WAMU to be purchased?

[Humanoid]

Originally Posted by k374

They should just close it down. This is the problem. Chase will acquire it and then they will be on the brink of collapse when the Alt-A crisis hits and then we will have yet another bailout for Chase!

Chase if fully aware of the Alt-A junk on WaMus books. They pretty much purchased WaMu for nothing, the main cost to them is the write-downs on these loans. They are very realistic about the future of the housing market, see:

http://calculatedrisk.blogspot.com/2...ence-call.html

But this was why nobody wanted to buy WaMu. It wasn't worth anything!

Anyhow, WaMu failed today. They never found a buyer. JP Morgan purchased WaMu from the FDIC for next to nothing. The biggest savings and loan is now gone. The only thing good about this deal is that its going to reduce panic. The FDIC didn't have the man power to properly close WaMu.

I wonder what JP Morgan is going to do with all their branches etc. I would think they would close a good number of them.

[gregandvicky]

Originally Posted by BankREO

I am on the investor call and they bought all WaMu's branch banking operations for only $1.9 billion dollars and they are getting all 5400 branches.

and shareholders get zip, zero, nado zilch

[jimmyP]

Chase pulls off another steal of the century. Amazing. They found a way to avoid the write-offs and practically stole the assets. Maybe Jamie Dimon should run the bailout

[Obrero]

I think I am going to go down to my local Wamu (whatever it's called now) and open up a 5% CD today.