In the biggest bank receivership in the history of the United States, the Office of Thrift Supervision seized Washington Mutual Bank on September 25 and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. While details are still emerging, it is at least clear that all deposits were transferred to JPMorgan, as were all loans and Qualified Financial Contracts, which include swaps, options, futures, forwards, repurchase agreements and any other Qualified Financial Contract as defined in 12 U.S.C. Section 1821(e)(8)(D).

All depositors, apparently including uninsured depositors, were protected in the deal. Stockholders, as well as senior and subordinated debt holders, were not. The FDIC reportedly expended no cash from the insurance fund, and JPMorgan paid about $2 billion to acquire the assets and deposit liabilities, which involved approximately $135 billion in deposits.