Feds Seize WaMu As Bailout Talks Crumble

Law360, New York (September 25, 2008, 12:00 AM EDT) -- The financial crisis raged on unabated in the early hours of Friday, with the government shutting down the country’s largest savings and loan bank amid an apparent breakdown in Congressional talks about a bailout of the banking industry.

Washington Mutual was seized by federal regulators, and parts of the company were immediately sold to JPMorgan Chase for $1.9 billion.

The latest dramatic development marked the largest bank failure in United States history. It comes on the heels of the failures of Freddie Mac, Fannie Mae and...
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