In 2008, JPMorgan Chase announced its $1.9 billion purchase of Washington Mutual’s banking operations.

The acquisition, which marks the biggest bank failure in the nation’s history, includes WaMu’s $307 billion in assets and $188 billion in deposits.

WaMu was the 13th bank to fail so far this year (2008). In March, JPMorgan Chase purchased investment bank Bear Stearns.

Following the acquisition of WaMu by JPMorganChase, Obama had this to say about James “Jamie” Dimon, CEO  and chairman of JP Morgan Chase handling of the real-estate crash, credit crisis, and the banking collapse:

President Barack Obama shakes hands with JPMorgan Chase CEO Jamie Dimon

“You know, keep in mind, though there are a lot of banks that are actually pretty well managed, JPMorgan being a good example, Jamie Dimon, the CEO there, I don’t think should be punished for doing a pretty good job managing an enormous portfolio.”–Barack Obama

Dimon oversaw the transfer of $25 billion (25,000 million) from the US Treasury Department to JPMorgan Chase on October 28, 2008 via the Troubled Asset Relief Program  (TARP).

Dimon is a Democrat and became influential in the Obama Administration. Dimon was one of three CEO’s found to have had liberal access to Secretary of the Treasury Tim Geithner in the seven months after the financial crisis in fall 2008.

The Big O, Tim Geithner,  Jim Rohr (Chairman and CEO of PNC), and Jamie Dimon

Hey, nothing to see here! Move along.


Filed under: BankingPeople

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