Biggest deposit bank of the USA is bankrupt, Paulson's friends (JP Morgan) were able to buy the depostis (assets, no liabilities) for peanuts. The government will probably take over ALL the liabilities in the next few days.
Way to go!
Citigroup or Wachovia, who is going to be next?
Update
FED's Bailout list
Bear Stearns: check
Fannie Mae: check
Freddie Mac: check
AIG: check
Washington Mutual: bankrupt (for now, probably bailed out in the next few days)
Citigroup:
General Motors:
Ford:
Airlines:
Some of these CEO's really deserve to go to jail:
To Our Valued Customers:
September 22, 2008
As WaMu's new chief executive officer, I am writing to discuss the extraordinary economic environment for all banks in the United States and why you can count on us to continue to serve you safely and soundly.
When I was recently approached about the opportunity to lead this great company, I did my homework to satisfy myself that WaMu has the capital, the liquidity, and the business plan to serve your needs and protect your money through these challenging times.Let me explain why I felt good about joining WaMu.
All financial institutions have been affected by the turmoil in the mortgage and financial markets, but WaMu is very different from the investment banks, such as Bear Stearns, Lehman Brothers and Merrill Lynch, that you may have read about. Those firms have very different sources of funding than we do. WaMu's business is funded largely through the deposits that customers like you put with us. We also borrow billions of dollars from the Federal Home Loan Banks system.
Most importantly, your deposits are insured to the limits established by the Federal Deposit Insurance Corporation (FDIC). (WaMu partners at your local WaMu store are happy to work with you to maximize your FDIC insurance coverage.)
Capital ratios describe the financial strength of a bank. Our ratios continue to be well in excess of the levels that government regulators require of "well capitalized" institutions. We also have an ample supply of funds on hand to meet your needs and the needs of our other customers and our day-to-day operations.
AND JUST 3 DAYS LATER
September 25
In what is by far the largest bank failure in U.S. history, federal regulators seized Washington Mutual Inc. and struck a deal to sell the bulk of its operations to J.P. Morgan Chase & Co.
[JP Morgan to take over Wamu] Associated Press
Pedestrians walk past a Washington Mutual branch in downtown Seattle.
The closing represents the demise of what once was the largest U.S. thrift but came to symbolize many of the worst excesses of the mortgage boom. Federal regulators said WaMu has suffered an exodus of $16.7 billion in deposits since Sept. 15, leaving the Seattle thrift "with insufficient liquidity to meet its obligations." As a result, WaMu was in "an unsafe and unsound condition to transact business," according to the Office of Thrift Supervision.
This CEO will probably receive a nice severance package of 10 million + some money from the govt... n-i-c-e.
If McSame wins the elections I will WALK to school the next 2 days(4 miles). I will take pictures for my blog to prove I did it.
Thursday, September 25, 2008
Washington Mutual is bankrupt
Geplaatst door RamsesVI op 6:42 PM
Labels: wamu bankrupt
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