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Bank Failures

Question and Answer Guide

Washington Mutual Bank, Henderson, NV and
Washington Mutual Bank, FSB, Park City, UT

FDIC Call Center
1-877-275-3342 (1-877-ASK-FDIC)
Hours of Operation - Eastern Time
Thursday, September 25, 2008: 9:00 p.m. – Midnight
Friday, September 26, 2008: 7:00 a.m. – 10:00 p.m.
Saturday, September 27, 2008: 8:00 a.m. – 10:00 p.m.
Sunday, September 28, 2008: 8:00 a.m. – 10:00 p.m.
Thereafter: 7:00 a.m. – 10:00 p.m.

Questions

  1. What about my account(s)?: What about my account with Washington Mutual Bank, Henderson, NV and/or Washington Mutual Bank, FSB, Park City, UT (Washington Mutual Bank)?
  2. Loan/ Mortgage: What about my loan or mortgage with Washington Mutual Bank?
  3. Debit Card: What about my debit card and/or bill paying with Washington Mutual Bank?
  4. Outstanding Checks: What about checks that I have written on my account with Washington Mutual Bank?
  5. Direct Deposits - Government Deposits: What will happen to my direct deposits?
  6. Interest: Will I be paid interest at the same rate?
  7. Safe Deposit Boxes: How do I obtain the contents of my safe deposit box?
  8. Other Deposits: Deposits Existing at Assuming Bank
  9. Loans in Process: I have a loan currently in process. How is my loan impacted?
  10. Media: I represent a TV/Newspaper/Radio and would like some information.
  11. All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured and uninsured, pass in some transactions but not in others?

1. What about my account with Washington Mutual Bank, Henderson, NV and/or Washington Mutual Bank, FSB, Park City, UT (Washington Mutual Bank)?

All deposit accounts, which include Checking, Savings, Money Market, CDs, Brokered Accounts and Retirement accounts have been transferred to JPMorgan Chase Bank, National Association, Columbus, Ohio (JPMorgan Chase Bank) regardless of the dollar amount. No one lost any money that was deposited in Washington Mutual Bank.

If you had an account with Washington Mutual Bank, you now have an account with JPMorgan Chase Bank.


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2. What about my loan or mortgage with Washington Mutual Bank?

All mortgages and loans have been assumed by JPMorgan Chase Bank.  Your payment amount and due date are the same.  If you are having your payment taken out of your account it will continue as it has in the past.  You should send your payments to the same address you have been using.  Continue to make your checks out to Washington Mutual Bank.


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3. What about my debit card and/or bill paying with Washington Mutual Bank?

Your debit card will continue to work and bill paying will work as it has in the past.


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4. What about checks that I have written on my account with Washington Mutual Bank?

Your checks will clear up to the balance in your account.  You can continue to use the checks you have.


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5. What will happen to my direct deposits?

Direct Deposits will continue as normal, including Social Security checks.


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6. Will I continue to earn interest at the same rate?

JPMorgan Chase accepted Washington Mutual's interest bearing accounts including CD’s at the contract rate; therefore, they are not waiving early withdrawal penalties.


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7. How can I claim the contents of my safe deposit box?

It is business as usual.  You can go to your local branch and access your safe deposit box.  However no action on your part is required because of this transaction.


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8. I already have other deposit accounts with the new bank. When combined with balances at this bank, my deposits exceed $100,000. Are all funds insured?

The accounts transferred to JPMorgan Chase Bank will be separately insured for at least six months after the merger.  This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.  CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.  If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.


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9. What happens if I had a loan in process that had not closed or a line of credit not fully funded?

You should contact your loan officer.  All prior contacts remain the same as before.


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10. I represent a TV/Newspaper/Radio and would like some information.

Contact:
Andrew Gray
202-898-7192 (office)
202-494-1049 (cell)
Email:  angray@fdic.gov


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11. What about my shares of stock, notes or subordinated notes that I own in Washington Mutual Bank?

On September 25, 2008, Washington Mutual Bank was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation was named receiver. Subsequent to the closure, JPMorgan Chase acquired the assets and most of the liabilities, including covered bonds and other secured debt, of Washington Mutual Bank from the FDIC as Receiver for Washington Mutual Bank. Any claims by equity, subordinated and senior unsecured debt holders were not acquired.

There was no publicly-owned stock in Washington Mutual Bank. If you are an equity shareholder, your shares are in Washington Mutual, Inc., the holding company for Washington Mutual Bank, and not the Bank. Washington Mutual, Inc., and the interests of equity, debt holders or other creditors of Washington Mutual, Inc., are not included in the closure or receivership of the Bank. Washington Mutual, Inc. filed for bankruptcy protection on Friday, September 26th. Please contact Washington Mutual, Inc. directly for information about this bankruptcy proceeding.

If you hold senior unsecured debt, subordinated debt, or other claims in Washington Mutual Bank then you should file a claim in the receivership for recovery of any amounts that may be due to you. Please note that under federal law, 12 U.S.C. § 1821(d)(11), claims by subordinated debt holders are paid only after all claims by general creditors of the institution. At this time, the FDIC as Receiver for Washington Mutual Bank does not anticipate that subordinated debt holders of the bank will receive any recovery on their claims.

All claims against Washington Mutual Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:

FDIC as Receiver of Washington Mutual Bank
1601 Bryan Street, Suite 1410
Dallas, TX  75201-3479
Attention: Claims Agent


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12. Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution.  This transaction did not cost the FDIC insurance fund any money and as a result, the uninsured Depositors did not incur a loss either. This transaction is not part of any government bailout program you may have been hearing about.  The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction.  The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.


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SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.

For more information: www.fdic.gov/bank/individual/failed/wamu.html


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Last Updated: March 26, 2015