Highlights of JPMorgan's purchase of WaMu's bank unit
Some quick facts on the sale of Washington Mutual Inc.'s banking operations to JPMorgan Chase & Co., after the government seized WaMu tonight:
--- All of WaMu’s deposits, including those above federal insurance limits, will be acquired by JPMorgan, so no depositors will lose money. Deposits totaled $188 billion as of June 30 but the sum is smaller now because of recent outflows.
New York-based JPMorgan now will become the No. 1 U.S. bank by deposits, with more than $900 billion. Bank of America Corp. will be No. 2, with $785 billion.
--- All of WaMu’s 2,239 branches nationwide in 15 states will become part of JPMorgan’s Chase retail bank system.
--- JPMorgan also is buying all of WaMu’s assets, meaning its outstanding mortgages, other loans and credit card business. So WaMu borrowers now will become JPMorgan borrowers.
--- JPMorgan isn’t taking responsibility for WaMu common stock, preferred stock or its bonds. The fate of those investors is left with the Federal Deposit Insurance Corp., which tonight was named receiver for WaMu by the federal Office of Thrift Supervision.
WaMu common stock plunged to 45 cents in after-hours trading. The shares had closed at $1.69, down 57 cents, in the regular session, as some investors and traders obviously figured a wipeout was coming.
--- JPMorgan is paying the FDIC approximately $1.9 billion for WaMu’s banking business. FDIC Chairwoman Sheila Bair said JPMorgan gave the "highest bid" of four banks that made offers for WaMu.
--- JPMorgan plans to take a $31 billion writedown of WaMu’s $307 billion of total assets as of June 30, reflecting its estimate of "remaining credit losses related to impaired loans."