Don't Bite The Hand That Feeds You

[TheInvisibleHand ™]

Run on Bank Helped Kill WaMu, But Your Money Is Safe

Posted Sep 26, 2008 10:44am EDT by Aaron Task in Investing, Recession, Banking
Related: WM, JPM, XLF, WB, ^DJI, ^GSPC
In the biggest bank failure in U.S. history, the Federal Deposit Insurance Co. seized Washington Mutual's assets Thursday. The FDIC then quickly sold most of WaMu (that's assets and liabilities) to JPMorgan.

Simply put, WaMu was victimized by a classic "run on the bank." Customers withdrew $16.7 billion in a 10-day period following the bankruptcy of Lehman Brothers, leaving WaMu "with insufficient liquidity to meet its obligations," its regulators determined

http://finance.yahoo.com/tech-ticker/article/73415/Run-on-Bank-Helped-Kill-WaMu-But-Your-Money-Is-Safe?tickers=WM,JPM,XLF,WB,%5EDJI,%5EGSPC