Feds investigate Washington Mutual failure

NEW YORK (Reuters) - Federal investigators have opened an investigation into the collapse of Washington Mutual (WAMUQ.PK), the largest U.S. banking failure.

Jeffrey Sullivan, U.S. attorney for the western district of Washington, said in a statement on Wednesday that he has set up a task force that includes investigators from the FBI, the U.S. Securities and Exchange Commission, the Federal Deposit Insurance Corp and the Internal Revenue Service's criminal investigations unit.

Federal regulators seized Washington Mutual, once the nation's largest savings and loan, on September 25 following a run on bank deposits.

JPMorgan Chase (JPM.N) bought the Seattle-based thrift's banking units on that date for $1.9 billion (1 billion pounds). Washington Mutual later filed for Chapter 11 bankruptcy protection from creditors.

"Given the significant losses to investors, employees and our community, it is fully appropriate that we scrutinize the activities of the bank, its leaders and others to determine if any federal laws were violated," Sullivan said in a statement. He said the probe comes on the heels of "intense public interest in the failure of Washington Mutual."

A spokesman for New York-based JPMorgan did not return a call seeking comment. A Washington Mutual spokesman had no comment.

(Reporting by Jonathan Stempel; Additional reporting by Elinor Comlay in New York and Daisuke Wakabayashi in Seattle)