CNBC is reporting that the FDIC will seize WaMu and sell it to JP Morgan Chase. "Whoo hoo!"
All the deets of the deal are supposed to be announced in an hour, but I just wanted to be the first to put the WallStreetFighter stamp of approval on the potential post-buyout name offering: JP MorgAmWu. Yep, you’ve heard it here first. Who wouldn’t want to entrust their life’s savings with an institution bearing such a clever and trustworthy-sounding new name?
Looks like JP Morgan will be getting all of WaMu’s deposits and branch locations. So this candle we lit outside WaMu’s Wall Street branch last week was well-timed (FYI: St. Joseph is still the official patron saint of mortgage exposure victims). Let’s all pause and reflect for another moment on our homies up in the Pacific Northwest. You will be missed.
WaMu was rumored to be sold to a number of suitors including Citigroup, HSBC, and Wells Fargo. But the embattled bank took a massive body blow on Wednesday when their credit rating was slashed into ‘junk’ territory. This caused their stock price to reach drastically low levels they hadn’t seen since the 1980s. The ripe time to sell!
CNBC: FDIC To Seize WaMu, Sell Deposits To JP Morgan, September 25, 2008