US giant Wasington Mutual is taken over

Ap
Friday 26 September 2008 08:19
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JPMorgan Chase and Co. Inc has acquired the assets of Washington Mutual Inc's banking operations after US federal regulators seized the ailing credit union.

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 US dollars.

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 company has roughly 310 billion US dollars in assets and was searching for a lifeline after piling up billions of dollars in losses due to failed mortgages.

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