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WSJ: WaMu Nationalized, Sold To Chase  
User currently offlineN328KF From United States of America, joined May 2004, 6485 posts, RR: 3
Posted (5 years 12 months 3 days 2 hours ago) and read 2736 times:

The WSJ is reporting that due to losses of $17bil in deposits between September 15th and today, Washington Mutual lacks sufficient liquidity to operate and has been seized by the FDIC. Assets, deposits, and retail operations have been sold to J.P. Morgan.


When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
69 replies: All unread, showing first 25:
 
User currently offlineLincoln From United States of America, joined Nov 2004, 3887 posts, RR: 8
Reply 1, posted (5 years 12 months 3 days 2 hours ago) and read 2720 times:

FDIC press release (one of several) http://www.fdic.gov/news/news/press/2008/pr08085.html


CO Is My Airline of Choice || Baggage Claim is an airline's last chance to disappoint a customer || Next flts in profile
User currently offlineStuckInCA From United States of America, joined Oct 2005, 1971 posts, RR: 0
Reply 2, posted (5 years 12 months 3 days 2 hours ago) and read 2714 times:

I hope my $182.74 is still safe  Sad

I hope not too many people lose jobs at WaMu.

I hope not too many more banks fail.

I hope the economy turns around before I'm in a bread line  Sad


User currently offlineN328KF From United States of America, joined May 2004, 6485 posts, RR: 3
Reply 3, posted (5 years 12 months 3 days 2 hours ago) and read 2712 times:



Quoting StuckInCA (Reply 2):
I hope my $182.74 is still safe

Out of the four things you said, this is the only certainty.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently onlineAlias1024 From United States of America, joined Oct 2004, 2760 posts, RR: 2
Reply 4, posted (5 years 12 months 3 days 1 hour ago) and read 2709 times:

This being an aviation website, I have to wonder if this will have any impact on Midwest. TPG invested $1.35 billion in WaMu earlier this year, and is now wiped out on that investment. I wonder if this gigantic loss will have any effect on their desire to risk more money in YX.

Not too surprising that WaMu failed though. They've been looking for a buyer for a while, and several banks took a look at the books and decided to pass. The only way a deal was going to happen was if Washington Mutual was taken over by the FDIC.



It is a mistake to think you can solve any major problems with just potatoes.
User currently onlineAlias1024 From United States of America, joined Oct 2004, 2760 posts, RR: 2
Reply 5, posted (5 years 12 months 3 days 1 hour ago) and read 2708 times:



Quoting StuckInCA (Reply 2):
I hope my $182.74 is still safe  

Yes it's safe. It will be business as usual tomorrow morning, just JPMorgan will be the new owners of Washington Mutual.



It is a mistake to think you can solve any major problems with just potatoes.
User currently offlinePyrex From Portugal, joined Aug 2005, 4022 posts, RR: 28
Reply 6, posted (5 years 12 months 3 days 1 hour ago) and read 2703 times:



Quoting Alias1024 (Reply 4):
TPG invested $1.35 billion in WaMu earlier this year, and is now wiped out on that investment

As far as I know TPG's investment was $7 billion, not $1.35 billion. Some partner down in Dallas/Fort Worth must be getting a royal ass-whooping today.

Apart from that, I don't think anybody that has been following this crisis over the last few months can be surprised. The only shocking thing is that it came on a Thursday and not on a Bank Failure Friday, as per FDIC norm. Things must have been really scary around Seattle.



Read this very carefully, I shall write this only once!
User currently offlineStuckInCA From United States of America, joined Oct 2005, 1971 posts, RR: 0
Reply 7, posted (5 years 12 months 3 days 1 hour ago) and read 2691 times:

I know that money is safe... for now. It's actually an account I abandoned a few years ago and just haven't gotten around to closing. I do, however, wonder if deposits will be safe as things continue to erode.... if that's the reality.

The fact of the matter is that there isn't money to insure the deposits that are out there, right?


User currently offlineN1120A From United States of America, joined Dec 2003, 26499 posts, RR: 75
Reply 8, posted (5 years 12 months 3 days 1 hour ago) and read 2687 times:

Man, they swooped in fast. It isn't like IndyMac that really depended on its mortgage business. WaMu has a significant commercial banking business that Chase was probably interested in given how they have expanded that end.


Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
User currently offlineLTBEWR From United States of America, joined Jan 2004, 13116 posts, RR: 12
Reply 9, posted (5 years 12 months 3 days 1 hour ago) and read 2671 times:

I have been a depositor at WaMu for about 6 years. WaMu seemed to have very good customer service, competitive products and interest rates, had a branch near my house in NJ and my former workplace in NY City. There west coast base is probably where they went down, with there heavy lending in mortgages there, including a lot of too creative, 'liar loans' and in areas worst hit with upside down house values vs. mortgage debt.
The good news here is that no depositor loses any money, JPMC gets branches in the West coast, NW USA, Chicago metro area, Florida and the Federal government has to put out little money to save the bank. The bad news is that many WaMu branches in the NY City metro area are going to be closed and of course, 1000's of jobs are gone, savings interest rates will drop and fees will rise and the Federal government may have to buy some of the most toxic mortgages of the leftovers of WaMu.
We are in a Brave New World.


User currently offlineAllstarflyer From , joined Dec 1969, posts, RR:
Reply 10, posted (5 years 12 months 3 days 1 hour ago) and read 2662 times:



Quoting N1120A (Reply 8):

Speaking of IndieMac, I read this about an hour ago . . .

http://www.bloomberg.com/apps/news?p...601170&refer=home&sid=amZxIbcjZISU


User currently offlineDougloid From , joined Dec 1969, posts, RR:
Reply 11, posted (5 years 12 months 3 days 1 hour ago) and read 2662 times:



Quoting N328KF (Thread starter):
The WSJ is reporting that due to losses of $17bil in deposits between September 15th and today, Washington Mutual lacks sufficient liquidity to operate and has been seized by the FDIC. Assets, deposits, and retail operations have been sold to J.P. Morgan.

What you're describing is standard operational procedure for FDIC and nothing's been nationalized. It has happened on a regular basis when a bank falls below the required level of loans to deposits it's legally forbidden to operate.

Hardly notable except in the present contretemps.


User currently offlinePanAm330 From United States of America, joined Mar 2004, 2679 posts, RR: 9
Reply 12, posted (5 years 12 months 3 days 1 hour ago) and read 2642 times:

Sorry if it sounds wrong, but this actually benefits me. Now there are Chase branches here in Central Florida, and I no longer need to bank with BofA  crazy  since it [was] the only bank in both CFL and Upstate NY.

User currently onlineAlias1024 From United States of America, joined Oct 2004, 2760 posts, RR: 2
Reply 13, posted (5 years 12 months 3 days ago) and read 2633 times:



Quoting Pyrex (Reply 6):
As far as I know TPG's investment was $7 billion, not $1.35 billion. Some partner down in Dallas/Fort Worth must be getting a royal ass-whooping today.

The total investment from the group of investors was $7 billion, with TPG being the single largest investor in the group at $1.35 billion.
http://www.reuters.com/article/mergersNews/idUSN2516971820080926

Quoting StuckInCA (Reply 7):
I do, however, wonder if deposits will be safe as things continue to erode.... if that's the reality.

Deposits will be safe as long as the FDIC is still around. Your deposit was insured by them with WaMu, and will continue to be insured by them even though JPMorgan is the new owner.

Quoting N1120A (Reply 8):
Man, they swooped in fast. It isn't like IndyMac that really depended on its mortgage business. WaMu has a significant commercial banking business that Chase was probably interested in given how they have expanded that end.

The credit ratings agencies tightened the noose with downgrades on WaMu's credit rating this week.



It is a mistake to think you can solve any major problems with just potatoes.
User currently offlineN328KF From United States of America, joined May 2004, 6485 posts, RR: 3
Reply 14, posted (5 years 12 months 3 days ago) and read 2618 times:

Quoting LTBEWR (Reply 9):
he good news here is that no depositor loses any money, JPMC gets branches in the West coast, NW USA, Chicago metro area

The last thing J.P. Morgan needs in this area is more branches. Prior to Bank of America acquiring ABN-AMRO North America/La Salle Bank, J.P. Morgan and its predecessors (First Chicago and Bank One) were far and away the #1 bank in this market. I expect divestitures and/or closures of WaMu branches here.

Quoting Dougloid (Reply 11):
What you're describing is standard operational procedure for FDIC and nothing's been nationalized. It has happened on a regular basis when a bank falls below the required level of loans to deposits it's legally forbidden to operate.

Hardly notable except in the present contretemps.

You say "tomato," I say "tomato." If not in legal terms, what the Federal government (via FDIC, FHFA, and Federal Reserve) has been doing lately has been a de facto nationalization of much of the US financial industry.

Also, the FDIC rarely moves this quickly to redistribute a failed bank's assets to a new owner.

[Edited 2008-09-25 21:56:23]


When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlinePyrex From Portugal, joined Aug 2005, 4022 posts, RR: 28
Reply 15, posted (5 years 12 months 3 days ago) and read 2607 times:



Quoting Alias1024 (Reply 13):

Just goes to show how much I know. Thanks for the heads-up - I actually had that number in a presentation I need to deliver for school next week and the slides were about to go out tomorrow with $7 billion on them.



Read this very carefully, I shall write this only once!
User currently offlineN234NW From United States of America, joined Jul 2005, 80 posts, RR: 0
Reply 16, posted (5 years 12 months 2 days 23 hours ago) and read 2591 times:
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I wonder what will happen to the two Headquarters office towers they have in Seattle. One of them is almost brand new.

I'm sure there are going to be large layoffs in Seattle in the coming months/years. Do we (Seattle) have any large companies left HQ'd in the area anymore?
[EDIT - I forgot about Microsoft  Smile -- Working too hard tonight.]

I'm happy to see that my money is safe, and still accessible, all though I'm sure changes are coming down the road (I heard rumors that interest rates on accounts could change, but that these would be many months away).

RIP WAMU.

[Edited 2008-09-25 22:16:10]

User currently offlineN328KF From United States of America, joined May 2004, 6485 posts, RR: 3
Reply 17, posted (5 years 12 months 2 days 23 hours ago) and read 2578 times:



Quoting N234NW (Reply 16):
I wonder what will happen to the two Headquarters office towers they have in Seattle. One of them is almost brand new.

I doubt J.P. Morgan will have much use for them. JPM's retail banking operations are headquartered out of Chicago, and WaMu's headquarters functions are almost entirely redundant. JPM has said that it'll take two years to completely integrate WaMu.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineMike89406 From United States of America, joined Mar 2007, 1467 posts, RR: 3
Reply 18, posted (5 years 12 months 2 days 23 hours ago) and read 2560 times:



Quoting StuckInCA (Reply 2):
I hope my $182.74 is still safe Sad

Earlier today they reported on the CNN news that if you have money it'll be safe not to worry. The rest I'm not sure of.

Quoting N328KF (Thread starter):
The WSJ is reporting that due to losses of $17bil in deposits between September 15th and today, Washington Mutual lacks sufficient liquidity to operate and has been seized by the FDIC. Assets, deposits, and retail operations have been sold to J.P. Morgan.

I remember when WaMut was a local bank in the Pacific Northwest particulary since I grew up in Washington and lived there til I moved away from home at 19. I opened my 1st bank account at WaMuT in Spokane with money I earned fighting forest fires for the US Forest service in the Washington & Oregon for 18 days straight. Fast forward to when I lived in Brooklyn NY I think it was 2000 I noticed WaMut made its way across the country, and now this how ironic.

Regards, Mike


User currently offlineCactus739 From United States of America, joined Jan 2004, 2448 posts, RR: 30
Reply 19, posted (5 years 12 months 2 days 21 hours ago) and read 2513 times:

I really liked WaMu....they were good to me....good customer serivce and never one problem as long as I've had my account...

I've had Chase in the past, and I will not have them again.. horrible service every time I had a problem.... never again.

B of A..here I come...



You can't fix stupid.... - Ron White
User currently offlineDougloid From , joined Dec 1969, posts, RR:
Reply 20, posted (5 years 12 months 2 days 13 hours ago) and read 2430 times:



Quoting N328KF (Reply 14):
You say "tomato," I say "tomato." If not in legal terms, what the Federal government (via FDIC, FHFA, and Federal Reserve) has been doing lately has been a de facto nationalization of much of the US financial industry.

How is that a defacto nationalization?
Where's the state ownership?
Where's the dispossession of the rightful owners?


User currently offlineAaron747 From Japan, joined Aug 2003, 8153 posts, RR: 26
Reply 21, posted (5 years 12 months 2 days 13 hours ago) and read 2413 times:

I'd look for some more purchases from the Japanese megabanks next week. Just a prediction.


If you need someone to blame / throw a rock in the air / you'll hit someone guilty
User currently offlineComorin From United States of America, joined May 2005, 4896 posts, RR: 16
Reply 22, posted (5 years 12 months 2 days 12 hours ago) and read 2375 times:



Quoting Dougloid (Reply 20):
Quoting N328KF (Reply 14):
You say "tomato," I say "tomato." If not in legal terms, what the Federal government (via FDIC, FHFA, and Federal Reserve) has been doing lately has been a de facto nationalization of much of the US financial industry.

How is that a defacto nationalization?
Where's the state ownership?
Where's the dispossession of the rightful owners?

Dougloid, despite his French flag and use of big words like 'contretemps', is absolutely right. May I suggest that the title on this thread be edited. Even AIG is not nationalized, technically speaking.


User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 24
Reply 23, posted (5 years 12 months 2 days 12 hours ago) and read 2364 times:



Quoting N234NW (Reply 16):
I wonder what will happen to the two Headquarters office towers they have in Seattle.

They may have a huge building in Downtown Seattle (Washington Mututal Tower) but that is not their HQ. Their HQ is in Bellevue, WA.

Quoting Mike89406 (Reply 18):
I remember when WaMut was a local bank in the Pacific Northwest particulary since I grew up in Washington

Same here! I'm gonna miss the Washington Mutual brand! Made me feel like home. I wished Chase would allow Washington Mutual to keep the name going.... The really neat part was the Rodeo Grandmas promo. That was cool!



A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineDougloid From , joined Dec 1969, posts, RR:
Reply 24, posted (5 years 12 months 2 days 12 hours ago) and read 2355 times:



Quoting Comorin (Reply 22):
Dougloid, despite his French flag

the tricolor is the closest thing I can get to the Iowa state flag. It is a tricolor, properly oriented but the white center is a little larger and it displays an eagle clutching a riband that says "Our liberties we prize and our rights we will maintain".
Big version: Width: 300 Height: 224 File size: 17kb
Iowa flag


25 AirframeAS : But it still says you are from France.
26 PSA53 : I admit,I'm a little suspect about that one, too.Knowing the California aviation massacre of the 80's.Why couldn't it wait until the bailout plan was
27 Hawaiian717 : One of the articles I read last night indicated that the plan was to do it today (Friday), but the decision was made to do it early to avoid rumors g
28 Dougloid : This is a problem. However I have a cousin who has lived in France since the early sixties. Is that good enough??
29 N174UA : Wrong. FDIC is in place, and they guarantee your account up to $100,000. PSA53 wrote: "Loss of 401k retirement plans wiped out." WM didn't manage the
30 N1120A : In many cases, more than that.
31 EA CO AS : (cough)Alaska Air Group(cough)
32 OzGlobal : The speed, timing and choice of new owner of WaMu has raised many eyebrows both in Wall Street and globally. The old boy network of investment bank CE
33 Comorin : Finally, the mystery is solved!
34 N328KF : Aside from Microsoft and Alaska, you have Safeco, Nordstrom, Amazon, Starbucks, Vulcan Northwest (which holds a ton of assets), Corbis/GettyImages, M
35 Pyrex : Not any more, no. Bought by Liberty Mutual a few months ago. On the other hand, you do have eBay (I think).
36 N328KF : eBay, as the name would suggest, is in the San Francisco area.
37 AirframeAS : Those companies, not in Seattle. Holland America only sails to Seattle and their HQ isn't based in Seattle.
38 PSA727 : This is how the financial bailout should work. If a financial company still has value then a healthier one scoops it up. The ones beyond repair are be
39 PSA53 : Exactly! That's why......next entry.. Conspiracy theory? What's up with all the downgrades and reduction of stock ratings all done in very,very short
40 DocLightning : I've been arguing that the fall of the U.S. is coming. Is anyone ready to listen yet?
41 PSA53 : What nationalizing? WaMu has filed for BK protection,Chapter 11.
42 MaidensGator : Where did you that idea??? Google WaMu... There are more than 3,500 news stories that report Washington Mutual was seized by the Feds and most assets
43 Post contains links PSA53 : Here"s the link: http://www.reuters.com/article/marke...sNews/idINN2733210920080927?rpc=44
44 N328KF : Again, this is a difference between the legal definition (which is what PSA53 is referring to) and the realistic description of what occurred, which
45 LTBEWR : The holding company of WaMu, along with a lot of debt, some assets, as well as certain lawsuits still exists but under Chapter 11 Bankruptcy, probably
46 Pyrex : No, that is not what happened. The FDIC just exercized its congressional mandate, which is to protect the savings up to $100,000 of U.S. depositors i
47 DocLightning : Exactly. The FDIC was designed to protect the American Public against another Great Depression by guaranteeing that if we put our money in a bank, it
48 Roadrunner165 : You're being ignorant. Have you ever picked up an economics book? Nothing is being socialized. By law the US government has to act. I would be alarme
49 Pyrex : In fact, most FDIC actions involve simply selling the good assets to a stronger buyer (which tends to be the least costly option for them). Only rare
50 Post contains links AirframeAS : Here is another interesting tidbit from the Seattletimes.com http://seattletimes.nwsource.com/htm...stechnology/2008210320_wamu28.html It says on the
51 Pyrex : Well, the article does say "As is standard, WaMu management was not told of the agency's intentions." WaMu's downfall was a matter of when, not if.
52 Roadrunner165 : Again. Once a bank goes into receivership, the FDIC is in charge. The moral of this story is not to let your CEO $@&% things up so bad the FDIC comes
53 AirframeAS : The problem is that the current CEO, who was JUST hired by WAMU's board, did not have the chance to revive WAMU under the BOD's conditions as he was
54 Roadrunner165 : It still doesn't matter though... The train left the station a long time ago and WaMu wasn't on board.. Once failsafe is reached the game is over.
55 AirframeAS : Sounds like the new CEO worked for free then... That sucks.
56 RwSEA : Not true! Holland America is in fact headquartered in Seattle. However, they are fully-owned by Carnival Cruise Lines which is in Miami.
57 N1120A : What is left of WaMu has filed for Chapter 11. Anything that is worth something was transferred to Chase through the FDIC. Free? I heard he will have
58 AirframeAS : Woah, dude...calm down... Mistakes are made... Just calm down. Ahh, an instant golden parachute. But I doubt he will collect all the $18 million....
59 N1120A : Actually, it is $19 million. That includes his salary and severance.
60 Ikramerica : Explain. WaMu tried to sell itself, nobody was buying. Of all the potential suitors, the one that was best for the WaMu customers and employees was C
61 N1120A : I have seen nothing that says he isn't getting all of it. Don't make this sound like a negative using words like "forced insurance". If they want to
62 Ikramerica : Wasn't trying to. The point was that they don't have a choice, so they can't "not pay" and then be in default with no coverage. That's because the ne
63 N1120A : Well, it depends on how his contract is written.
64 Pyrex : Actually, last I heard FDIC insurance is not mandatory. Good luck getting any clients to deposit money with you without that sticker by the counter,
65 N328KF : There is one institution that functions much like a bank but does not have the FDIC sticker, and that is PayPal. They've caught a lot of flak for tha
66 Roadrunner165 : Last you heard was wrong.[Edited 2008-09-29 20:44:42]
67 Pyrex : It is not that simple. https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/UserAgreement/general/FDIC-outside Apparently they qualify for something call
68 Post contains links Roadrunner165 : In other news... the lack of $700B bailout has (indirectly) erased $1 Trillion worth of stock value this afternoon.[Edited 2008-09-29 22:22:17]
69 Socalfive : Funny how JP Morgan/Chase was ready to write a frigging check before the day was out. READ your history, this is what the big players did in 1929 as w
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