WaMu taken over by FDIC last night...

[rybo]

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]

suddenly my mattress is looking more and more financially secure of an institution...

[Suki]

i really love their commercials too...


lol

[Devaclis]

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]

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]

well know for sure if the murder/suicide rate goes up in the coming months...

[Magnum]

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]

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]

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]

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]

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]

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]

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]

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]

... 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]

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]

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]

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]

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]

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]

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.

[Kim-n-Dean]

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]

^^And even when the news stations are right, you can usually count on CNN not to be among them.

[Mental]

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.