WAMU putting itself up for auction, per CNBC

[nadinbrzezinski]

and they are now talking FDIC insurance...

FUCK

ANOTHER domino comes down

[Renew Deal]

1. Everyone knew this was coming.

And anyone that left money there is a fool.

[nadinbrzezinski]

3. Look I knew the whole meltdown was coming

still does not mean I am not kind of shocked...

Still

[AlCzervik]

2. and they hold 19 billion in bad mortgages.

[nadinbrzezinski]

5. Yeah... I will miss the commercials

They are funny

WOOHOO (they use this often)

[slewfoot]

4. This would break the FDIC. N/T

[nadinbrzezinski]

8. Yep... talk about being fucked

Money under mattress comes to mind increasingly

[Renew Deal]

17. Wouldn't the best thing to do is pull money out of the bank?

Then the FDIC doesn't have to cover it. :shrug:

[nadinbrzezinski]

19. At this point I fear a run on banks will drive the final

nail

[tridim]

6. OK, at this point I want to know which companies AREN'T in trouble.

Might as well just put it all out on the table so we know where we really stand as a country.

[nadinbrzezinski]

11. This is not only the US... this is world wide

why they have been trying to hold this off... HARD

Only bright news, happening NOW and not the day after the election

[AlCzervik]

20. ok here is the leader board of losers this week so far-

http://finance.yahoo.com/losers?e=us

and AMEX
http://finance.yahoo.com/losers?e=aq

[Maven]

7. I was about to post the Times article in LBN.

Here it is:

http://dealbook.blogs.nytimes.com/2008/09/17/washington-mutual-begins-auction-to-sell-itself/

[nadinbrzezinski]

9. Go fer it

[Disturbed]

14. Can the new buyer change the Loan Contracts on Homes?

:scared:

[MissB]

21. No.

[JDPriestly]

22. The plague spreads.

[tigereye]

10. wow, it's been bizarre days in the financial sector -

what aggravates me is that they were permitted to write all these bad loans with little or no oversight and no foresight as to the disasters that would follow.

Infuckingcredible.

[nadinbrzezinski]

13. All the regulations from 1929 were removed

why we find ourselves back there

[tigereye]

24. is that true?

I know they changed the trading structure of the Stock Exchange after that to prevent a simlar stock market collapse, right?, but I really don't have much sense of what other changes have been made.


I don't know much about economics or Wall Street practice other than what I read or hear on Fresh Air, Marketplace or NPR. I do know that there were some financial companies that wisely steered clear of unorthodox loan practice/sub-prime market stuff and they are not in as dire straits...

[nadinbrzezinski]

26. Yes... Glass Steegal was removed by Phill Gramn's bill and signed

by Bill Clinton.. that started it... and the last seven years have seen the rest of them go away

Why I have said for years that the fundamentals were those of 1929 and why I am shocked to be this right now

[tigereye]

28. there was a mortgage expert of some sort on Fresh Air a while back

and he basically said that when he saw those "pick how little you want to pay per month" mortgages (I forget the term he used), he knew things had gone over the edge.

[nadinbrzezinski]

29. Smart guy

those are the last five years... starting with Greenspan... bless his heart, he lived to see his handywork

[tigereye]

30. more irrational exuberance

I forget the name of the guy - I think he wrote a book recently about the mortgage morass.



Betting Robert Reich would have an interesting take on the whole sorry mess.

[nadinbrzezinski]

31. Him and Paul Krugman

[WeDidIt]

12. Damn, this is going to damage Morgan Stanley

and J.P Morgan Chase.

[nadinbrzezinski]

16. Yep... and those who celebrate this, are idiots

:-)

[nadinbrzezinski]

15. Morgan Stanley in talks with Wachovia

for a merger

[BurtWorm]

18. I bid $1!

:bounce:

[haele]

23. From what I've read, it's the mortgage side of the company that brought it down -

The commercial side was still pretty solvent and might be what will allow them to get a "buyer" for the merger they're looking for.
But it was mainly the mortgages - as usual, poor quality mortgages approved way too quickly with not enough "insurance" built in for those locations that were going through a difficult economy and turning a blind eye to flippers - all around poor management there - that brought this thrift down.

What is it about Republicans and "Savings and Loan/Thrift" type organizations that makes such a toxic economic package? WaMu was considered a "Savings and Thrift" corporation, not a bank proper.

Haele

[Riddler]

25. Why don't they just let Sarah put them on Ebay?

[movie_girl99]

27. so should I take my money out of the bank?? n/t

[seemunkee]

32. Who is holding the mortgages of the banks that go under?

Just wondering where I'm going to be sending my mortage payment next month