SEATTLE -- JPMorgan Chase confirms it's buying Washington Mutual Banks for $1.9 billion.

JPMorgan Chase said it is buying the banks, but not the holding company. All of WaMu deposits and certain liabilities are bought, but not unsecured debt. The $1.9 billion transaction closes immediately and they are now the new owner.

The deal marks the second time in six months that JPMorgan Chase has taken over a financial institution crippled by bad mortgage bets.

News of the sell sent WaMu stocks plunging down to 45-cents a share after 5 p.m. Thursday. Earlier in the day, WaMu stock dipped to a $1.69 a share, the lowest close since 1990.

“I don’t think WaMu had enough either liquidity or capital to hang on much longer, as reflected in their stock price…I think it was a question of time,” said Scot Herrick, a former senior manager at WaMu.

The deal isn't expected to result in any hit to the bank-insurance fund, which the paper said would be a huge relief given that some analysts worried that a failure of the thrift could cost more than $20 billion.

“If you’re a customer with checking and savings in Washington Mutual, it’s good news for you. Basically this deal is preventing any sort of FDIC bailout directly. The bank simply won’t fail now because of this deal, so those saving and checking (accounts) are safe,” said Jason Brooks, KIRO Radio Money Editor.

Brooks said when it comes to mortgages through WaMu, that remains an unanswered question.

The Seattle-based thrift, the nation's largest, has roughly $310 billion in assets and was searching for a lifeline after a credit-rating downgrade further raised questions about its future.

Earlier Thursday, The Associated Press reported WaMu had expanded its circle of possible suitors to private-equity firms.

The Bush administration's proposal for a $700 billion bailout for distressed financial institutions may have given fresh impetus to a possible buyout and new allure to Washington Mutual.

Ravaged by losses from soured mortgages, WaMu has seen its stock price plummet by 87 percent this year. Major foreign and domestic investment banks for weeks have been dancing around the possibility of an acquisition but are likely holding out to see how much WaMu would have to write down the cost of its bad loans -- and the potential impact on its already thinned balance sheet.

WaMu currently employs 5,800 workers in Washington state. The company has already laid off 1,200 people just since the beginning of the year.

Herrick said employees in the branches, including management teams will be okay because that’s what JPMorgan Chase is purchasing.

Herrick said he expects layoffs for WaMu employees to start in three to six months. He said it depends on how long the transition takes.