Thursday, September 25, 2008

WaMu is toast

JPMorgan Chase & Co. Inc. came to the rescue of Washington Mutual Inc. Thursday, buying the thrift's banking assets after WaMu was seized by the Federal Deposit Insurance Corp. in the largest failure ever of a U.S. bank. This is the second time in six months that JPMorgan Chase has taken over a major financial institution crippled by bad bets in the mortgage market.

That's gotta take a load of the minds of Paulson and the boys. Getting someone to buy that turkey seems to have been quite a piece of magic. They definitely pulled a rabit from a hat. Had WaMu failed like IndyMac and the FDIC had to take it over it could very well have wiped out the FDIC's entire reserve.

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