The Nasty JPMorgan-Wamu Fight
![wamu-logo[1]](http://www.soundmoneyinstitute.com/wp-content/uploads/2010/02/wamulogo1.jpg "wamu-logo[1]")
It was the largest bank failure in U.S. history. It was also the most quiet, when it comes to media attention. And now it’s triggered one of the nastiest legal fights ever seen in the banking industry.
Seattle-based Washington Mutual Bank was closed by the U.S. government in September, 2008, during those fateful early autumn days when Fannie Mae (FNM) and Freddie Mac (FRE) were seized by the government, when Lehman Bros. and AIG (AIG) were failing, when Wachovia was on the ropes, and Merrill Lynch veered toward collapse, as well.
WaMu failed amid mounting mortgage losses and after a 10-day bank run which saw panicked customers yank out $16.7 billion of deposits.
WaMu’s $307 billion in banking assets were seized by the Federal Deposit Insurance Corp. and sold to JPMorgan (JPM) for $1.9 billion; a day later, WaMu’s parent holding company filed for bankruptcy protection.
Read More: – by Elizabeth McDonald, FoxNews
