Government Seizes WaMu and Sells Some AssetsJPMorgan is fast becoming the Government's cleaner (the Jean Reno one, not the lame, A&E one).
Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators on Thursday night, in what is by far the largest bank failure in American history.
Regulators simultaneously brokered an emergency sale of virtually all of Washington Mutual, the nation’s largest savings and loan, to JPMorgan Chase for $1.9 billion, averting another potentially huge taxpayer bill for the rescue of a failing institution.
First they gobble up Bear Stearns with help from the Fed, now they're feasting on WaMu's corpse.
While I'm certainly not going to play the violin for WaMu - I have to wonder about something.
Is JPMorgan too big to fail now - or are do they need to wolf down a few more banks first? And once they're too big to fail - what happens when they do?
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