News for Friday, 9-26

JPMorgan buys WaMu:--THERESA
http://money.cnn.com/2008/09/25/news/companies/JPM_WaMu/index.htm?postversion=2008092519

This article is about JPMorgan Chase buys WaMu (Washington Mutual).

This was marking the biggest bank failure in the history of the nation and the "latest" in the credit crisis.

In the deal that was struck JPMorgan will get all banking operations of WaMu; that included $307 Billion in assets and $188 Billion in deposits.

JPmorgan will pay the Federal Deposit Insurance Corporation $1.9 Billion.

JPMorgan also said they were going to raise $8 Billion additional capital through the sale of stock, but raised to $10 Billion.

JPMorgan will now have 5,400 branches in 23 states from the New York base.

Federal regulators reassured that the transition will be seamless for customers....bank customers should expect business as usual come Friday morning.

Shares for WaMu plummeted to $0.16--down 90%; JPMorgan was up 2.5%.

Four banks bid on WaMu: Wells Fargo, Citigroup, HSBS, and JPMorgan Chase. JPMorgan "won". Earlier in the year there was talk on JPMorgan's side to buy out WaMu, but did not propose and official offer.

It was said that, "Quite possibly the biggest losers in Thursday's deal, however, are WaMu's stock and debt holders, who were effectively wiped out."

Bailout package will get passed, Bush says:--SARAH K.
http://www.cnn.com/2008/POLITICS/09/26/bailout.talks/index.html

This article is about the $700 billion bailout. Rep. Barney Frank believes that there will be a deal by Sunday. A Democratic source says that if a plan is reached, the $700 billion will be broken down into smaller transactions, not given at one time. "We're back on the progress track. We had a little bit of a glitch yesterday." says Barney Frank of Missouri. He also talked about John McCain being in Mississippi for the debate. Many negotiations were still happening on Friday, and some Republicans felt like they were being rushed into making a huge decision without enough time.

-SARAH KONZ

The bailout: What's at stake:--SETH
http://money.cnn.com/2008/09/26/news/economy/bailout_impact/index.htm?cnn=yes

Basically this article said first that we can be pretty certain that another Great Depression will not happen. On the other hand however, times aren't very good right now. The government is debateing whether or not it would help to put 700 billion dollars to Wall Street. The theory is that it would jump start the economy. If the stock market is stronger than people have more money to spend and then the economy starts getting stronger. Since the economy is weak no one is paying off loans so the bank doesn't have any money to loan out. So if the bank can't loan any money people aren't buying houses. In return house prices fall. Overall, the 700 billion dollars would hopefully jumpstart the economy.

Border Clashes Add to US-Pakistani Tensions:--BREANN
http://www.time.com/time/world/article/0,8599,1844722,00.html?cnn=yes

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