After Lehman Brothers and Merrill Lynch, next is Washington Mutual (WaMu). Where is US economy going? Once the most strong, fastest growing and stable economy of the world is now collapsing in top speed.

Wall Street Journal wrote

“In what is by far the largest bank failure in U.S. history, federal regulators seized Washington Mutual Inc. and struck a deal to sell the bulk of its operations to J.P. Morgan Chase & Co. Federal regulators said WaMu has suffered an exodus of $16.7 billion in deposits since Sept. 15, leaving the Seattle thrift “with insufficient liquidity to meet its obligations.” As a result, WaMu was in “an unsafe and unsound condition to transact business,” according to the Office of Thrift Supervision.”

JP Morgan has came up as saviour for the second US banking major, earlier this year JP Morgan also aquired the investment bank Bear Sterns. This is 13th major banking failure in US this year which raises question on the US economy in the near future. As the US elections are also near, next forming government will need to look seriously in the future operations of US banks and financial institutes.