Standard & Poor's will make the following changes to the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices:
-- Washington Mutual Inc. (NYSE:WM) will be removed from the S&P 500 index after the close of trading on Monday, September 29. Washington Mutual Bank was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named receiver. S&P 100 and 500 constituent JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the FDIC.
Washington Mutual's place in the S&P 500 will be taken by S&P MidCap 400 constituent Flowserve Corp. (NYSE:FLS) , Flowserve will be replaced by S&P SmallCap 600 constituent UGI Corp. (NYSE:UGI) , and UGI Corp. will be replaced by Taleo Corp. (NASDAQ:TLEO) , all after the close of trading on Wednesday, October 1.
Standard & Poor's will monitor these transactions, and post any relevant updates on its website: www.standardandpoors.com.
Flowserve is a manufacturer and aftermarket service provider of flow control systems. Headquartered in Irving, TX, the company will be added to the S&P 500 GICS (Global Industry Classification Standard) Industrial Machinery Sub-Industry index.
Showing posts with label Washington Mutual. Show all posts
Showing posts with label Washington Mutual. Show all posts
Sunday, 28 September 2008
Friday, 26 September 2008
Washington Mutual Seized and Sold Simultaneously
Washington Mutual, in the space of 24 hours has become America's largest ever bank failure, seized by regulators and sold to JPMorgan for $!.9bn. The rescue is the second by JPMorgan to help the US taxpayer avoid shelling out for assuming $31bn in losses.
The Federal Deposit Insurance Corporation protected WaMu' account holders to a $100,000 limit. Additional deposits are guaranteed by JPMorgan. Shareholders and bondholders are not likely to feel so well. Branches in New York and Chicago are likely to feel the cold as an expected 10% of WaMu's branches are closed.
This institution was a big question mark about the health of the deposit fund,” Sheila C. Bair, the chairwoman of the F.D.I.C., said on a conference call Thursday. “It was unique in its size and exposure to higher risk mortgages and the distressed housing market. This is the big one that everybody was worried about.”
Bank seizures by regulators usually occur on Fridays. WaMu's took place on Thursday due to the rapidly deteriorating state of the company's finances.
Not even hiring Goldman Sachs to help look for a bidder saved the bank. Massive exposure to the subprime debacle meant that none of the four rumoured bidders could make the figures add up.
The Federal Deposit Insurance Corporation protected WaMu' account holders to a $100,000 limit. Additional deposits are guaranteed by JPMorgan. Shareholders and bondholders are not likely to feel so well. Branches in New York and Chicago are likely to feel the cold as an expected 10% of WaMu's branches are closed.
This institution was a big question mark about the health of the deposit fund,” Sheila C. Bair, the chairwoman of the F.D.I.C., said on a conference call Thursday. “It was unique in its size and exposure to higher risk mortgages and the distressed housing market. This is the big one that everybody was worried about.”
Bank seizures by regulators usually occur on Fridays. WaMu's took place on Thursday due to the rapidly deteriorating state of the company's finances.
Not even hiring Goldman Sachs to help look for a bidder saved the bank. Massive exposure to the subprime debacle meant that none of the four rumoured bidders could make the figures add up.
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