WaMu seized by the FDIC

mammasan

WaMu was just seized by the FDIC and sold to JP Morgan Chase.

jeffbr

Pretty crazy happenings:
http://seattletimes.nwsource.com/html/businesstechnology/2008203093_webwamu25.html

DriftingByTheStorm

How comes every time a deal is reached, or brokered, by the Federal Reserve, JP MORGAN CHASE ends up being the beneficiary?

Hmm?

Could it have something to do with the fact that JP Morgan built the goddamn Federal Reserve?

No!
Of course not.
That would be a conspiracy.
:rolleyes:

All that being said,
this was the largest bank failure in US History.

No meltdown here.
:cool:

mammasan

DriftingByTheStorm wrote:

How comes every time a deal is reached, or brokered, by the Federal Reserve, JP MORGAN CHASE ends up being the beneficiary?

Hmm?

Could it have something to do with the fact that JP Morgan built the goddamn Federal Reserve?

No!
Of course not.
That would be a conspiracy.
:rolleyes:

All that being said,
this was the largest bank failure in US History.

No meltdown here.
:cool:

The fucked up part to this WaMu take over is that back in the summer WaMu was offered $8.00 a share by JP Morgan Chase and they refused because Kerry Killinger didn't want to loose his job. A few weeks ago WaMu was again offered $2.00 a share by Chase but again they refused because they where to fill of their own hubris. Now the FDIC seizes them and Chase buys up their assets, branches and deposit base. Their stock is worthless now so anyone who has WaMu stock, 20% of my girlfriend's 401k was WaMu stock and she had a couple of thousand dollars in stock, is screwed. My girlfriend will most likely loose her job now as well. That company was a perfect example of how greed by the CEo and upper management screws over the average person.

They where the largest saving and loan bank in the country as well as the 4th largest credit card company in the country.

Pacomc79

This is what happens when companies get to use the power of government to do thier bidding.

This is the antithisis of competition.

polaris

what is interesting is that only gov't can prevent this from happening but gov't had a direct hand in this fraud ...

so - reality is that honest gov't is what is needed ... not corrupt gov't ...

jeffbr

polaris wrote:

what is interesting is that only gov't can prevent this from happening but gov't had a direct hand in this fraud ...

How unimaginitive to thinik that gov't is the only way. If the company had been run correctly, the board made sound decisions, the shareholders held the officers accountable, they could have avoided the mess.

polaris wrote:

so - reality is that honest gov't is what is needed ... not corrupt gov't ...

reality is that there is no such thing as honest gov't.

polaris

jeffbr wrote:

How unimaginitive to thinik that gov't is the only way. If the company had been run correctly, the board made sound decisions, the shareholders held the officers accountable, they could have avoided the mess.




reality is that there is no such thing as honest gov't.

hey ... if you think given zero regulation a company is going to act in the interests of everyone - then you would be be defying history ...

there are levels of honesty ... sadly tho - it's about as far from that in the US ...

mammasan

jeffbr wrote:

How unimaginitive to thinik that gov't is the only way. If the company had been run correctly, the board made sound decisions, the shareholders held the officers accountable, they could have avoided the mess.




reality is that there is no such thing as honest gov't.

I have to agree. WaMu's fall is solely the upper management's fault. My girlfriend told me that back in 2002 the vast majority of WaMu's mortgages where A paper mortgages. By 2007 the vast majority where B paper. They took a gamble because of greed, they wanted loans with adjustable interest rates so that they could make more money off of them, and it back fired on them. My girlfriend who is a regional manager for them was specifically told by her superiors to encourage the branches in her region to push more adjustable rate mortgages, specially no doc loans. They fucked themselves over.

mammasan

polaris wrote:

hey ... if you think given zero regulation a company is going to act in the interests of everyone - then you would be be defying history ...

there are levels of honesty ... sadly tho - it's about as far from that in the US ...

The companies are still responsible for their actions. Just because the government said that they could do as they please doesn't mean that they had to do so.

polaris

mammasan wrote:

The companies are still responsible for their actions. Just because the government said that they could do as they please doesn't mean that they had to do so.

so ... regulation is not the answer? ... really - how have the ceo's and upper management suffered? ... they still have their fat cheques and bonuses ...

jeffbr

polaris wrote:

hey ... if you think given zero regulation a company is going to act in the interests of everyone - then you would be be defying history ...

If there were zero regulation that would defy history, and would give us an accurate comparison to a regulated market.

polaris wrote:

there are levels of honesty ... sadly tho - it's about as far from that in the US ...

I'd love to see your list of honest governments. I can't think of one.

mammasan

polaris wrote:

so ... regulation is not the answer? ... really - how have the ceo's and upper management suffered? ... they still have their fat cheques and bonuses ...

No regulation is definitely necessary. Government can be blamed for creating the environment but they can not be blamed for the actions of the companies.

Stone Is God

mammasan wrote:

I have to agree. WaMu's fall is solely the upper management's fault. My girlfriend told me that back in 2002 the vast majority of WaMu's mortgages where A paper mortgages. By 2007 the vast majority where B paper. They took a gamble because of greed, they wanted loans with adjustable interest rates so that they could make more money off of them, and it back fired on them. My girlfriend who is a regional manager for them was specifically told by her superiors to encourage the branches in her region to push more adjustable rate mortgages, specially no doc loans. They fucked themselves over.

You just summed this whole thing up with that statement right there. These greedy choices are what prevented people like me from buying houses. These shitty mortgages pushing up the demand for houses and therefore the prices. I used to laugh at people that bought $300,000 houses for $600 a month. They had no fucking clue what was going on. Smart people who already owned homes took advantage of the fixed rate to refinance to lower their payment as opposed to using their home as an ATM.

There are so many people that are responsible for this shit show and now everyone has to pay. Sorry to hear about your girlfriend maybe losing her job. The greed of so few effects so many.

polaris

mammasan wrote:

No regulation is definitely necessary. Government can be blamed for creating the environment but they can not be blamed for the actions of the companies.

that's like saying i opened the door to the chicken coup but it's not my fault the fox went in ...

polaris

jeffbr wrote:

If there were zero regulation that would defy history, and would give us an accurate comparison to a regulated market.



I'd love to see your list of honest governments. I can't think of one.

uhhh ... why would you have to see zero regulation ... you've already seen what happens with limited regulation ...

norway? sweden? iceland? ... where else have you seen these huge corporate meltdowns?

mammasan

Stone Is God wrote:

Sorry to hear about your girlfriend maybe losing her job. The greed of so few effects so many.

Thanks. She is so pissed. Her assistant lost something like $25,000 in her 401k since January. The woman is 58 years old, how is she going to recover that. The absolute greed of these fucking CEOs and CFOs is horrible. No concern for the people who depend on their management decisions. Kerry Killinger who scoffed at a $8.00 per share buyout from Chase over the summer received a $15 million+ golden parachute in September. He is fucking set while people like my girlfriends 58 year old administrative assistant is now fucked. Her retirement account basically savaged.

mammasan

polaris wrote:

that's like saying i opened the door to the chicken coup but it's not my fault the fox went in ...

A fox cannot deduce right from wrong. It cannot weight the consequences of it's actions. A human being can.

polaris

mammasan wrote:

A fox cannot deduce right from wrong. It cannot weight the consequences of it's actions. A human being can.

ok ... so, i left my window open of my car with my $50 on the seat ... if someone takes that money - it's not my fault?

mammasan

polaris wrote:

ok ... so, i left my window open of my car with my $50 on the seat ... if someone takes that money - it's not my fault?

It's your fault for leaving your window open but you should not be held responsible for the person who stole your money's action. That individual had a choice to either keep walking or take the money. They made the choice to engage in theft.

jeffbr

polaris wrote:

uhhh ... why would you have to see zero regulation ... you've already seen what happens with limited regulation ...

That is like saying:

uhhh ... why would you have to see more regulation ... you've already seen what happens with government involvement ...

polaris wrote:

norway? sweden? iceland? ... where else have you seen these huge corporate meltdowns?

So lack of corporate meltdowns is the measure of an honest government? We have had some really honest governments in the US then, until this past year. Even the early lil' Bush years, I guess.