JPMorgan Wamu Deal

Quote from Trad'nUp:

I feel like an idiot for asking, but when the the OTS close WAMU and appoint FDIC receiver? Then hold a bidding process? Tonight? :eek: [/B]
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My guess is that they were waiting for a deal to materialize before annoucing the seizure. Otherwise there would have been a run.
 
Just a point of information....spoke to a bond trader friend of mine at GS, as far as stocks, common and preferred, they are worthless, but not so with the senior debt, not 100% covered but a good portion will be covered. Hope this helps some guys sleep better.
 
Trying to sort through the bondholder situation for WaMoo. If anyone spots an error or false assumption, please feel free to correct. I think it can benefit all of us to get a clearer, more accurate picture of the situation.

It appears WaMoo had approx $90B in unsecured debt. Further, it appears $55B-60B of that was to one party - FHLB (Federal Home Loan Bank). Less than two weeks ago, FHLB was given what appears to be an essentially unlimited, any-quality-collateral line of credit from the Treasury.

Assuming FHLB did the sensible thing and swapped the suspect unsecured debt for Treasuries, it appears the bulk of the blown-away debt is now held by the Treasury. This would suggest that my initial estimate that there was minimal impact on taxpayers is off by as much as $60B. :( Not sure it matters much that it's FHLB and not WaMoo benefitting from the largesse.

None of this is confirmed. If there is someone here who can confirm/correct this, I would be much obliged.
 
Quote from ASav:

My guess is that they were waiting for a deal to materialize before annoucing the seizure. Otherwise there would have been a run.
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They claim there was a pseudo mini-run of $17bil starting on 9/15. That may have been what accelerated the situation. People not using their head thinking they lived in Potterville.
 
Quote from Trad'nUp:

They claim there was a pseudo mini-run of $17bil starting on 9/15. That may have been what accelerated the situation. People not using their head thinking they lived in Potterville.
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Therein lies the rub. The idea of the bail out is repugnant to many but no bail out and John Q runs the banks and they all fail? Wadda ya gonna do?
 
you know I bought property in florida a few years ago and pay my morgage to wm.
Maybe I should just walk away from my obligations to give more debt to jpm.
If the market falls apart who gives a shit about credit
cash is king
 
Quote from Trad'nUp:

They claim there was a pseudo mini-run of $17bil starting on 9/15. That may have been what accelerated the situation. People not using their head thinking they lived in Potterville.
More...

Last Friday on the 19th, I went down to my local WAMU branch and they were having a "Customer Appreciation Day".

They were making people ice cream sundaes and root beer floats . . . You know something is up when they do that for you.

I had the root beer.
:)
 
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