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JPMorgan Chief Had Long Drooled Over WaMu

Posted Sep 26, 08 2:45 PM CDT in Business 

(Newser) – The failure of Washington Mutual was an opportunity for JPMorgan Chase CEO Jamie Dimon, who long held a desire to buy the bank, the Seattle Times reports, and saw its large West Coast presence as particularly attractive. Now Dimon, who incorporated Bear Stearns earlier this year, has used the credit crisis to build the largest bank in the US.

The move is not without risk, the Washington Post adds: JPMorgan will have to absorb WaMu’s sagging portfolio of mortgage-related securities, and announced immediate writedowns of $31 billion due to those devalued investments. “This was an eroding situation,” the head of the Federal Deposit Insurance Corporation said of the decision to move on WaMu and forestall a run.
Sources: Seattle Times, Washington Post

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"This was an eroding situation," the head of the Federal Deposit Insurance Corporation said of the decision to seize Washington Mutual last night rather than wait and face a run on the bank.   (AP Photo)
JP Morgan Chase CEO Jamie Dimon has a long history of snapping up distressed companies and turning them around.   (AP Photo)
Washington Mutual's massive West Coast operation had long looked attractive to JP Morgan Chase, the Seattle Times reports.   (AP Photo)
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