WASHINGTON MUTUAL FAILS

  • HndsmKansan

    Posts: 16311

    Sep 26, 2008 2:14 AM GMT
    Sold to JP Morgan-Chase. Largest bank failure in the world.....
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    Sep 26, 2008 2:26 AM GMT
    HndsmKansan saidSold to JP Morgan-Chase. Largest bank failure in the world.....

    Does being bought constitute a failure?
  • HndsmKansan

    Posts: 16311

    Sep 26, 2008 2:51 AM GMT
    Caslon7000 said
    HndsmKansan saidSold to JP Morgan-Chase. Largest bank failure in the world.....

    Does being bought constitute a failure?



    I would say no, it doesn't... in the context of this environment, I would say the media is describing it as a "failure". I think we would have to hear the
    financial background of Washington to determine what it in fact is....


    Anderson Cooper (on AC360: "Washington Mutual has failed".......

    I think its open to interpretation.
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    Sep 26, 2008 3:41 AM GMT
    Sounds like it was going to fail to me.

    The thing about the Great Depression, the stock market crash was like a large meteorite hitting the earth. Its not necessarily the force of the impact that people around the world would feel, its the debris that would cloud the skies. The effects of the crash took years to fully realize. I'm just wondering if we've been hit by another.
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    Sep 26, 2008 3:46 AM GMT
    Anderson Cooper? Huh? A guy deep in the closet we turn to for the "truth".

    Kinda ironic, heh?
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    Sep 26, 2008 3:48 AM GMT
    It did technically fail, closed by Federal regulators. The government is brokering the take-over of certain assets, with apparently JP Morgan Chase the chief buyer.
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    Sep 26, 2008 3:51 AM GMT
    You are right that it is not the astroid that does the damage but the shockwave and repercussions that really do the damage.

    That being said, this is not The Great Depression ll. Not even close. Not by a long shot.
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    Sep 26, 2008 5:11 AM GMT
    Triggerman saidYou are right that it is not the astroid that does the damage but the shockwave and repercussions that really do the damage.

    That being said, this is not The Great Depression ll. Not even close. Not by a long shot.


    So, is that why W got up in front of the nation, last night, to instill the fear of God lest we give Wall Street $700bn? It's either an impending depression or more Republican fear mongering. Neither comes up smelling like roses.
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    Sep 26, 2008 5:44 AM GMT
    So, is that why W got up in front of the nation, last night, to instill the fear of God lest we give Wall Street $700bn? It's either an impending depression or more Republican fear mongering. Neither comes up smelling like roses.



    Why is this response directed to me? What did I say?
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    Sep 26, 2008 5:56 AM GMT
    Triggermand the response is directed at you because you said:

    That being said, this is not The Great Depression ll. Not even close. Not by a long shot.

    The thought, overall, is that this is an impending failure of the financial markets, or something that would affect of us ALL, or why else should be bail them out -- if it isn't a financial crisis that will freeze the markets and bring all of us down then let them take their own risk and fail on there own. The administrassions argument is that things have gone to far, and the octupus is to big to let the whole thing fail, and that we, they don't say that specifically, but that we as a whole collectively have to take responsibility and save the country.

    I don't know that this is the depression, maybe by a long shot, but what do you know that people like Bernake don't? (a specialist in the depression supppopsedly).

    The bail-out may or may not be the solution, but what is? And who knows how to respond appropriately? If the financial markets fail completely then there won't be any credit for anything, and that would be disastrous as there would be NO borrowing available. Admittedly that is the extreme, but one we don't want to get to, and is a possibility when even large corporations with excellent credit can't get loans.
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    Sep 26, 2008 6:04 AM GMT
    An addendum: note the amount that JP is paying for WaMu, 1.5 billion? Did I hear right? If that doesn't consititue a fire sale, what does? That is peanuts.
  • GQjock

    Posts: 11649

    Sep 26, 2008 9:54 AM GMT
    It wasn't just bought by JP Morgan
    WAMU was trying to find a buyer ... good luck on that right now
    and it failed and reverted to the FDIC

    After the FDIC took ownership
    JP Morgan swooped in and bought it for basically nothing
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    Sep 26, 2008 2:22 PM GMT
    Caslon7000 said
    HndsmKansan saidSold to JP Morgan-Chase. Largest bank failure in the world.....

    Does being bought constitute a failure?


    A Bank has to be bought, because it can not pay its debts...

    No I'm sure that is called a success.

    Just like when a Business Owner goes out of business due to lack of sales and can't afford (nor has the assets) to pay the burden of buildling, payroll and inventory expenses and hence you are out of a job and not paid wages, the manufacturer of the unsold inventory has to buy the mechandise back at a depreciated value or simply take the loss, any loans provided to this Business Owner remain unpaid with no assests to cover the tab or at best only a small percentage of that debt. Tax payers now carry the burned of additional unemployment costs... just to for a start...

    Yeah that's a sure sign of non-failure.

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    Sep 26, 2008 2:46 PM GMT
    GQjock saidIt wasn't just bought by JP Morgan
    WAMU was trying to find a buyer ... good luck on that right now
    and it failed and reverted to the FDIC

    After the FDIC took ownership
    JP Morgan swooped in and bought it for basically nothing


    Exactly right. And to amplify on that just a bit - FDIC "acquires" troubled banks quite often - and then another bank will be "assigned" the troubled bank by way of a merger or acquisition. When it happens on a smaller basis, it doesn't make the news.....but truly - those of us in finance or venture capital know this takes place as a matter of course when a bank is failing....i.e. too much "bad paper".
  • GQjock

    Posts: 11649

    Sep 26, 2008 4:58 PM GMT
    Not only that but if this purchase had not been done by JP Morgan/Chase
    the FDIC would have been strapped for cash and would have had to go to the treasury to cover its assets
  • auryn

    Posts: 2061

    Sep 26, 2008 5:11 PM GMT
    Is nothing sacred? Can't even lick my wounds without seeing this in caps here. Poo. I hate today.

    Yes, I work(ed) for WaMu, but now work for Chase.

    *edit: By the way, GQJock, WaMu was still trying to be independent and not look for a buyer. It was seized by the FDIC and sold to the highest bidder.
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    Sep 26, 2008 5:13 PM GMT
    Auryn saidIs nothing sacred? Can't even lick my wounds without seeing this in caps here. Poo. I hate today.

    Yes, I work(ed) for WaMu, but now work for Chase.


    chin up little spry... Bank of America will be our boss soon enough icon_eek.gif
  • EricLA

    Posts: 3461

    Sep 26, 2008 5:18 PM GMT
    Caslon7000 said
    HndsmKansan saidSold to JP Morgan-Chase. Largest bank failure in the world.....

    Does being bought constitute a failure?


    It was seized by the government then assets sold to JP Morgan-Chase. So, yes, that constitutes a failure.
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    Sep 26, 2008 5:18 PM GMT
    Weren't foreclosures at 50% during the Great Depression and we're only - nationally - at 3% now? The kick is WHO is suffering most from foreclosures...and it's well to do white folks in chic suburbs like Prince Charles County outside of DC.

    Let the banks fail and reap what they've sown. The money's still there, the people with it have just stopped lending until this mess sorts out. New businesses and money men will swoop in to fill the vacuum.
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    Sep 26, 2008 5:20 PM GMT
    But did I understand that Morgan Chase did not buy the entirety of WaMu? That the deal does not include some of WaMu's mortgage units? That might also explain the low price.

    But if true, I wonder what happens to those defaulting mortgages? Does the FDIC assume them? Would that still put a strain on reserve assets?
  • auryn

    Posts: 2061

    Sep 26, 2008 5:24 PM GMT
    You got wrong info, Red. All r base r belong 2 Chase.

    So in case any of you posting here bank with WaMu, your money is safe. My job may not be safe for long, but the money is.

    More meetings today, provide me with more info.
  • joggerva

    Posts: 731

    Sep 26, 2008 5:26 PM GMT
    Auryn saidYou got wrong info, Red. All r base r belong 2 Chase.


    It rhymes so it must be true.
  • auryn

    Posts: 2061

    Sep 26, 2008 5:29 PM GMT
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    Sep 26, 2008 5:40 PM GMT
    Auryn saidYou got wrong info, Red. All r base r belong 2 Chase.


    OIC, thanks for the more informed clarification. I've been reading stuff like this and didn't know how to interpret it, not being a banker myself:

    [AP] "JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of WaMu’s banks, or any assets or liabilities of the holding company, Washington Mutual Inc. JPMorgan also said it will not take on the lawsuits facing the holding company."

    Hope your job's OK.
  • auryn

    Posts: 2061

    Sep 26, 2008 5:55 PM GMT
    Red_Vespa said
    Auryn saidYou got wrong info, Red. All r base r belong 2 Chase.


    OIC, thanks for the more informed clarification. I've been reading stuff like this and didn't know how to interpret it, not being a banker myself:

    [AP] "JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of WaMu’s banks, or any assets or liabilities of the holding company, Washington Mutual Inc. JPMorgan also said it will not take on the lawsuits facing the holding company."

    Hope your job's OK.


    I'm sure there will be more info to come; some good, some bad.

    Job's ok for now.