R.I.P. WaMu

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Trooper_IHB

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<span style="font-size: 15px;"><strong>JPMorgan to buy WaMu



Washington Mutual, the country's largest thrift - hard hit by the housing meltdown - is to be acquired by JPMorgan Chase, Wall Street Journal reports

</strong></span>







<a href="http://money.cnn.com/2008/09/25/news/companies/JPM_WaMu/index.htm?postversion=2008092519">CNN breaking story</a>
 
I will listen to the conference call later, or just read what <a href="http://calculatedrisk.blogspot.com/">CR live bloggin posts about it</a>. This makes them #2 for branches and #1 for deposits. A lot of the details can be found in the <a href="http://files.shareholder.com/downloads/ONE/424656186x0x236634/b5a3d70a-28ac-4148-8966-71b18408c8c3/JPM_WManalystpresentation.pdf">investor presentation for the conference call</a>.
 
wow, JPM made out like bandits. bought all the deposits, none of the crap.



shareholders and bondholders screwed.



now we just have to hope that FED doesn't "buy" all the shit.
 
OMG this has got to be the best darn f* part:



<a href="http://newsticker.welt.de/index.php?channel=fin&module=smarthouse&id=785123">JPMorgan Chase & Co. Announces $8 Billion Capital Raise</a>



JPMorgan doesn't actually HAVE that much money to go out and buy WaMu. So they simultaneously announced this capital raise today.





This is... This is seemingly the same as if WaMu had done a stock offering, except they're using JPMorgan's "stronger" stance in the hopes of a better response from the stock offering.



Geez... Does ANY one actually have any real money to put in these deals?



Technically, the public is buying WaMu, not JPMorgan.
 
[quote author="freedomCM" date=1222419449]wow, JPM made out like bandits. bought all the deposits, none of the crap.</blockquote>


No, it looks like they did get the crap:



"Part of the $307 billion in assets that JPMorgan Chase will absorb are WaMu's toxic subprime and option-ARM mortgages. JPMorgan Chase said it would recognize projected losses on the loan portfolio upfront by marking down the value of the loans by a whopping $31 billion."



So no hit to the FDIC.
 
[quote author="DeadbeatRoommate" date=1222432188][quote author="freedomCM" date=1222419449]wow, JPM made out like bandits. bought all the deposits, none of the crap.</blockquote>


No, it looks like they did get the crap:



"Part of the $307 billion in assets that JPMorgan Chase will absorb are WaMu's toxic subprime and option-ARM mortgages. JPMorgan Chase said it would recognize projected losses on the loan portfolio upfront by marking down the value of the loans by a whopping $31 billion."



So no hit to the FDIC.</blockquote>


Bummer, Wamu just raised the APR on their online savings to 4%. Chase ain't gonna keep it there... Wonder what will happen to my 4.25% CD that has seven months left on it? Chase might say "here's your money back or keep it with us for 3%".
 
So does the countdown now move on to another bank/lender? Or was Countrywide, Indymac, and WaMu the only 3 major players in the toxic mortgage mess (lending-wise)?
 
[quote author="24inIrvine" date=1222434141]So does the countdown now move on to another bank/lender? Or was Countrywide, Indymac, and WaMu the only 3 major players in the toxic mortgage mess (lending-wise)?</blockquote>


Wachovia is a monster player in toxic mess. Downey Savings too...
 
The funny part is, Wamu sent me a credit card a couple of weeks ago, out of the blue, I've never even dealt with them before..I've never used it.



Maybe it won't even work now? Who cares.
 
[quote author="ipoplaya" date=1222434046]



Bummer, Wamu just raised the APR on their online savings to 4%. Chase ain't gonna keep it there... Wonder what will happen to my 4.25% CD that has seven months left on it? Chase might say "here's your money back or keep it with us for 3%".</blockquote>


Your CD should be fine. Chase'll have to honor the rate for the 7 months remaining.
 
[quote author="24inIrvine" date=1222434141]So does the countdown now move on to another bank/lender? Or was Countrywide, Indymac, and WaMu the only 3 major players in the toxic mortgage mess (lending-wise)?</blockquote>
Wachovia is now on the clock...
 
[quote author="PeterUK" date=1222435238]The funny part is, Wamu sent me a credit card a couple of weeks ago, out of the blue, I've never even dealt with them before..I've never used it.



Maybe it won't even work now? Who cares.</blockquote>


Two weeks ago I was gone for a few days. I came home to a mailbox full of WAMU credit card applications. I think I counted at least six, plus balance transfer checks from an account I already have. I almost wish I filled them all out. I love the offers that come with Chase credit cards.
 
I just was in my Wachovia Branch in Orange.

Business as usual. The tellers are worried about their jobs.

That feeling of insecurity does not bode well for them.



I miss my little Bank. Western Financial. From the moment

Wachovia took them over its been a terrible bank.

They have made every mistake possible with our accounts.



We closed all of the Investement and Retirement accounts months ago.

So all I need to worry about is my Commercial Checking which we have a backup

account for in another Bank.



So let Wachovia fail. No problem for me.
 
Clear warnings went unheeded



<a href="http://www.iht.com/articles/2008/12/28/business/wamu.php">At Washington Mutual, a relentless urge to approve any loan</a>
 
<img src="http://4.bp.blogspot.com/_eMz_3IxKP-g/R9SDNUXk0VI/AAAAAAAAABY/BOw-0GQtN9E/s1600/wamu_whoohoo.JPG" alt="" />
 
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