Fascinating. If they wipe out the bond holders, they have lawsuits, they trigger the CDSs and they make people dump questionable debt in banks tomorrow...
What about WaMu's biggest creditor- the Federal Home Loan Bank? They made whole? do they get to hold onto whatever (crap) collateral Wamu gave them? do they get squat like other creditors?
This is precisely why other countries have votyes of no confidence and throw the 19 percenters out the door.
No matter what happens, this has been a clusterf&*k.
Politics, hubris, maniacal self centered sociopaths on all sides...this country has become a JOKE.
And now we have this, open? Closed? Bankrupt? Not? How to cause a bank run...if they weren't going to close it down they're going to probably have to now.
and if anyone thinks the "house Republicans" are going to back down now, you've lost your mind. They are not playing unless they get MAJOR perks...can't blame them. It's the way this has been working for eight years...
From the language they are using on the CNBC site, the FDIC is going to "seize" WAMU. Same term as with IndyMac and the others that failed. Basically they are BK and will be selling some of the assets to JPM.
So from that, I'm thinking WAMU bondholders are toast-o-rific.
I saw Diana Olick on CNBC and she said that the house republican plan stresses wall street to pay for the bailout and use insurance provided by the US government paid for by the private sector. At least needs to be heard and fleshed out.
She also said Nancy Pelosi said the authority to decide which plan is best resides with paulson!
Wrong Nancy, it resides with the US taxpayer and by extension our elected officials. Paulson has already said in last 1 minute since I started post the old plan is better. Why does he make policy now? I am betting on fireworks on the political and financial front tomorrow. I have swords but no guns!
WSJ: Federal regulators seized Washington Mutual and struck a deal to sell the bulk of its operations to J.P. Morgan in what is by far the largest bank failure in U.S. history. Regulators said WaMu has suffered an exodus of $16.7 billion in deposits since Sept. 15, leaving the Seattle thrift "with insufficient liquidity to meet its obligations."
U.S. regulators are looking into credit derivatives as they investigate market manipulation, and some lawyers believe the government is looking at whether traders have used the products to help push banks closer to insolvency.
The notion of bipartisan fast action with no holdup on details was absurd from the beginning. No equity, no deal. No deal if it includes equity. So who is holding it up with extra demands? I've done a lot of mediation. It's all perspective, but it beats violence.
FDIC might not be on the hook here...Remember there is $26 billion of equity and $30 billion of debt to blow through before we have to worry about the deposits...depends how bad the assets are
Come to think about, if you were leveraged 30:1 you probably didn't care about shareholders at all, so why worry about an equity dilution on existing shareholders now.
Calculated Risk wrote:
"Is it Friday? I'm confused. If this is accurate, CNBC jumped the gun ... I don't think the FDIC is going to be happy."
Some of these events are accidents. HP doesn't have a master plan. Not at all. These guys have been putting out fires for over a year, and they still screw it up.
The $700 Paulson Plan was supposed to be done by now. But too many phone calls, e-mail messages, and Shelby held it back...
...forcing the PPT to scramble.
Don't give them more credit than they've earned, ha ha ha. They were trying to avoid a meltdown, but they failed. Now they are trying to minimize the damage.
(If you need more evidence, keep in mind that a black man with a populist base was never supposed to be the Dem candidate. They screwed that up, too. Cool!)
My guess, for whatever it is worth, is that the bondholders are SOL. I think JPM just bought the deposits, why would they want anything else? I bet the feds brokered this deal b/c WaMu was too big for FDIC to handle.
I hope they stop this chick on CNBC for the conference call, because she is annoying the hell out of me.
JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation. All depositors are fully protected and there will be no cost to the Deposit Insurance Fund.
"For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," said FDIC Chairman Sheila C. Bair. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning."
JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired.
"WaMu's balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses," Bair said.
Washington Mutual Bank also has a subsidiary, Washington Mutual FSB, Park City, Utah. They have combined assets of $307 billion and total deposits of $188 billion.
Thursday evening, Washington Mutual was closed by the Office of Thrift Supervision and the FDIC named receiver. WaMu customers with questions should call their normal banking representative, service center, 1-800-788-7000 or visit Apache 2.0 instance 0 website httpd The FDIC's consumer hotline is 1-877-ASK-FDIC (1-877-275-3342) or visit FDIC: Federal Deposit Insurance Corporation
Here is the link. Trust me, I know the normal path to resolution.
CNBC reported Wamu to pass from OTS to FDIC to J.P. Morgan for $1 Billion, with stockholders and debtholders wiped out. In the normal P&A, the FDIC gets the $1 Billion, and J.P. Morgan takes whatever....insured deposits, all deposits, all or some branches, generally cash and agency securities.
With Wamu's Alt-A and HELOC portfolio, who would want their assets? Moreover, look at their funding? Who is going to payoff FHLB borrowings? Clearly a lot to discover in the next few hours.
21:05 26Sep08 RTRS-U.S. REGULATOR SAYS JPMORGAN ACQUIRES WASHINGTON MUTUAL BANK
21:06 26Sep08 RTRS-U.S. OTS SAYS ACQUISITION WILL HAVE NO IMPACT ON WAMU'S DEPOSITORS, CUSTOMERS
21:08 26Sep08 RTRS-US OTS: WASHINGTON MUTUAL BANK HAD $188.3 BLN IN DEPOSITS, DESCRIBES AS $307 BLN INSTITUTION
21:10 26Sep08 RTRS-US FDIC SAYS JPMORGAN ACQUIRED WAMU ASSETS, PAID $1.9 BLN
21:11 26Sep08 RTRS-US FDIC'S BAIR SAYS TRANSACTION IS "SIMPLY A COMBINATION OF TWO BANKS"
21:12 26Sep08 RTRS-US FDIC SAYS CLAIMS BY EQUITY, SUBORDINATED AND SENIOR DEBT HOLDERS NOT ACQUIRED
Thursday nite and I'm sitting here listening to the pregame show?
Ringside to the coliseum has been superb, but now I feel like I'm listening to the commentators while the ref reviews the play or Joe Theisman gets carried off the field.
"JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired."
Ha, in actuality JP Morgan, and their brilliant leader Jamie Dimon purchased their deposits. So they purchased their "good" liabilities and client relationships. Brilliant move on Dimon's part. In fact, the only financial stock I would buy is JP Morgan.
Of course the shareholders bondholders and so forth are absolutely and completely wiped out. Not one cent. In fact every penny Dimon paid goes to the FDIC. This is outstanding. Whoever is running FDIC need a pat on the back for this one!
Jesus christ people, learn some accounting..bondholders know going in they are junior to the deposits...this sort of thing can happen. I'm shocked that Jaimie is taking on board all of the shitty ARM assets, though
JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired.
21:13 26Sep08 RTRS-US FDIC SAYS NO LOSS TO BANK DEPOSIT INSURANCE FUND FROM WAMU TRANSACTION
21:13 26Sep08 RTRS-US FDIC SAYS THURSDAY EVENING, WASHINGTON MUTUAL WAS CLOSED BY THE OFFICE OF THRIFT SUPERVISION AND THE FDIC NAMED RECEIVER.
21:14 26Sep08 RTRS-US FDIC SAYS THERE WILL BE NO INTERRUPTION IN WASHINGTON MUTUAL SERVICES AND BANK CUSTOMERS SHOULD EXPECT BUSINESS AS USUAL COME FRIDAY MORNING
03:15 26Sep08 RTRS-US FDIC SAYS JPMORGAN CHASE ACQUIRED THE WAMU ASSETS, ASSUMED THE QUALIFIED FINANCIAL CONTRACTS AND MADE A PAYMENT OF $1.9 BLN
C. Scotto, liabilities are a source of funds. Banks can lever 20X, so equity is minuscule. "Core" deposits (liabilities to the bank) of faithful long-term customers are very valuable as a stable source of funds.
Subcomandante Cannabis writes:
Serious question: I usually get pizza in honor of Bank Failure Friday. Do we still get one or is this it?
Subcomandante Cannabis | Homepage | 09.25.08 - 9:21 pm | #
Serious question: I usually get pizza in honor of Bank Failure Friday. Do we still get one or is this it?
Subcomandante Cannabis | Homepage | 09.25.08 - 9:21 pm |
Cynical Yes writes:
Ha, in actuality JP Morgan, and their brilliant leader Jamie Dimon purchased their deposits. So they purchased their "good" liabilities and client relationships. Brilliant move on Dimon's part. In fact, the only financial stock I would buy is JP Morgan.
~~~~~~~~~~~~~~
Jamie is head of Bankster Inc . He has been paid for just about every deal he has taken ...
"WaMu's balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses," Bair said."
C. Scotto, liabilities are a source of funds. Banks can lever 20X, so equity is minuscule. "Core" deposits (liabilities to the bank) of faithful long-term customers are very valuable as a stable source of funds.
skewed | 09.25.08 - 9:21 pm | #
Thanks Skewed - I still don't get it. Seems like all they bought is a bunch of IOUs for all the savings and checking accounts that Wamu has.
Did this really need a new thread?
I can't find any details. WaMu is still open ...
Best to all.
furst?
New threads are good. CR's thread comments run into hundreds nowadays.
El Jefe Nemo, I think so. The FDIC will probably announce this in 20 minutes...
Best Wishes.
BR writes:
New threads are good. CR's thread comments run into hundreds nowadays.
BR | 09.25.08 - 8:48 pm | #
In a few minutes sometimes - whoa.
Nice job CR.
The question is whether and how they are going to screw the bondholders without a declaration of bankruptcy.
Can J. Wa MuBeargan actually acquire the assets and ignore the liabilities? Or will the Fed somehow pick up the liabilities?
Fascinating. If they wipe out the bond holders, they have lawsuits, they trigger the CDSs and they make people dump questionable debt in banks tomorrow...
So... there must be something else going on.
Huh? Did Wamu fail or not? I'm freaking confused.
Somehow I think this is why they wanted 700b so damn fast.
Peter-san --
I agree. I suspect the rumors about wiping out the bondholders are false.
If they turn out to be true... Well, good night Irene.
I can't read as fast as CR updates. I'm pretty sure there are three dudes posting as CR.
Comrade Tech Sargent Chen writes:
Somehow I think this is why they wanted 700b so damn fast.
Comrade Tech Sargent Chen | 09.25.08 - 8:51 pm | #
Somehow, I think this is happening BECAUSE they want the $700BB so fast.
Did Wamu fail?
Does it really matter?
I just want to know what happens to their rotten portfolio.
CSC --
Relax. Have some cookies. Click "reload" when the spirit moves you.
Tonight should be a good show.
What about WaMu's biggest creditor- the Federal Home Loan Bank? They made whole? do they get to hold onto whatever (crap) collateral Wamu gave them? do they get squat like other creditors?
speedy passage tomorrow of bailout bill, I call this some congressional encouragement.
Nothing here:
FDIC: Failed Bank List
How come WAMU was able to keep mutual in its name--that word used to have a specific meaning--not to be used by a stockholder owned company.
Calculated Risk writes:
El Jefe Nemo, I think so. The FDIC will probably announce this in 20 minutes...
Did you really need to call Nemo Chief Nemo!
.....
This is precisely why other countries have votyes of no confidence and throw the 19 percenters out the door.
No matter what happens, this has been a clusterf&*k.
Politics, hubris, maniacal self centered sociopaths on all sides...this country has become a JOKE.
And now we have this, open? Closed? Bankrupt? Not? How to cause a bank run...if they weren't going to close it down they're going to probably have to now.
unreal.
Is it Friday? I'm confused. If this is accurate, CNBC jumped the gun ... I don't think the FDIC is going to be happy.
Best to all.
Paulson needs the $700 Billion Bazooka.
And to think my wife is making me go to a "New Season of the Office" party!
Nemo that anon above was me and I was kidding!
.....
and if anyone thinks the "house Republicans" are going to back down now, you've lost your mind. They are not playing unless they get MAJOR perks...can't blame them. It's the way this has been working for eight years...
every man for himself
disgusting
Gasparino strikes again?
ades writes:
And to think my wife is making me go to a "New Season of the Office" party!
I feel compelled to race down there with nuggets. I could never do that straight.
CR writes: If this is accurate, CNBC jumped the gun ...
hey everyone wants to be first!
thank god we cant short them that would have made it extra interesting...
.....
Seattle times has a story up...
My bets on an announcement by FDIC at 9.
CSC, LOL! I appreciate the compassion....
It's Friday here in Australia - that's good enough
Hey, does anybody else hear a ticking sound?
BTW - someone on a previous thread asked for a different category for something worse than "Too big to fail".
I suggest "Too big to bail".
crispy&cole, Seattle Times doesn't add any detals: End is near for WaMu, reports say
We will know more very soon.
Best Wishes.
we're all australian then!
whew....I feel better
From the language they are using on the CNBC site, the FDIC is going to "seize" WAMU. Same term as with IndyMac and the others that failed. Basically they are BK and will be selling some of the assets to JPM.
So from that, I'm thinking WAMU bondholders are toast-o-rific.
El Jefe Nemo writes:
Hey, does anybody else hear a ticking sound?
Yea but the temp seems to be increasing... Kinda like that Jaws theme...
It could just be the dominos falling faster now...
Just because I know you all want to know this, it bears repeating:
CHARLOTTE IS OUT OF GASOLINE! Be ready to wait ALL NIGHT, if you can even FIND a station that is selling gas.
Ahh. That feels much better.
Is it Friday? I'm confused. If this is accurate, CNBC jumped the gun ... I don't think the FDIC is going to be happy.
Best to all.
Calculated Risk
I think it was the rating agencies that did that. Although that gun should have gone off about 2 years ago.
Seattle Times quote of the year
"CNBC, also without citing sources by name, says the Federal Deposit Insurance Corp. acted without telling WaMu."
RE: new republican plan
I saw Diana Olick on CNBC and she said that the house republican plan stresses wall street to pay for the bailout and use insurance provided by the US government paid for by the private sector. At least needs to be heard and fleshed out.
She also said Nancy Pelosi said the authority to decide which plan is best resides with paulson!
Wrong Nancy, it resides with the US taxpayer and by extension our elected officials. Paulson has already said in last 1 minute since I started post the old plan is better. Why does he make policy now? I am betting on fireworks on the political and financial front tomorrow. I have swords but no guns!
$7.5 Million Signing Bonus- 3 weeks of work. CEO-Fishman,
So long and thanks for all the Fish.
WSJ: Federal regulators seized Washington Mutual and struck a deal to sell the bulk of its operations to J.P. Morgan in what is by far the largest bank failure in U.S. history. Regulators said WaMu has suffered an exodus of $16.7 billion in deposits since Sept. 15, leaving the Seattle thrift "with insufficient liquidity to meet its obligations."
CR,
Do you think the timing of the Paulson plan was mostly for WaMu?
are you kiddin me,,scoops are everything now adays,,they do it to each other every chance they get..
seems i would also,,,if i got the chance..
U.S. regulators are looking into credit derivatives as they investigate market manipulation, and some lawyers believe the government is looking at whether traders have used the products to help push banks closer to insolvency.
U.S. seen probing if derivatives walloped banks
| Reuters
And just who is the biggest holder of thse WFD'S? JMP
NoVAOnlooker, I don't think so. Maybe ... clearly this is going to make a dent in the FDIC fund.
BEst Wishes.
Didn't some foreign country or foreign company pony up $2B WaMu's way just a few months ago?
The notion of bipartisan fast action with no holdup on details was absurd from the beginning. No equity, no deal. No deal if it includes equity. So who is holding it up with extra demands? I've done a lot of mediation. It's all perspective, but it beats violence.
So, does this mean that GS doesn't get its fee for trying to auction off WaMu? I hope so.
Calculated Risk --
Maybe ... clearly this is going to make a dent in the FDIC fund.
I do not think so. I think the federales have concocted some scheme to avoid depleting the FDIC fund.
They need the headline to be, "FDIC fund untouched", not "FDIC fund dangerously depleted".
I do not know what they have brokered, but I bet they arranged for the FDIC to pay precisely zero.
"CNBC, also without citing sources by name, says the Federal Deposit Insurance Corp. acted without telling WaMu."
The Banksters own the Fed and the FDIC ...
otherwise CITI, Wells, JP Morgan and BAC would all be in receivership right now ...
Anyone find a link on the Chase IR page for listening?
Read elsewhere that another government agency is to take the hit on Wamu, and the FDIC would not?
Is this the Bear Stearns of the commercial banking type......to prevent the hit to FDIC?
FDIC might not be on the hook here...Remember there is $26 billion of equity and $30 billion of debt to blow through before we have to worry about the deposits...depends how bad the assets are
DOW down huge tomorrow
Come to think about, if you were leveraged 30:1 you probably didn't care about shareholders at all, so why worry about an equity dilution on existing shareholders now.
Does this mean Friday they close another one?
Calculated Risk wrote:
"Is it Friday? I'm confused. If this is accurate, CNBC jumped the gun ... I don't think the FDIC is going to be happy."
Some of these events are accidents. HP doesn't have a master plan. Not at all. These guys have been putting out fires for over a year, and they still screw it up.
The $700 Paulson Plan was supposed to be done by now. But too many phone calls, e-mail messages, and Shelby held it back...
...forcing the PPT to scramble.
Don't give them more credit than they've earned, ha ha ha. They were trying to avoid a meltdown, but they failed. Now they are trying to minimize the damage.
(If you need more evidence, keep in mind that a black man with a populist base was never supposed to be the Dem candidate. They screwed that up, too. Cool!)
For example, maybe the depositors get shifted to JPM tonight, then WaMu gets taken over by FDIC tomorrow.
No depositors left in the shell = no hit to the FDIC insurance fund.
Two Tears in a Bucket, OTS might shut them down, but the FDIC takes the insurance fund hit.
Best wishes
Maybe the short sell folks caused WW2
yep.. the FED or Treasury..
Two Tears in a Bucket writes:
Read elsewhere that another government agency is to take the hit on Wamu, and the FDIC would not?
Is this the Bear Stearns of the commercial banking type......to prevent the hit to FDIC?
sue writes:
Come to think about, if you were leveraged 30:1 you probably didn't care about shareholders at all, so why worry about an equity dilution
No dilution complete destruction all shareholder equity is gone
Remember when the value of your bonds decrease in value then your earning increase because your liabilities are worth less.
The OTS website isn't responding. Hmmm ...
These guys have been putting out fires for over a year, and they still screw it up....
Paulson has been starting the fires and his TARP Plan was the coup d'état.
Treasury has no budget for something like this. Has to be the Fed.
CR - I can't get the OTS website to work from NYC either, so it's not just you.
Same here CR, OTS won't load. Been waiting 10 minutes.
FDIC: Press Releases - PR-85-2008 9/25/2008
Comrade Bagholder sue,
"So long and thanks for all the Fish."
That you know that reference is strange. If you're actually female...I'm smitten.
Nostrovia,
BOOM FDIC lists it dead
My guess, for whatever it is worth, is that the bondholders are SOL. I think JPM just bought the deposits, why would they want anything else? I bet the feds brokered this deal b/c WaMu was too big for FDIC to handle.
I hope they stop this chick on CNBC for the conference call, because she is annoying the hell out of me.
FDIC just posted
FDIC: Press Releases - PR-85-2008 9/25/2008
JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation. All depositors are fully protected and there will be no cost to the Deposit Insurance Fund.
"For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," said FDIC Chairman Sheila C. Bair. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning."
JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired.
"WaMu's balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses," Bair said.
Washington Mutual Bank also has a subsidiary, Washington Mutual FSB, Park City, Utah. They have combined assets of $307 billion and total deposits of $188 billion.
Thursday evening, Washington Mutual was closed by the Office of Thrift Supervision and the FDIC named receiver. WaMu customers with questions should call their normal banking representative, service center, 1-800-788-7000 or visit Apache 2.0 instance 0 website httpd The FDIC's consumer hotline is 1-877-ASK-FDIC (1-877-275-3342) or visit FDIC: Federal Deposit Insurance Corporation
Asia knows something. Look at the dive.
Repeat question from old thread:
Why do the news reports say JPM is buying WM deposits? To a bank aren't deposits a liability?
WaMu Is Seized, Sold Off to J.P. Morgan, In Largest Failure in U.S. Banking History - WSJ.com
CR,
Here is the link. Trust me, I know the normal path to resolution.
CNBC reported Wamu to pass from OTS to FDIC to J.P. Morgan for $1 Billion, with stockholders and debtholders wiped out. In the normal P&A, the FDIC gets the $1 Billion, and J.P. Morgan takes whatever....insured deposits, all deposits, all or some branches, generally cash and agency securities.
With Wamu's Alt-A and HELOC portfolio, who would want their assets? Moreover, look at their funding? Who is going to payoff FHLB borrowings? Clearly a lot to discover in the next few hours.
FDIC: Bank Information Information - Washington Mutual Bank, Henderson, NV and
Washington Mutual Bank FSB, Park City, UT
21:05 26Sep08 RTRS-U.S. REGULATOR SAYS JPMORGAN ACQUIRES WASHINGTON MUTUAL BANK
21:06 26Sep08 RTRS-U.S. OTS SAYS ACQUISITION WILL HAVE NO IMPACT ON WAMU'S DEPOSITORS, CUSTOMERS
21:08 26Sep08 RTRS-US OTS: WASHINGTON MUTUAL BANK HAD $188.3 BLN IN DEPOSITS, DESCRIBES AS $307 BLN INSTITUTION
21:10 26Sep08 RTRS-US FDIC SAYS JPMORGAN ACQUIRED WAMU ASSETS, PAID $1.9 BLN
OTS loads, but it is slow.
No news posted today.
JPM buys deposits for 1.9B
Does not take on debt
FDIC takes no hit
Bond holders will have pitch forks tomorrow
OTS assigns cleanup responsibility to FDIC, Bloomberg.
the Banksters and the Bond Boys are now sworn enemies ...
This battle will be epic ...
21:11 26Sep08 RTRS-US FDIC'S BAIR SAYS TRANSACTION IS "SIMPLY A COMBINATION OF TWO BANKS"
21:12 26Sep08 RTRS-US FDIC SAYS CLAIMS BY EQUITY, SUBORDINATED AND SENIOR DEBT HOLDERS NOT ACQUIRED
I always thought WaMu was a stupid name. Kinda like YaHoo.
Companies with silly names should be shorted. Ah, SEC doesn't like shorts except the ones they will be eating.
Good riddence.
Bill Miller, you sir are 0 for 3!
"Claims by equity, subordinated and senior debt holders were not acquired."
Common, preferred and bondholders get wiped out?
Answer?????
I bet Haloscan does a meltdown also
Please tell me that Bill Gross & Pimco will lose big on this!
this one is going to get really ugly
What the hell is happening now?
Thursday nite and I'm sitting here listening to the pregame show?
Ringside to the coliseum has been superb, but now I feel like I'm listening to the commentators while the ref reviews the play or Joe Theisman gets carried off the field.
how do you acquire the assets without the liabilities? pretty sweet!
Joe Theiseman never snapped back.
The money quote,
"JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired."
Bondholders and the common are crispy.
Comrade Bagholders,
Well Bloom TV keeps headlining it as a done deal...so I'm confused at this point.
Ol' Sparky keeps killing batteries so I just plugged it into a 24 volt transformer.
Hot and sparky.
Just now OTS Announces JPM taken control!
OTS JPM TAKING CONTROL! BLOOM TV.
Nostrovia,
Ha, in actuality JP Morgan, and their brilliant leader Jamie Dimon purchased their deposits. So they purchased their "good" liabilities and client relationships. Brilliant move on Dimon's part. In fact, the only financial stock I would buy is JP Morgan.
Of course the shareholders bondholders and so forth are absolutely and completely wiped out. Not one cent. In fact every penny Dimon paid goes to the FDIC. This is outstanding. Whoever is running FDIC need a pat on the back for this one!
On behalf of taxpayers everywhere...thanks.
Jesus christ people, learn some accounting..bondholders know going in they are junior to the deposits...this sort of thing can happen. I'm shocked that Jaimie is taking on board all of the shitty ARM assets, though
bye bye TPG
JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired.
FDIC: Press Releases - PR-85-2008 9/25/2008
Congress is so screwed ...
on one hand the Banksters ... on the other hand the Bond Boys ...
stay low pols , or get your head shot off ...
FDIC: Bank Information Information - Washington Mutual Bank, Henderson, NV and
Washington Mutual Bank FSB, Park City, UT
Serious question: I usually get pizza in honor of Bank Failure Friday. Do we still get one or is this it?
Common, preferred and bondholders get wiped out?""
Sounds like it.
21:13 26Sep08 RTRS-US FDIC SAYS NO LOSS TO BANK DEPOSIT INSURANCE FUND FROM WAMU TRANSACTION
21:13 26Sep08 RTRS-US FDIC SAYS THURSDAY EVENING, WASHINGTON MUTUAL WAS CLOSED BY THE OFFICE OF THRIFT SUPERVISION AND THE FDIC NAMED RECEIVER.
21:14 26Sep08 RTRS-US FDIC SAYS THERE WILL BE NO INTERRUPTION IN WASHINGTON MUTUAL SERVICES AND BANK CUSTOMERS SHOULD EXPECT BUSINESS AS USUAL COME FRIDAY MORNING
03:15 26Sep08 RTRS-US FDIC SAYS JPMORGAN CHASE ACQUIRED THE WAMU ASSETS, ASSUMED THE QUALIFIED FINANCIAL CONTRACTS AND MADE A PAYMENT OF $1.9 BLN
C. Scotto, liabilities are a source of funds. Banks can lever 20X, so equity is minuscule. "Core" deposits (liabilities to the bank) of faithful long-term customers are very valuable as a stable source of funds.
Subcomandante Cannabis writes:
Serious question: I usually get pizza in honor of Bank Failure Friday. Do we still get one or is this it?
Subcomandante Cannabis | Homepage | 09.25.08 - 9:21 pm | #
Its not Friday is it ya stoner
Tried to dial in. Fast busy
Webcast link:
JPMorgan Chase:
Next up, Wachovia?
ew post!
Cant get into the call
Serious question: I usually get pizza in honor of Bank Failure Friday. Do we still get one or is this it?
Subcomandante Cannabis | Homepage | 09.25.08 - 9:21 pm |
You might get a pizza box. JPM gets the pizza.
And now everyone will stop saying I'm crazy
Comrade Bagholders,
Pizza time. Try to hold the comments below 5000 before I get back.
Nostrovia,
Wow. Sucks to be the bondholders. I can only imagine the legal battles that will be tied to this puppy.
Smooth jazz! My fave!
LOL ...
Cynical Yes writes:
Ha, in actuality JP Morgan, and their brilliant leader Jamie Dimon purchased their deposits. So they purchased their "good" liabilities and client relationships. Brilliant move on Dimon's part. In fact, the only financial stock I would buy is JP Morgan.
~~~~~~~~~~~~~~
Jamie is head of Bankster Inc . He has been paid for just about every deal he has taken ...
nice work if you can get it ...
"WaMu's balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses," Bair said."
FDIC: Press Releases - PR-85-2008 9/25/2008
It is the OTS that oversees WAMU's branches. I believe they operate under their original charter back when they were a S&L.
Texas Hedge
I'm in agreement. Wachovia couldn't wait to get on the West Coast, and look where it got them in Golden West.
Now, J.P. Morgan runs out for the same thing.
C. Scotto, liabilities are a source of funds. Banks can lever 20X, so equity is minuscule. "Core" deposits (liabilities to the bank) of faithful long-term customers are very valuable as a stable source of funds.
skewed | 09.25.08 - 9:21 pm | #
Thanks Skewed - I still don't get it. Seems like all they bought is a bunch of IOUs for all the savings and checking accounts that Wamu has.
At least it was a good thing for those who locked in high CD rates at Wamu.
JPM to issue 8B of common stock first thing tomorrow morning, if I heard correctly
so is this the template ?
the banksters take the deposits and RE and the share holders and bonholders get squat ?
The Bond Boys will be riding into town ... Shelby will have to answer some tough questions and then onto the Fed where there is hell to pay ...
JPM bought the banks but not the holding company; transaction is already closed.
mmckinl writes:
the Banksters and the Bond Boys are now sworn enemies ...
This battle will be epic ...
mmckinl | 09.25.08 - 9:18 pm | #
Let us know when the RPG comes out - my sons' love 'epic battles'...
We witnessing the start of the next war......it is financial.
Bankster's VS. Bondies VS. Everyone else (including the Chinese)
This will end poorly.
Ciao
MS
The details:
http://files.shareholder.com/downloads/ONE/424623475x0x236634/b5a3d70a-28ac-4148-8966-71b18408c8c3/JPM_WManalystpresentation.pdf
Jamie is head of Bankster Inc . He has been paid for just about every deal he has taken ...
nice work if you can get it ...
mmckinl | 09.25.08 - 9:23 pm | #
The kind of stuff future Treasury Sec'tys are made of... ya think?
They will close 10% of combined branches. that ~25% of WaMu.
How does this not cause Wachovia bond holders to flee tomorrow?
And triggering the CDSs. This is a shocking deal. My broad index PUTs will be in the money tomorrow.
checkout page 16 of the power point....shows estimates for home price declines and unemployment for three sensitivities.
checkout page 16 of the power point....shows estimates for home price declines and unemployment for three sensitivities.
kevin
I found that interesting.
26% loss on HE? 20% loss on OpARMs? Sounds awful rosy.
$31 billion in marks, plus $3 billion in loan loss reserves. They got the loan tapes.
This JPMorgan staff has their act together. They've done their homework.
Agree with mp--JPM have done their homework. As a WF alum/customer in California, I'm so impressed I might give JPM more of my business.
p.s. Scotto, the PowerPoint illustrates very well the value that JPM is getting.
Anyone know what kind of debt was left behind with the Wamu holding company?
"One of the most thorough things we've ever done."
Referring to the WaMu analysis.
"We don't know, and we don't care."
Referring to any knowledge of other bids.
Confident guys.
"Persecuted Comrade Anonymouse writes:
Please tell me that Bill Gross & Pimco will lose big on this!"
Doubt it, they wouldn't touch junk like that. Have you apologized to Peter Schiff yet?
the end...