My Two Cents header image

Posts Tagged ‘economic crises’

Wamu sold for 2 billion, but JP Morgan wrote down 31 billion in bad debt?

I’m confused by the wamu/jp morgan. JP Morgan paid 1.9 billion for Wamu retails banks and deposits but apparently had to take a 31 billion dollar write down.
How can that be? Did they assume 31 billion in bad debt? Who takes ownership of the 300 billion in Wamu mortgages?
Confusing stuff, smells fishy to [...]