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SUNDAY, NOVEMBER 8, 2009
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Feds Search for WaMu Buyer

Falling share price stokes worries of a bank run

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(Newser) – Washington Mutual, America's largest savings and loan, may be the next big financial institution to fail, the New York Post reports. Fearing a run on the struggling bank, federal regulators placed calls yesterday gauging interest in a WaMu buyout to Wells Fargo, JP Morgan Chase, HSBC, and others, but no further negotiations have been scheduled.

Standard and Poor cut WaMu’s credit rating to "junk" on Monday, and a plummeting share price has customers wondering if they should get their money out now. The bank has about $143 billion in deposits. Washington Mutual reported $3.33 billion in losses on soured mortgage bets in the second quarter.

Federal regulators are looking for a buyer, or possible merger, for struggling Washington Mutual.
Federal regulators are looking for a buyer, or possible merger, for struggling Washington Mutual.   (AP Photo)
Worried that its falling stock, and Wall Street's general woes, could provoke a run on the bank, federal officials have been trying to find a buyer for Washington Mutual.
Worried that its falling stock, and Wall Street's general woes, could provoke a run on the bank, federal officials have been trying to find a buyer for Washington Mutual.   (AP Photo)
Standard & Poor's cut Washington Mutual's credit rating to
Standard & Poor's cut Washington Mutual's credit rating to "junk" yesterday.   (AP Photo)
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