It seems that JP Morgan is getting another sweetheart of a deal as it seems the FDIC is going to have to take control of WaMu.
The Federal Deposit Insurance Corp. plans to take control of Seattle-based WaMu, the biggest U.S. savings and loan, according to the CNBC television network, and New York-based JPMorgan will buy deposits and branches, the Wall Street Journal said, without citing any sources. The FDIC insurance fund is not expected to contribute any money, the Journal said.
JP Morgan may be the only bank standing here before too long. In any case there are some canny deal makers there. I think JPM will be my long term financial sector hold once the smoke clears from this credit mess. They got an investment bank on the cheap now they get a bunch of deposits and branches from the biggest S&L in the US at a fire sale price.
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