JPMorgan To Buy WaMu Deposits, Branches
WASHINGTON — JPMorgan Chase & Co. Inc. acquired the assets of Washington Mutual Inc.'s banking operations Thursday after federal regulators seized the ailing thrift, the country's largest.The deal marks the second time in six months that JPMorgan Chase has taken over a financial institution crippled by bad mortgage bets.
The deal will cost JPMorgan Chase $1.9 billion. 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.
The Seattle-based thrift has roughly $310 billion in assets and was searching for a lifeline after piling up billions of dollars in losses due to failed mortgages.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
WASHINGTON (AP) _ JPMorgan Chase & Co. Inc. acquired the assets of Washington Mutual Inc.'s banking operations Thursday after federal regulators seized the ailing thrift, the company's largest. The deal marks the second time in six months that JPMorgan Chase has taken over a financial institution crippled by bad mortgage bets.
The deal will cost JPMorgan Chase $1.9 billion. 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.
The Seattle-based thrift has roughly $310 billion in assets and was searching for a lifeline after piling up billions of dollars in losses due to failed mortgages.
The 2002 Warning About Wall StreetIn contrast to dividends, Mr. Greenspan intoned, "Earnings are a very dubious measure" of corporate health. "Asset values are, after all, just based on a forecast," he said, and a chief executive can "craft" an earnings statement in misleading ways.
Speaking with a hard-edged frankness rarely heard in public -- and seeing that those assembled were not sharing his outrage -- Mr. Greenspan slapped the table. "There's been too much gaming of the system," he thundered. "Capitalism is not working! There's been a corrupting of the system of capitalism."
Mr. O'Neill, for his part, pushed to alter the threshold for action against chief executives from "recklessness" -- where a difficult finding of willful malfeasance would be necessary for action against a corporate chief -- to negligence. That is, if a company went south, the boss could face a hard-eyed appraisal from government auditors and be subject to heavy fines and other penalties. By matching upside rewards with downside consequences -- a bracing idea for the corner office -- Messrs. O'Neill and Greenspan hoped fear would compel the titans of business to enforce financial discipline, full public disclosure and probity down the corporate ranks.
Speaking with a hard-edged frankness rarely heard in public -- and seeing that those assembled were not sharing his outrage -- Mr. Greenspan slapped the table. "There's been too much gaming of the system," he thundered. "Capitalism is not working! There's been a corrupting of the system of capitalism."
Mr. O'Neill, for his part, pushed to alter the threshold for action against chief executives from "recklessness" -- where a difficult finding of willful malfeasance would be necessary for action against a corporate chief -- to negligence. That is, if a company went south, the boss could face a hard-eyed appraisal from government auditors and be subject to heavy fines and other penalties. By matching upside rewards with downside consequences -- a bracing idea for the corner office -- Messrs. O'Neill and Greenspan hoped fear would compel the titans of business to enforce financial discipline, full public disclosure and probity down the corporate ranks.
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