TEL AVIV, Sept 28 (Reuters) - Bank Leumi (LUMI.TA), Israel’s largest bank in terms of market value, said on Sunday its exposure to the Washington Mutual group is some $50 million.
This consists of $27 million in debentures issued by Washington Mutual Bank and $23 million in debentures and credit derivatives (CDS) issued by the parent company, Washington Mutual Inc (WM.N).
“At this early stage, it is difficult to estimate the scope of such damage as may be caused to the Leumi Group as a result of the said exposure,” the bank said in a statement.
Regulators seized Washington Mutual on Thursday in the biggest bank failure in U.S. history, selling its assets to JPMorgan Chase & Co (JPM.N) for $1.9 billion.
Washington Mutual filed for bankruptcy on Saturday with $8 billion in debt.
Reporting by Tova Cohen; Editing by Jacqueline Wong