Last 25 september 2008, JP Morgan Chase formally announceed that it has aquired all assets and liabilities of Washington Mutual Bank (WMB). MWB was previously declared insolvent and its assets were subsequently auctioneed for sale. Being one of the biggest and most stable banking companies in the US, JP Morgan Chase bought the banking portfolio of WM for $1.9Billion.
Immediately after the announcement, the website of WM was changed to reflect the aquisition by JP Morgan Chase. Clients of WM were immediately informed of the consequences of the bank aquisition and advised not to panic.
The WM website timely posted on the internet the guidelines on how to access WM bank accoounts and ensure their clients that all deposits shall be backed up by the fiancial strength of JP Morgan.
Imagine if the internet was not yet developed. Imagine what an event like this could cause in the finacial transactions of bank clients. If this happened in the Philippines, I'm almost sure that a major bank run would happen immediately the day after the aquisition.
Thanks to the internet, the banking institutions in the US can effectively inform and assure their clients that their money is safe and sufficiently insured.
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