Thursday, September 25, 2008

The Consolidation Continues: JP Morgan to Buy WaMu

J.P. Morgan to buy WaMu's operations: report

N FRANCISCO (MarketWatch) -- J.P. Morgan & Chase Co. (JPM: 44.05, +3.55, +8.8%) will acquire most of Washington Mutual Inc.'s operations, according to a report published late Thursday. The online edition of The Wall Street Journal, citing unnamed sources, reported that the exact structure of the transaction remains unclear. Washington Mutual (WM: 1.69, -0.57, -25.2%) , once the largest U.S. thrift, has been scrambling to find a solution to its surplus of bad mortgage loans, and put itself up for sale at auction last week, the report said

JP Morgan, the leading investment bank that created the mortgage backed securities derivatives bubble and destroyed the balance sheets of commercial banks such as Washington Mutual, is now transforming itself into a commercial bank.  Now they are buying the bank they helped destroy...such an easy way to become a commercial bank now!

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