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View Full Version : WaMu taken over by FDIC last night...



rybo
Fri Sep 26th, 2008, 09:23 AM
and assets sold to JP Morgan Chase.

The financial turmoil continues with what is being called the biggest bank failure in the history of the US. Exposure to bad mortgage debt and falling consumer confidence saw deposits at WaMu shrink by 16B in the last few weeks, meaning they didn't have enough deposits to cover their loans.

As a result the FDIC took over WaMu in the middle of the night last night and sold it's assets to JP Morgan Chase. FDIC assumes the bad debt, Chase gets the good stuff.

Going to be an interesting ride for a few years...
s

MetaLord 9
Fri Sep 26th, 2008, 09:33 AM
suddenly my mattress is looking more and more financially secure of an institution...

Suki
Fri Sep 26th, 2008, 09:45 AM
i really love their commercials too...


lol

Devaclis
Fri Sep 26th, 2008, 09:50 AM
It would be pretty sweet if our mortgage just "went away" like all of the shark infested financial institution have. Will the gubbamint bail me out of my home loan?

Matty
Fri Sep 26th, 2008, 09:50 AM
So i just called WAMU to see what was going on with my account. As for now they are keeping their name, but now part of JP Morgan Chase.

should get interesting....


****** In case there are some of you that have over 6 Figures in the bank. Now is the time to figure out which financial institution is the best for you. FDIC only covers up to $100K. So if you have over that amount in one bank and that bank goes under, you will lose all your funds that are over the $100K limit. ******

There are ways to get covered over the $100k limit. if you have questions PM me. This is what i used to do for a living back in good ol' Cali.

MetaLord 9
Fri Sep 26th, 2008, 09:51 AM
well know for sure if the murder/suicide rate goes up in the coming months...

Magnum
Fri Sep 26th, 2008, 09:51 AM
Just bank at Wells, they never did these toxic mortgages like the rest of the fools.

JP Morgan Chase got a heck of a deal though!

Wamu's Loan Portfolio:

Option Arms = $52.8B
Other Prime = $52.1B
Subprime = $16B
Home Equity = $60.3B

JPM's Loss Assumptions from the list above:

$8.1B
$3.3B
$5.7B
$12.5B

Wamu's big mistake was buying long beach. Long Beach was king of subprime back in the day.

Now when the fed passes the bailout, JPM will sell all the toxic loans, grow from there and probably post huge earnings.

rybo
Fri Sep 26th, 2008, 09:52 AM
So FDIC only covers up to 100K. Wondering if people with over a 100K vested with WAMU lost some of their funds.

No, all assets were sold (includes deposits) to JP Morgan Chase who will be taking over WaMu operations on the consumer level.

s

Magnum
Fri Sep 26th, 2008, 09:55 AM
So FDIC only covers up to 100K. Wondering if people with over a 100K vested with WAMU lost some of their funds.

No all their money is safe. The OTS seized Wamu prior to a total meltdown / failure. All the money is safe.

Matty
Fri Sep 26th, 2008, 10:04 AM
No, all assets were sold (includes deposits) to JP Morgan Chase who will be taking over WaMu operations on the consumer level.

s


No all their money is safe. The OTS seized Wamu prior to a total meltdown / failure. All the money is safe.
ya i just called WAMU.... everything is good.

DFab
Fri Sep 26th, 2008, 11:14 AM
Become a communist and join a federal credit union.

Seriously though, anyone know how FCU's are handling this mess? Mine says everything is A-OK, but I would expect them to say as much.

mclarke
Fri Sep 26th, 2008, 11:15 AM
Just bank at Wells, they never did these toxic mortgages like the rest of the fools.

JP Morgan Chase got a heck of a deal though!

Wamu's Loan Portfolio:

Option Arms = $52.8B
Other Prime = $52.1B
Subprime = $16B
Home Equity = $60.3B

JPM's Loss Assumptions from the list above:

$8.1B
$3.3B
$5.7B
$12.5B

Wamu's big mistake was buying long beach. Long Beach was king of subprime back in the day.

Now when the fed passes the bailout, JPM will sell all the toxic loans, grow from there and probably post huge earnings.

O you want us to bank at WF?

AKA We Fee....

They are the biggest bunch of morons in the banking industry. I have never, ever had trouble or lack of service at any of the credit unions I belong to. But WF holds deposits for 7 days, charges you $2.00 to TALK to a banker on the phone..

I closed my account just as fast as I opened it there...

rybo
Fri Sep 26th, 2008, 11:31 AM
Become a communist and join a federal credit union.

Seriously though, anyone know how FCU's are handling this mess? Mine says everything is A-OK, but I would expect them to say as much.

Credit Unions have the advantage of being member owned, so they have to answer to their members about how the money they keep in deposits is invested. For the most part they are not nearly as exposed to the "bad" mortgage markets that are plauging other banks.

Nick_Ninja
Fri Sep 26th, 2008, 11:39 AM
Media reports about the funding difficulties of various financial institutions in the past few months and in the current economic environment, have consumers cautious about their money.

Credit Union's are a great place to stash your cash for two very important reasons that pertain to the safety and soundness of deposits.

First, a credit union operates with a safety net of capital ~ undivided earnings and other reserves. The capital cushion helps each credit union weather temporary set-backs, should they arise.

Second, the U.S. government stands behind the National Credit Union Share Insurance Fund (NCUSIF), a fund maintained by the U.S. Treasury, and administered by the National Credit Union Administration, an agency of the federal government. The "full faith and credit" of the U.S. Treasury assures that savings in each federally insured financial institution are protected up to the federal insurance limits.

Credit Unions are also examined regularly by regulators to ensure it is engaged in safe and sound operations. The NCUSIF offers an extra measure of protection for deposits in share savings, share draft/checking, money market, share term investment certificates, trust funds, and retirement accounts. In fact, not one penny of insured savings has ever been lost by a member of a federally insured credit union.

Deposits are insured up to $100,000 per account (with additional coverage of up to $250,000 for retirement accounts). It is also important to understand that, depending on the type and ownership of your accounts, you can have up to $1 million in share insurance coverage. In today’s unsteady economical environment, members of a Credit Union can rest assured that their funds are protected and safe and sound.

Kim-n-Dean
Fri Sep 26th, 2008, 11:39 AM
... FDIC only covers up to $100K. So if you have over that amount in one bank and that bank goes under, you will lose all your funds that are over the $100K limit.Actually, it's per account. You can have multiple accounts at one bank and as long as each account is under 100k, you're insured.

I take it a step further and use two banks with multiple accounts.

Edit: Well, to clarify, one bank, one credit union.

MetaLord 9
Fri Sep 26th, 2008, 11:46 AM
Sounds like a pretty conservative (and in this market, smart) plan. The only issue with that, of course, is that I'd think you'd have different interest rates on each of them and earn less over time than you would were all your money to be in the same place.

Devaclis
Fri Sep 26th, 2008, 11:49 AM
Well, I'm a big fan of money. I like it. I use it. I have some. I keep it in a jar above my refrigerator. I'd like to put some more money in that jar. That's where you come in.

Kim-n-Dean
Fri Sep 26th, 2008, 12:12 PM
Sounds like a pretty conservative (and in this market, smart) plan. The only issue with that, of course, is that I'd think you'd have different interest rates on each of them and earn less over time than you would were all your money to be in the same place.The interest rates are basically the same for my accounts. It doesn't matter if you have one million in one account at 8%, or several accounts totaling one million at the same interest rate. The end result is the same amount of interest paid.

Magnum
Fri Sep 26th, 2008, 12:15 PM
O you want us to bank at WF?

AKA We Fee....

They are the biggest bunch of morons in the banking industry. I have never, ever had trouble or lack of service at any of the credit unions I belong to. But WF holds deposits for 7 days, charges you $2.00 to TALK to a banker on the phone..

I closed my account just as fast as I opened it there...

Lol, I don't pay any fees [unless I use a non-WF ATM], I've never had to pay to talk to a banker, have never had a hold put on a check and blah, blah, blah....

The hold comes in play at most banks when it is a large dollar amount, isn't a cashiers check and you don't have enough in your accounts to cover it.

Also, I not telling anyone where to bank, I'm just saying WF did not do toxic loans so they are under the radar.

Mental
Fri Sep 26th, 2008, 12:17 PM
It would be pretty sweet if our mortgage just "went away" like all of the shark infested financial institution have. Will the gubbamint bail me out of my home loan?


Oh no. You see you saved up, shopped around, got a decent deal and manage your money well enough to stay on top your mortgage. See if you made bad desisions, killed your conciense off like an Enron exec, were ruled by greed and passed your shady debt onto other organizations while replcing your Mother's heart medication with Red Hots, you'd be eleigible.

dchd1130
Fri Sep 26th, 2008, 12:18 PM
O you want us to bank at WF?

AKA We Fee....

They are the biggest bunch of morons in the banking industry. I have never, ever had trouble or lack of service at any of the credit unions I belong to. But WF holds deposits for 7 days, charges you $2.00 to TALK to a banker on the phone..

I closed my account just as fast as I opened it there...


Yeah no crap. Last week WF held 30k in deposits. 20K of them were from WF accounts. Apparently they weren't sure those funds were available.:banghead:

Kim-n-Dean
Fri Sep 26th, 2008, 12:26 PM
This is strange!! CNN just said that if you are a WaMu customer and also have a J.P. Morgan account, and the two accounts total over 100k, you need to restructure to remain insured. Since the two banks are now one bank, they claim.

Seems to me there would be two different account numbers, so why would "restructuring" be needed?

Of course the news is always right...

MetaLord 9
Fri Sep 26th, 2008, 12:27 PM
^^And even when the news stations are right, you can usually count on CNN not to be among them.

Mental
Fri Sep 26th, 2008, 12:35 PM
This is strange!! CNN just said that if you are a WaMu customer and also have a J.P. Morgan account, and the two accounts total over 100k, you need to restructure to remain insured. Since the two banks are now one bank, they claim.

Seems to me there would be two different account numbers, so why would "restructuring" be needed?

Of course the news is always right...
OK stop right there. You are applying logic to goverment oversight. Trust me, if there is a way to not pay you, the goverment will find a way. If you don't believe me, overpay your taxes one year, see how long or even if you get the money back.

Magnum
Fri Sep 26th, 2008, 01:36 PM
I could be wrong here, but I think there is some crossed info. The FDIC insures deposits up to $100K per account holder[s]. I think they insure based off the SSN.

Meaning:

If you and your wife have 2 accounts, both accounts in both names [joint], 1 of those accounts are insured while the other is not.

No lets say you and your wife have 1 joint account, and 1 account in just here name then they are ALL insured because your SSN would be the primary on the joint account and hers o the other.

The best way to have joint accounts insured is to have accounts at multiple banks or credit unions.

This is directly from the FDIC's web site:

How much insurance coverage does the FDIC provide?
The basic insurance amount is $100,000 per depositor, per insured bank.
The $100,000 amount applies to all depositors of an insured bank except for owners of certain retirement accounts, which are insured up to $250,000 per owner, per insured bank.

Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank.

Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $100,000 at one insured bank and still be fully insured.
The following sections describe the eight ownership categories recognized by FDIC regulations and the requirements that must be met to have coverage beyond the basic $100,000 insurance amount.

Read this story, ah bummer.....:

http://www.lasvegasnow.com/Global/story.asp?S=9021326


This is from money blue book:

How Does FDIC Insurance Keep Our Bank Accounts and Deposit Money Safe?

The Federal Deposit Insurance Corporation (FDIC (http://www.fdic.gov/deposit/deposits/financial/basics.html)) is a federal government run entity that provides deposit insurance protection for participating member banks - guaranteeing their deposit accounts from loss. The FDIC system was set up to instill consumer confidence in our nation’s banking system during a time of severe economic recession and financial turmoil. To prevent massive runs on banks triggered by irrational consumer panic to withdraw money during times of crisis, the United States government set up the FDIC to guarantee depositors at insured banks that their money would always be safe, even during the worst of times.

As a general rule of thumb, the current FDIC insured amount per depositor at each bank is $100,000 (with extra exceptions for different ownership categories). This blanket protection insures member bank accounts frombank failure loss, up to the maximum insured amount of $100,000. The FDIC protection covers a variety of bank deposits, including - checking accounts, savings accounts, money market accounts, certificate of deposits (CD’s), and even bank money orders and cashier’s checks.

However, the FDIC protection does not cover non bank deposit type accounts and assets like - stocks, bonds, mutual fund investments, variable or fixed annuities, U.S. Treasury securities, or contents stored in safe deposit boxes. As FDIC insurance only covers bank failure loss, it also does not provide protection against bank fire, fraud, or theft, although in the overwhelming majority of cases, individual banks usually have their own private hazard and casualty insurance coverage against these other types of loss.

The FDIC also provides loss protection for retirement accounts held in member banks in the form of deposits. The FDIC limit for retirement accounts, which includes self directed plans like Roth IRA’s, Traditional IRA’s, SEP’s, and Keogh’s, currently stands at - $250,000. The higher FDIC limit for retirement accounts is a clear recognition by the FDIC of the importance of ensuring that consumers always have their retirement nest eggs to fall back on.

Dr. Joe Siphek
Fri Sep 26th, 2008, 01:48 PM
I want to know how many people in this club have over $100K in the bank...cause you guys should share!

Nick_Ninja
Fri Sep 26th, 2008, 01:48 PM
I won't be satisfied until I watch video of some Ivy League pencil neck stock broker, with his fat ass banker, jumping out the window of a 60 story high-rise in NYC.

Magnum
Fri Sep 26th, 2008, 02:08 PM
I want to know how many people in this club have over $100K in the bank...cause you guys should share!

$100K doesn't matter, because if you had 2 accounts at the same bank with $5K each only one account is insured. So if the bank went under you'd loose $5K on the uninsured account.

This is why the OTS has to have a leg up on the situation and should not let banks mingle in shit loans! The OTS lost its handle on it over the last 5-6 years. They were way on top of it in the mid to late 90's.

And I know first hand, because I worked for an S&L at the time and watched the OTS come into our office and boot everyone out, seize files and shut down the wholesale lending operation! They allowed the bank to continue banking operations but they shut down the wholesale channel. These where in the popular 125% days when first plus was buying everything until they went under and there was no one to buy up all the 125's originated.

Snowman
Fri Sep 26th, 2008, 02:45 PM
I won't be satisfied until I watch video of some Ivy League pencil neck stock broker, with his fat ass banker, jumping out the window of a 60 story high-rise in NYC.And you can start by pushing Jim Cramer out that window.

bikernoj
Tue Sep 30th, 2008, 02:11 PM
O you want us to bank at WF?

AKA We Fee....

They are the biggest bunch of morons in the banking industry. I have never, ever had trouble or lack of service at any of the credit unions I belong to. But WF holds deposits for 7 days, charges you $2.00 to TALK to a banker on the phone..

I closed my account just as fast as I opened it there...

I'm with you, brother. WF didn't close my checking account, never sent me any statements or other documentation, and we didn't find out until we went to buy our first house that WF had turned us over to collections for "unpaid service fees" that they kept charging us! We got it fixed, but what a PITA.

Also stay far away from US Bank. They also like to charge you for various things, as well as hold checks at random. More than once, they stole my wife's entire paycheck that way! (Bank holds check on Fri, we spend a bit here & there on Sat, bank adds massive overdraft charges on Mon THEN deposits check Tues, only to take all her money).

I will never give US Bank another rotten cent for any reason for as long as I live.

rforsythe
Tue Sep 30th, 2008, 02:40 PM
Hard to say which banks are the good ones to park money in anymore. I'm a fan of the distributed method however. Protecting yourself from a single point of failure is good on many levels, not just bank failure. (Fraud, human/computer error, identity theft, etc.)

CurtisRR
Tue Sep 30th, 2008, 04:03 PM
You can have more money in one bank as long as you have no more than 100K in each account and each account is insured with FDIC.

Here is the catch. On each account you need a different POD (payable on death). That person has no account access unless you die but with different names on the accounts each account is insured separately.

mclarke
Wed Oct 1st, 2008, 07:18 AM
Diversification is key. With your banking as well as your credit.

I personally utilize credit unions for 90% of my banking (Not a single credit union, 5 to be exact) as they tend to be protective of their money due to being member owned.

Although I do have a Bank of America account and a Chase account.