twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

WaMu Fails

OTS shuts down thrift

September 25, 2008

By staff

In the biggest bank failure in history, Washington Mutual Bank has been shut down by federal regulators.

The Office of Thrift Supervision closed the Seattle-based thrift today, an announcement this evening said. The Federal Deposit Insurance Corporation has been appointed receiver.

WaMu had suffered three straight quarters of losses totaling $6.1 billion as a result of a deteriorating real estate market.

The collapse was prompted by a run on deposits that began on Sept. 15. A total of $16.7 billion in deposits were withdrawn. The run left the company too unsafe and unsound to continue operating.

WaMu had been desperately seeking investors domestically and abroad, but came up short.

A bidding process conducted by the FDIC resulted in the acquisition of the $307 billion bank by JPMorgan Chase & Co.

A $1.9 billion payment was made by JPMorgan.

In a statement, JPMorgan noted the acquisition makes it the largest U.S. depository institution -- with more than $900 billion in customer deposits. Assets and liabilities of parent Washington Mutual Inc. are excluded from the purchase.

"This deal makes excellent strategic sense for our company and our shareholders. Our people have worked hard to build a strong franchise and balance sheet -- making this compelling transaction possible," JPMorgan Chairman and Chief Executive Officer Jamie Dimon said in the announcement

Branches will open Friday uninterrupted.

"WaMu became an OTS-regulated institution on December 27, 1988 and grew through acquisitions between 1996 and 2002 to become the largest savings association supervised by the agency," OTS stated. "As of June 30, 2008, WaMu had more than 43,000 employees, more than 2,200 branch offices in 15 states and $188.3 billion in deposits."

FDIC noted all depositors are full protected and it expects to incur no costs as a result of the failure.

The closing of the thrift on a Thursday was highly unusual for OTC, which usually announces the closing of financial institutions on Friday evenings and works through the weekend to transition deposits to a new entity.

As of June 30, WaMu held $118.9 billion in residential loans for investment, including $52.9 billion in payment option adjustable-rate mortgages and $16.1 billion in subprime loans, OTS said. Home-equity lines-of-credit were $53.4 billion.

JPMorgan noted it would mark down the portfolio by $31 billion and consequently raise additional capital.

The servicing portfolio ended the latest quarter at $689.7 billion.

WaMu is the 13th FDIC-insured institution to fail this year.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders