Financial Firms Fail To Meet Job Targets In Texas

Washington Mutual — a recipient of $15 million from the enterprise fund under a 2005 agreement to add 4,200 new jobs in Texas by 2011 — became the biggest bank failure in U.S. history when it was seized by federal regulators and taken over by JPMorgan Chase & Co. in September.

The companies could be forced to pay some of the Texas money back if they don't create enough jobs.

"It's pretty obvious that both these companies had bad business models," said Don Baylor a senior policy analyst with the Austin-based Center for Public Policy Priorities and a critic of the way the enterprise fund is operated. Baylor said the enterprise fund should assist companies that bring overall economic value to the state, not those that contributed to the foreclosure crisis.

Countrywide and Bank of America issued a statement saying its job report for 2008 "reflects a significant decline in employment throughout the industry which resulted from severe economic headwinds last year."

"Bank of America has a tremendous capital investment in Texas and remains committed to substantial employment levels in the state," the company said.

Washington Mutual didn't immediately comment on its job figures.