Friday, September 26, 2008

Largest bank failure in US history competes for attention

Under normal circumstances, news of the largest bank failure in US history would be THE news of the day/week/month. But these are not normal circumstances. The $700b government bailout remains center stage.

"Thanks to their flexible lending rules, Paul got a quick approval." Pretty much sums it up.

"Seattle-based Washington Mutual has about $307 billion of assets and $188 billion of deposits, regulators said. The nation's largest previous banking failure was Continental Illinois National Bank & Trust, which had $40 billion of assets when it collapsed in 1984."

JPMorgan Chase's purchase of the banks assets for $1.9b makes them the largest residential lender in the country. We're all aware of "too big to fail", but now we're talking about too big to succeed?

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