JPMorgan in advanced talks to acquire WaMu-source

WASHINGTON (Reuters) - JPMorgan Chase & Co (JPM.N) is in advanced discussions to acquire Washington Mutual Inc (WM.N), a source familiar with the discussions said on Friday.

"They are in advanced talks," the source told Reuters.

The source said the sensitive talks had been going on for some time and JPMorgan had conducted a lot of due diligence into Washington Mutual.

Thursday's downgrade of Washington Mutual by Moody's Investors Service helped advance the discussions between the two companies, the source said.

Washington Mutual spokesman Brad Russell did not immediately return a call seeking comment and JPMorgan spokeswoman Tasha Pelio declined to comment.

(Reporting by John Poirier; additional reporting by Jon Stempel and Elinor Comlay in New York; Editing by Tim Dobbyn)