Washington Mutual was seized by the FDIC in the largest bank failure to date. JP Morgan Chase quickly swooped in and purchased the company's banking assets. As a result, the FDIC will not have to dip into its funds to cover any accounts. As for Chase
"JPMorgan Chase said the WaMu acquisition would add 50 cents per share to its earnings in 2009, and said it expects to have pretax merger costs of approximately $1.5 billion while achieving pretax savings of approximately $1.5 billion by 2010."----AP
Chase also picked up some of Bear Sterns assets when that company went down. Of course there were losers in the WaMu deal. Chase didn't buy everything. Private equity investors lost their shirts, but that's life in the fast lane. Contrary to the rhetoric in DC, Main Street came out just fine.
This illustrates why the feds need to step back and let this scenario take its natural course. Poor investment decisions will result in huge losses and once in a lifetime opportunities. The market will right itself.
JUST GET OUT OF THE WAY!