New York: JPMorgan Chase & Co Inc came to the rescue of Washington Mutual Inc on Thursday, buying the thrift's banking assets after Washington Mutual was seized by federal regulators in the largest failure ever of a US 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 importantmortgage market. JP Morgan plans to launch two feeder funds The deal will cost JPMorgan Chase $1.9 billion, and the bank said in a statement that it planned to write down Washington Mutual’s loan portfolio by approximately $31 billion. JPMorgan Chase, which acquired Bear Stearns Cos last March, also said it would sell $8 billion in common stock to raise its capital position. The Federal Deposit Insurance Corp, which insures bank deposits, said it would not have to dip into the insurance fund as a result of the seizure. There had been concerns that the fund, which took a big hit after the seizure in July of IndyMac Bank, could be depleted by a Washington Mutual seizure... More Here: http://sify.com/finance/fullstory.php?id=14766852 yea it was predicted for a while but damn came out of nowhere still.
