JPMorgan Chase had actually approached Washington Mutual at the time of the TPG investment about an acquisition, but had been rebuffed by management.
Bair concluded a late night conference call by saying, "This is the big one that everyone was worried about. I was worried about it and I think it's a very positive story today that was resolved successfully without taxpayer cost, without cost to the insurance fund, and all depositors insured and uninsured are protected."
Washington Mutual and JPMorgan Chase
About Washington Mutual:
Washington Mutual (WaMu), the largest savings and loan in the United States, offers traditional consumer and commercial banking services through its retail banking group. It also offers credit cards, commercial real estate financing, and home loans through about 2,260 bank branches in the West, New York, and Connecticut, as well as 500-or-so loan and administrative offices nationwide. WaMu was once one of the largest originators and servicers of residential mortgages in the U.S., in part through subprime subsidiary Long Beach Mortgage. However, the bank exited the subprime business in 2007 in light of the 2006-2007 housing bust and subsequent epidemic of loan defaults.
About JPMorgan Chase:
The No. 3 financial services firm in the U.S. behind Citigroup and Bank of America is keen on its retail operations, with more than 3,000 bank branches and growing, and is also among the nation's top mortgage lenders, automobile loan writers, and credit card issuers. It also boasts formidable investment banking and asset management operations. The company's subsidiaries include the prestigious JPMorgan Private Bank and institutional investment manager JPMorgan Asset Management, which has $1.6 trillion in assets under management. In 2008, JPMorgan Chase bought Bear Stearns.