Largest U.S. savings will be victims of financial crisis
September 26th, 2008In the night reached the financial crisis in the U.S. a new peak: The largest savings bank in the country collapsed. The government meanwhile is struggling to continue a plan to rescue the industry.
The regulator (OTS) had in the night to Friday decided to Washington Mutual to close.
Part of the savings bank group will provide 1.9 billion U.S. dollars from the U.S. bank JPMorgan Chase over. The customer will operate as usual go on.
The shares of Washington Mutual were in the real estate crisis massively lost value. Since the 15th September, it deposits outflows amounting to 16.7 billion U.S. dollars given. According to OTS, the savings in the series no longer has sufficient liquidity to meet their obligations. This has led to an unsafe condition relating to the business transaction.
The institute, based in Seattle reportedly has assets of around 370 billion U.S. dollars and deposits amounting to 188 billion U.S. dollars.
As the head of the U.S. Deposit Protection Fund (FDIC), Sheila Bair said, had a quick buyer for the ailing bank need to find a scared to reassure customers. Normally, the fund Failed institutions before the weekend in order to give them time until Monday for an orderly opening of the transactions should be ensured.
JPMorgan is buying into a heavyweight in the retail business. Only four months ago, the Bank was the troubled U.S. investment bank Bear Stearns over.
The plans for a heavy billion rescue package the government is meanwhile stalled. A crisis meeting between Bush and the two presidential candidates John McCain and Barack Obama had brought no agreement. On the contrary: The Democrats complained that only when the meeting at the White House from an alternative proposal JohnMcCains have to learn. Now is not expected before the weekend with a solution expected.