F. U. WaMu
Filed under: Legal Matters > Politik
The largest failure of any U.S. bank is now Washington Mutual, Inc. which was closed by the U.S. government on Thursday.
WaMu's banking assets were then sold to JPMorgan Chase & Co.
The price?
$1.9 Billion!
WaMu, which is the largest US savings and loans company, was one of the hardest hit by the recent financial crisis.
The sale of WaMu yesterday marked the largest in US history.
The Office of Thrift Supervision said, "With insufficient liquidity to meet its obligations, WaMu was in an unsafe and unsound condition to transact business."
Though it was added that customers "should expect business as usual on Friday, and all depositors are fully protected."
According to regulators, WaMu has about $307 billion of assets with $188 billion of deposits.
As for JPMorgan, it will now become the second largest bank in the country with $2.04 trillion of assets. It only follows Citigroup.
Bank of America will soon reach the top spot as soon as it completes its purchase of Merrill Lynch & Co.
With so many banks going under, it's hard to deny the economy is in the shitter.
Sooooo shiteous, bbs!
And, with Washington debating over the $700 billion bailout of the financial services industry, the crumbling of even more banks isn't helping.
Shane Oliver, head of investment strategy at AMP Capital in Sydney, says, "It removes an uncertainty from the market. The problem is that markets are in a jittery stage. Washington Mutual provides another reminder how tenuous things are."
WaMu has 2,239 branches and over 43,000 employees. It's still unclear how many people will lose their jobs.
It's a sad day for WaMu, especially considering that they've been around for 119 years!
[Image via AP Images.]
WAMU SCREWED ME A FEW YEARS BACK….FUCK THEM.
Just so you know, JP Morgan Chase has had this deal in the works for over 6 months. Secondly, WaMu should be on its hands and knees thanking JPMorgan for saving them, bad debt and all.
i work for wamu… i'm one of the 43K…
sad day for me too…
really sucks as i'm one of the many people who lost the job because of this. i USED to work for WAMU itr.
That tears it: until Obama wins, i'm taking my money and i'm hiding out in Canada. T_T
It sucks but that what happens when you try to help people achieve the "American Dream" of home ownership. Those with bad credit were extended loans, and basically given an opportunity. The economy was going so well that a person would take out a mortgage for 100% of the value of a home that was worth 300k. In a few years the value rose so quickly that you basically got 100k in equity. The bubble bursts! and all of a sudden your house is worth 200k and your mortgage is more than the actual worth, not to mention the loans you took out on your equity. This just shows the importance of credit. Credit shows how likely a person will pay back a loan. Bad credit= poor money management and lack of the ability to prioritize.
It's just sad that while it was the WaMu Mortgage side that failed, it was the retail bankinq, that had nothing to do with it, that ultimately suffered the consequences. 49,000 WaMu employees and Chase employees, whether they believe it or not, will definitely feel the weight of this and the possibility of layoffs.
Just wait until all the layoffs start, WaMu real estate becomes unoccupied,and the Interest-only options expire, the rest of America that feels immune to the current economical situation will definitely begin to feel it.