WaMu seized by the FDIC
mammasan
Posts: 5,656
WaMu was just seized by the FDIC and sold to JP Morgan Chase.
"When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
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http://seattletimes.nwsource.com/html/businesstechnology/2008203093_webwamu25.html
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:
If I opened it now would you not understand?
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.
This is the antithisis of competition.
so - reality is that honest gov't is what is needed ... not corrupt gov't ...
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 ...
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.
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 ...
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.
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.
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.
that's like saying i opened the door to the chicken coup but it's not my fault the fox went in ...
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?
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.
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?
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.
That is like saying:
uhhh ... why would you have to see more regulation ... you've already seen what happens with government involvement ...
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.
If a woman wears something you think is "suggestive" and gets raped is it her fault? I would hope people don't think this way, but I have heard people talk like that.
yeah ... and what problems did we encounter with increased regulation?
no, not necessarily - i'm just saying there are gov'ts that operate with more regulation and you don't see what we're seeing now ...
what is your solution to preventing this from happening then? ... as we can see this is not the first time this has happened ...
absolutely ... so, is the solution to leave my door open as well or close my window?
It's true, there are no honest governments, but some are better than others.
There is no easy, single solution, unfortunately. But I do think that these events will cause boards and shareholders to call for more accountability. I also hope that the safety net goes away, because that is the false sense of security that allowed much of the attitude from these bank execs. They could gamble knowing that the feds would step in and save them.
Here's an email from Ron Paul's organization this morning:
the thing that gets me is what penalty are the perpetrators receiving? ... are those in upper mgmt allowed to keep their bonuses and fat cheques? ... if so - what's really there to stop this from happening again and again?
No the solution is to close and lock both and not leave $50 sitting in your car for all to see. Like I stated the government is responsible. They created the environment by pushing deregulation but the individual companies are responsible for going shit crazy and making bad decisions.
Yeah, definately. Wamu will likely cease to exist in it's current state over time and just become part of JP Morgan/Chase.
Positions that are duplicate will almost assuredly be cut once everything shakes out.