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Washington Mutual bank explores takeover possibilities: report (WaMu giving itself up)
AFP ^ | 09/25/08

Posted on 09/25/2008 4:22:30 PM PDT by TigerLikesRooster

Washington Mutual bank explores takeover possibilities: report

Thu Sep 25, 10:00 AM ET

The troubled US bank Washington Mutual has approached certain private equity firms as possible candidates to take it over, the Wall Street Journal reported on Thursday.

The private investment groups approached include Carlyle Group and Blackstone Group, which may team up with Texas billionaire Gerald Ford, the daily said, citing sources familiar with the matter.

Questions have arisen over Washington Mutual's future since last week's dramatic collapse of investment giant Lehman Brothers and the government rescue of insurance group AIG.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: banking; banks; creditcrunch; downgrade; housingbubble; takeover; wamu; washingtonmutual

1 posted on 09/25/2008 4:22:30 PM PDT by TigerLikesRooster
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To: TigerLikesRooster; Uncle Ike; RSmithOpt; jiggyboy; 2banana; Travis McGee; OwenKellogg; 31R1O; ...

Ping!


2 posted on 09/25/2008 4:23:21 PM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster

Just reported that JP Morgan is taking over the deposits.


3 posted on 09/25/2008 4:24:29 PM PDT by CaptainK (...please make it stop. Shake a can of pennies at it.)
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To: CaptainK

Now why would JPM be interested in taking over all that rubbish. Oh. Larding itself up for Paulson’s bailout?


4 posted on 09/25/2008 4:28:11 PM PDT by AndyJackson
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To: AndyJackson

The cost of bailout + alpha
for JP Morgan.

The ‘alpha’ can be huge.


5 posted on 09/25/2008 4:31:32 PM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: CaptainK

Yup.

Breaking news on local Seattle stations confirming WaMu has been sold to J. P. Morgan


6 posted on 09/25/2008 4:32:49 PM PDT by djf (Sound of gunfire, off in the distance, I'm getting used to that now...)
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To: AndyJackson
The FDIC took it over to prevent a run.
Worked it out with JP Morgan.
Will then liquidate the rest.

7 posted on 09/25/2008 4:33:13 PM PDT by CaptainK (...please make it stop. Shake a can of pennies at it.)
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To: CaptainK

The FDIC actually siezed WAMU deposits and assets without consulting senior management. WAMU stock and bonds are now worthless. Depositors are now JPMorgan customers.


8 posted on 09/25/2008 5:10:45 PM PDT by balls (Never underestimate the stupidity of the American electorate)
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To: TigerLikesRooster

WaMu made a lot of crap loans. I see their name all the time in foreclosure records.


9 posted on 09/25/2008 5:11:49 PM PDT by Rebelbase
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To: TigerLikesRooster

We are wondering if we should take our money out of Washington Mutual?


10 posted on 09/25/2008 9:40:15 PM PDT by BJungNan
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To: BJungNan
Should talk to JPMorgan, who got hold of WaMu deposit account.
I don't know if they got all of WaMu deposit account or left some out.

I suppose they could put some restriction on withdrawing and depositing from you account, since there would be a lot of book-keeping during the transiton, or they may play safe and keep as much cash available as possible.

If you have more than $100K, it is best to break it up into portions less than $100K each, and spread them around at different institutions which are hitherto trouble-free.

Not a time to go for high return and dividend now. Just to keep your money where it can be readily withdrawn. It is also good to keep more cash around than usual.

11 posted on 09/25/2008 11:13:03 PM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster

“If you have more than $100K, it is best to break it up into portions less than $100K each”

$200,000 if it’s a joint account or a trust.


12 posted on 09/25/2008 11:17:57 PM PDT by dalereed
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To: dalereed

Thanks for filling in the details.:-)


13 posted on 09/25/2008 11:26:27 PM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: BJungNan

If you didn’t take it out weeks (or even months) ago when there was first talk of WaMu failing, there’s certainly no reason to take it out now. You’re now protected by the balance sheet of JPMorgan, which is about as solid as you’re ever going to get.


14 posted on 09/26/2008 7:19:27 AM PDT by Arguendo
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To: TigerLikesRooster
If you have more than $100K, it is best to break it up into portions less than $100K each...

Are there that many banks? How can you only put $100,000 in each bank? That sounds like a lot of driving around. We only have four banks in our town and some of the same banks in nearby towns.

Can if be a different branch of the same bank or does it have to be a different bank? And who set up such a thing that you can only keep $100,000 in one bank and have to have so many banks.

I don't understand this system. Are you sure you have that right?

15 posted on 09/26/2008 8:01:39 AM PDT by BJungNan (Spend yesterday's money good, today's money ok. Never spend tomorrow's money)
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To: BJungNan
Are there that many banks?

There are thousands of different banks. All branches are counted as being in the same bank. There is no rule that you have no more than $100,000 in a bank, but that is the maximum FDIC insurance per account.

16 posted on 09/26/2008 8:21:43 AM PDT by Lucius Cornelius Sulla (White Trash for Sarah!)
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To: Lucius Cornelius Sulla

But that means I can not put more than $100,000 in one bank. Are there that many banks in one area, the thousands you talk about? Can you open an account at a bank that is far away without going to the bank itself? Everytime I open an account they want me to be there.

The point seems to be there is really no insurance for all your money, only the number of banks that someone can find to put $100,000 each into.

Is that correct?


17 posted on 09/26/2008 4:14:16 PM PDT by BJungNan (Spend yesterday's money good, today's money ok. Never spend tomorrow's money)
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To: BJungNan

I live in a small city and there are dozens of different banks in town. Not to mention internet banks with no offices at all. If you have over a couple of million dollars in cash sitting around you are way too liquid. I have to say it does not sound like you live in these parts (I mean in this hemisphere), perhaps the laws where you live aren’t the same as US laws.


18 posted on 09/27/2008 7:07:49 AM PDT by Lucius Cornelius Sulla (White Trash for Sarah!)
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To: djf

CEO Killinger was led out 3 weeks ago with a $20 million golden parachute to be replaced by Fishman, who reportedly was on a first-class flight from New York to Seattle, when WaMu collapsed. For less than three weeks on the job, Fishman bails with a parachute worth another $20 million.
These board of directors should be held liable as well as the shareholders that tolerate such crap over the years!
Why does all the media gloss over this type of thing?


19 posted on 09/27/2008 8:50:38 PM PDT by Phosgood
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