ot first, nor second. Perhaps turd?

And what would Monty Hall have to say about all this?

That is, why NOT Goldma

BFD, just moves 10 pounds of crap into what was formerly a 5 pound bag. They are all in the shitter and can merge until there is one bank-still full of toxic shit and no enema. Pardon the multiple scatalogical references.

This is the moment when some crazy fool in the White House decides to start a war..... I hope that doesn't happen.

I will happily bid on WaMu, but GS folks are not going to understand what the minus sign in front of my bid means.

MS eats WB, dies from food poisoning.

WFC swallows WAMU - lodges in trachea.

All dead.

GS laughs and laughs and laughs.

"Calculated Risk writes:
My guess is the owner will be the FDIC ... and all of you and me.

Best to all.
Calculated Risk "

I call the bankers pen!

I was reading an article that had a comment on Federal Deposit Insurance Reform Act. I looked it up and was a little confused. (I am an artist not financier) Perhaps someone here can tell me if this was a good thing now that banks are failing. The last item seems not so helpful, but I am not down with the knowledge as you may be.

The Federal Deposit Insurance Reform Act was a federal banking regulation law passed in 2005. It contained a number of changes to the Federal Deposit Insurance Corporation (FDIC).
It raised the limit on deposit insurance for retirement accounts from $100,000 to $250,000, and indexed the amount to inflation.

It merged the two deposit insurance funds that the FDIC had been administering separately since FIRREA

It provided credits to banks that had paid into the deposit insurance funds in the early 1990s in the aftermath of the savings and loan crisis.

It requires that the FDIC issue rebates to the banking industry should the level of the deposit insurance fund rise above 1.50% of total insured deposits.

Thank you in advance.

Big snap back at the market tomorrow, up 245 points.

Last week, WAMU had an online CD special, 13 mos. at a 5.0% APY. A married couple could invest $380K and still be under FDIC insurance including future accrued interest...two separate CDs and one joint one. Retirement accounts have higher FDIC coverage limits.

I bet they raised an enormous amount of funds since it was ended on Friday night. More lipstick on the pig.

Somebody phone Israel and commence the bombings. We need this off the front pages, stat.

i cant wait until these wall street csuckers begin to contemplate their and their families lower standard of living. welcome to the blue collar world aholes!

Well, they have before 5PM on friday to get this pig sold. Will the sale stave off the run on deposits though? Probably only if Wells Fargo or HSBC buys them. Any IB will be deemed suspect given the goings on this past week.

I'm leaving now to deposit a check at WAMU to cover some payments - I'll report what I see.

MS mulls merger talks with Wachovia ???

Since when does bad + worse = good???

New meaning to averaging down.

Since when does bad + worse = good???

But just think of the pricing power!

I'm leaving now to deposit a check at WAMU to cover some payments - I'll report what I see.

Here's betting the doors are locked

Is the sale on E Bay?

What'd happen if they put a dollop of TED spread on that shit sandwich?

Comrade Bernanke Does it Again
"Comrade Bernanke Does it Again" by Peter Schiff, FSU Editorial 09/17/2008

Schiff is visiting this blog methinks.

HOLY S**T - checkout the TSLF:

Alea | Page not found

Gimmicks don’t work, Ben.
Collateral type 2 for 28-day: most auctions cleared around 25 bp, today’s was 300 bp !
Collateral type 2 for 14-day : 250 bp !
I forgot the bid-to-cover ratio: 4 times recent numbers.

Israel's ruling Kadima Party just voted in the most pacifist leader in quite a while.

TV polls: Livni wins ruling party primary

McCain must be frothing. She's the lead negotiater with the Palestinians

"Goldman Sachs, which Washington Mutual has hired, started the auction several days ago, these people said."

Several days ago? And the WAMU board approved this when? and the WAMU share holders knew about this....when?

Inquiring minds, and perhaps the FED, want to know...oh wait....someone knew or else WAMU would be worthless than a buck now....

I really wonder whether Bernanke and Paulson would have helped Bear Stearns if they knew how that road was going to keep leading them deeper and deeper into their involvment.

Sorry, couldn't resist. Ben Stein, last August:

This economy is extremely strong. Profits are superb. The world economy is exploding with growth. To be sure, terrible problems lurk in the future: a slow-motion dollar crisis, huge Medicare deficits and energy shortages. But for now, the sell-off seems extreme, not to say nutty.

Some smart, brave people will make a fortune buying in these days, and then we’ll all wonder what the scare was about.

The FSLIC would take over WM, not the FDIC. What's another 100 billion on the fire? It's all a sh!tsandwich now anyway.

Every remaining bank is trying to get as big as it can. At this rate we may see 1/2 the banks left standing after the carnage. The industry is forcing the hands of the FED and Treasury. Some over-reaching resolution is being planned behind the scene. The patch-up jobs so far hasn't done it.

SN,

Perhaps you need to become more aware of what is on WAMU's books. They ceased becoming a bank sometime ago. I believe PONZI is the new word for this kind of "bank." Or perhaps you have never heard about the optional payment in the Option ARMs they gave like candy to diabetics.

I think this mess started with LEH, that caused and is causing a heckuva lot of meltdown overseas.

The rest that is occurring now are just like shorts, only they are extremely naked and you don't have to cover ever.

At least the US markets are still open - not like their Russian counterparts.

Morgan Stanley Considers Merger With Wachovia

The way the Times has that phrased, it sounds to me like Wachovia would be doing the buying. Is that right? That would certainly top the audacity of BAC's acquisition of MER. Wild times in Charlotte.

The linked piece on Livni states that she is an acknowledged former Mossad agent, yet favors diplomatic solutions to Israel's issues. I think you can stick a fork in the whole "Israel is going to attack Iran before the election" allegation.

S N,

Yes of course. But did not a couple of Senators just state this morning that WAMU does not equal a shoe....

If WAMU goes down the psychological toll on main street will be fair worse that the financial toll on Wall Street.

But as I stated, WAMU quit being a bank sometime ago and they are in the same league as Downey Financial now.

And I might add, I have friends whom will lose big on WAMU and got out what they could after a candid conversation about WTF is happening. They had no idea....and these are fairly sophisticated Main Street people.

I think its a given that WaMu will be sold. It will be done with some sort of government backstop. As I understand it FDIC does have the manpower to close WaMu over one weekend and it will require most if not all of the remaining funds left to the FDIC. Imagine the publicity/confidence impact when the FDIC has to go to the FED (or whoever) for additional funds. No way that the government will let that happen.

I'm not hereeeeeeeeeeeeeee....

This isn't, happening...

Where's FFDIC???

Did you ever see the Simpsons where they decide to move the whole town 5 miles down the road because they wrecked the old one? We need something like that.

I don't know about you guys but I had an AWESOME day in the markets today.

The FDIC will love Seattle. The weather is gorgeous, they can walk down to the Pike Place Market for lunch, take a little ferry ride out on the Sound...

Comrade CR, just showed my age that I remember that. In my country we have something similar- the FSTBIC. The Federal Shoot the Banker Insurance Company. We shoot the bankers and take over the bank.

Next you'll tell me Glass-Steagall is not longer in plce. sheesh!

WHy not wait for BK?
Then pick up the pieces on the cheap like Barclays did.
Something fishey about BAC buying Merril when they could have done the same.

Bernanke quoted saying:

"We have lost control," said Hale, quoting Bernanke. "We cannot stabilize the dollar. We cannot control commodity prices

Bernanke: 'We have lost control' [General] - MarketTicker Forums

You don't even have to read the article, just look at the two graphs embedded there.

'Scuse the noob question: CDS are referenced to LIBOR?

WM is too big to fail too!

No way! Comrades Dodd & Gregg told me so just this morning.

"We cannot stabilize the dollar. We cannot control commodity prices"

Good thing the Fed still has control of employment, otherwise it might seem to some that the Fed was useless.

Hank raises his paddle, looking at Ben, who rolls eyes and sighs.

Gah, safe_as_apartments, I did not need to picture that. Mind bleach please?

Sorry, couldn't resist. Ben Stein, last August:

Some smart, brave people will make a fortune buying in these days, and then we’ll all wonder what the scare was about.

Ah, Comrade Stein.

Truly a national treasure.

This is encouraging...

FT.com / Comment / Opinion - America will need a $1,000bn bail-out

What's a $tril, between friends? Hell, Im now a homeowner (multiple mini fractional) an insurance agent, and soon to be retail banker (would you like a toaster with that?)

Soon, I'll be producing automobiles, just have to study a bit harder. It's a crash course though. Wont be long.

dcc: They may not have a choice due to ongoing net outflows.

Quick back of the envelope calculation re WAMU:

June 30 BS shows $20 bil current assets, $310 bil long term assets, $240 BIL CURRENT LIABILITIES, $280 bil total liabs,and $26 bil in equity. If you figure a 10% haircut on the long term assets(loans) that wipes out the equity right there. Probably a 30% haircut is more realistic. Yes, they are insolvent.

Yes, they are insolvent.

Which is why my bid has a minus sign.
If I win, I'm going to need a number of VPs, so please drop me a line if you're interested.

This is exactly why I chose "Low Risk" in my 401k. Set it and forget it! Bet some of you chumps wish you had listened to my HR Director instead of those know-nothing elitists.

Looks like the recovery won't start until Q1. That's a lot of time to spend eating crow everyday.

Yes CDS spreads are over LIBOR

When the books are written, the explosion of CDS notional oustanding is going to be exhibit A.

If the instruments survive at all, there needs to transparent pricing, narket making, and a central clearing house.

These things are detonating like the financial WMD Buffett warned us about.

WaMu Removes Obstacle to Possible Takeover as TPG Drops Compensation Right

re TPG: Because anything is better than $0/share.

CDS are not long for this world.

Just another transaction fee.

A tax on something with no value.

suckers.

Oh another thought, the quartely CDS premium payments on all contracts worldwide are due on Sept 21st (Sunday).

Should be even more fun n games that usual what with the tremendous volume of recent novations, counterparties who don't exist anymore etc....

Barley --

PS Stressfull day - Does nemo have a joke for us?

Sorry, I am too stressed out myself.

My own accounts are doing fine (I am net short the market and long gold), but I am still sleeping poorly. Having nightmares.

there's always a bigger fish, huh Nemo?

The way the Times has that phrased, it sounds to me like Wachovia would be doing the buying. Is that right? That would certainly top the audacity of BAC's acquisition of MER. Wild times in Charlotte.

Down thar in Seb's country, first the put the lipstick on the pig and then they grease 'er up, chase 'er and stick 'er real goooood.

Shhh. I hear banjos.

S N,

Say the FED provides a backstop by guaranteeing WAMU shittiest assets and some bites. Then the assets continue to deflate...guess whom gets stuck with the shit on their face....back to "Go."

The real questions should be:

1. How did GS get to be in charge of finding a buyer;
2. Why is more due diligence going to finding a suitor for Ms WAMU than MS AIG;
3. If the FED is only interested in providing a back stop for some national to big to fail folks, why you would think they would step in to save WAMU when Shelia really wants to go to Seattle in September (it is very nice this time of year...she should take a side trip to the San Juan Islands or Port Townsend).

So Sleepless in Seattle until Friday.

Certainly ProShares has some counter-party risk there? Seems like if we have even one ETF default/NAV collapse, we could see a run on them too...

I short the reciprocal Proshares ultra fund rather than going long (i.e. short UYG, IYR, and SSO instead long SKF, SRS, or SDS). Seems a bit safer given the ETF default risk issue. plus, the ultra funds get hosed by volatility as many here have noted previously.

scalar --

As I believe I have mentioned before, "Nemo" is not a reference to the fish, nor to the Captain.

OK I found some levity:

I Need A Moment To Vent - Dealbreaker - A Wall Street Tabloid - Business News Headlines and Financial Gossip

Allen, you should realize now that the sale is for shows - we are in confidence game mode now. If it were to be known to the general public that a major retail bank is insolvent, it could be curtains for the economy. It doesnt matter how negative the value of WM is, someone is going to draw a straw at the Fed and they are going to place some stupid imaginary positive value on it and game over. Then when the poison they just swallowed makes itself known, the purchaser turns to the Fed (and the taxpayers) ultimately for help.

That is the game now, so get used to it and try to make some $hay while the sun still shines.

Krugman seems to be implying that we are entering liquidity trap territory on Treasury rates.

We're looking more and more like Japan every day.

Allen C - when did something being laughable stop this government from doing something?

Comrade Kristina,

I hope to settle on a 600K deal soon....turns out some assets are better than stock equity....we are Wells Fargo and a local credit union...both with minimal exposure to subprime and one with no exposure to LEH or AIG crap.

Should I bother looking for another bank?

You will be deemed a traitor if you look for another bank.

Yeah try a Russian bank...wait, Chinese bank...wait,...

CEOs cheer bailouts but want more clarity

CEOs cheer bailouts but want more clarity
| Reuters

Fools.

AIG: How could you do this to us after everything we've done for you?
Billy Ray Valentine: Oh, see, I made Louis a bet here. See, Louis bet me that we couldn't both get rich and put y'all in the poor house at the same time. He didn't think we could do it. I won.
Louis Winthorpe III: [grinning] I lost... One dollar.

Sorry if previously posted :

Dodd Says the Fed Has Authority to Set Up Debt Fund
Dodd Says the Fed Has Authority to Set Up Debt Fund (Update2) - Bloomberg.com

Looks increasingly likely.

Just got back from the downtown Oakland WaMu and there was no line but there was a huge sign written in blue marker that said

DEPOSITS WITH WASHINGTON MUTUAL ARE FDIC INSURED TO LEGAL LIMITS We would be happy to talk to you about how that works...

LOL

I took a photo of it but not sure how to post that ion this message board.

If the check cashing places go out of business will
Lefty's fill the gap ?l

BB --

Holy crap. Dodd wants Congress to abdicate its responsibility and says the Fed should just hit "print"!?

This is unbelievable. I might accept that the only plausible course of action at this point is for the government to borrow&spend. But that should be Congress paying people like they did in the 30s to build infrastructure. (Lord knows we need it.)

But Senator () Dodd wants the central bank to print dollars and buy purely financial assets. Wonderful.

Nice find, BB.

Woe is me,

Just got back from the liquor store (sorry lefty, there was a mean ass looking dog at the door chewing on a bone. Couldn't tell if it was human) and picked up a 12 pack of Shiner Bock and a bottle of whine for the wife. For the last year, the tab was always $29.07. Today, $32.09.

Deflation my aunt fannie.

Wawa Moo: no bid, a nickle asked.

The question is how much do you need to PAY someone to jump into that septic system...

Anonymouse --

BB posted the link above:

Dodd Says the Fed Has Authority to Set Up Debt Fund (Update2) - Bloomberg.com

I read that article. I searched for "print" and received only a match for "print this article" at the bottom. I want a link to where Dodd said "print."

OK I figured it out i think

Here is the link to the photo I just took at a WaMu in downtown Oakland

http://s420.photobucket.com/albums/pp289/rationaljeff/?action=view&current=photo.jpg

I asked the teller if it was busy and she said no, and I asked her how does it feel to be for sale, and she said that WaMu was not for sale.

...

My Dad, who is currently in NY, is reporting that the bond market is CLOSED. Said it might be for a couple of days.

Said it was the only time its happened except for something that I couldn't make out.

Anyone else heard something about this?

Alright...many of us have been here since this site was a "Forest Scene"...what are we looking for the next week or so?

Anonymouse --

Don't be daft. The only mechanism the Fed has to "to buy and dispose of bad debt" is to create the money.

To purchase bad mortgages in any meaningful volume would require expanding the Fed's balance sheet, period. You can call it "expanding the monetary base" or "monetizing the debt" or whatever. I call it "printing", and it is precisely what Dodd is talking about.

I've got $100 that says the Government will raise the FDIC insurance limit to $200,000 within a year.

It's a pity 100Gs ain't what it used to be.

Somebody predicted the fate of Fannie and Freddie 5 years ago.

Fannie Mae and Freddie Mac Subsidies Distort the Housing Market

Sydney futures down 3.2%

For those of you with cable access, Bloomburg does a great job on the asian markets.

CEOs cheer bailouts but want more clarity

A panel of top chief executives said on Wednesday the U.S. Federal Reserve and Treasury Department have taken appropriate action to rescue major financial institutions in recent weeks, calling the moves necessary to restore confidence in capital markets.

Of course they're cheering. Once again they've conned the government into forcibly taking wealth from taxpayers and giving it to them.

I also cheer whenever I've pulled off a good heist.

Soon these Americans will be living in their own version of North Korea.

Ross writes:
For those of you with cable access, Bloomburg does a great job on the asian markets.

Why do you need cable access? They have free live streams on their site.

Yes, Leftys cashes payroll checks, annuities, and will buy your life insurance policy too.

The first broker to be lined up against the wall.

<

blockquote>"The shares are being punished because, like AIG, Genworth is an insurer with above-average exposure to the U.S. housing market," Edward Spehar, an analyst at Merrill Lynch, wrote in a note to investors.

However, Spehar stuck with his buy recommendation on the stock because he said Genworth isn't facing a short-term liquidity crisis.