysts have been warning for some time that Washington Mutual (NYSE:WM) was on the brink of collapse.
Last night they were closed by the government and banking assets were sold to JPMorgan Chase & Co (NYSE:JPM) for $1.9 billion. Shares of Washington Mutual plunged $1.24 to 45 cents in after-hours trading.
Washington Mutual has a major presence in California and Florida, two of the states hardest hit by the housing crisis. It also has a big presence in the New York City area.
The thrift amassed $6.3 billion of losses in the nine months ended June 30. It had also projected $19 billion of mortgage losses through 2011, but analysts said credit losses could reach as high as $30 billion.
“It is surprising that it has hung on for as long as it has,” said Nancy Bush, an analyst at NAB Research LLC.
Read on: http://biz.yahoo.com/rb/080925/business_us_washingtonmutual_jpmorganbiz.html?.v=3
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