As lawmakers in Washington, DC continue to haggle over the details of a proposed $700 billion rescue plan to shore up financial markets, regulators stepped in to seize Washington Mutual in what is the biggest bank failure in US history. According to the Office of Thrift Supervision (OTS), the bank had “insufficient liquidity” and became “unsound” after its holdings were depleted by $16.7 billion in customer withdrawals since mid-September. JPMorgan Chase & Co., the third-largest US bank, stepped in to buy Washington Mutual’s deposits for $1.9 billion. JPMorgan expects to fully integrate the acquired assets by 2010 as part of its plans to add 5,400 branches in California, Washington, and Florida under the Chase brand name. OTS said former Washington Mutual branches will be open for “business as usual” tomorrow.
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