Friday, September 26, 2008

Largest Bank Failure In American History

The largest bank failure in American history took place today when Washington Mutual's Assets were seized into federal receivership and sold off to J.P. Morgan Chase. The Federal Deposit Insurance Corporation is advising Washington Mutual customers who have a checking or savings account, a mortgage or a loan with Washington Mutual that it is business as usual-all transactions are legal and checks and funds transacted have the force of legal tender.

Washington Mutual is the 13th bank failure in 2008. WaMu's stock has lost 95% of it's value in the last year, and many observers point to the fact that J.P. Morgan did not make a bit for the thrift's accounts and most of its assets until after it had officially failed last night as proof that there is immense anxiety within the country's banking and financial system.

Washington Mutual's stock tanked at 0.16 per share this morning when the failure and selloff were made official.

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