AirframeAS
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 9:58 pm

Here is another interesting tidbit from the Seattletimes.com

http://seattletimes.nwsource.com/htm...stechnology/2008210320_wamu28.html

It says on the article that WAMU was never notified of an auction going on until AFTER JPMorgan had won the bids.

Those actions by the government were illegal, I think. There should be some form of notification to the executives at WAMU that they were being auctioned off. If it were up to me, I would call for an investigation to make sure the procedures were being followed, in this case, I don't believe it was after reading this article.
A Safe Flight Begins With Quality Maintenance On The Ground.
 
Pyrex
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 10:26 pm



Quoting AirframeAS (Reply 50):
It says on the article that WAMU was never notified of an auction going on until AFTER JPMorgan had won the bids.

Those actions by the government were illegal, I think. There should be some form of notification to the executives at WAMU that they were being auctioned off. If it were up to me, I would call for an investigation to make sure the procedures were being followed, in this case, I don't believe it was after reading this article.

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.
Read this very carefully, I shall write this only once!
 
roadrunner165
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 10:41 pm



Quoting AirframeAS (Reply 50):
It says on the article that WAMU was never notified of an auction going on until AFTER JPMorgan had won the bids.

Again. Once a bank goes into receivership, the FDIC is in charge.

The moral of this story is not to let your CEO [email protected]&% things up so bad the FDIC comes knockin'. Once they come asking questions, its too late. Do not pass Go, do not collect $200.
 
AirframeAS
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 10:52 pm



Quoting Roadrunner165 (Reply 52):
The moral of this story is not to let your CEO [email protected]&% things up so bad the FDIC comes knockin'.

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 just hired on. Blame the previous CEO, who the BOD just fired last month...or so.... My point is that this isn't the current CEO's fault.
A Safe Flight Begins With Quality Maintenance On The Ground.
 
roadrunner165
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RE: WSJ: WaMu Nationalized, Sold To Chase

Sun Sep 28, 2008 11:12 pm



Quoting AirframeAS (Reply 53):
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 just hired on. Blame the previous CEO, who the BOD just fired last month...or so.... My point is that this isn't the current CEO's fault.

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

Sun Sep 28, 2008 11:24 pm



Quoting Roadrunner165 (Reply 54):

Sounds like the new CEO worked for free then... That sucks.  no 
A Safe Flight Begins With Quality Maintenance On The Ground.
 
rwsea
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RE: WSJ: WaMu Nationalized, Sold To Chase

Mon Sep 29, 2008 4:20 pm



Quoting AirframeAS (Reply 37):
Those companies, not in Seattle. Holland America only sails to Seattle and their HQ isn't based in Seattle.

Not true! Holland America is in fact headquartered in Seattle. However, they are fully-owned by Carnival Cruise Lines which is in Miami.
 
N1120A
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RE: WSJ: WaMu Nationalized, Sold To Chase

Mon Sep 29, 2008 4:32 pm



Quoting PSA53 (Reply 41):

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

What is left of WaMu has filed for Chapter 11. Anything that is worth something was transferred to Chase through the FDIC.

Quoting AirframeAS (Reply 55):

Sounds like the new CEO worked for free then... That sucks.

Free? I heard he will have something like $18 million for his short tenure.

Quoting AirframeAS (Reply 50):

Those actions by the government were illegal, I think.

There is nothing illegal about what the FDIC did. This is their standard procedure.

Quoting DocLightning (Reply 47):

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

Sure won't be Wachovia, now that they are gone.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
AirframeAS
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RE: WSJ: WaMu Nationalized, Sold To Chase

Mon Sep 29, 2008 5:20 pm



Quoting RwSEA (Reply 56):
Not true!

Woah, dude...calm down... Mistakes are made... Just calm down.

Quoting N1120A (Reply 57):
Free? I heard he will have something like $18 million for his short tenure.

Ahh, an instant golden parachute. But I doubt he will collect all the $18 million....

Quoting N1120A (Reply 57):
There is nothing illegal about what the FDIC did. This is their standard procedure.

You don't need to repeat it. See reply # 51.
A Safe Flight Begins With Quality Maintenance On The Ground.
 
N1120A
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RE: WSJ: WaMu Nationalized, Sold To Chase

Mon Sep 29, 2008 5:25 pm



Quoting AirframeAS (Reply 58):

Ahh, an instant golden parachute. But I doubt he will collect all the $18 million....

Actually, it is $19 million. That includes his salary and severance.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
ikramerica
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 1:14 am



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.

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 Chase, because it would involve few layoffs in most states where WaMu operated, especially the ones where they had the longest history.

The FDIC has to decide what is best for all involved, and JPMC was the best. As a WaMu depositor, I'm happy it was JPMC. I feel secure for myself, and I am happy for the branch employees here in LA I see once in a while. They were very nervous about their future if Citi or Wells Fargo or someone like that were to take over, and I don't like those banks to bank with (been with both, left both).

Quoting DocLightning (Reply 47):
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.

And banks pay insurance premiums, forced insurance, for this benefit, and if the bank is in worse shape, their premiums are higher.

It's far from a bailout if you are forced to pay into the system, and then your assets can be grabbed and sold to someone else.

It's it's certainly not nationalization.

Quoting N1120A (Reply 59):
Actually, it is $19 million. That includes his salary and severance.

And he won't get a lot of it, ultimately, but he'll still get a few million and that's not bad for a month of work.

It's not his fault it failed, but he also wasn't able to do anything to stem the tide, and his reputation is a bit damaged for the effort, so the millions he'll get may be justified. Who really knows?
Of all the things to worry about... the Wookie has no pants.
 
N1120A
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 1:17 am



Quoting Ikramerica (Reply 60):

And he won't get a lot of it, ultimately, but he'll still get a few million and that's not bad for a month of work.

I have seen nothing that says he isn't getting all of it.

Quoting Ikramerica (Reply 60):
And banks pay insurance premiums, forced insurance, for this benefit, and if the bank is in worse shape, their premiums are higher.

Don't make this sound like a negative using words like "forced insurance". If they want to operate a bank, they have to play by the rules. Same as individuals who drive cars.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
ikramerica
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 1:27 am



Quoting N1120A (Reply 61):
Don't make this sound like a negative using words like "forced insurance". If they want to operate a bank, they have to play by the rules. Same as individuals who drive cars.

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.  Smile

Quoting N1120A (Reply 61):
I have seen nothing that says he isn't getting all of it.

That's because the news articles are only telling you what his deal was.

But that doesn't mean he'll get it all. If he was an executive of a company that enters Chapter 11/7, his package can be reviewed and rescinded, and he can be forced to give some of it back (or all of it).
Of all the things to worry about... the Wookie has no pants.
 
N1120A
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 1:30 am



Quoting Ikramerica (Reply 62):


But that doesn't mean he'll get it all. If he was an executive of a company that enters Chapter 11/7, his package can be reviewed and rescinded, and he can be forced to give some of it back (or all of it).

Well, it depends on how his contract is written.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
Pyrex
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 1:44 am



Quoting Ikramerica (Reply 60):
And banks pay insurance premiums, forced insurance, for this benefit,



Quoting Ikramerica (Reply 62):
so they can't "not pay" and then be in default with no coverage.

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, but it is not mandatory.
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N328KF
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 3:05 am



Quoting Pyrex (Reply 64):
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, but it is not mandatory.

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 that, too. Every now and then, some government type brings it up.
“In the age of information, ignorance is a choice.”
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roadrunner165
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 3:42 am



Quoting Pyrex (Reply 64):
Actually, last I heard FDIC insurance is not mandatory.

Last you heard was wrong.

[Edited 2008-09-29 20:44:42]
 
Pyrex
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 4:03 am



Quoting N328KF (Reply 65):
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 that, too. Every now and then, some government type brings it up.

It is not that simple.

https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/UserAgreement/general/FDIC-outside

Apparently they qualify for something called the "FDIC pass-through deposit insurance coverage". Their money-market funds are not FDIC insured, but then again no money market fund is (up until now, at least).
Read this very carefully, I shall write this only once!
 
roadrunner165
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 5:20 am

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]
 
socalfive
Posts: 474
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RE: WSJ: WaMu Nationalized, Sold To Chase

Tue Sep 30, 2008 5:30 am

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 well. They bought up everything for pennies on the dollar, shuttled the debt off on the American taxpayers.

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