Capital Briefs: FDIC Sells Washington Mutual Common Stock

The Federal Deposit Insurance Corp. has sold 14 million shares of Washington Mutual Inc. common stock for $665 million.

In late December, the FDIC obtained its stake in Washington Mutual, a Seattle-based thrift holding company, in exchange for the agency's interest in the parent company of American Savings Bank, Irvine, Calif.

American Savings failed in December 1988 and was seized by the Federal Savings and Loan Insurance Corp. FSLIC sold American Savings, but took warrants for 30% of the buyer, N.A. Capital Holdings, Stockton, Calif. The FDIC inherited the warrants in 1989 from the now-defunct FSLIC.

When Washington Mutual acquired N.A. Capital, the FDIC agreed to swap its warrants for shares in Washington Mutual.