Ah, yes. WaMu. The "Hip" Bank.
Posted on 10/27/2009 7:45:11 AM PDT by hiho hiho
"Not even the guys at Washington Mutual know about this." Yet somehow CNBC found out. This video is a gem because it's probably the only existing report in mainstream press with any questions about the seizure of Washington Mutual.
Once the FDIC formally announced the seizure the propaganda machine was turned on and the only thing that was repeated over and over was that JP Morgan had saved the day and that it was simply "Business as usual".
The bank was likely seized on a Thursday to keep them from transferring 16+ billion dollars from WaMu fsb, a subsidiary which also seized, into WMB.
JP Morgan didn't take on any shareholders or bondholders... even the bondholders of WaMu Bank. Everyone was wiped out and JP Morgan walked away with $300 billion in assets for 1.8 billion. They initially wrote down about 30 billion in WaMu loans, but months later when no one was looking wrote them back up $29 billion.
Litigation in Delaware, Texas, and DC has JP Morgan accused of planting moles at WaMu, engaging in sham negotiations, breach of confidentiality agreement, leaking information (true and false) to the press in an effort to destroy the bank so it could buy up it's assets from the FDIC "on the cheap" etc etc.
The FDIC is being sued for fraudulently conveying assets of Washington Mutual Inc, the bank's former holding company to JP Morgan when the bank and its assets were seized.
Call it what you will, Newt, but it’s a WAKE UP CALL!.................
Ah, yes. WaMu. The "Hip" Bank.
OOPs, wrong thread!...............
Yes, but who are these gnats to sue their masters? Don't they know that JP Morgan and its subsidiary the Treasury Department were acting in the best interest of all politically connected Americans? :)
This is pretty chilling stuff. The government (through the FDIC) in cahoots with JP Morgan to, in essence, steal an entire bank. Bonney and Clyde; Dillinger; Butch Cassidy were in kindergarten compared to this. Can’t let a good crisis go to waste...
I, for one, am so ignorant of financial dealings.
We are having so many wake up calls that we are becoming desensitized!
MUST READ ARTICLE. ................ http://www.bloomberg.com/apps/news?pid=20601109&sid=a7T5HaOgYHpE
By Sept. 16, 2008, AIG, once the world’s largest insurer, was running out of cash, and the U.S. government stepped in with a rescue plan. The Federal Reserve Bank of New York, the regional Fed office with special responsibility for Wall Street, opened an $85 billion credit line for New York-based AIG. That bought it 77.9 percent of AIG and effective control of the insurer.
The government’s commitment to AIG through credit facilities and investments would eventually add up to $182.3 billion.
Beginning late in the week of Nov. 3, the New York Fed, led by President Timothy Geithner, took over negotiations with the banks from AIG, together with the Treasury Department and Chairman Ben S. Bernanke’s Federal Reserve. Geithner’s team circulated a draft term sheet outlining how the New York Fed wanted to deal with the swaps — insurance-like contracts that backed soured collateralized-debt obligations.
Subprime Mortgages
CDOs are bundles of debt including subprime mortgages and corporate loans sold to investors by banks.
Part of a sentence in the document was crossed out. It contained a blank space that was intended to show the amount of the haircut the banks would take, according to people who saw the term sheet. After less than a week of private negotiations with the banks, the New York Fed instructed AIG to pay them par, or 100 cents on the dollar. The content of its deliberations has never been made public.
The New York Fed’s decision to pay the banks in full cost AIG — and thus American taxpayers — at least $13 billion. That’s 40 percent of the $32.5 billion AIG paid to retire the swaps. Under the agreement, the government and its taxpayers became owners of the dubious CDOs, whose face value was $62 billion and for which AIG paid the market price of $29.6 billion. The CDOs were shunted into a Fed-run entity called Maiden Lane III.
I always wondered why Tax Ceat Timmy HAD to be made Treasury Secretary because he had such an INTIMATE knowledge of the financial crisis the country was in. This article goes a long way towards explaining the real reason the corrupt Fed Reserve, Goldman Sachs, and Obama’s minions wanted him. It was because he was right in the middle of the AIG scandal, and rather than protecting the taxpayers interest, he agreed to pay full price for swaps protecting garbage CDO’s stuffed with crap mortgages.
The fact that it cost the taxpayers 13 billion was secondary to protecting and paying off the Goldman Sachs bastards, whose CHAIRMAN sat of the Board of the NY Fed when this decision was made! Not only that, after he knew the Fed was going to guarantee Goldman would get 100 cents on the dollar for this garbagem he went out and BOUGHT millions of dollars in stock and proftied hugely from this INSIDE information. Of course, whe he was caught, he was not perp walked like the Galleon hedge fund boys, he was just told to quit the borad of the Fed. This is criminal activity of the highest order, which took place in the highest levels of gov’t. No wonder the Fed does not want to open their books, who knows what other skeletons are in there which have not beeen discovered yet.
I am not a big Ron Paul fan, but on auditing the Fed he is 100% spot on.
I had a WaMu credit card, taken over by Chase, then shortly after Chase closed my account for no reason...no late payments, no missed payments, all payments over the minimum. (I could also peek at my credit score through WaMu card for free, feature gone when Chase took over)
I HATE CHASE!!!!!!!!!!!!!!!
Welcome to the I hate Chase club. Citibank too.
FU-N
you are however in your right mind
Thanks for the welcome, lol! I’d had a previous Chase card a couple of years ago and they jacked the rate up to 30% for no reason, paid it off and vowed to never have another Chase card..so I was furious needless to say when the WaMu takeover happened.
Suuuweeet!
We had a fixed rate 1st mortgage with WaMu. Never had a problem, made our payment early every month. As soon as we found out WaMu was now JP Morgan - Chase, we paid off our house. That is as soon as we could.
Before we could, we were informed that we had to have flood insurance because 2 feet of our house was in a flood plain. We knew if we didn’t pay off our loan, it would only be a matter of time until JP Morgan - Chase told us how high to jump again.
bfl
Everyone I know who has had a Chase card has had similar problems.
I had my minimum payment doubled. If I had been on a limited budget it could have driven me into delinquency with its attendant late fees every month. If ever a system was DESIGNED to drive you into financial insolvancy, this was it. I paid that card up in full and closed it immediately. My wife's interest rate went from approx 7% to 20% for no reason - CHASE again! When she phoned them, they said that they could do it under their contract terms - so they did! It will be paid off and closed next month!
Meantime, all the WAMU branches which were stolen by JPMorganChase as part of their successful bank robbery of WAMU are being redesigned into East Coast banks from their previous hip West Coast internal layout. What a wonderful use of money in these troubled times! Why, those kind buttoned-down, uptight, Harvard-trained thieves are spreading the wealth to the local builders. It is very important for a dog to look like its master!
And now, we hear, credit card companies are looking at charging credit card annual fees of $29 - $99 on accounts that pay off in full every month. They have to make a profit you know - and it's legal! These guys know that the Government may huff and puff about the capitalist system, but they are protected - they are too big to fail.
Same bad guys as last depression: Goldman Saks and JP Morgan, and a few others.
So did everybody else with a credit card. It was a law passed by Congress.
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