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Wamu ?

Discussion in 'Economics and Financials' started by Celtkin, Sep 25, 2008.

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  1. Celtkin

    Celtkin <B>Webmaster</b> Luxury Box

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    The rumor after the marked closed is that WAMU (Washington Mutual) will be bought by JP Morgan. The stock closed today at $1.69 after opening $2.62.

    Any educated guesses what it may open at tomorrow? What will happen to the WAMU stock if JP Morgan does buy WAMU? Is this a good time to invest in WAMU or no?
     
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  2. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    FDIC to Seize WaMu and Sell Deposits to JPMorgan

    "The Federal Deposit Insurance Corp will seize Washington Mutual and sell its deposits to JPMorgan Chase for an undisclosed sum, CNBC has learned. The deal is expected to be announced during a Thursday night conference call at 9:15 p.m. ET."

    FDIC to Seize WaMu and Sell Deposits to JPMorgan - Financials * US * News * Story - CNBC.com

    Looks like WaMu is the latest victim of the mortgage crisis. As far as I can tell from the information being put out it looks like the FDIC will not have to spend any of their backup funds to rescue the depositors since they and the branches are being sold off to JP Morgan.

    As far as the stock goes, stay away, stay far, far away. No idea what will happen especially with the bail out still on hold right now and the massive amount of mortgages Wamu have on their books. In a simple world without government intervention the shareholders would lose everything.
     
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  3. Celtkin

    Celtkin <B>Webmaster</b> Luxury Box

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    Thank you brother :up:
     
  4. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    You are quite welcome my fellow brother. I will be very interested to see what happens with WaMu assets and their debt now that the FDIC has stepped in and seized the bank. We live in very, very scary times unfortunately.

    The credit markets have been seized up for two days now and until we get an answer from Congress on the bail out I would expect them to stay that way. When I say credit markets I am basically saying the banks in this country will not even loan other banks money right now. If you are a consumer looking for a bank, car loan etc. right now you have as much of a chance as winning powerball as you do getting a loan.
     
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  5. Celtkin

    Celtkin <B>Webmaster</b> Luxury Box

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    WAMU insists that it has the assets to cover its debt. My uneducated guess is that the stock will bounce up from news of the sale but I could very well be wrong.

    In these times, it is best to play it safe so I appreciate an educated opinion.

    If you ever find that you are in need to clone a gene, to characterize an unidentified environmental microbe or elucidate a biochemical pathway, I'd be more than happy to return the favor. :hi5:
     
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  6. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    In these times, it is best to play it safe so I appreciate an educated opinion.

    That is a loosely regarded term in my industry, as much as I know there are so many others out there that would put me to shame.

    "The FDIC, which insures bank deposits, said it would not have to dip into the insurance fund as a result of the seizure. There had been concerns that the fund, which took a big hit after the seizure of IndyMac Bank, could be depleted by a WaMu seizure."

    A very good sign that JP Morgan is buying the deposits and branches so it does not wipe out all of the reserve funds and cause them to borrow more from the treasury to cover the losses.

    JPMorgan Chase buys WaMu assets after FDIC seizure: Financial News - Yahoo! Finance

    "In a statement, JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of Washington Mutual's banks, or any assets or liabilities of the holding company, Washington Mutual Inc."

    JP Morgan again walks away with the steal of the century after getting the FED to fund their buyout of Bear Stearns. Now they get the valuable assets of WaMu without having to take any of the toxic assets. I am in no way shape or form a conspiracy theorist but this is starting to really stink in my books. You just took over two of the largest financial institutions in the U.S. for pennies on the dollar without having to eat the bad debt? Oh, that right, the tax payer bail out will get the toxic debt while JP Morgan gets the good stuff. Unreal.
     
  7. BigDogsHunt

    BigDogsHunt Enough talk...prove it!

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    I am affialated to WAMU from their CC division only..so its debt to them, not an asset...if they tanked and wrote of my debt, I would be happy....:lol:, but I dont think that would happen!
     
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  8. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    WaMu equity holders are wiped out while JP Morgan walks away with a gem.

    Video- CNBC.com

    Basically JP Morgan walks away with all of the good assets (deposits and branches) as I mentioned before, but none of the bad or toxic assets. This effectively saves the FDIC from going bust on their reserves, but it is really beginning to look like a consorted effort in my opinion.

    How in the hell does JP Morgan end up getting the FED to back up a loan to purchase Bear Stearn and then end up with the only the best assets of the largest depositor bank in the U.S.?

    I only heard about the FDIC stepping in on WaMu 3 hours ago and so did everyone else, how did JP Morgan get this deal done so fast?

    Sorry guys, this just smells really, really bad to me. Using the excuse of rescuing the FDIC backup fund when they have full access to borrow from the treasury (the bail out) in order to pass the best assets of the largest depositor bank in the U.S. to JP Morgan?
     
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  9. GISH

    GISH ~mUST wARN oTHERS~

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    im a wamu customer. this scares me. and if it scares me, then it probably scares other wamu customers. and it probably scares away future customers. i think they're gonna be in a rut for a while. im probably gonna switch to another bank within the next week.
     
  10. Darkoak

    Darkoak Gone for good.

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    If WAMU was healthy it would be a great time to buy, unfortunately they aren't so it's a horrible time to buy them.
     
  11. Regan21286

    Regan21286 MCAT's, EMT's, AMCAS, ugh

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    ****, all my Wamu stock is wiped out.
     
  12. Darkoak

    Darkoak Gone for good.

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    That really sucks dude.:cry: I'm so sorry that happened to you. Are you OK though, it wasn't all sunk in there was it? You diversified, right?
     
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  13. njfinfan

    njfinfan The First Lady

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    I have all my checking accounts with WAMU. This link is from their home page as of this morning. What will change / what will stay the same, etc.

    Welcome WaMu
     
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  14. opfinistic

    opfinistic Braaaaains!

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    I've been banking with them since they were Great Western Bank. They've been very good to me as far as banks go.
     
  15. njfinfan

    njfinfan The First Lady

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    :yes: I switched to them from Bank of America years ago. They've been far and above the best bank we've ever had. Very good to their account holders.
     
  16. opfinistic

    opfinistic Braaaaains!

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    I've recently been entice by National City to switch over, they've got a great points program where you get points for damn near everything you do to your account short of checking you balance.
     
  17. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    Looks like the 1.9 billion JP Morgan paid to take over WaMu deposits and branches goes to the FDIC. WaMu went under due to scores of account holders pulling a total of around 17 Billion dollars out of their branches over the last few weeks.

    If anyone owns Wachovia, be careful, not trying to scare anyone, but Wachovia and Wamu are the two banks that have been talked about the most the last 2 weeks as far as going under and now we see how it worked out for Wamu.
     
  18. finswin56

    finswin56 Get a mop

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    I don't know about their balance sheets, but IIRC Wamu was much less into the subprime issues than Wamu. I Wamu was in up to their neck, and I believe they only lasted as long as they did because of they weren't just a lender or investment bank.
     
  19. FiN.in.RI

    FiN.in.RI Paul pierced through..

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    Their deposit base is very strong. WaMu owns a lot of heavily depreciated mortgages in California.
     
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  20. mnfinfan

    mnfinfan Active Premium Member Luxury Box

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    WAMU has had this coming for awhile, heard through our floors awhile ago (I am a Reg Rep) and actually am amazed it didn't happen earlier. They got hit hard by ther CA mortgages and the devaluation and walk aways there.

    I haven't seen Wachovioa's liabilities but had heard rumblings there. My best friend is there in Charlotte and runs their Online Banking, so far he hasn't heard anything, but aren't the people closest to it the last to know?

    We just alloted $33M to cover the Federal Company's "breaking the buck" and devaluing our clients holdings in their Primary Reserve fund. Also sued their arse too.

    It has been a hectic few weeks and it is only going to get more interesting.
     
  21. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    You are absolutely correct on that one the ride does not look to stop for a little while at least.
     
  22. mnfinfan

    mnfinfan Active Premium Member Luxury Box

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    sorry to hear that man, hope your holdings weren't too high of an overall percentage. Did you work for Wamu, was this in your 401(k)/ pension plan, or stock that you had held for awhile?
     
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  23. Paul 13

    Paul 13 Chaotic Neutral Staff Member

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    WAMU had long been rumored to be going under, not surprised... Wachovia will probably be next... Wells Fargo?
     
  24. Paul 13

    Paul 13 Chaotic Neutral Staff Member

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    Don't feel bad for their CEO... :pity:

    FOXNews.com - WaMu Gives New CEO Mega Payout as Bank Fails - Local News | News Articles | National News | US News
     
  25. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    Just going off of the recent news that Wells Fargo was mentioned as a possible suitor for WaMu you would get the impression they are fine with their capitalization.

    On the other hand, if you would have told me six months ago that Bear Sterns, Lehman, AIG, Merril and Wamu would no longer exist I would have told you you were nuts.

    Crazy and scary times.
     
  26. BigDogsHunt

    BigDogsHunt Enough talk...prove it!

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    :eek::escape:
     
  27. BigDogsHunt

    BigDogsHunt Enough talk...prove it!

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    :sweatdrop::praying:
     
  28. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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  29. fins4o8

    fins4o8 Mac FTW! Club Member

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    I bank at Wamu. I know my $ is safe cus its FDIC insured but I might consider to looking for another bank. Can anyone recommend a good bank or should I start putting my money under my bad and only worry about thieves breaking into my home? hahaha. jk on putting $ under my bed part.
     
  30. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    I believe you mean you bank at JP Morgan now don't you?
     
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  31. mnfinfan

    mnfinfan Active Premium Member Luxury Box

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    and that anger has to come out, this is really is one of the most passive aggressive countries I have lived in. People get bent over and done from behind, taken to the cleaners etc, and hardly a peep. Now I don't condone rioting on the streets but I have seen hardly any public outrage over crap like this, and keeps on happening. Richard Syron of Fannie mae, earned $18.3M last year and ignored all warnings from inner staff that they were taking on really bad debt that could hurt them, and looked what happened to them. Sickening.
     
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  32. mnfinfan

    mnfinfan Active Premium Member Luxury Box

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    I think you are correct sir :D, as for a bank Chase isn't a bad choice, though they have made out like bandits lately. If you have over $100K then drop me a line, there are ways to get FDIC insured accounts but keep it in one house/ bank.
     
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  33. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    Exactly and thats why I do such good business with CDs. Since you are in the business also I am sure you have access to banks across the country from your fixed income desk same as me?

    I was always amazed why more advisers do not promote CDs as apart of their business. I have been doing it for years and has served me well. Cant beat that FDIC insurance.
     
  34. Regan21286

    Regan21286 MCAT's, EMT's, AMCAS, ugh

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    Thanks man, it was stock that my dad bought at around 30 a long time ago for long term investments and it transferred over to me. Essentially $15k went out the door. I actually just closed a WaMu account because I wasn't too happy with the company and moved it to Chase 3 weeks ago. Oh the irony...

    Thanks bro. Fortunately yea, it's still just a minor percentage but it's still a ****load of dough. Still ok but it's hard not to stay pissed at losing so much even if it wasn't yours to begin with. I kept hoping it might buck around if someone buys em out but didn't work out the way I hoped.
     
  35. jdang307

    jdang307 Season Ticket Holder Club Member

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    With huge sums of money a brokerage a/c makes more sense. Segregated assets, SIPC and secondary insurance etc. MMF were the ticket until they broke the buck ...

    I also banked at wamu, pulled my house down payment savings out last week, was actually thinking of putting it back in. But I just opened a BofA checking a/c online, which is free checking if you do so online.
     
  36. FiN.in.RI

    FiN.in.RI Paul pierced through..

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    I guess CD's are the place to go when your ~10-15 years away from retirement and have a bit of a nest egg to accrue interest on. With rates in and around the high 4's/low 5's it doesn't seem lucrative enough for me though.
     
  37. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    If you are not really worried about staying in short term CDs take a look at longer term callable CDs. The rates right now are between 6 to 6.25%.
     
  38. TheMageGandalf

    TheMageGandalf Senior Member

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    Found this interesting bit on another board...granted now it comes from a pissed off person but its interesting and my sources at Merrill confirm most of it...not that it matters of course because in the end...its done...welcome to Chase...this is a post not an article so I dont know how much to post of it so I'll leave it up to the mods to decide.

    Yahoo! Message Boards - Washington Mutual Inc. (WM) - ANYONE KNOW A FEDERAL JUDGE? ... Anyone????

    Is there no Federal Judge left in this country with a conscience? An immediate injunction of this whole seedy and suspiciously timed transaction may not restore any losses to anyone but will surely bring to light the real reasons for how this “deal” was put together. It would stop the entire transaction in its tracks until the real reasons – and behind the scenes deal-making – becomes a public matter.

    Yes there was mismanagement but WAMU was positioned to recover in time. However the FDIC moving in on Wamu (without Wamu management knowledge) and then turning around and selling of the cream to JPMorgan was an act of conspiracy and expedience leaving WM share holders out in the cold.

    This act permitted three things. First, it permitted the FDIC to reduce its possible exposure that it could not meet because it is financially weaker than we think. Second, it facilitated JPMorgan getting what they have wanted for a long time a rock bottom prices (and getting all the good bits of Wamu while leaving other bits behind - among other things like share holders).

    While both these on their own are enough to be conspiratorial they pale in comparison to the third point of which these both form an essential part.

    The media failed us in the reporting of what really happened here. We are told that Wamu was bought out. But it was not. JPMorgan did not buy Wamu from Wamu. It bought it from the FDIC after FDIC prematurely seized it. The FDIC thereby serving their own purposes in conserving their own capital – which by the way is not taxpayer money but in fact an insurance fund into which member banks have been paying premiums – by arranging for this quick and non-transparent sweetheart-deal with JPMorgan.

    There is no simple coincidence that the federal government and Paulson were at this time trying to get their 700 billion bailout through congress, just 48 hours prior to this, with all its problems of 'No oversight' (actually the no oversight clause was actually written into the bill by Paulson et al!). It wasn't moving through congress fast enough and in danger of stalling. What could the administration do to get congress to accept their 700 billion solution???

    The expedient and convenient collapse of another big bank surely would do the trick. Wamu was the bank of choice.... it was in the news ... JPMorgan could shoulder the FDIC responsibilities in return for a great deal from them and be seen as a white knight (which they are not!)... And another bank failure (as contrived as it would be) would convince congress to hurry up and sign the bail out. The FDIC chose to fail Wamu, not on economic grounds, but because it suited their purposes and with JPMorgan they had the means to accomplish it with little out of pocket expenses. The other bank failures were actual failures... Wamu didn't fail ... it was strong armed by those who had the power and the will to abuse it for their own purposes: Wamu's failure was not the act of the 'free' market.

    So the question should be is there going to be a class action suite for Wamu share holder against the FDIC for stepping in prematurely for purposes quite different than Bank failure and against JPMorgan for the very likely collusion and facilitation of this.

    And, as I asked earlier whether there is a Federal Judge left in this country with a conscience, surely we all know the answer to that question, so every bond and shareholder should find a lawyer and sue all parties to this transaction immediately – since the Federal Judiciary certainly won’t be looking at this - there may not be any recovery for any of us but it may make this kind of deal too expensive for the current ‘victors’ to keep this from happening to anyone else.
     
  39. FinSane

    FinSane Cynical Dolphins Fan

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    im glad I switched from wamu to wachovia but Im not so sure about wachovia either.
     
  40. TheMageGandalf

    TheMageGandalf Senior Member

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    Yeah you should really watch your back on that one bro. I wouldn't keep more than the FDIC limits there, and at the very least would make sure I've got another bank in the wings with some cash, to make sure that you've got cash to use while you recover your money from the FDIC should bad things happen real soon.
     

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