another one bites the dust: WaMu gets Seized and sold...

In the largest bank failure ever, WaMu was seized by the FDIC and subsequently bought by JP Morgan Chase.

I dont have anything analytical to add to that.  Just wow.

And stay out of the stock market tomorrow please.  Unless of course you are buying some undervalued stock, then go right ahead!  The rest of you, you know who you are, who sell irrationally and bottom out the market, stay home and off of ameritrade!

Wait, what?!

Wow is right.
Thats my savings account.
Thats my mortgage.
Thats the one bank that hasnt ticked me off.

"Customers should expect business as usual on Friday, and all depositors are fully protected, the FDIC said."

Good because I expect the same service as I got from WAMU.
Oh why why why? I dont want an explanation of WAMU's history of defaulted mortgages, just why me. 

We will be moved over to Chase gradually, according to this.

 

So how long are you people going to put up with Wall Street's shenanigans before you do something about it?

Cant watch YouTube... wanna be a bit more specific?

And what would you like done?

Anyone that has a WaMu acct: this should not affect your account in any way, even ones that are NOT FDIC insured, as the bank was bought not dismantled.

This goes for any bank that goes under: up to 100K in deposits (savings and checking) is insured by the FDIC. 

And you can guarantee mortgages and other debt WILL NOT disappear.  Including credit cards. 

Cant believe this didnt garner more attention.....  it is a really big deal.

i blame the republicans :D

Sun, I have Chase with my mortgage and car loan, and they have been really good so far.  They really helped me when buying my house, and so far I have been very happy with them.  They are also one of the few mortgage companies that didn't get into the big sub prime market and made sure they were giving out good mortgages (at least from what I heard).  But so far I have been very happy with them, of course that could just be my specific mortgage guy, but still.  I don't do my banking with them so I can't comment on that, but have been happy with the mortgage aspect of it so far. 

I rolled my 401k into an IRA over into what was BankOne and is now Chase. Now I have that as well as checking, savings & credit card with them. Every branch I've gone into has treated me very well. Their online banking is fabulous. I don't think you'll have to worry about good customer service. They seem to take that pretty seriously.

debt WILL NOT disappear.  Including credit cards. 

Dang it! ;)

Ya' know.......what if we just took out our money and moved to Morroco or somewhere else? There has to be some place the U.S. dollar is still higher, eh? I'm so tempted.....

I expect more seizures and bank failures before this is over.

agree with #10

in fact the pace is about to pick up

Failed Bank List

Is there a list out there of banks that are in danger of failing? (But not failed yet?)

At some point, what if the FDIC runs short of cash?

Molly, if the FDIC had to back any one National Bank (like WaMu for instance), it would go bankrupt.

If another bank went under, then the FDIC would have to borrow money from ANOTHER bank to cover the second failed bank...

It's a never ending cycle.

Just be thankful that Chase bought WaMu.

"Is there a list out there of banks that are in danger of failing? (But not failed yet?)"

The FDIC has an internal list of banks to watch that are in danger of failing.  But, this is not released because people would freak out and try to withdraw from the bank.  The link below is a list of banks that have failed. 

Just make sure that you do not have any more then 100,000 in one account.  Diversify!  If a bank does fail, your money is safe up to 100,000 per account.

http://www.fdic.gov/bank/individual/failed/ba nklist.html

They won't, they're backed by the Fed.

to restate: The FDIC is backed by the Fed. They won't run out of money.

Chase bought WaMu because that is what will happen to all banks that fail. The assets will be scooped up by competitors. It's self-regulating.

There is a perception that we're headed for the same financial crisis that drove the Great Depression, except we have legislation in place to protect us from that very thing happening.

It's why banks are so heavily regulated. It's why the non-regulated investment banks are the ones in trouble. It's why Bank of America was able to buy up Merril Lynch.

Banks are safe, folks, we have plenty of lifeboats.

I'd be a little more wary than 'banks are safe, folks, we have plenty of lifeboats.'

Reminds me too much of the titanic. Never thought that would go under either, did they?

"The FDIC has already indicated that it may need to go to the U.S. Treasury for more capital. Some experts think that dozens of banks will fail. At the pessimistic end of the spectrum economists believe that number could go into the hundreds, if housing prices stay in a free-fall." ~BloggingStocks

"The FDIC has nearly $53 billion in insurance funds. Beyond that figure, Bovenzi said the FDIC would have go to other banks to raise more money, adding that in such a case, consumers could expect to see some of among passed on to them in the form of higher fees." ~cbsnews

"The FDIC's need for capital can come from one of two places: the banks it insures or the US taxpayer. Who do you think will get stuck with the bill? My bet is on taxpayers? With the Fannie-Freddie bill to be borne by taxpayers too, this credit crisis is looking very expensive for US consumers." ~creditwritedowns

 

I'm not stating that it's GOING to happen. Just that's it is a possibility. I'd rather be wary of it and have my eyes open than think it could never happen...

And then drown in a freezing cold ocean wondering how this could have ever happened?

It would be good to keep in mind that worse than all this was the financial crisis of the ‘80s – S&L collapse and 1,000 bank failures in 2 years. We’re nowhere near this type of thing; that was probably 50 to 100 times worse than all of this. 

I was around in the 80's for the S&L collapse and bank failures. Money was tight. Gas prices were high. Unemployment was high. It was hard to make ends meet. The Evil Empire was breathing down our necks. I survived that, I'll survive this.

However, things were not worse then. They are worse now. There wasn't as big a gap between the very rich and everyone else. The rampant greed of Wallstreet was as deregulated. Predatory lenders weren't even an imagination. Our economy wasn't primarily an import/service economy. Large numbers of people were not in danger of being evicted from their homes.

Precisely why I used the lifeboat metaphor, Nas. Unlike the Titanic, we know where they are, and how to get into them.

The FDIC will have the funds necessary to insure every deposit on account, that is FDIC insured, one way or the other. Yes, 'taxpayers' might have to pay for the lion's share, but that's exactly what will happen if the 700 billion bail-out occurs.

A bank is required to keep x amount of assets (deposits) in a ratio to the number of loans it has outstanding. When people rush the bank and withdraw, essentially overdrawing the banks line of credit, the bank is seized and either sold to another bank, or FDIC kicks in with insurance.

It's fairly fool proof, and has very little to do with the crisis on Wallstreet.