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first!
Damn,
It took them this long for their Dime to drop!!
what took this foolish firm so long?
Hmmm. This is kinda like the proverbial shutting of the barn door after the horses are out...
The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.
Telegraph | Error 404 | Sorry, the page you have requested is not available cnrbs118.xml
"WaMu Halts all NegAm Loans"
Like the Guiness commercial...
Brilliant!
YouTube -
Cheers,
This is how they are going to help the 45,000 employees that have been swept along in the credit tsunami and the collusion tsunami and a long list of innovative products blessed by SIFMA, Bush, Paulson, Bernanke and every regulating body around The Globe.
Ahhhmen and thanks
So long, and thanks for all the fish!
I like it in context a bit better:
Weve carefully selected a core set of products that continue to meet the home purchasing and financing needs of qualified borrowers, while also recognizing the current mortgage lending environment, said David Schneider, president, WaMu Home Loans.
WaMus prime first mortgage product set falls into four basic categories: fixed rate mortgages; hybrid amortizing adjustable rate mortgages (ARMS); hybrid interest-only ARMS; and Home Equity products.
WaMu will discontinue all negative amortizing loan product options, and will also cease to offer its WaMu Mortgage Plus loan product.
ASTOUNDING!
I've got money (checking only) in that bank.
I am sooooo happy to see how quick on the uptake they are. Now THAT is the kind of forward-looking management the shareholders have a right to expect.
I am sure that investors feel that every penny of those ginormous pay packages is justified.
I can say with all sincerity that I hope these titans of industry get exactly the reward they have earned.
Re: WaMu will discontinue all negative amortizing loan product options, and will also cease to offer its WaMu Mortgage Plus loan product.
WaMu Mortgage Plus, a home loan product that combines a first mortgage AND home equity line of credit into a single loan. With an unprecedented bundle of features including no closing fees, instant access to equity and the ability to reset the interest rate on the mortgage twice a year, the WaMu Mortgage Plus home loan is likely to be the only loan a borrower will ever need.
WAMU Mortgage Plus gives customers a simple way to get cash for remodeling projects, college tuition or debt consolidation.
WAMU Mortgage Plus will charge customers $250 each time they reset terms of their mortgage home equity loan, up to twice a year, though the first reset will be free. There is no cost to switch from a fixed rate because it is believed to be the safest option as oppose to an adjustable rate.
Damn!
safe_as_apartments,
LOL
So long and thanks for all the fish:
YouTube - So Long and Thanks for all the Fish
Cheers,
Wait, I have fish:
YouTube -
YouTube - Under the Sea
Sure, now that all the horses have left close the doors.
404 Not Found
"According to one Seattle WaMu employee who declined to be named, the bank's information technology department will be cut by about 50 percent"
And I haven't seen it reported yet but Wells Fargo began layoffs this week.
Maybe they are getting clearing some desk space for the FDIC on Friday?
ot- nikkei off 2%. They got the memo.
Just Imagine what news will be from this group on a Non Friday the 13th.
jo6pac
I am going long on security firms that protect Bank executives.
Boo Hoo?
ot- nikkei off 2%. They got the memo
NZX is down for the 7th session in a row, we wrote the memo...
WAMU doesn't exist anymore. More chicken with its head cut off stuff.
Nothing to see here. Move along.
"The market has been reminded about weak elements in the U.S. economy and feels hesitant now about buying the dollar," said a trader at a Japanese trust bank.
The dollar edged down 0.2 percent to 107.65 yen, pulling further away from a four-month high of 108.59 yen struck earlier this week.
I can't even find WM on Bankrate so I can't determine the rating it is given. Since it isn't making any money and the stock has sunk to about $6 I would judge it a goner. Same for Fifth Third. BBT doesn't look too healthy either. Tisch was right, I think. Stay away from banks and financial institutions for now.
Today's manufacturing data may prompt yet more dollar selling,'' said Michiyoshi Kato, a senior vice president of currency sales at Mizuho Corporate Bank Ltd. in Tokyo, a unit of Japan's second-largest publicly traded financial group.With the U.S. economy still slowing, the Fed cannot raise rates this year.''
A heightened sense of risk aversion is coming back into the markets,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto.There seems to be a general move back into the safe havens.''
Crude oil for July delivery traded at $136.24 a barrel from $136.68. The price reached a record $139.89 a barrel on June 16. The correlation of the dollar versus the euro and oil prices is minus 0.93 for the past year, indicating they move in the opposite direction 93 percent of the time, according to Bloomberg calculations based on value changes.
A weakening dollar has contributed to China's inflationary pressure by pushing up commodity prices around the world, said the country's central bank governor.
A calculated risk is better than risk aversion.
Chapter One: WaMu Halts all NegAm Loans
Chapter Two: Wamu Halts reporting Profits
Chapter Three: Wamu Halts Paying Employees
Chapter Four: Wamu Halts Being Going Concern
Chapter Five: Wamu Pays Out Large Bonuses to Executives Who Helped Manage The Great Halting.
Re: Terms-of-trade shocks are captured by changes in the real price of oil, which is computed as the US-dollar oil price converted into yen and deflated by Japanese wholesale prices.
Relative Govt spending as a ratio of GDP = The real interest rate computed as the nominal 10-year bond yield minus the consumer price inflation rate in the previous year.
The differential is defined as the euro area minus the Japanese breal interest rate
I can't wait till they hire some ad company that does a reversal of the group of old guys/new guy commercials.
Anonymous above,
I saw something the other day that indicated that there were concerns about artificially inflated house prices as early as 2001. Some new FHA rules came out to limit flipping schemes, specifically mentioning the ones where lenders were colluding. It apparently didn't help.
They suspended the rules this week. I guess it's ok for lenders to artificially inflate foreclosure prices now.
WAY OT, but please forgive me, I'm in shock and have to post this. San Diego gasoline (specifically, the Shell station in Hillcrest) is selling premium for $5.05 per gallon today.
I knew we'd hit $5 a gallon soon, but I thought it'd be at least July...
The central bank has set the yuan central parity rate at record 6.8796 to the dollar, according to the China Foreign Exchange Trading System.
Business finance news - currency market news - online UK currency markets - financial news - Interactive Investor
Boil the frog slowly grasshopper.
OT on WM:
The Dollar-Oil Relationship
The Dollar-Oil Relationship - MarketBeat - WSJ
The correlation between the euros strength against the dollar and rising crude oil prices has definitely increased but it has never been particularly strong. Marc Chandler, head of currency strategy at Brown Brothers Harriman, says that the weekly percentage change in crude oil was correlated with the change in the euro against the dollar about 20% of the time for the past five years.
Thats not that high better than a totally random relationship, but hardly conjoined twins. . But over the past six months, the daily change has correlated 40% of the time, and for the past three months, 57% of the time.
So what traders are seeing anecdotally is indeed true the dollars daily movements against the euro has been at odds with oils movements 57% of the time, a reasonably high level of common movement. Such analysis becomes self-fulfilling at times: witness Fridays fall-off in the dollar and the $10.75-rise in crude oil, set off by Mr. Trichet.
**So sorry for interuption of WaMu caning...
Chris,you won't find WAMU on Bankrate because it is not a bank.
In an "extremely unusual" move, WaMU goes to bat for Rep. Richardson
In an "extremely unusual" move, WaMU goes to bat for Rep. Richardson | L.A. Land | Los Angeles Times
Just when you thought you were safe from news about U.S. Rep. Laura Richardson, Democrat of Long Beach: The Daily Breeze reports that her lender, Washington Mutual, is trying to help her get her foreclosed house back (That's the house at right, located in Sacramento).
Yes, Laura. Take it back, because no way in hell we can unload it.
Jes:
Several analysts had predicted $5 regular unleaded nationwide by July 4. However, that was before ethanol prices skyrocketed from the floods in the Midwest. Sorry. Still $3.80 in Charleston (SC).
"I knew we'd hit $5 a gallon soon, but I thought it'd be at least July..."
Been that way for over a month in some part of the valley. Suck it up, wars ain't cheap and they damn sure ain't free.
Luckily the house isn't in Carmel, because Clint Eastwood would show up and ask "Are you feeling lucky, Laura?" Then, he would shoot her with his .44 Smith and Wesson.
Renterfornow writes:
what took this foolish firm so long?
That was my first thought. But, if they had investors willing to buy that toxic paper, whose to question WAMU. So, more to the point, who were the in the dark investors that continued to buy that toxic paper two years after the rest of world finally recognized it as a problem?
JD,
Institutional money, by definition, is dumb money. A fool and his institutional money is easily parted.
Re: "hen, he would shoot her with his .44 Smith and Wesson."
No, first he would say, "are yah feeling lucky....punk", then shoot her.
Laura isn't a punk, she is in the CA Congress. Wait a second, she is a punk.
Brace for other shoe to drop in mortgage mess, some warn
Borrowers one tier above subprime could produce next wave of defaults
Page not found- msnbc.com
A record $400 billion in alt-A loans was issued in 2006, according to data by specialty publisher Inside Mortgage Finance, cited in published reports. Alt-A accounted for 13.4 percent of all mortgages offered that year. Hanson said lenders first started pushing them in 2005 as a way for buyers to combat skyrocketing prices and continued issuing them into 2007 despite the subprime concerns.
Some of the largest issuers of these loans were IndyMac Bank, Washington Mutual Bank, Countrywide Financial and World Savings Bank (now part of Wachovia Corp.).
As of January, California has more alt-A loans than subprime loans on the books -- about 728,000 alt-A loans and 496,000 subprime loans among 12.2 million housing units -- according to data from a division of research firm First American CoreLogic Inc., posted on the Federal Reserve Bank of New York's Web site. The division, LoanPerformance, reported that 83 percent of those California alt-A loans were granted with little or no documentation.
I wonder if Laura swam away on account of her thong injury from Victoria's Secret. BTW, I tried on a thong and now I cannot have kids. It is a better world because of it.
"who were the in the dark investors that continued to buy that toxic paper two years after the rest of world finally recognized it as a problem"
Arabs and they are going to make sure they get back every damn penny with interest.
Thanks, Anonymous, that is enlightening. Maybe next time you can tell us water is wet.
Interesting page:
Mortgage Data Help Paint Foreclosure Picture
Mortgage Data Help Paint Foreclosure Picture - e-Perspectives - Volume 8, Issue 1, 2008 - FRB Dallas
San Diego gasoline (specifically, the Shell station in Hillcrest) is selling premium for $5.05 per gallon today.
that is because shell is foreign, and is punishment for allowing same sex marriage in Califonia.
me thinks that people that continually cut and paste links and stories should get their own blogs. But, I'm nobody, so just disregard my thoughts.
Re: "me thinks that people that continually cut and paste links and stories should get their own blogs."
Your speaking of CR & Tanta @ Calculatedrisk right? (See every story posted on this blog)
me thinks that people that continually cut and paste links and stories should get their own blogs
Some of us do.
See click link named "Home".
JD,
Is cut and paste of comments from other threads acceptable? I've just made a suggestion for a music video starring Conjure Bag here: HaloScan.com - Comments
In other banking news,
Customer foils bank robbery attempt...with his own handgun
Customer foils bank robbery attempt in Canton Township with his own handgun | Ann Arbor News Archives - MLive.com
~sorry JD
I thought it was ok if it's after hours...
Great old copy paste!!!
First American CoreLogic Releases March 2008 LoanPerformance House Price Index
Monday June 2, 8:32 am ET
- Forty Two States Show Decline in Past Three Months -
Expired
Great JPEG copy paste:
http://www.loanperformance.com/assets/images/pr0508_12mo_lg.jpg
Can anyone spot WaMu?
If you go to that map, the green states are the ones McCain may win!
(original copy, belongs to me)
OT: Paulson to ask Congress for greater Fed Power
- NY Times
I think Paul is embarrassed by his son.
Paulson should ask for more hair and brains
He did, but they have him money instead.
Thanks for the link, I had to watch Lassie, Skippy, and Punky Brewster too.
Punky Brewster reruns are my weekend. Different shoes. Genius.
Remember that episode where Flipper had to take a case of vodka and a handful of CDOs from Lehman to The Fed Discount window, but he (she) was kidnapped by an Arab lobby consortium that was selling oil on the black mkt??
"
The money isn't created out of thin air; at some point the bank gave money to the borrower to buy something "
Nick - Thank you for your answer, but I think maybe I do not understand enough about accounting. I am going to reread your answer and see if I can better understand it.
But, it is my understanding that the money is created out of thin air. The bank is able to loan out more money than they actually have on deposit or in reserve. The money does not exist until they make the loan. So, it is created out of nothing, or thin air or whatever. It is just an created electronic entry, and since it is listed as an asset, must not it also have a corresponding entry as a liability?
In accounting, I never could get those credit/debit columns to add up. I guess I should have gone into banking.
"The money isn't created out of thin air; at some point the bank gave money to the borrower to buy something ... "
Nick - Thank you for your answer, but I think maybe I do not understand enough about accounting. I am going to reread your answer and see if I can better understand it.
But, it is my understanding that the money is created out of thin air. The bank is able to loan out more money than they actually have on deposit or in reserve. The money does not exist until they make the loan. So, it is created out of nothing, or thin air or whatever. It is just an created electronic entry, and since it is listed as an asset, must not it also have a corresponding entry as a liability?
will wamu make it? it's share price is at $6 already, wonder if FED is going to step in if it gets into real trouble.
Two more thoughts on this link: Expired
Add another 8 states to that list in about 3 months
Add another 20% decline to every city on the list
The "learning phase" from the credit crisis that overtook financial markets in 2007 is just starting and will take some time, Yellen said in brief remarks kicking off a San Francisco Fed conference on Asia's changing role in global finance.
Fed's Yellen -- Market conditions still not normal
| Reuters
Senate Submerged in Mortgage Scandal
Senate Submerged in Mortgage Scandal - Hannity - FOXNews.com
SEAN HANNITY, CO-HOST: That was Connecticut Senator Chris Dodd, one of two Democratic senators implicated in the Countrywide financial mortgage scandal. Now Dodd and North Dakota Senator Kent Conrad were accused of accepting sweetheart deals from Countrywide.
In a Wall Street Journal editorial, while both men denied the allegations, Conrad did admit to asking the CEO of Countrywide for a loan.
Joining us now is the man who's looking into launching an investigation, Texas Republican Congressman Jeb Hensarling is with us.
Not a bad story really!
HENSARLING: Well, it's really quite simple, Sean. I mean, millions of Americans are struggling to pay their mortgages. They have a right to know whether members of Congress receive sweetheart deals in order to pay for theirs. I mean, it's really quite that simple.
And now, now, tomorrow, the Senate is going to vote on what could be a $300 billion bailout bill for the largest mortgage lenders in America. And you want to know what did the sweetheart deals have to do with that legislation that could cost people millions of dollars and increase their taxes?
HANNITY: All right. Now we know on occasion Jim Johnson and this is the same Countrywide that Barack Obama criticized: "These are people responsible for infecting the economy and helping create a home foreclosure crisis." He personally took on the CEO, Angelo Mozilo.
And yet can you go into the specifics of Conrad and Dodd and the preferential treatment they had that resulted in Jim Johnson having to get off this VP vetting committee?
My opinion is that politicians like meat at a cattlemen's coference, and they like green beans at a vegetarian's conference.
And, when they need a fork, they just use their tongue.
Real Estate Realities- Ben Stein
"The housing market is clearly hurting but for patient buyers the present time offers a rare and enviable long-term opportunity"
Back to oil and a great copy paste:
Offshore drilling: a few useful facts
The Oil Drum
The U.S. Energy Information Administration (EIA) recently did a detailed study of the likely outcome of offshore drilling for their Annual Energy Outlook 2007, Impacts of Increased Access to Oil and Natural Gas Resources in the Lower 48 Federal Outer Continental Shelf (OCS). The sobering conclusion:
The projections in the OCS access case indicate that access to the Pacific, Atlantic, and eastern Gulf regions would not have a significant impact on domestic crude oil and natural gas production or prices before 2030.
Ben Stein should have packed it in after Ferris Beuller. Since then, it's just been a pathetic display of incompetence.
What do a cheeseburger and Washington Mutual shares have in common? You can buy both for $6.26. Yes, Washington Mutual, the largest savings and loan in the U.S. is priced at $6.26.
At this point, a cheeseburger seems like a much better investment.
I like to think that WM and a gallon of gas will be on par in the next month
I like cheeseburgers, but I get doubles for a buck at McDonalds. Char needs to let prices fall 600% or so.
95 cents a cup for oil?
Peak Oil Media: Simmons Says Raised Saudi Oil Output Is 'Drop in Bucket' on Bloomberg
The Oil Drum | Peak Oil Media: Simmons Says Raised Saudi Oil Output Is 'Drop in Bucket' on Bloomberg
Washington Mutual and many of the other national and regional banks failed to predict that their most profitable revenue streams would vanish poof overnight. Even worse, the collateral that was backing all these profitable loans is worth 30% less now. What happens to banks stuck with foreclosed properties that can't sell with a $600,000 mortgage covering a $300,000 house?
Got reserves? Hope those free checking accounts and retail outlets can make up the difference.
95 cents a cup for oil?
Peak Oil Media: Simmons Says Raised Saudi Oil Output Is 'Drop in Bucket' on Bloomberg
Hairballs & oil
My number one problem with Simmons pitch is his comparison of oil to other liquids. being 90c acup, or it's equivalent price in milk, water, detergent, etc....
IF oil is an input cost to all those items, whether it be manufacture or transport, then the price of oil will always be cheaper than those items on a per oz basis, as it should be. without a markup on cost, there would be no profit
sleeping,
Yah, he is a creep and I assume he wants to have us think that we should have Starbuck-priced cups of oil, i.e, $4.00 a cup?
With the 10 yr rising the way it is, the FED could rise 50bp and still be accomodative(though I'd only go 25bp now)
Not hiking at this point is a de facto cut.
Yah, he is a creep and I assume he wants to have us think that we should have Starbuck-priced cups of oil, i.e, $4.00 a cup?
While his presentation was a bit off, the economics of the situation of $5 gas is that if you're down to your last $5, are you going to buy a gallon of gas or that skim double-shot Starbucks venti latte?
The utility/$ of gasoline is still a bargain. We've just gotten used to a reasonably surplus capacity price regime these past 50+ years (or 20+ years if you want to go with the North Sea oil finds).
The new price regime isn't going to be so fun.
What do a cheeseburger and Washington Mutual shares have in common? You can buy both for $6.26. Yes, Washington Mutual, the largest savings and loan in the U.S. is priced at $6.26.
I can haz bank share?
What are the chances that WaMu will forget to cash the checks I send them monthly after they go kablooey?
I can haz bank share?
classic!
WM/cheeseburger comparison: at the end of the day, they'll both end up as turds swirling around in the bowl when you flush.
Too bad "Walk-over-yah" didn't get the memo about the Housing Bubble ending. I was stunned yesterday when I saw a TV ad for their "pick a payment" loan, with fun options like interest-only payments, or even "minimum monthly payments" (like a credit card.) How can any bank still be making loans like this?!
that is because shell is foreign, and is punishment for allowing same sex marriage in Califonia. More likely they're being punished for waiting so long. Same-sex marriages have been legal in the Netherlands* since April 1, 2001.
*The company's full name is Royal
Dutch Shell.
Any advice for a customer of WaMu who is a borrower? They hold the first (conventional, conforming 30-year fixed)on my primary residence.
Honestly I don't like blog. Second, is its useless for and third maybe for some other reasons it could be a help for other but not that helpful as what you think. It only talks a bout is loans. But I don't get what your talking of.