Notice is a historical project of the Committee for a Responsible Federal Budget, which tracked the money spent by the 2009 stimulus bill. This site is not regularly updated.

Washington Mutual

September 25, 2008
Maximum Amount: 
$188.00 billion
Amount Spent: 
$9.00 billion
Deficit Impact: 
$9.00 billion

J.P.Morgan Chase acquired the banking operations of Washington Mutual Bank, and its subsidiary Washington Mutual FSB, for $1.9 billion after the Office of Thrift Supervision closed the bank and named the FDIC receiver. Washington Mutual and its subsidiary had combined assets of $307 billion and total deposits of $188 billion. J.P.Morgan Chase's acquistion did not include Washington Mutual's equity, senior debt, and suboridnated debt holders. The FDIC has insured all individual deposits up to $250,000. This bank closing was the largest in U.S. history. J.P.Morgan Chase raised $10 billion in capital through a stock sale to cover the losses and deposits of Washington Mutual's branches.


Although FDIC costs are counted on-budget, they should eventually be offset by proceeds from the sale of liquidated assets and higher premiums for deposit insurance. Maximum amount indicates value of total bank deposits. Amount spent and deficit impact represent FDIC-estimated cost to deposit insurance fund.

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