One of Country’s BIGGEST Banks goes Belly-Up

I’m sure you have heard the news…

Daily Real Estate News | September 26, 2008 WaMu’s Home Loan Biz Led to Bank’s Failure

The Federal Deposit Insurance Corp. seized Washington Mutual Inc., one of the country’s biggest banks, and then sold the Seattle-based thrift’s banking assets to JPMorgan Chase & Co. for $1.9 billion.

Because of WaMu’s heavy mortgage-related losses and other risky debt, JPMorgan will write down the thrift’s loan portfolio by roughly $31 billion, a figure that could change if the federal bailout plan is enacted and JPMorgan opts into it.

Problems in WaMu’s home loan business became evident as far back as 2006, when the division recorded losses of $48 million versus net income of approximately $1 billion a year earlier.

Source: Associated Press; Marcy Gordon, Sarah Lepro, Madlen Read

This is incredible…just amazing how in the span of just under 3 weeks that…