This isn't just the mortgage division, that was shut down a while ago, this is the whole bank  :-(

Here's a bit of the news feed.........

Rescue falters; feds seize WaMu

By Charley Blaine and Elizabeth Strott (posted on msn.com)

Stocks are likely to open sharply lower Friday after a deal to rescue the nation's financial system fell apart in Congress.

The worry will be elevated because, late today, federal regulators seized troubled Washington Mutual (WM, news, msgs), which had been the nation's largest savings and loan, with more than $300 billion in assets. WaMu's failure is the largest in U.S. history.

Mortgage crisis kills WaMu

WaMu's closing came after the market closed, with the stock down 25% to $1.69.

 It represents the demise of what once was the largest U.S. thrift but came to symbolize many of the worst excesses of the mortgage boom. Regulators said WaMu has suffered an exodus of $16.7 billion in deposits since Sept. 15, leaving the Seattle savings bank "with insufficient liquidity to meet its obligations."

JPMorgan Chase (JPM, news, msgs) will pay $1.9 billion to acquire Washington Mutual's deposits and most of its branches, as well as other operations. JPMorgan will also sell $8 billion in common stock to raise its capital position.

The deal isn't expected to result in any hit to the Federal Deposit Insurance Corp.'s bank-insurance fund, The Wall Street Journal said. But it's likely that another arm of government would have to pick up the tab. Some analysts have worried that a WaMu failure could cost more than $20 billion.

With mortgage losses mounting, and its stock price plunging, WaMu has been scrambling over the past month to find a solution; last week it put itself on the auction block. JPMorgan was looking at the bank -- and had been for months. Citigroup (C, news, msgs) and Wells Fargo (WFC, news, msgs), Spain's Banco Santander and Toronto-Dominion Bank (TD, news, msgs) of Canada also had looked at taking WaMu over.

WaMu had 5,400 branches in 23 states; JPMorgan expects to close about 10% of the total.