WaMu acquired by JPMorgan Chase

By Nicole Lucht

Thursday, Sept. 25, 2008 | 6:44 p.m.

Washington Mutual Bank has been acquired by JPMorgan Chase, the Federal Deposit Insurance Corp. announced late Thursday. The Thrift Supervision Office seized Washington Mutual and named the FDIC receiver.

All deposits are protected and there will be no loss to the FDIC fund, which is supported largely by premiums paid by banks, the FDIC said.

“For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks,” said FDIC Chairwoman Sheila Bair in a statement.

“For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning,” Bair said.

JPMorgan paid $1.9 billion for Washington Mutual’s assets.

“WaMu’s balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses,” Bair said.

Washington Mutual also has a subsidiary, Washington Mutual FSB, in Park City, Utah.

They had combined assets of $307 billion and total deposits of $188 billion.

The bank had 37 branches in the Las Vegas market, according to In Business Las Vegas’ 2007 Book of Business Lists. In Business is a sister publication of the Las Vegas Sun.

Washington Mutual had the second largest amount of deposits in 2007 in the Las Vegas market, according to In Business research.

It listed $63.68 billion in deposits for June 30, 2007; however, because the bank was headquartered in Henderson, it included all of the bank’s deposits nationwide.

Washington Mutual customers with questions should call the local bank or (800)788-7000 or visit www.wamu.com. FDIC’s consumer hotline can be reached at (877)275-3342.