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CHICAGO -- As dramatic as Washington Mutual Inc.'s collapse andovernight acquisition by J.P. Morgan Chase is, it is still businessas usual for customers and all deposits are safe, according to theFederal Deposit Insurance Corp.
"It will be a seamless transition," said FDIC chairwoman SheilaBair. "This is simply a combination of two banks."
Shareholders, on the other hand, aren't as lucky. Washington Mutual(WM) is expected to declare bankruptcy as soon as Friday, puttingstock holders at the end of a long line of claimants. leaving themempty handed. Read more.
The FDIC has provided information on some common questionsWashington Mutual customers might have:
What happens to my deposit accounts?
All accounts with Washington Mutual Bank have been transferred toJ.P. Morgan Chase Bank. In fact, the WaMu Web site went directly toChase as of Friday. Those deposit accounts include checking,savings, money market, CDs and retirement accounts. If your bankwas WaMu on Thursday, it's J.P. Morgan Chase now.
Where do I send my mortgage or loan payments?
All those have been transferred to J.P. Morgan Chase as well. Thepayments won't be any different and you'll continue to send them tothe same locations you did for WaMu. You can even continue to makeyour checks out to Washington Mutual Bank. Direct payment from youraccounts will continue as usual.
What about my debit card?
Keep using it as you always have. It's still working and willcontinue to work.
What about direct deposits and bill paying? I just wrote a checkout. Will it clear?
Again, no changes. All transactions will continue in their usualmanner. Keep using the checks you have and paying bills in themanner you have.
I already had an account with J.P. Morgan Chase and now my combinedbalances exceed the $100,000 FDIC insured limit. What do I do?
The FDIC will continue to separately insure the accountstransferred to J.P. Morgan for at least six months. Consider it agrace period that will give you time to restructure your accountsand move money to another bank if desired.
What about my CDs? They won't mature in six months
The FDIC will continue to insure WaMu CDs until the earliestmaturity date after the end of the six-month grace period. If yourCD matures during this grace period and you renew it for the sameterm and dollar amount, it will still be insured separately untilthe first maturity date after the six-month period. If you renew iton any other basis, it loses that insurance after the six months isover.
What about the interest rates on my accounts? Will they change?
J.P. Morgan Chase will be reviewing the rates, but until then anyinterest accrued through Sept. 25 will be paid at the same rate.
I have a safe deposit box. Is that still, well, safe?
It is and you will continue to have access to it as always. Youdon't even have to do anything as part of the transaction.
I was in the middle of getting a loan. Now what?
Contact your loan officer. There have been no changes.
I don't have an account, but I'm a shareholder. Is there any valueleft?
It doesn't look like it. When WaMu files for bankruptcy,shareholders can make claims in receivership, but they're the lastto be considered. Contact your accountant or the IRS to determinehow to book the loss on your taxes.
What if I'm holding senior notes or subordinated debenture notes?
You get in line ahead of shareholders as claimants in areceivership and the FDIC will send you information shortly.
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