Entries Tagged 'Chase' ↓
September 26th, 2008 — Bank Failure, Bank Run, Banking, Chase, Credit Crisis, Economy, JP Morgan Chase, Mortgage Loans, Subprime Crisis, WaMu, Washington Mutual
In the largest bank failure in U.S. History, Washington Mutual crumbled last night, and was seized by federal regulators.
Under a deal brokered by the government, JPMorgan Chase [[JPM]] will acquire all the banking operations of WaMu, including $307 billion in assets and $188 billion in deposits.
WaMu’s assets were equal to about two-thirds of the book value of assets from almost 750 failed banks that were sold off during the previous S&L crisis that lasted from 1989 through 1995.
The acquisition of WaMu is JPMorgan Chase’s second major purchase this year. The first, of course, was its March acquisition of failed investment bank Bear Stearns, a deal that was also assembled by the government.
September 17th, 2008 — Banks, Chase, Credit Crunch, Economy, HSBC, Washington Mutual
The federal government has started cold-calling large banks, seeking to put together a deal for a buyout of Washington Mutual [[WM]].
The main roadblock to finding a suitable buyer has been that no one knows exactly what they’ll get into. The condition of WaMu’s books is a mystery.
The New York Post reported earlier today that banking regulators have been in talks with Wells Fargo [[WFC]], JPMorgan Chase [[JPM]], and HSBC, among others.
Shares of Washington Mutual have crashed in recent weeks as concerns mounted regarding losses in the bank’s lending portfolios. Shares of the Seattle-based thrift have fallen almost 50% over the past month and are off 83% for the entire year.
Over the last quarter, Washington Mutual lost over $3 billion, about $6.50 per share, as it put away more than $8 billion to cover bad loans in its mortgage holdings.
September 16th, 2008 — Bank Run, Banking, Chase, Credit Crisis, Economy, Washington Mutual
Washington Mutual’s [[WM]] stock climbed back out of the hole on Tuesday, as it recovered from a rough start after Standard & Poor’s dropped the bank’s credit rating to junk amid continuing troubles with the mortgage market.
Although the company’s shares had initially dropped 15% after the market open, losses then softened and shares headed back up within an hour. WaMu closed 16% higher.
Investors were probably pleased by WaMu’s reaction to their downgrade. The bank said the rating agency attributed its action to worsening conditions in the market, and not to any specific material change in WaMu’s financial situation.
In addition to the positive response, rumors also began to surface that JPMorgan Chase could be looking to buy the bank. Analysts said this helped to drive up the stock.
JPMorgan Chase has not made a public comment about a possible deal.