A blog for and about Bakersfield ... life, media, politics and people
Monday, December 28, 2009
JP Morgan's takover of Washington Mutual. What does this tell us about other bank takeovers
A friend sent me a link to an amazing insider's story from the Puget Sound Business Journal of how JPMorganChase took over the failing WashingtonMutual financial empire. A key part of the story: apparently JPMorgan executives had insider knowledge about a liquidity run on the bank, allowing them to buy WaMu for pennies on the dollar. (read the entire post here) If this is true, it makes once wonder about the deals federal and state regulators are cutting with the institutions taking over the hundreds of banks that have failed this year. It's worth the read.