FDIC says JPMorgan's purchase of Wamu stands

WASHINGTON (AP) -- The agency that seized Washington Mutual last week and brokered its sale to JPMorgan Chase for $1.9 billion says the deal stands whether the government's $700 billion banking bailout proceeds or not.

Federal Deposit Insurance Corp. spokesman David Barr says Citigroup's $2.1 billion purchase of Wachovia -- also arranged by the FDIC -- hasn't closed yet.

The House on Monday defeated the proposed federal bailout. The plan would allow JPMorgan to sell WaMu's troubled mortgage-related assets to the government -- at a profit.

Spokesmen for Citigroup, Wachovia and JPMorgan didn't immediately return phone calls seeking comment.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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