By Mr. B
Fairly beloved, we gather here to say our good-byes. In the biggest bank failure in US history, Washington Mutual crumbles. Her assets will be acquired by JPMorgan for 1.9 billion dollars.
Wow. Don’t fret, though. Before you rush to withdraw funds, read this. Via CNN:
Federal regulators, who helped shepherd the deal, stressed that the transition for WaMu customers would be “seamless… There will be no interruption in services and bank customers should expect business as usual come Friday morning,” FDIC Chairman Sheila Bair said in a statement.
I admit: I just opened an account with WaMu for the 4% savings special. Right now they only hold $10 of mine. I’m not terribly worried about it.
I AM worried about what JPMorgan will do to WaMu’s current rates. Will they keep the 4% APY on savings and 5% APY on CDs? Or will it turn into the abysmal, sub-1% rates that Chase currently offers on its savings accounts? Ugh.
As of this typing, WaMu is still offering the high rates, but who knows how long they will last? Now might be a great time to open a 5% CD.
So, another one bites the dust. Perhaps the Federal Reserve will fail next.
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