NEWSFLASH: FDIC siezes Washington Mutual deposits and transfers to JP Morgan

CNBC is reporting

that the FDIC forced a sale of Washington Mutuals deposit accounts to JP Morgan Chase. No further detail has been released yet. Recently, Wamu's debt fell into junk status. Wamu had been looking for partners or acquirers for the entire operation, yet no one wanted to bite. The bank was one of those who was hardest hit by the mortgage meltdowns, resulting in the resignation of some of it's management.

Yesterday AIG had a AAA Credit Rating

CNBC today absolutely ripped a Standards and Poors spokesman on why yesterday AIG had a AAA credit rating and today, after this deal, it is now A-. They said Standards and Poors is complicit in this disaster and asked the question, which was avoided, never answered on how AIG could have a AAA credit rating until today. Great job CNBC and that is a very good question on these credit ratings companies did not downgrade financial institutions much earlier. The S&P representative did not answer the questions. Watch this video clip and see the disgust upon their faces at the end. Question after question and they just don't get a straight answer.

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