Uh oh.....Looks like the Fed may get to add Washington Mutual's debt to its toxic mortgage balance sheet as well.
At least the Fed can always turn to the FDIC with its strong balance sheet. It has about $50 billion available to guarantee $4.3 Trillion in bank deposits. (That's your money at the bank) They'll probably be busy dealing with some problems so the Fed better leave them alone.
So, it's back to the treasury. Maybe good old Hank Paulson won't mind picking up Washington Mutual and Lehman and just merging them with Fannie and Freddie.