Federal Regulators Looking For A Buyer For Washington Mutual

NEW YORK — Federal regulators have been reaching out to large banks in an effort to organize a buyout of Washington Mutual.

A source told the AP that one obstacle is the unknown value of the Seattle-based savings and loan bank. The source had been briefed on the talks but didn’t want to be quoted by name because of the sensitivity of the matter.

The New York Post reports that regulators have reached out to Wells Fargo, JPMorgan Chase, and HSBC Holdings.

WaMu stock has plummeted as it lost billions on bad loans. It’s one of the banks hardest hit by the slumping housing market and mortgage defaults.