From what I am hearing JP Morgan won WaMu through FDIC auction at least a week ago. If that is the case I’m sure WaMu was spending that time trying to find a better deal but couldn’t and wouldn’t give up the carkeys. It likely took full insolvency before management gave up and FDIC forced receivership then just handed the keys right over to JP Morgan.
There is no way this deal was fully brokered at the last minute to run so seamlessly. There is also no way that Jamie Dimon wasn’t positioning for this well prior to it happening.
It’s most definitely a huge conflict of interest to have Jamie Dimon on the Board of Directors at the NY Fed then feed his company multiple great acquisitions through market manipulation.
It is pretty well known that immediately before Bear Stearns collapsed the Fed cut off their access to the discount window rendering them immediately insolvent. Then JP Morgan was there to immediately pick up the pieces at expense to the taxpayer. Shame on them!
