Hum

Do it again!

Wamu Dies

Ooooh shit people, hold onto your seats! A few of my friends were calling this years ago, and now it’s happening. Total economic meltdown.

Wamu, the second largest bank in America, died tonight, partly because of panicked commonfolk, though.

The U.S. government closed Seattle-based Washington Mutual amid customer withdrawals of $16.7 billion since Sept. 15, the Office of Thrift Supervision said in a statement. WaMu had “insufficient liquidity” and was in an “unsound” condition, the OTS said.

The government then closed the bank sometime tonight. I wonder if the government purposely waited until nighttime to pull this one. JPMorgan then bought Wamu’s deposits assets in an auction for $1.9B. Reports aren’t clear yet, but I think those deposits were worth at least $180B alone.

Translation: JPMorgan gets all the nice and shiny, healthy parts of Wamu, and the diseased portion remains with Wamu = Wamu is royally fucked. Your bank accounts should be safe, though, since they are owned and managed by JPMorgan, now.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLxCHDTaOaWw&refer=home


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