[mrvirgo]

No one was hitting the panic button in the LA branch that I use this afternoon. As a matter of fact I opened another CD with WaMu since it’s paying 5%. I doubt that Chase will be offering such high rates. The 5% may be gone by Monday. Why the panic when the FDIC covers your accounts? I don’t get it.

[Mr. Jeeves]

Because the FDIC doesn’t actually have enough money to cover WAMU’s depositors. Nor Wachovia’s, which is why the “talks with Citi” are under way. One too many of these failures and it’s Congress which will have to start coming up with a few hundred billion here and there to keep the FDIC solvent. Add that total to the $700 billion figure.

[MarMema]

Because part of the reason this was done like this was to keep the FDIC from having to come up with the money, and they don't have it.

FDIC May Need $150 Billion Bailout as More Banks Fail

WaMu's Bank Split From Holding Company, Sparing FDIC

[Churchillspirit]

The same reason so many people believe the MSM - ignorance.

Good luck with your CD.

[Brian S. Fitzgerald]

Why the panic when the FDIC covers your accounts? I don’t get it.

IN fact, even uninsured deposits over $100,000 are said to be safe.

http://www.chase.com/welcomewamu/

"Q. What if I have more than $100,000 at WaMu?

A. Your money is secure and now protected by the strength of Chase. Chase assumed all deposits of Washington Mutual."

[Rome2000]

Why the panic when the FDIC covers your accounts? I don’t get it.

Nobody ever went broke underestimating the stupidity of the American public!.

[dalereed]

I’m with you, we have a large jumbo CD, 5% and a large 4% money market account with WAMU.

Making a run on the bank is what caused their problem with the Fed in the first place when depositers pulled out 16 billion in the last 2 weeks.