U.S. Regulators try to find WAMU Buyer

[readmoreoften]

Source: Reuters



Read more: http://biz.yahoo.com/rb/080917/washingtonmutual.html?.v=2

---

I saw it on yahoo at around 4:30am. It was buried so deeply 10 minutes later, I had to look up the stock itself to find a link to the article.

[BumRushDaShow]

1. Very few left to buy this... It's only going to get worse. n/t

[greyghost]

9. Damn straight. You know what's coming. This country better

finally, WAKE THE FUCK UP!

[Demeter]

2. It Must Have Leaked Out By Mistake

or they were taking cover from AIG.

[readmoreoften]

3. Is this new information or something? I wasn't sure.

:shrug:

Seems important.

[Just-plain-Kathy]

4. This problem with WaMu has been foreseen for months...

...a friend of my husband's told us to empty our WaMu account months ago.

[SoCalDem]

21. We took all but $41 of our money out..

Still have to cover that one "auto-check" payment, until it switches to our other bank:)
Buh-byee WaMu

They took over HomeSavings (which we liked), but we were too lazy to switch until now.:)

[ananda]

5. I thought JP Morgan Chase was going to buy WaMu.

Has that changed?

[ronnykmarshall]

13. I think they backed off.

But sounds like it might be on again.

Chase would LOVE to get into the West Coast banking market.

[demwing]

6. Read the article:

U.S. federal regulators recently called a number of banks asking if they would consider buying Washington Mutual Inc (NYSE:WM - News) should it eventually falter

Nothing about the bank going under.

[jaybeat]

7. Cute.

That's like living in Ontario (Canada) and saying, "I'm stocking up on snow shovels should it end up snowing this winter."

Nothing about it actually snowing...

:rofl:

[greyghost]

8. LOL! Wachovia is next. We're is DEEP shit here folks and Bernake

and Paulsen need to be stopped. These bail outs are only forestalling the inevitable.

[demwing]

27. Not cute, really.

WAMU is my bank. A run on deposits will be the death sentence for this great thrift. They do business like a small credit union, and I would hate to see them fail.

[readmoreoften]

31. I bank there too and I like their chumminess too. But they're done. I do believe it's over.

There stock was rated as junk a few days ago and now CNBC is saying they're up for auction.

[demwing]

32. Got a link?

I've seen rumor reports, but nothing hard.

[jaybeat]

34. Here you go...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3495588

[demwing]

36. Several problems with that report...

First, the title. nowhere in the article do the facts match the title "Washington Mutual Begins Efforts To Sell Itself." The closest we get to "begins efforts" is this quip: "has been working on several efforts to save itself, including a potential sale"

Potential. The unrealized possibility. That's pretty soft.

Second, the source. Q. Who says WaMu is in "efforts to sell itself"? "

eople briefed on the matter...” thats who! Lol. Who are these people? Why don't they want their names to be known? People briefed on the matter...that's rich.

Finally, this story doesn't really match up to your reponse that CNBC had a report that WaMu was on the Auction Bloc. No CNBC, no auction. No story.

[jaybeat]

37. Sounds like don't believe the sources when they say what you don't want to hear

*Many* reputable news articles cite anonymous sources. Do you not believe any of them, or only those that tell you what you don't want to hear. Journalism 101 says, if only one person says it, they could be blowing smoke up your ass, so you'd better not print it, but if you can get confirmation, from someone else, and the sources have been reliable in the past, blah, blah, blah... Sure, not *every* unattributed report turns out to be true, but when a lot of weather vanes are pointing in the same direction, chances are, that's the way the wind is blowing.

Goldman Sachs, which Washington Mutual has hired, started the process several days ago, these people said. Among the potential bidders that Goldman has talked to are Wells Fargo, JPMorgan Chase and HSBC. But no buyers may materialize. That could force the government to place Washington Mutual into conservatorship, like IndyMac, or find a bridge-bank solution, which was extended to thrifts in the new housing regulations.

Citigroup is also considering an offer, but would likely be able to buy Washington Mutual only if it emerged from a receivership, according to a person close to the situation. JPMorgan is maintaining its posture that it will not bid unless it receives government support, according to another person briefed on the matter.

That sounds specific and easily confirmable. Who would be surprised that *anybody* who had been "briefed" on this as a part of their job either works for WaMu or Goldman, and would lose their job in a second if they were found out. And so would the reporter, if they ran this without confirmation that they and their editors thought was reliable.

"The closest we get..."?

"Goldman Sachs, which Washington Mutual has hired, started the process several days ago" sounds a heck of a lot like "Washington Mutual Begins Efforts to Sell Itself"--how about "Washington Mutual hires Goldman Sachs to Find a Buyer for Itself"???

Sounds like Denial is also an alley off of Wall Street...

[jaybeat]

38. I guess you must think everyone else is making this up, too

Forbes
09.17.08, 5:55 PM ET

WaMu's Thrift Sale
By Lisa LaMotta

http://www.forbes.com/markets/2008/09/17/washington-mutual-sale-markets-equity-cx_lal_0917markets35.html

Reuters
Wed Sep 17, 2008 7:36pm EDT

Washington Mutual is for sale: sources
By Jonathan Stempel and Megan Davies

http://www.reuters.com/article/businessNews/idUSN1720034220080917?feedType=RSS&feedName=businessNews

New York Post
Last updated: 3:10 pm
September 17, 2008

WAMU CLOSE TO HIRING GOLDMAN SACHS TO EXPLORE SALE
By MARK DeCAMBRE and ZACHERY KOUWE

http://www.nypost.com/seven/09172008/business/wamu_close_to_hiring_goldman_sachs_to_ex_129533.htm



I'd say Chicken Little was right.

:hide:

[demwing]

39. I'd say you kind of took this personal , and I'm not sure why :)

and I'd also say that you fall back on three sources who quote "people," and who all carefully say nothing concrete at all, using terms like "could", "may", or "might."

Listen, Wamu might be shopping itself, and it might not. Until you get confirmation, it's an unsubstatiated rumor, even if three news sources repeat the same rumor.

[jaybeat]

41. I'd say you're in DENIAL, and I'm not sure why. :-(

Three news sources, all competing with each other, all (most likely) using different sources of information, trying to sus out the developments that the principles would very much like to keep quiet until they can wrap it up with a bow and put their preferred spin on it.

I get my hackles up when, even here on DU, there are people who seem intent on giving the robber barons more time to cover their tracks, pack their suitcases with Krugerrands, and hop on a plane to Paraguay. Our economic system IS falling apart before our eyes, and the sooner everyone realizes that, the better. Otherwise, we might as well have McLame appoint a "commission" to figure out "why" this is happening. We know why. Let's fix it, quick, before they steal any more of our money.

One benefit if we do fix it quick--lots of free prison labor for rebuilding our infrastructure! (CEOs on a chain gang would be a nice sight to see!)

[demwing]

42. This started as a challenge to your claim that CNBC had reported that Wamu was up for auction

And you've avoided that challenge by strawman proxy. I'm not saying, like McCain does, that the economy is fundamentally sound, I'm asking you to back your claim that CNBC reported Wamu was up for auction.

You've provided three quotes that appear to be recycling the same rumor, none from CNBC, and none stating that Wamu is on the block.

[jaybeat]

43. Get a grip. I didn't "claim" anything; you questioned the OP, I rebutted.

"You've provided three quotes that appear to be recycling the same rumor, none from CNBC, and none stating that Wamu is on the block."

Excuse me, but

:wtf:

I cited three additional articles from three different sources.

Their titles were "WaMu's Thrift Sale," "Washington Mutual is for sale: sources," and "WAMU CLOSE TO HIRING GOLDMAN SACHS TO EXPLORE SALE." ALL of these articles state that WaMu is, or is seriously exploring the possibility of, selling itself.

In case you didn't notice, I am not the original poster who started the thread. I don't have any idea why you are talking about CNBC; the article cited by the OP was on Yahoo.

You questioned the article cited in the OP because it used anonymous sources. I pointed out that lots of news reports do so, and that when (in this case) 4 outlets are reporting basically the same story, independently (as in, not citing each other, which these articles do not do), that usually means they are all on to something.

You can call it a "rumor." I call it "No shit, Sherlock."

Contrary to your assertion, I didn't "avoid" anything. I cited three additional sources whose reports supported the original article's report that WaMu is looking for a buyer.

"I'm asking you to back your claim that CNBC reported Wamu was up for auction."

Again, I don't know why you're talking about CNBC, but I did cite additional reports that supported the original article that you called into question. Since I am not, myself, an independent financial investigative journalist (are you?), I used reports from well known, generally reliable news publishers. (Not that they are always right, of course, but in this case, I have yet to hear from you or anyone else specific reasons why we should doubt all 4 reports.)

:shrug:

Wow. Why are you trying so hard to deny the obvious? Given your assertion that you are not trying to defend the McBraindead point of view that the overall economy is sound, it makes me wonder if you have a financial interest in WaMu NOT being sold? Or in people not THINKING that WaMu might be sold?

You sound like what I would imagine the WaMu PR Dept. would sound like: "Nothing to see here. Move along. Don't listen to rumors."

[demwing]

44. My Bad - I asked ReadMoreOften for a link

and you responded. I should have paid better attention to whom I was writing, I simply assumed a level of continuity that was not there. I apologize for the error, however, I stand by the content, if not direction of my post.

WaMu may or may not be for sale. There certainly is a lot of buzz in the MSM that the bank may be prepping itself. Nearly as much buzz as there is claiming that John McCain is on his way to winning the presidency.

And yes, I've already admitted I have an interest in Wamu. I bank there, and have for several years. When people make claims against the bank where I keep my nest egg, it scares me and threatens my future interests. Claiming that a bank is "done" encourages people to make a run for their deposits. If that happens to Washington Mutual, it WILL spell the end of the thrift.

I don't need your brand of enthusiasm, thank you.

[jaybeat]

46. Thanks for the honest reply; we can be free to disagree otherwise

Certainly, just because the MSM is all saying the same thing doesn't make it true. Time will tell with WaMu.

As far as my "enthusiasm" is concerned, I do feel that those who say "it is not so bad" (not you, necessarily) are doing all of us a disservice akin to those in New Orleans who said "the levies can't fail." A lot of people who are a lot smarter than I am about this stuff (and not in the MSM) are saying (independent of each other) that if we are seeing all of this shit hitting the fan above ground in such a short time, then what's going on behind closed doors is sure to be a hell of a lot worse.

A poster at The Oil Drum put it very well, I think:

Dragonfly41 on September 18, 2008 - 11:02pm

...all this blatant "changing of the rules on the fly" and overt manipulation (whereas prior interventions were in the shadows) means that there is some scary sh*t going down. The big players (large corporations and government officials) are panicking and pulling out all ammunition to keep the wolves at bay.

http://www.theoildrum.com/node/4549

:hide:

[high density]

10. What more should we expect from the NY Post?

Why is Reuters quoting the Post instead of doing their own reporting?!

[Supersedeas]

23. so the phone calls were made by the Feds...involved in 'private' bidness....just in case

[Hugabear]

11. Fuck it. It's time for a full out run on the banks

As far as I'm concerned, the US banking industry can go fuck itself. They've put themselves in this situation with their predatory practices, now it's coming home to roost.

Capitalism is dead.

[ronnykmarshall]

14. Oh gee thanks.

I guess all of us slobs that work for banks can go fuck overselves too?

[Hugabear]

16. Sorry, I'm just not feeling very charitable right now

I have money in WaMu, and I look around and see that many other banks - and credit unions - are in dire straits also. I really do believe that the banking industry has brought many of these problems on itself with their predatory lending practices.

If you don't mind me asking, what bank do you work at? You mentioned below that your bank is considering buying out WaMu.

[ronnykmarshall]

17. I'm not feeling very charitable either.

[ronnykmarshall]

12. My bank is looking at buying them.

[nichomachus]

15. Look at someone else -- we're tapped out -- we just bought AIG

[Xithras]

18. Only if they fail. I don't think that will happen.

WaMu is getting hammered, but they still have billions in reserve and are in no financial danger of failure...unless people panic and make a run on the bank. They are getting hammered in the mortgage market, but their retail banking operation is still the most successful and profitable in the nation.

IMO, a more likely scenario (and one that has been raised several times) is that WaMu will split into two companies to spin off its hemmoraging mortgage business. That will harm the holders of the mortgage backed securities, but it would protect their account holders, save their stock, and probably save the rest of the company from a buyout.

Of course, I also own several thousand shares of WM, so I may be a head-in-the-sand optimist on all this. I just bought 3000 shares a few days ago at $1.88, so I'm gambling a bit that I'm right.

[cui bono]

22. Well I just pulled out all my savings and most of my checking today.

I feel a WHOLE lot more at ease now. Going to open an account at my credit union today.

I was asked why I was taking my money out and I told the teller, she assured me it's safe, that they just had a meeting about it. Then her supervisor had to come over to sign the cashier's check and asked me why, I told her, she said nothing to worry about then asked me if she could change my mind, I said no, I felt really uneasy leaving it in WaMu right now but that I liked the bank. A beat of silence then she asked again, there's nothing we can do to keep you? I said no, from what I've been reading and the whole market collapse I just didn't feel safe. A couple beats of silence then I said, "you can vote Democratic this year". Beat of silence... I said, "the Republicans got us into this mess." She smirked and nodded slightly in agreement. A couple beats of silence, then I guess she couldn't help herself and said, "I'm a Democrat." I said good, I hope there are enough of us this time around.

[demwing]

26. I don't blame you for protecting your assetts, but...

a run on deposits will kill WAMU.

[cui bono]

30. I know, but I'm just a guppy. And I don't play the stock market for a reason.

I want control over my own finances. And I work job to job so I rely on my savings when I'm between jobs. I'm not going down with the ship, I'm one of the women and children.

It's a bit hard to not put myself first now after so many of those assholes walked from failed companies that they ran into ruin with multi-million dollar deals. I really don't feel like gambling and being in a constant state of worry to try to fix the mess they made, or just prolong the mess. Let those fuckers give back the money they made creating it.

[jaybeat]

35. Good for you for laying it out there!

Hi five for having more guts than a lot of us.

In this country, unfortunately, a lot of us are taught that it is not "polite" to point fingers, name names, or call it the way you see it. And because of that, a lot of people are allowed to walk around thinking that what they believe is completely reasonable, when in fact it is a complete and utter falsehood. Worse than that, it is a falsehood deliberately concocted to deceive, divide and exploit us.

If enough people did what you did (even when the bank manager doesn't turn out to be a Democrat), we might start to open some minds and change some long-held idiotic beliefs.

Does anyone know where I can get a T-shirt that reads, "Ask me why you should Never vote for a Republican. EVER."?

:toast:

[Yavin4]

19. WAMU are the Call Letters for My College Radio Station

Just a random observation.

[Skratchez]

20. Somewhat unrelated but...

Last year I tried to open a WaMu personal checking account. I had a check for $1000 and thought I'd get back on the grid so to speak, establish some credit and whatnot, instead of just living on cash. I go in for one of their "free" accounts and was denied. I had a passport and my social security card as identification and they told me that because the SS card doesn't have a photo or exp. date I couldn't open an account. The reason the Jr. manager told me was that they were forbidden by--wait for it--The Motherluvin Patriot Act. I cursed CheneyBush under my breath and walked out of that bank. I later went to (and this isn't an advertisement so I won't name names) another bank and they told me there was no problem with my getting an account w/ one photo ID.
Screw WaMu and all the other corrupt banks for screwing us, no one should be underwriting their bad checks. I don't get federal assistance if I screw up my bankbooks, neither should they. There was a time when bad debt meant unlimited prison sentences (19th century England for example.) Or maybe they should be sentenced to transportation, they can eat dust in Australia, although I'm sure the Aussies wouldn't tolerate their BS either.

*RANT*

sorry, just a little irritated

[demwing]

29. I had the opposite experience

WAMA has always treated me like I was a huge corporate customer, even though I'm a nobody.

[FVZA_Colonel]

24. Who else can afford to buy all these institutions?

I know there was a British bank interested in buying part of AIG, but other nations have their own problems to deal with right now. Eventually, there just won't be enough buyers out there.

[radfringe]

25. china

how much does a LEARN CHINESE rosetta stone language course cost?

[Hugabear]

48. Or Dubai

I'm sure that people in both places are watching what's going on with much interest.

[sarcasmo]

28. How low will it go? The stock market that is, one big one after another.

Kick.

[PatGund]

33. Unhappy Gund

I've LIKED WaMu since I moved to Seattle and left ShittyBank....err, CitiBank behind.

And the buyers they're looking at for WaMu??

Wells Fargo - UGH!!

Chase - UGH!!

HSBC - EEEKK!! (I had an account at HSBC-Qatar when I lived in Doha. Twich...)

[Eurobabe]

40. What's WAMU, Shamu's cousin?

[SahaleArm]

45. Folks who think Shamu is solvent are in denial.

Their mortgage portfolio (Option ARM/Subprime/HELOC) alone is enough to sink them; unless you want them to cover their losses with deposits...

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNSwdt57nTBI">Washington Mutual Hobbled By Increasing Defaults on Option ARMs

[ronnykmarshall]

47. Latest rumor is Citicorp.

I've got money in both banks. I'm gonna ride it out and see who gets WAMU.

One thought is that if Wells Fargo gets them, they will have sell off a big chunk of their branches. My bank might snatch up a bunch of them if that happens.

[jaybeat]

49. More WaMu news... not good

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3504702

[jaybeat]

50. And more...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3504725