The nation's largest savings and loan, Washington Mutual, was seized by federal regulators Thursday night, who simultaneously engineered an emergency sale of nearly of all WaMu's assets to JPMorgan Chase for $1.9 billion.

The deal will not impact the $188 billion Federal Deposit Insurance Company's fund and customers should not notice any change in service, except for a name change in the coming months.

"For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual," said FDIC Chairwoman Sheila Bair in a statement.

Account numbers, PIN numbers and online passwords of WaMu accounts should also remain the same, according to WaMu's website.

Seattle-based WaMu was searching for a lifeline after a credit-rating downgrade further raised questions about its future.

Washington Mutual's collapse is the largest bank failure in United States history. It has roughly $310 billion in assets.

The bank said it plans to write down WaMu's loan portfolio by approximately $31 billion, in an effort to curb losses.

At a WaMu branch at 63rd Street and Broadway, customers were saddened by news of the takeover, but did not foresee great changes.

"Makes me feel bad. I was a bit worried, but I'm pretty sure we're protected. From what you're telling me, with Chase, it's actually a good thing," said customer Gerry Barrera.

"I think they're fine, not too concerned. They understand that people need reassurance," said customer Catherine Dorum.

Elsewhere, New Yorkers had mixed reactions to the news.

"It shows that WaMu had no idea what they were doing," said one local. "They were making loans to borrowers that had no ability to pay it back and to be honest with you this is one of the reasons our country's having the problems it's having. I have an issue with our government bailout rewarding any shareholders of a company that basically makes bad decisions."

"It was frightening, really frightening, reading the papers this morning," said another. "I saw them all. One thing after another."

This is the second time in six months that JP Morgan is taking over a major financial institution. The company acquired Bear Stearns after the investment bank's collapse in March.

Four blocks away from Wall Street, hundreds gathered in Manhattan’s Bowling Green Park Thursday to protest the government’s proposed bailout.

The rally was one of 220 demonstrations in dozens of states across the country, according to the organization True Majority.

Peaceful protestors gathered near the bull statue on Broadway with anti-capitalist signs, including pictures of Karl Marx. Many other signs were critical of President Bush.