FDIC To Seize WaMu Deposits, Sell To JP Morgan

New York, NY (AHN) - Struggling to find an outright buyer, Washington Mutual had their deposits seized by the Federal Deposit Insurance Corporation, according to recent reports. JP Morgan, who had been in talks to buy a piece of the savings and loan, is set to acquire the deposits.

Reports on CNBC stated that the FDIC seized deposits of WaMu after its stock plunged 25 percent on Thursday. The FDIC decided to act before a possible run on the bank occurred, essentially brokering a deal for JP Morgan to acquire the deposits.

The transaction is not expected to impact the FDIC, according to reports. Further details are still unclear; however it is likely that JP Morgan will take over a portion of WaMu's operations and some of the bank's branches.

JP Morgan officials have not commented on the reports, but said an investor conference call is set up for 9:15 p.m. ET Thursday.