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• The Federal Deposit Insurance Corporation (FDIC) seized the operations of Washington Mutual on September 25, 2008, and immediately sold the troubled bank's deposits and some branches to JP Morgan Chase. Washington Mutual had experienced severe drops in its stock in previous weeks, and had experienced an 88% slide in its stock price over the last year. Washington Mutual's seizure came at the same time lawmakers in Washington D.C. were working to forge a deal on a Bush administration-proposed mortgage bailout plan.

  In March 2009, Washington Mutual filed a lawsuit against the FDIC for allegedly violating the company's rights by hosting the fire sale to JP Morgan Chase. Washington Mutual argues that a more organized liquidation would have provided a greater value to the company's constituents.BloggingStocks: Washington Mutual sues FDIC over fire sale (March 22, 2009)

• Fast Facts

  1. Date of deal announcement: September 25, 2008
  2. Washington Mutual (WaMu) seized by FDIC
  3. FDIC sold deposits and branches to JP Morgan Chase
  4. Transaction requires no outlay of taxpayer funds from FDIC
  5. WaMu suffered steep stock declines over last year
  6. Analysts believe WaMu could lose $30 billion in bad investments
  7. WaMu had hired Goldman Sachs to find buyers
  8. TPG Capital investment firm lost $1.35 billion in the failure, the worst professional loss in historyStar-Telegram: TPG loses $1.35 billion in Washington Mutual failure (September 27, 2008)

• Related Pages on Mahalo

  Washington Mutual | JP Morgan Chase | Mortgage Bailout Plan | Washington Mutual Bankruptcy | Lehman Bankruptcy | FDIC | Buy My Shitpile | TPG Capital

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