Who's on the wrong side of the red rope NOW, WaMu?
Posted on 09/25/2008 5:37:42 PM PDT by politicket
J.P. Morgan Chase & Co. was expected to announce as early as Thursday night a deal to acquire the bulk of Washington Mutual Inc.'s operations in a deal that would mark the end of independence for what once was the largest U.S. thrift.
Federal regulators have been heavily involved in orchestrating the transaction, which comes as WaMu was besieged by a mountain of bad mortgage loans. Seattle-based WaMu has been scrambling to find a solution and put itself on the auction block last week. A number of interested parties have been poring over WaMu's books, but the bank didn't receive any offers.
(Excerpt) Read more at online.wsj.com ...
I think it was Sunday that I posted that I was sitting in my apartment, looking at the WAMU tower in Seattle, wondering who would own it in 6 months.....
I’ve been saying “hmmmmm” for over a year now. Reminiscent of 1929 when all the big banks called their loans in on the little banks and gobbled ‘em up.
I guess there are market solutions to these problems after all...
"Isn't J.P. Morgan kind. First Bear Stearns, now WaMu. Makes one go: Hmmmmmm......"
J.P. Morgan was Bear Stearns prime lender, and they yanked Sterns' 24 hour lending facility just before they collapsed. A curious coincidence. Or is it?
There was no market solution at work here. OTS seized WaMu, delivered it to FDIC, which in turn transferred the assets, deposits and branches to JP Morgan.
Thanks,
Didn’t see the post.
I will join your discussion....
Who's on the wrong side of the red rope NOW, WaMu?
Uh, hate to be naive but, what will this mean for WAMU customers?
In what is by far the largest bank failure in U.S. history, federal regulators seized Washington Mutual Inc. and struck a deal to sell the bulk of its operations to J.P. Morgan Chase & Co.
The closing represents the demise of what once was the largest U.S. thrift but came to symbolize many of the worst excesses of the mortgage boom. Federal regulators said WaMu has suffered an exodus of $16.7 billion in deposits since Sept. 15, leaving the Seattle thrift "with insufficient liquidity to meet its obligations." As a result, WaMu was in "an unsafe and unsound condition to transact business," according to the Office of Thrift Supervision.
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If you have a checking account, your new checks won't say "Washington Mutual" on them. In short, not much will change. During the early 80's my original bank was bought out 4 or 5 times. I got to the point where I'd have to look at my checks to remember the name of my bank.
In the current mess, WAMU was one of the weak banks - you might have lucked out.
the following one is older, but this one has more.
FDIC TO SEIZE WAMU AND SELL ASSETS TO JP MORGAN [Brokered by government]
CNBC | 7-25-8 | Lawrence Kudlow CNBC
Posted on 09/25/2008 4:04:04 PM PDT by Petronski
http://www.freerepublic.com/focus/f-news/2090590/posts
We have the lamest Congress and Senate of all time. While the good folks in Our Country are facing high energy cost and a failing financial system….Congress took a vacation. They could not conceive the notion that both issues at the same time could destroy our economy. They are too wrapped up in the election, catering to lobbyist and being green to take care of the citizens of this United States. The sad part, it’s been going on for 20+ years.
Nancy Pelosi and Barney Frank prefer to react, as opposed to, respond. If we had the oil issue resolved 10 years ago, this financial issue would be easier to address. Both need to go now.
Tell Nancy:
http://www.house.gov/pelosi/
Tell Barney:
http://www.house.gov/frank/
Fire sale price of 1.9 billion. JPMorgan can bail themselves out...Now is JPMorgan too big to fail....what a bunch of crooks
They put one over on you this week, didn’t they. It isn’t even Friday yet.
If WaMu's failing today, I wonder who's failing tomorrow? Citi? Wach?
I am unclear on what liabilities JPM assumed, and what will be done with the remaining public co that is WM. Will WM declare bankruptcy? Is the entire co (besides what JPM bot) now controlled by the fdic? They never even halted the stock this pm when the JPM news broke.
I’m more concerned about the subject matter of this thread
http://www.freerepublic.com/focus/f-chat/2090000/posts
for the weekend.
But if anything does happen, give me a ping.
Lol. You’ll get pings as the news progresses.
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