CHICAGO (MarketWatch) — As dramatic as Washington Mutual Inc.’s collapse and overnight acquisition by J.P. Morgan Chase is, it is still business as usual for customers and all deposits are safe, according to the Federal Deposit Insurance Corp.
“It will be a seamless transition,” said FDIC chairwoman Sheila Bair. “This is simply a combination of two banks.”
Shareholders, on the other hand, aren’t as lucky.
The FDIC has provided information on some common questions Washington Mutual customers might have:
What happens to my deposit accounts?
All accounts with Washington Mutual Bank have been transferred to J.P. Morgan Chase Bank. In fact, the WaMu Web site went directly to Chase as of Friday. Those deposit accounts include checking, savings, money market, CDs and retirement accounts. If your bank was WaMu on Thursday, it’s J.P. Morgan Chase now.
Where do I send my mortgage or loan payments?
All those have been transferred to J.P. Morgan Chase as well. The payments won’t be any different and you’ll continue to send them to the same locations you did for WaMu. You can even continue to make your checks out to Washington Mutual Bank. Direct payment from your accounts will continue as usual.
What about my debit card?
Keep using it as you always have. It’s still working and will continue to work.
What about direct deposits and bill paying? I just wrote a check out. Will it clear?
Again, no changes. All transactions will continue in their usual manner. Keep using the checks you have and paying bills in the manner you have.
I already had an account with J.P. Morgan Chase and now my combined balances exceed the $100,000 FDIC insured limit. What do I do?
The FDIC will continue to separately insure the accounts transferred to J.P. Morgan for at least six months. Consider it a grace period that will give you time to restructure your accounts and move money to another bank if desired.
What about my CDs? They won’t mature in six months
The FDIC will continue to insure WaMu CDs until the earliest maturity date after the end of the six-month grace period. If your CD matures during this grace period and you renew it for the same term and dollar amount, it will still be insured separately until the first maturity date after the six-month period. If you renew it on any other basis, it loses that insurance after the six months is over.
What about the interest rates on my accounts? Will they change?
J.P. Morgan Chase will be reviewing the rates, but until then any interest accrued through Sept. 25 will be paid at the same rate.
I have a safe deposit box. Is that still, well, safe?
It is and you will continue to have access to it as always. You don’t even have to do anything as part of the transaction.
I was in the middle of getting a loan. Now what?
Contact your loan officer. There have been no changes.
I don’t have an account, but I’m a shareholder. Is there any value left?
It doesn’t look like it. When WaMu files for bankruptcy, shareholders can make claims in receivership, but they’re the last to be considered. Contact your accountant or the IRS to determine how to book the loss on your taxes.
What if I’m holding senior notes or subordinated debenture notes?
You get in line ahead of shareholders as claimants in a receivership and the FDIC will send you information shortly.
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