InvestorsHub Logo
Followers 154
Posts 13656
Boards Moderated 3
Alias Born 11/24/2007

Re: None

Friday, 04/23/2010 9:50:14 AM

Friday, April 23, 2010 9:50:14 AM

Post# of 732899
Citigroup (NYSE: C) made a bid for Washington Mutual Inc’s banking operations, but wanted the government to absorb much of the losses that were expected from the Seattle-based bank’s billions of dollars worth of risky mortgage loans, according to a new WSJ report.

Citigroup’s deal offered no upfront cash and proposed that the Federal Deposit Insurance Corporation (FDIC) take 80% of the initial losses from Washington Mutual’s deteriorating loan portfolio.

The information was released after documents relating to the bid were obtained under a Freedom of Information Act request. The bid would have limited Citigroup’s total loss exposure to $10 billion.

The FDIC, which seized Washington Mutual’s banking operations in September of 2008, eventually sold them to JPMorgan Chase & Co (NYSE: JPM) for $1.9 billion.

The deal with JPMorgan Chase has been criticized by shareholders from Washington Mutual that suggested the FDIC gave JPMorgan a sweet-heart deal.

The FDIC is required by law to take the bid that places the least cost burden on its deposit-insurance fund.


http://www.americanbankingnews.com/2010/04/22/citigroup-nyse-c-tried-to-purchase-washington-mutual-before-jpmorgan-chase-nyse-jpm-did/

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent COOP News