Washington Mutual is next to file bankruptcey (bankruptcy, loans, buy)

[heydade]

I strongly believe Washington Mutual will go belly under in less than a year. Mark my words.

[Rose Red]

They hold a huge portfolio of Option Arms a.k.a. neg am loans. Wonder who's going to take over that load.

[goodbyehollywood]

Nobody wants their loan portfolio-- it's probably one of the worst in the industry. Somebody might buy their retail banking assets in a spin-off that can keep them afloat for a while. If they're going under, it won't take a year. They're under pressure now, and with many of their loans resetting, defaults will skyrocket. I think their fate will be decided short-term.

[wankel7]

Good. All of those option arms are just disgusting.

[skytrekker]

WaMu- belly up in a year or less? Probably sooner.

[evilnewbie]

I was thinking that it would be bankrupt sooner... I told everyone several months ago that WaMu was going to go belly up... they all laughed at me... they aren't laughing now..

[Ohs]

So what does that mean if you have a small checking account with them? You won't loose any money right, it will just be bought off by another company? How will this affect those that bank there?

[RLangben]

Is it the free checks for life that put them under?

[HappyTexan]

It's a bank..it won't declare bankruptcy..it will get taken over by the FDIC like IndyMac did.

[Ira500]

I'm thinking WAMU will be done within a month.