Two of the nation's largest thrifts are in serious merger talks and may announce a deal within the next several weeks, according to well-placed sources.

They said that Washington Mutual Bank, Seattle, has been negotiating for several months to acquire American Savings Bank, Irvine, Calif. - a deal that would create a $42 billion-asset company with a substantial presence in retail banking up and down the West Coast.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.