Is relief in sight for Washington Mutual
Rumor has it that JPMorgan Chase
Back in April, JPMorgan made a bid to buy WaMu for $8 per share. WaMu rejected that deal, some think because then-CEO Kerry Killinger didn't want to lose his job. Well, now that he's been ousted from the company he led for 18 years, JPMorgan could have an easier time completing a buyout.
A few notable points come up: One, if JPMorgan is actively pursuing WaMu this weekend, we can be nearly certain that it's not actively pursuing another struggling financial: Lehman Brothers
Another interesting thought: WaMu's new CEO, Alan Fishman, reportedly received a $7.5 million signing bonus. If JPMorgan takes over WaMu, it's nearly certain that Fishman would be let go, since that's almost always what happens in buyouts. Will he get to keep his $7.5 million windfall after just five days on the job? Who knows, although shareholders will certainly be up in arms if he does.
Stay tuned. This should be a wild weekend.
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Fool contributor Morgan Housel doesn't own shares in any of the companies mentioned in this article. JPMorgan Chase and Bank of America are Motley Fool Income Investor recommendations. The Fool has a disclosure policy.