Another bank bites the dust

College Majors Business Majors
1

<p>News keeps coming fast and furious lately:</p>

<p>[Washington</a> Mutual to Sell Deposits to JPMorgan - Mergers, Acquisitions, Venture Capital, Hedge Funds – DealBook - New York Times](<a href=“DealBook - The New York Times”>DealBook - The New York Times)</p>

2

<p>How come JP Morgan gets to cherry-pick only the good things out of Washington Mutual, and not things such as their liabilities? Is it because it was not a complete “buyout” by JPM?</p>

<p>Thanks in advance for the clarification.</p>

3

<p>Exactly. They just bought what they wanted. Not sure what that leaves behind. They did take the loan portfolio.</p>

4

<p>Yeah, they bought the loan portfolio, then according to their press release:</p>

<p><a href=“http://www.jpmorganchase.com/cm/BlobServer?blobtable=Document&blobcol=urlblob&blobkey=name&blobheader=application/pdf&blobwhere=jpmc/pdfdoc/JPMC-WaMu_Press_Release.pdf[/url]”>http://www.jpmorganchase.com/cm/BlobServer?blobtable=Document&blobcol=urlblob&blobkey=name&blobheader=application/pdf&blobwhere=jpmc/pdfdoc/JPMC-WaMu_Press_Release.pdf&lt;/a&gt;&lt;/p&gt;

<p>they wrote the loan portfolio down by $31 billion (meaning, of course, that they got a heck of a deal). Must be nice to be able to write off $31 billion owed you and still be making money on the transaction.</p>