Subscribe By RSS
FDIC Seizes WaMu, And JP Morgan Is To Buy Its Assets
By John Lee on September 26, 2008 | More Posts By John Lee | Author's Website
WM shares are down 73% after-hours
It was announced today (Thursday), after-hours, that the FDIC is taking control of Washington Mutual (WM) and selling its deposits as well a number of branches to JP Morgan (JPM).
Losing $6.3 billion in the last three quarters and getting cut to “junk” status didn’t give WM many options to choose from. $19 billion in losses is projected through 2011, but some say the number could be as high as $30 billion.
Currently, WM has approximately $309.7 billion in assets, $227 billion in real estate loans and $181.9 billion in customer deposits. Additionally, there are 2,239 branches and 43,198 employees who work at WM. This acquisition now makes JP Morgan nearly similar in size with Citigroup (C).
We should see an Indymac-related type of run on Friday at Washington Mutual retail banking centers. If I had money at WaMu, that’s what I would do, 6:00AM, just to get in line first.
Subscribe by RSS 
Subscribe by Email
Email This Post To A Friend
Weak U.S. Economy May Not Mean Weak Dollar This Time 
Month To Date Market Review - Stock Picks For Monday: Citigroup, JDS Uniphase And General Electric
US Unemployment Rate Troubling, But … - S&P 500: Market Is Strong, But Correction Should Continue
- Malaysian Market May Extend Gains - 11 mins ago
- South Korean Stocks May Tick Higher - 37 mins ago
- Taiwan Trade Balance On Tap For Monday - 1 hr ago
- Macedonia’s Jan.-Sept. Trade Deficit At US$1.61 Bln - 1 day ago
- Natural Gas Prices Extend Two-Month Low - 2 days ago
That is the most ridiculous thing I’ve read tonight. There is no need to make a run on Wamu. From what I read, this is just a merger of 2 banks and Wamu account holders now have the strength of JP Morgan on their sides. I don’t understand why I as an account holder should go pull my money.
I understand and value your opinion. However, its about perception and the view’s of millions of Americans holding billions in deposits in the largest bank failure in the history of our country. JP Morgan must assume that risk.
Obviously, you cannot tell me that there won’t be a rush of withdraw at 9AM. I can cite numerous examples this year as there have been over 300 failures since 2006.
Any account over $100K not insured by the FDIC should be removed. It’s the smart thing to do. Unfortunately, many, many Americans will not share the same view as you this morning.
Looks like your opinion was wrong. Thank goodness people didn’t listen. There was no run on Wamu/Chase Bank.