[smallpoxgirl]

In all the clamor with Lehman and AIG, WaMu seems to have been forgotten. It's still out there. It's stock price still sucks. It's bonds rating was dropped to "junk" by S & P on Monday. Yet still...here it is apparently planning open it's doors on Thursday. Today, TPG, the group of loonies that gave WaMu $7 billion back in April, agreed to waive their rights and allow WaMu to either issue new stock or sell itself if a buyer can be found. How much longer does this turkey have to live, and what will be it's fate? Are the feds keeping it alive as a zombie because they can't afford to let it fail and bankrupt FDIC and Federal Home Loan Bank to whom it owes $58 billion? Discuss amongst yourselves. Woo Hoo.

[Jotapay]

WaMu seems to have been forgotten.

Man I seriously doubt that. It is right after AIG. You can only do so much in a 20 hour day when you work at the Fed, Treasury or a failing bank.

[joeltrout]

I feel sorry for Uncle Ben's family. They probably haven't seen him since he took office. He has got to be running on empty.

joeltrout

[DantesPeak]

It's going down, and being taken over all or mostly by the FDIC.

It's possible they (FDIC) will be able to sell part of the bank just before or after the failure. There's a good chance that will happen this Friday night.

The FDIC has a $30 billion credit line with the Treasury, and since the Treasury already issued $100 billion in new debt this week, the size of the loss won't prevent the FDIC from a takeover.

[Eli]

I honestly don't think it matters what happens to WAMU at this point.

It is one bank among thousands that are going to go belly up. The FDIC is done, there is no money there to bail anyone out. There are literally hundreds of regional banks that are going to fold.

There is no way out now. The Fed and Treasury may print but that still will destroy everyone's savings. But I think on the current course we are on, they will print and devalue the dollar, but do it at such a pace that people are not able to pay off debts.

Real savings will be destroyed in personal accounts and phony dollars will be handed out to the pigmen on wall street. They will get theirs.

[Jotapay]

Yeah, with one of the world's biggest financial institutions failing at a rate of at least one per week, I can't imagine what the work environment is like. I'd be bringing a case of Monster energy drinks to work every two or three days. I'm sure there has been a lot of sleeping at the office. With Dantes post showing 44% CDS rate, I don't think they have too long. I would short their ass down to $0.25 if I could.

[FreedomSlave]

I called my mother today, who is retired and has a large savings and her checking account at WAMU, and told her to pull everything out and change banks, TODAY!

WAMU may live another week or two, but it will not survive. How can it? Who wants to end up holding the empty bag? Where's the money going to come from? Or, as a customer, who wants to wait in endless lines or for endless months to see IF you can get YOUR money back, especially when so many banks will fail in the weeks to follow?

Listen, if you want to commit suicide - financial or otherwise - just go ahead and trust whatever this government and its cronies tell you to do.

We know the outcome, just not the exact timing. Like most other PO-related topics.

[Ryno]

Market perception is everything in this environment. If the market decides (or exposes) a vulnerable bank, its a ticking time bomb. Credit availability will diminish and cost will skyrocket. At the same time folks like our poster's mother will yank their accounts. Why have to deal with the FDIC after the collapse when you can bail now and move on?

I think WAMU falls more into the Lehman category than the AIG one. The Fed (and everyone else) is beseeching them to find a buyer. That will be difficult but not impossible. I say that if a buyer doesn't materialize within a week, they'll file.

[NeoPeasant]

Just let me know when I can stop sending them my mortgage check.

[vision-master]

I called my mother today, who is retired and has a large savings and her checking account at WAMU, and told her to pull everything out and change banks, TODAY!

WAMU may live another week or two, but it will not survive. How can it? Who wants to end up holding the empty bag? Where's the money going to come from? Or, as a customer, who wants to wait in endless lines or for endless months to see IF you can get YOUR money back, especially when so many banks will fail in the weeks to follow?

Listen, if you want to commit suicide - financial or otherwise - just go ahead and trust whatever this government and its cronies tell you to do.

We know the outcome, just not the exact timing. Like most other PO-related topics.

I heard the banks have 99 years to pay you off in full? 99 years! WTF. Don't worry, be happy.

[firestarter]

The longer she goes without being shutdown, the more insured and especially uninsured depositors will remove funds, thereby destroying their already tenuous reserve requirements.

I kn ow it seems like a bit much to shut em down this weekend, what with all the fear out there already, but they may have no choice.

At any rate, no way they continue in their present form beyond next weekend.