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E-mail This StoryPlano customers of Washington Mutual banks need not worry about the collapse of the bank and the subsequent buyout by JPMorgan Chase & Co.
Thursday evening the Office of Thrift Supervision closed Washington Mutual and named the FDIC as receiver. FDIC sold the thrift bank’s assets to JPMorgan Chase & Co. for $1.9 billion. JPMorgan acquired all deposits, assets, and certain liabilities of Washington Mutual, only excluding senior unsecured debt, subordinated debt, and preferred stock.
Washington Mutual is the biggest bank failure in history, exceeding the size of the 1984 failure of Continental Illinois National Bank and Trust in Chicago. Washington Mutual is 10 times the size of IndyMac, seized in July.
“For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," said FDIC Chairman Sheila C. Bair. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning."
Business appeared normal Friday afternoon at the Washington Mutual branch on Park Boulevard. However, one customer walked out of the bank and proclaimed his disdain for the merger.
Across town at the branch located on West Parker, business was slow. When asked how he felt about the buy out Jesus Enapena, a Washington Mutual customer, said, “I’m good with it. I’ll keep my accounts open here.”
One customer at the branch on East 115th Street didn’t know about the buyout. Vicky Beausejour said she wasn’t aware that her bank had been sold, but said she’ll continue to bank there.
“As long as they have the same things under Chase that Washington Mutual had I’ll keep banking here,” Beausejour said. “I want the fees and terms to stay the same.”
There are nine Washington Mutual branches in Plano and about 20 JPMorgan Chase branches. A press release issued by JPMorgan stated that they plan to only close 10 percent of the two companies’ branches. Most system integrations and rebranding are projected to be completed by the end of 2010. JPMorgan Chase hopes to convert, over the next two years, the consumer banking, home lending, and credit card businesses of Washington Mutual to their brand and technology platforms. Customers, within the next few months, should be able to access both companies’ ATMs without fees.
JPMorgan Chase released the following guidelines for Washington Mutual customers to follow: They should feel confident that their deposits are secure, continue banking as usual, and continue using the same checks, same account numbers, ATM card, and credit card. Customers should also use the same ATMs, same branches, and pay mortgages and credit cards as usual. JPMorgan Chase said they would keep customers up to date on changing information.
For the most part, Plano residents seemed unfazed by the buyout. Residents seemed confident that their money was secure and they would keep banking even when Washington Mutual changes its sign to JPMorgan Chase.
