JP Morgan Purchases Washington Mutual Bank

JPMorgan Chase acquired the banking assets of Washington Mutual yesterday after they were seized by federal regulators. This marks the biggest bank failure in the nation’s history.

Under the deal, JPMorgan Chase will acquire all the banking operations of WaMu, including $307 billion in assets and $188 billion in deposits.

JPMorgan Chase will pay $1.9 billion to the Federal Deposit Insurance Corporation. Separately, they plan to raise $8 billion in additional capital through the sale of stock.

“We think it is a great thing for our company,” JPMorgan Chase Chairman and CEO Jamie Dimon said in a conference call with investors.

WaMu’s customers will not be effected.