Washington Mutual Bank Collapses

May File for Bankruptcy

Washington Mutual was closed by regulators Thursday, in what is being called the biggest collapse in US banking history. It also sold its banking assets to JP Morgan Chase & Co for $1.9 billion. Latest reports suggest that the now defunct bank may soon file for bankruptcy.

Washington Mutual, the leading savings and loan bank in the US, experienced a rapid loss of market value, with $16.7 billion in deposit outflows occurring between September 15 and 24 of this year, resulting in part from overexposure to the subprime mortgage market.

Trading Thursday morning saw the bank shares fall 90 percent, to 16 cents.

SEPT-26-08: WaMu may file for bankruptcy shortly: Merrill Lynch [REUTERS: WASHINGTON MUTUAL COLLAPSES]

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Last updated on Sep-26-08