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N328KF
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WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 2:33 am

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.' -Theodore Roosevelt
 
lincoln
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 2:44 am

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
 
StuckInCA
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 2:47 am

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
 
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N328KF
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 2:49 am



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.' -Theodore Roosevelt
 
Alias1024
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 2:53 am

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.
 
Alias1024
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 2:55 am



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.
 
Pyrex
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 2:58 am



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.
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StuckInCA
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:05 am

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?
 
N1120A
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:09 am

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
 
ltbewr
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:16 am

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.
 
allstarflyer
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:25 am



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
Living the American Dream
 
Dougloid
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:25 am



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.
If you believe in coincidence, you haven't looked close enough-Joe Leaphorn
 
panam330
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:47 am

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.
 
Alias1024
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:54 am



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.
 
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N328KF
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 4:28 am

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.' -Theodore Roosevelt
 
Pyrex
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 4:37 am



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!
 
n234nw
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 5:12 am

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]
 
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N328KF
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 5:20 am



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.' -Theodore Roosevelt
 
Mike89406
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 5:46 am



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
 
Cactus739
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 7:11 am

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
 
Dougloid
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 2:54 pm



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?
If you believe in coincidence, you haven't looked close enough-Joe Leaphorn
 
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Aaron747
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:13 pm

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
 
comorin
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 3:58 pm



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.
 
AirframeAS
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 4:19 pm



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.
 
Dougloid
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 4:26 pm



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
If you believe in coincidence, you haven't looked close enough-Joe Leaphorn
 
AirframeAS
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 4:42 pm



Quoting Dougloid (Reply 24):

But it still says you are from France.  rotfl 
A Safe Flight Begins With Quality Maintenance On The Ground.
 
PSA53
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 5:40 pm



Quoting LTBEWR (Reply 9):
There west coast base is probably where they went down

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 announced? A breakup? I don't buy into that.

The fact of the matter is:
Loss of jobs probably will be wiped out
Loss of investors monies is wiped out
Loss of 401k retirement plans wiped out.

JP Morgan gets WaMu's deposits.I'd say somebody made out like a bandit.
Tuesday's Off! Do not disturb.
 
hawaiian717
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 7:41 pm



Quoting Pyrex (Reply 6):
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.

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 getting out and causing even more problems.
 
Dougloid
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RE: WSJ: WaMu Nationalized, Sold To Chase

Fri Sep 26, 2008 9:26 pm



Quoting AirframeAS (Reply 25):
Quoting Dougloid (Reply 24):

But it still says you are from France

This is a problem. However I have a cousin who has lived in France since the early sixties. Is that good enough??


 Wink  Wink
If you believe in coincidence, you haven't looked close enough-Joe Leaphorn
 
N174UA
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 6:39 am



Quoting StuckInCA (Reply 7):
I know that money is safe... for now



Quoting StuckInCA (Reply 7):
The fact of the matter is that there isn't money to insure the deposits that are out there, right?

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 401k plans for its own employees. As a former employee of WM (left in late 2006) I recall that Vanguard was the 3rd party fiduciary that held those assets. And the pension plan...held by none other than JPM Chase! So those plans are even more secure now.

It's amazing to watch all this. I started at WM in May 2005 and spent a year and a half there. It wasn't the right fit for me, but I learned a lot, both from a professional and personal point of view. My position was eliminated, and I still got a bonus for 2006, and also a severance package. CEO Kerry Killinger made $18 million in bonus that year.

I feel terrible for the employees who really cared and believed in WaMu. But, this needed to happen...there has to be a penalty for taking enormous risks like WM did.
 
N1120A
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 6:52 am



Quoting N174UA (Reply 29):

Wrong. FDIC is in place, and they guarantee your account up to $100,000.

In many cases, more than that.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
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EA CO AS
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 10:09 am



Quoting N234NW (Reply 16):
Do we (Seattle) have any large companies left HQ'd in the area anymore?

(cough)Alaska Air Group(cough)
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
ozglobal
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 10:29 am

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 CEO's, the Treasury and the administration is fairly visible. There may be arguments to justify that this was the only way to resolve WaMu's problems for the common good, but the US is starting to look more and more like the Russian business landscape.
When all's said and done, there'll be more said than done.
 
comorin
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 1:55 pm



Quoting Dougloid (Reply 24):
Quoting Comorin (Reply 22):
Dougloid, despite his French flag

Finally, the mystery is solved!  Smile
 
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N328KF
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 3:11 pm



Quoting N234NW (Reply 16):
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   -- Working too hard tonight.]



Quoting EA CO AS (Reply 31):
(cough)Alaska Air Group(cough)

Aside from Microsoft and Alaska, you have Safeco, Nordstrom, Amazon, Starbucks, Vulcan Northwest (which holds a ton of assets), Corbis/GettyImages, Mike's Hard Lemonade, Cray, RealNetworks, Blue Nile, Holland America Line, Eddie Baur, R.E.I., Clearwire, Classmates.com, Nintendo of America, T-Mobile USA, and Weyerhaeuser.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' -Theodore Roosevelt
 
Pyrex
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 4:38 pm



Quoting N328KF (Reply 34):
Safeco

Not any more, no. Bought by Liberty Mutual a few months ago.

On the other hand, you do have eBay (I think).
Read this very carefully, I shall write this only once!
 
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N328KF
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 4:57 pm



Quoting Pyrex (Reply 35):
On the other hand, you do have eBay (I think).

eBay, as the name would suggest, is in the San Francisco area.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' -Theodore Roosevelt
 
AirframeAS
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 5:53 pm



Quoting N328KF (Reply 34):
Safeco



Quoting N328KF (Reply 34):
Holland America Line



Quoting Pyrex (Reply 35):
eBay

Those companies, not in Seattle. Holland America only sails to Seattle and their HQ isn't based in Seattle.
A Safe Flight Begins With Quality Maintenance On The Ground.
 
PSA727
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 7:37 pm

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 being rescued by the Federal Govt,
which makes you wonder if doing so is really that wise. There's too much fear being brought
into the arguement. Nothing done in haste at the federal level results in much good.
Everyone has known about WaMu's situation for a while, so it's demise is no shock. But
look at how smoothly this takeover was accomplished. It seems that others could be done
so in the same fashion.
fly high, pay low...Germanwings!
 
PSA53
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 8:06 pm



Quoting PSA727 (Reply 38):
This is how the financial bailout should work. If a financial company still has value then a healthier one scoops it up.

Exactly! That's why......next entry..

Quoting PSA727 (Reply 38):
But
look at how smoothly this takeover was accomplished.

Conspiracy theory? What's up with all the downgrades and reduction of stock ratings all done in very,very short peroid of time like in week.And JP Morgan jumping right in there in taking all WaMu's assets?Come on!
Tuesday's Off! Do not disturb.
 
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DocLightning
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 8:54 pm



Quoting OzGlobal (Reply 32):
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 CEO's, the Treasury and the administration is fairly visible. There may be arguments to justify that this was the only way to resolve WaMu's problems for the common good, but the US is starting to look more and more like the Russian business landscape.

I've been arguing that the fall of the U.S. is coming.

Is anyone ready to listen yet?
-Doc Lightning-

"The sky calls to us. If we do not destroy ourselves, we will one day venture to the stars."
-Carl Sagan
 
PSA53
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 9:47 pm



Quoting N328KF (Thread starter):
WaMu Nationalized

What nationalizing? WaMu has filed for BK protection,Chapter 11.
Tuesday's Off! Do not disturb.
 
MaidensGator
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 10:14 pm



Quoting PSA53 (Reply 41):

What nationalizing? WaMu has filed for BK protection,Chapter 11.

Where did you that idea???  Wow!

Google WaMu... There are more than 3,500 news stories that report Washington Mutual was seized by the Feds and most assets sold to Chase...  Cool
The first thing we do, let's kill all the lawyers.
 
PSA53
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 10:28 pm



Quoting MaidensGator (Reply 42):
Quoting PSA53 (Reply 41):

What nationalizing? WaMu has filed for BK protection,Chapter 11.

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 sold to Chase...

Here"s the link:

http://www.reuters.com/article/marke...sNews/idINN2733210920080927?rpc=44
Tuesday's Off! Do not disturb.
 
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N328KF
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sat Sep 27, 2008 11:18 pm



Quoting PSA53 (Reply 41):
What nationalizing? WaMu has filed for BK protection,Chapter 11.



Quoting MaidensGator (Reply 42):
Google WaMu... There are more than 3,500 news stories that report Washington Mutual was seized by the Feds and most assets sold to Chase...



Quoting PSA53 (Reply 43):
Here"s the link:

Again, this is a difference between the legal definition (which is what PSA53 is referring to) and the realistic description of what occurred, which is what MaidensGator is referring to (and which is what I was saying in the original post.) Legally, it was an FDIC seizure and sell-off of some assets and a Chapter 11 filing of the rest, but realistically, anything worthwhile was nationalized and sold to Chase.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' -Theodore Roosevelt
 
ltbewr
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 2:53 am

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 going to Chapter 7 (dissolution) in less than a year. They may still be on the hook for many millions for there current CEO, only the job for little over a month and another top executive who already got a signing bonus. They need to lose or give back those monies and it go to the stockholders, other debtors.

JPMC bought the deposits and credit card businesses, took over leases of branches and certain other properties, accepted some debts including something like $31 BILLION in bad mortgages they will write off their books thus meaning lower corporate taxes to be paid. ]
 
Pyrex
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 2:55 am



Quoting N328KF (Reply 44):
realistically, anything worthwhile was nationalized and sold to Chase.

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 in the least costly way possible for itself. Allowing WaMu to go under and drag its depositors with it would be a violation not only of that mandate but also of the promise made to the depositors who trusted on the sticker on the door.
Read this very carefully, I shall write this only once!
 
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DocLightning
Posts: 20250
Joined: Wed Nov 16, 2005 8:51 am

RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 5:38 am



Quoting Pyrex (Reply 46):
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 in the least costly way possible for itself. Allowing WaMu to go under and drag its depositors with it would be a violation not only of that mandate but also of the promise made to the depositors who trusted on the sticker on the door.

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 would be there even if the bank folded.

When I get back, I have a few thousand dollars in WaMu that I am going to pull out. It's not that I fear for the security of my money, it's that I have had serious customer service issues with Chase, including being forced to walk halfway across Manhattan with $7,000 in cash in my pocket in order to close my account. Then again, I also had my issues with WaMu.

I guess my choices now are Citi, BoA, or Wells Fargo.
-Doc Lightning-

"The sky calls to us. If we do not destroy ourselves, we will one day venture to the stars."
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roadrunner165
Posts: 799
Joined: Sun Oct 15, 2000 6:28 am

RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 5:50 am



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.

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 alarmed if they did not take any action. Do me a favor, turn off FOX news and turn on C-SPAN and try to follow along.

Quoting N328KF (Reply 14):
Also, the FDIC rarely moves this quickly to redistribute a failed bank's assets to a new owner.

Wrong again. How would you even know?

Quoting DocLightning (Reply 40):
I've been arguing that the fall of the U.S. is coming.

Is anyone ready to listen yet?

No. Just no.
 
Pyrex
Posts: 4143
Joined: Thu Aug 25, 2005 7:24 am

RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 6:01 am



Quoting Roadrunner165 (Reply 48):
Quoting N328KF (Reply 14):
Also, the FDIC rarely moves this quickly to redistribute a failed bank's assets to a new owner.

Wrong again. How would you even know?

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 rarely (as in the case of IndyMac) do they actually run the bank themselves to divest the assets over time. The FDIC only has $40-50 billion in the deposit insurance fund (forgot the exact number) so running a bank like WaMu (with $310 billion in assets) on their own would have been almost impossible.
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