Feds Search for WaMu Buyer

Falling share price stokes worries of a bank run
By Nick McMaster,  Newser Staff
Posted Sep 17, 2008 1:06 PM CDT
Feds Search for WaMu Buyer
Federal regulators are looking for a buyer, or possible merger, for struggling Washington Mutual.   (AP Photo)

Washington Mutual, America's largest savings and loan, may be the next big financial institution to fail, the New York Post reports. Fearing a run on the struggling bank, federal regulators placed calls yesterday gauging interest in a WaMu buyout to Wells Fargo, JP Morgan Chase, HSBC, and others, but no further negotiations have been scheduled.

Standard and Poor cut WaMu’s credit rating to "junk" on Monday, and a plummeting share price has customers wondering if they should get their money out now. The bank has about $143 billion in deposits. Washington Mutual reported $3.33 billion in losses on soured mortgage bets in the second quarter. (More Washington Mutual stories.)

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