When JP Morgan acquired Bear Stearns with $44 billion in federal backing, that is what broke the camels back: truth be told that was the spark that started this blog. I hope to squeeze in a retrospective on Bear Stearns one day.
Today, federal regulators seized Washington Mutual and handed operations over to JP Morgan for a firesale $1.9 billion, with an agreement that JP Morgan would raise another $8 billion through stock sales. Reportedly, this marks the biggest bank failure in U.S history (though I don't know about the "stunning twist" remark).
I feel safe now about my little money market fund in WaMu; it's been taken over by a power hitter even among the financial giants.
ADDENDUM [9/27/08]: So... it doesn't look like WaMu was exactly bought out by JP Morgan. It was seized by the FDIC, its assets were handed over to JPM, and now it is filing for bankruptcy such that its debt will be defaulted on.
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