This is totally to instill fear into people and kick start talks on the bailout. Too much public opposition still, gotta have a BIG ASSED bank failure to adjust their attitudes.
As i wrote on another blog, the only reason GS and JPM became "banks" was to be able to pick & chose those smaller banks in trouble and strip their cash. This is how GS & JPM are going to be able to remain liquid.
To be able to pick up WAMU is a bonus, so little outlay, so much cash on deposit. The scam is getting bigger, not smaller.
regards.
Instill fear into whom, exactly? Joe Depositor is going to get his money either way...the teller will have a Chase nametag instead of a Wamu one.
Big whoop.
The common & preferred stockholders as well as "subordinated and senior debtholders", whoever they are and whatever the hell that means, are the ones getting screwed.
There should be no panic on this one. WaMu branches open as normal tomorrow, and j6p sees that the system is fine.
Only question I have is what happens to all the toxic liabilities? Vaporized into thin air, or bought up by the Fed/Treasury in yet another money laundering scheme?
Boy would JPM ever be screwed if the Wall Street Bailout (sorry I mean rescue plan) didn't go through. Actually Warren Buffet, Bill Gross and Jack Welch (a few of other corporate shills with lots of skin in the game) would be stiffed as well. I wish...
Boy would JPM ever be screwed if the Wall Street Bailout (sorry I mean rescue plan) didn't go through
The thought of Buffett and all the other pigmen getting bent over and reamed makes me happier than a baby with a new toy.
Only question I have is what happens to all the toxic liabilities?
My tinfoil hat is picking up radio signals which say JP Morgan did the WaMu deal assuming the Big Bailout was already a done deal, and, boy, now some people must be really surprised.
Actually I kind of like this, the Taxpayer suffers no cost, the depositors all make out ok, including the non inusred. The common, prefered and debt holders of WAMU are totally fucked. JPM makes out like bandit. The only liabilities it takes on are the ones it wants: Depositis.
Now the question is who holds all the debt that got renegged on. How much of it is held by other banks which will see their capital dinged big time? how much in pension funds?
El Jefe Nemo writes: I ask again, how the h*ell do you acquire the assets and not the liabilities?
It happens because the regulators will allow it to happen. If you or I tried to buy a company without buying its liabilities, we would be laughed at because we don't belong to the same fraternity. Greedy Piggy Piggy
HaHAHAHAHAHAAH...who the fug would name a bank WAMU? Sounds like Shamu. God what a pile of shit this whole sector is. So, um whats a Credit Default Swap again? Just curious?
The loans are assets. The deposits are liabilities.
It SOUNDS like they took both the assets (including bad loans at today's marks), and the liabilities (deposits), but not the debt, preferred, or stockholders claims. All that was wiped out. I'll look at their 10q.
We've just seen it once. We're going to see it a thousand times more. There will be no more bank failures only bank sales. Most people won't even notice. PR FDIC style.
In answer to the question, all money lost in this Crash will be paid by the taxpayer. So, you may as well take out the biggest loan you can with a failing bank since nobody is going to see any of the money again anyway.
So who is paying JPM - feds or treasury?
Who's the man?
first!?
Toast.
I ask again, how the h*ell do you acquire the assets and not the liabilities?
first
BOOM
So the common shareholders as well as the preferred are wiped out, correct? WM.PK is the new trading symbol?
"Claims by equity, subordinated and senior debt holders were not acquired."
who's holding those bags ?
tenth!
What is the deal with "no cost to FDIC" business? Are they only talking about the sale of the deposits? Is JPM taking over any losses there?
If so, that undisclosed sum may well be negative.
C
YouTube - banking another way
Yeah, I'd like to get a house and not have to pay for the debt myself. That's awesome!
Way to restore confidence to the market. =)
Anybody know how the deposits are split off the balance sheet of an seized bank? Seems like it would be a pretty cool accounting trick.
This is totally to instill fear into people and kick start talks on the bailout. Too much public opposition still, gotta have a BIG ASSED bank failure to adjust their attitudes.
Note: it's Thursday, not Friday......
JPM buying banks, not holding companies
As i wrote on another blog, the only reason GS and JPM became "banks" was to be able to pick & chose those smaller banks in trouble and strip their cash. This is how GS & JPM are going to be able to remain liquid.
To be able to pick up WAMU is a bonus, so little outlay, so much cash on deposit. The scam is getting bigger, not smaller.
regards.
Instill fear into whom, exactly? Joe Depositor is going to get his money either way...the teller will have a Chase nametag instead of a Wamu one.
Big whoop.
The common & preferred stockholders as well as "subordinated and senior debtholders", whoever they are and whatever the hell that means, are the ones getting screwed.
JP Morgan looking to become TOO BIG TO FAIL.
How, in a climate of our newfound love for regulation, do we allow JP Morgan and WaMu to merge?
Jesus H Christ.
There should be no panic on this one. WaMu branches open as normal tomorrow, and j6p sees that the system is fine.
Only question I have is what happens to all the toxic liabilities? Vaporized into thin air, or bought up by the Fed/Treasury in yet another money laundering scheme?
Rumor has it JPM will buy AIG by Friday!
Boy would JPM ever be screwed if the Wall Street Bailout (sorry I mean rescue plan) didn't go through. Actually Warren Buffet, Bill Gross and Jack Welch (a few of other corporate shills with lots of skin in the game) would be stiffed as well. I wish...
Boy would JPM ever be screwed if the Wall Street Bailout (sorry I mean rescue plan) didn't go through
The thought of Buffett and all the other pigmen getting bent over and reamed makes me happier than a baby with a new toy.
Go MCCAIN!
Hey pigmen, if you listen real hard, you can hear banjo music!
"Only question I have is what happens to all the toxic liabilities?"
Yeah, I'm not quite getting it either. Anyone care to edumacate us?
Theme music for da Boyz:
Paddle faster, pigmen!
Only question I have is what happens to all the toxic liabilities?
My tinfoil hat is picking up radio signals which say JP Morgan did the WaMu deal assuming the Big Bailout was already a done deal, and, boy, now some people must be really surprised.
They just hide all the toxic garbage under the TARP
Wasn't JPM already "too big to fail"?
Hello, McFly? Heellloooo...
Actually I kind of like this, the Taxpayer suffers no cost, the depositors all make out ok, including the non inusred. The common, prefered and debt holders of WAMU are totally fucked. JPM makes out like bandit. The only liabilities it takes on are the ones it wants: Depositis.
Now the question is who holds all the debt that got renegged on. How much of it is held by other banks which will see their capital dinged big time? how much in pension funds?
El Jefe Nemo writes:
I ask again, how the h*ell do you acquire the assets and not the liabilities?
It happens because the regulators will allow it to happen. If you or I tried to buy a company without buying its liabilities, we would be laughed at because we don't belong to the same fraternity. Greedy Piggy Piggy
HaHAHAHAHAHAAH...who the fug would name a bank WAMU? Sounds like Shamu. God what a pile of shit this whole sector is. So, um whats a Credit Default Swap again? Just curious?
Hey guys......
The loans are assets. The deposits are liabilities.
It SOUNDS like they took both the assets (including bad loans at today's marks), and the liabilities (deposits), but not the debt, preferred, or stockholders claims. All that was wiped out. I'll look at their 10q.
Deposits = Good = Liabilities= Known, but still liabilities. They OWE the depositors.
They had to get some assets, no?????
Sounds like they got them all. Why wouldn't they take them if they took ALL the liabilities (excl bonds)?
The FDIC didn't give them the deposits on the liability side and cash on the asset side.
Assets: Liabilities:
$283
Share
Holder
Equity
$ 26
______ _________
$309 $309
So much for spacing in haloscan
http://www.sec.gov/Archives/edgar/data/933136/000104746908009146/a2187197z10-q.htm
Assets = $309, Liabilities = $283, Equity = $26
Assets = Liabilities + Equity.
So, they get $26b in capital, minus what they paid.
However, some of the liabilities were corporate debt (bonds), not deposits, so those are gone also.
I'm sure a lot of other balance sheet items are getting treated differently, but that is the basic idea, from a Bookkeeping for idiots perspective.
End...
We've just seen it once. We're going to see it a thousand times more. There will be no more bank failures only bank sales. Most people won't even notice. PR FDIC style.
In answer to the question, all money lost in this Crash will be paid by the taxpayer. So, you may as well take out the biggest loan you can with a failing bank since nobody is going to see any of the money again anyway.
Quick question, why can't we get a provision in this bill to eliminate WINDFALL PROFITS?
Bank failure on Thursday (vs always on Fridays) to panic the public into supporting Wall St. bailout?