Who Will Buy Washington Mutual Bank?

Online reports are indicating that large institutional shareholders of Washington Mutual Inc. have cleared the way for the troubled banks to be purchased. Goldman Sachs and the federal government have both been rumored to be assisting in finding the right buyer. The orderly purchase of Washington Mutual Bank and unwinding of its suprime mortgage exposure is seen as important to prevent more turmoil in the markets. Despite the disasterous financial condition of Washington Mutual Bank, their +$100 million deposit base and branches in large states like exas, Florida, California, and Illinois make it attractive to some potential buyers.

Rumored buyers of Washington Mutual Bank include:

JPMorgan Chase

Wells Fargo

HSBC

Citigroup

U.S. Bancorp

Depositors at Washington Mutual Bank will be better off with a purchase than a FDIC closure because of the likelihood that the purchasing bank will keep deposit rates competitive just like Bank of America did when they purchased Countrywide Bank. Currently Washington Mutual Bank is offering the following rate specials:

Online Savings account 3.75% APY

8-month Online CD 4.25% APY

12-month Online CD 4.00% APY

48-month Online CD 4.15% APY

60-month Online CD 4.50% APY

4-year to 10-year Traditional CD 5.00% APY (branch visit required)

Due to uncertainty with Washington Mutual Bank keeping all deposits below the FDIC insurance limit of $100,000 is advisable. Visit wamu.com for more information regarding Washington Mutual Bank deposit offerings.