♦ All eyes are on Washington, of course, as lawmakers reconvene to try and hammer out a bailout. [Politico, NYT]
♦ J.P. Morgan Chase has agreed to pay $1.9 billion to the government for WaMu's banking operations and will take over the company's portfolio of loans. WaMu depositors will still have access to their cash; holders of WaMu equity and debt won't be as lucky. [WSJ, DB]

♦ GE cut earnings estimates and said it plans to make cutbacks at GE Capital. [WSJ]
♦ HSBC is laying off 1,500 people. [Telegraph]
♦ Shares in Research In Motion, the company that makes the BlackBerry, pluged after it issues a lower profit forecast. [NYP]
♦ Hank Greenberg is unloading his shares of AIG. [NYP]
♦ Phil Falcone, the hedge fund star who was up 40% until last month, has seen his gains evaporate. [WSJ]
♦ Stan O'Neal is back. He's considering an offer with Vision Capital Advisors, a small hedge fund and private equity group. [FT]