Comments on: Open WaMu Thread http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/ local real estate news, statistics, and commentary without the sales spin. Sat, 20 Mar 2010 18:35:05 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: David McManushttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56858 David McManus Thu, 18 Sep 2008 15:18:37 +0000 http://seattlebubble.com/blog/?p=2731#comment-56858 I thought WM was too big to fail? I thought Seattle's economy was strong strong strong? God, I bet RAL is going nuts right now.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56858','David McManus',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56858','David McManus','I thought WM was too big to fail? I thought Seattle\'s economy was strong strong strong? God, I bet RAL is going nuts right now.',''); return false;">Quote</a></div> I thought WM was too big to fail? I thought Seattle’s economy was strong strong strong? God, I bet RAL is going nuts right now.
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]]> By: matthewhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56838 matthew Thu, 18 Sep 2008 01:04:36 +0000 http://seattlebubble.com/blog/?p=2731#comment-56838 I bid 1 dollar. Their corporate space would make nice condos....<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56838','matthew',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56838','matthew','I bid 1 dollar. Their corporate space would make nice condos....',''); return false;">Quote</a></div> I bid 1 dollar. Their corporate space would make nice condos….
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]]> By: Aaronhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56837 Aaron Thu, 18 Sep 2008 00:51:03 +0000 http://seattlebubble.com/blog/?p=2731#comment-56837 Rumor has it that <a href="http://www.marketwatch.com/news/story/wamu-puts-itself-up-sale/story.aspx?guid={95475577-D0E8-407B-9B28-D302430FE9BB}" rel="nofollow">WaMu is up for auction</a>I hope someone notices this post.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56837','Aaron',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56837','Aaron','Rumor has it that <a href=\"http:\/\/www.marketwatch.com\/news\/story\/wamu-puts-itself-up-sale\/story.aspx?guid={95475577-D0E8-407B-9B28-D302430FE9BB}\" rel=\"nofollow\">WaMu is up for auction<\/a>\r\n\r\nI hope someone notices this post.',''); return false;">Quote</a></div> Rumor has it that WaMu is up for auction

I hope someone notices this post.

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]]> By: Bucerihttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56792 Buceri Wed, 17 Sep 2008 15:20:52 +0000 http://seattlebubble.com/blog/?p=2731#comment-56792 Federal regulators gauging other banks interests in purchasing Washington MutualNEW YORK (AP) -- The U.S. government has been reaching out to large banks in an effort to organize a buyout of the beleaguered Washington Mutual Inc., according to a person briefed on the talks between regulators and banks.The obstacle, however, is that "no one knows what's in their books," the person said, speaking on condition of anonymity because of the sensitivity of the matter. There could be, he said, "a minimum amount of value there.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56792','Buceri',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56792','Buceri','Federal regulators gauging other banks interests in purchasing Washington Mutual\r\n\r\nNEW YORK (AP) -- The U.S. government has been reaching out to large banks in an effort to organize a buyout of the beleaguered Washington Mutual Inc., according to a person briefed on the talks between regulators and banks.\r\n\r\nThe obstacle, however, is that \"no one knows what\'s in their books,\" the person said, speaking on condition of anonymity because of the sensitivity of the matter. There could be, he said, \"a minimum amount of value there.',''); return false;">Quote</a></div> Federal regulators gauging other banks interests in purchasing Washington Mutual

NEW YORK (AP) — The U.S. government has been reaching out to large banks in an effort to organize a buyout of the beleaguered Washington Mutual Inc., according to a person briefed on the talks between regulators and banks.

The obstacle, however, is that “no one knows what’s in their books,” the person said, speaking on condition of anonymity because of the sensitivity of the matter. There could be, he said, “a minimum amount of value there.

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]]> By: Markorhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56713 Markor Tue, 16 Sep 2008 17:57:49 +0000 http://seattlebubble.com/blog/?p=2731#comment-56713 <blockquote>patient: Seems like IBs without a healthy commercial bank to supply capital could be a thing of the past.</blockquote>Read, IBs without the ability to put the money in passbook savings accounts at high risk. Surely there will be an impenetrable Chinese wall between them! And if not, surely the FDIC will keep coming to the rescue! The US can borrow indefinitely and any amount, after all.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56713','Markor',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56713','Markor','<blockquote>patient: Seems like IBs without a healthy commercial bank to supply capital could be a thing of the past.<\/blockquote>\r\n\r\nRead, IBs without the ability to put the money in passbook savings accounts at high risk. Surely there will be an impenetrable Chinese wall between them! And if not, surely the FDIC will keep coming to the rescue! The US can borrow indefinitely and any amount, after all.',''); return false;">Quote</a></div>

patient: Seems like IBs without a healthy commercial bank to supply capital could be a thing of the past.

Read, IBs without the ability to put the money in passbook savings accounts at high risk. Surely there will be an impenetrable Chinese wall between them! And if not, surely the FDIC will keep coming to the rescue! The US can borrow indefinitely and any amount, after all.

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]]> By: patienthttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56705 patient Tue, 16 Sep 2008 16:53:24 +0000 http://seattlebubble.com/blog/?p=2731#comment-56705 new rumours about JPM being interrested in taking over WaMu. Perhaps BoA taking over Merill is inspring/rattling them. Are the new mega banks of the future being created at this point of time? BoA + Countrywide + Merril, JPM + Bears + WaMu?, Wells + Goldman next? Seems like IBs without a healthy commercial bank to supply capital could be a thing of the past.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56705','patient',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56705','patient','new rumours about JPM being interrested in taking over WaMu. Perhaps BoA taking over Merill is inspring\/rattling them. Are the new mega banks of the future being created at this point of time? BoA + Countrywide + Merril, JPM + Bears + WaMu?, Wells + Goldman next? Seems like IBs without a healthy commercial bank to supply capital could be a thing of the past.',''); return false;">Quote</a></div> new rumours about JPM being interrested in taking over WaMu. Perhaps BoA taking over Merill is inspring/rattling them. Are the new mega banks of the future being created at this point of time? BoA + Countrywide + Merril, JPM + Bears + WaMu?, Wells + Goldman next? Seems like IBs without a healthy commercial bank to supply capital could be a thing of the past.
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]]> By: unearthlyhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56578 unearthly Mon, 15 Sep 2008 14:06:41 +0000 http://seattlebubble.com/blog/?p=2731#comment-56578 <i>As many as 45 percent of borrowers with payment-option adjustable-rate mortgages issued from 2004 to 2007 and bundled into securities may default, according to Fitch Ratings analysts Roelof Slump and Stefan Hilts. Washington Mutual held $52.9 billion of the mortgages, also called option ARMs or negative amortization loans, on its books in the second quarter, with defaults doubling to $3.2 billion from the end of 2007, according to a filing with the U.S. Securities and Exchange Commission.</I><b><a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aNSwdt57nTBI" rel="nofollow">Washington Mutual Hobbled By Increasing Defaults on Option ARMs</a></b>IMO 45% is underestimating the problem; I've heard the number of homedebtors paying the minimum (negative amortization) approaches 80%.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56578','unearthly',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56578','unearthly','<i>As many as 45 percent of borrowers with payment-option adjustable-rate mortgages issued from 2004 to 2007 and bundled into securities may default, according to Fitch Ratings analysts Roelof Slump and Stefan Hilts. Washington Mutual held $52.9 billion of the mortgages, also called option ARMs or negative amortization loans, on its books in the second quarter, with defaults doubling to $3.2 billion from the end of 2007, according to a filing with the U.S. Securities and Exchange Commission.<\/I>\r\n\r\n<b><a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&sid=aNSwdt57nTBI\" rel=\"nofollow\">Washington Mutual Hobbled By Increasing Defaults on Option ARMs<\/a><\/b>\r\n\r\nIMO 45% is underestimating the problem; I\'ve heard the number of homedebtors paying the minimum (negative amortization) approaches 80%.',''); return false;">Quote</a></div> As many as 45 percent of borrowers with payment-option adjustable-rate mortgages issued from 2004 to 2007 and bundled into securities may default, according to Fitch Ratings analysts Roelof Slump and Stefan Hilts. Washington Mutual held $52.9 billion of the mortgages, also called option ARMs or negative amortization loans, on its books in the second quarter, with defaults doubling to $3.2 billion from the end of 2007, according to a filing with the U.S. Securities and Exchange Commission.

Washington Mutual Hobbled By Increasing Defaults on Option ARMs

IMO 45% is underestimating the problem; I’ve heard the number of homedebtors paying the minimum (negative amortization) approaches 80%.

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]]> By: richiehttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56558 richie Sun, 14 Sep 2008 23:31:31 +0000 http://seattlebubble.com/blog/?p=2731#comment-56558 LEH is going to file Chapter 7 tonight. My gut feeling is that WM stock may sink below $1 in the morning. The future is bleak. I do not believe that it can survive for another week if there is a run on the bank. JPM will purchase all the retail banking outlets from FDIC directly without assuming the liability of the bad real estate notes. It will create a banking empire from coast to coast and north to south. FDIC will put the sour notes in a receivership trust with the proceeds from JPM's purchase and the remaining equity of WM, if any, as the capital for the trust.This will be the best case scenario. The only people who are going to lose jobs are the ones in mortgage lending and processing area.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56558','richie',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56558','richie','LEH is going to file Chapter 7 tonight. My gut feeling is that WM stock may sink below $1 in the morning. The future is bleak. I do not believe that it can survive for another week if there is a run on the bank. JPM will purchase all the retail banking outlets from FDIC directly without assuming the liability of the bad real estate notes. It will create a banking empire from coast to coast and north to south. FDIC will put the sour notes in a receivership trust with the proceeds from JPM\'s purchase and the remaining equity of WM, if any, as the capital for the trust.\r\n\r\nThis will be the best case scenario. The only people who are going to lose jobs are the ones in mortgage lending and processing area.',''); return false;">Quote</a></div> LEH is going to file Chapter 7 tonight. My gut feeling is that WM stock may sink below $1 in the morning. The future is bleak. I do not believe that it can survive for another week if there is a run on the bank. JPM will purchase all the retail banking outlets from FDIC directly without assuming the liability of the bad real estate notes. It will create a banking empire from coast to coast and north to south. FDIC will put the sour notes in a receivership trust with the proceeds from JPM’s purchase and the remaining equity of WM, if any, as the capital for the trust.

This will be the best case scenario. The only people who are going to lose jobs are the ones in mortgage lending and processing area.

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]]> By: richiehttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56506 richie Sat, 13 Sep 2008 03:36:12 +0000 http://seattlebubble.com/blog/?p=2731#comment-56506 Game Over! WM is finished. Fed always makes announcements on Sunday: Bear Stern in mid-March, Indymac in mid-July. Freddie and Fannie last weekend.I hope nobody is holding WaMu stock.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56506','richie',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56506','richie','Game Over! WM is finished. Fed always makes announcements on Sunday: Bear Stern in mid-March, Indymac in mid-July. Freddie and Fannie last weekend.\r\n\r\nI hope nobody is holding WaMu stock.',''); return false;">Quote</a></div> Game Over! WM is finished. Fed always makes announcements on Sunday: Bear Stern in mid-March, Indymac in mid-July. Freddie and Fannie last weekend.

I hope nobody is holding WaMu stock.

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]]> By: unearthlyhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56498 unearthly Fri, 12 Sep 2008 22:25:39 +0000 http://seattlebubble.com/blog/?p=2731#comment-56498 <i>Washington Mutual has been on the endangered list all year, but the wheels have been off the wagon for a while. Here is just one example.WaMu refinanced this 1,500sf house in City Heights just over a year ago - when it was obvious that the market was in trouble, and the smarter banks should have been reeling in their lending practices.<b>The owner paid $83,000 when he bought it from Home Savings in 1995.WaMu loaned him $449,000 in June, 2007.It's now being offered as a short sale - for $140,000!</b></i><a href="http://bubbleinfo.squarespace.com/journal/2008/9/12/worried-about-wamu.html" rel="nofollow">Worried About WaMu?</a><div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56498','unearthly',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56498','unearthly','<i>Washington Mutual has been on the endangered list all year, but the wheels have been off the wagon for a while. Here is just one example.\r\n\r\nWaMu refinanced this 1,500sf house in City Heights just over a year ago - when it was obvious that the market was in trouble, and the smarter banks should have been reeling in their lending practices. \r\n\r\n<b>The owner paid $83,000 when he bought it from Home Savings in 1995. \r\n\r\nWaMu loaned him $449,000 in June, 2007.\r\n\r\nIt\'s now being offered as a short sale - for $140,000!<\/b><\/i>\r\n\r\n<a href=\"http:\/\/bubbleinfo.squarespace.com\/journal\/2008\/9\/12\/worried-about-wamu.html\" rel=\"nofollow\">Worried About WaMu?<\/a>',''); return false;">Quote</a></div> Washington Mutual has been on the endangered list all year, but the wheels have been off the wagon for a while. Here is just one example.

WaMu refinanced this 1,500sf house in City Heights just over a year ago – when it was obvious that the market was in trouble, and the smarter banks should have been reeling in their lending practices.

The owner paid $83,000 when he bought it from Home Savings in 1995.

WaMu loaned him $449,000 in June, 2007.

It’s now being offered as a short sale – for $140,000!

Worried About WaMu?

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]]> By: casey1167http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56497 casey1167 Fri, 12 Sep 2008 22:12:23 +0000 http://seattlebubble.com/blog/?p=2731#comment-56497 Someone please explain how you can be rated in the "junk" area (Moody, etc.), and still be viable. If WM stays in the junk arena for the next couple years of losses, they simply cannot be competitive in the market place, thus they are no more. Chances are the mortgages they are holding are worse than anyone expects, if they were marketable at all, WM would have sold them off to clean up its balance sheet.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56497','casey1167',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56497','casey1167','Someone please explain how you can be rated in the \"junk\" area (Moody, etc.), and still be viable. If WM stays in the junk arena for the next couple years of losses, they simply cannot be competitive in the market place, thus they are no more. Chances are the mortgages they are holding are worse than anyone expects, if they were marketable at all, WM would have sold them off to clean up its balance sheet.',''); return false;">Quote</a></div> Someone please explain how you can be rated in the “junk” area (Moody, etc.), and still be viable. If WM stays in the junk arena for the next couple years of losses, they simply cannot be competitive in the market place, thus they are no more. Chances are the mortgages they are holding are worse than anyone expects, if they were marketable at all, WM would have sold them off to clean up its balance sheet.
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]]> By: Teacher_Greghttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56496 Teacher_Greg Fri, 12 Sep 2008 21:24:54 +0000 http://seattlebubble.com/blog/?p=2731#comment-56496 ... into the mountain.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56496','Teacher_Greg',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56496','Teacher_Greg','... into the mountain.',''); return false;">Quote</a></div> … into the mountain.
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]]> By: victorchaihttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56468 victorchai Fri, 12 Sep 2008 18:00:27 +0000 http://seattlebubble.com/blog/?p=2731#comment-56468 WM is flying.....<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56468','victorchai',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56468','victorchai','WM is flying.....',''); return false;">Quote</a></div> WM is flying…..
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]]> By: The Timhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56462 The Tim Fri, 12 Sep 2008 17:38:31 +0000 http://seattlebubble.com/blog/?p=2731#comment-56462 Hey, I was working on it when the comment went up. I'm only _so_ fast here.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56462','The Tim',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56462','The Tim','Hey, I was working on it when the comment went up. I\'m only _so_ fast here.',''); return false;">Quote</a></div> Hey, I was working on it when the comment went up. I’m only _so_ fast here.
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]]> By: Everett_Tomhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56460 Everett_Tom Fri, 12 Sep 2008 17:19:26 +0000 http://seattlebubble.com/blog/?p=2731#comment-56460 Buceri,Wow.. Your comment:9:32am... Blog post with virtually identical headline:10:10amMaybe there is something to this predicting the future thing... Did you use linear regression for that? :)<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56460','Everett_Tom',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56460','Everett_Tom','Buceri,\r\n\r\nWow.. Your comment:9:32am... \r\nBlog post with virtually identical headline:10:10am\r\n\r\nMaybe there is something to this predicting the future thing... Did you use linear regression for that? :)',''); return false;">Quote</a></div> Buceri,

Wow.. Your comment:9:32am…
Blog post with virtually identical headline:10:10am

Maybe there is something to this predicting the future thing… Did you use linear regression for that? :)

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]]> By: Bucerihttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56458 Buceri Fri, 12 Sep 2008 16:32:47 +0000 http://seattlebubble.com/blog/?p=2731#comment-56458 I am sure Tim will open a new thread for this soon...Seattle-area foreclosures soar Filing rate increased 54% in August from a year earlierBy AUBREY COHEN P-I REPORTERSeattle-area foreclosures were up 54 percent in August from a year earlier, according to a new report.The area, defined as King and Snohomish counties, had 1,185 properties with foreclosure filings, up 15 percent from July, according to RealtyTrac, an Irvine, Calif., company that tracks foreclosures.The area's rate of one filing for every 906 households put it 133rd out of 230 areas RealtyTrac ranks, up from 147th in July.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56458','Buceri',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56458','Buceri','I am sure Tim will open a new thread for this soon...\r\n\r\nSeattle-area foreclosures soar\r\nFiling rate increased 54% in August from a year earlier\r\n\r\nBy AUBREY COHEN\r\nP-I REPORTER\r\n\r\nSeattle-area foreclosures were up 54 percent in August from a year earlier, according to a new report.\r\n\r\nThe area, defined as King and Snohomish counties, had 1,185 properties with foreclosure filings, up 15 percent from July, according to RealtyTrac, an Irvine, Calif., company that tracks foreclosures.\r\n\r\nThe area\'s rate of one filing for every 906 households put it 133rd out of 230 areas RealtyTrac ranks, up from 147th in July.',''); return false;">Quote</a></div> I am sure Tim will open a new thread for this soon…

Seattle-area foreclosures soar
Filing rate increased 54% in August from a year earlier

By AUBREY COHEN
P-I REPORTER

Seattle-area foreclosures were up 54 percent in August from a year earlier, according to a new report.

The area, defined as King and Snohomish counties, had 1,185 properties with foreclosure filings, up 15 percent from July, according to RealtyTrac, an Irvine, Calif., company that tracks foreclosures.

The area’s rate of one filing for every 906 households put it 133rd out of 230 areas RealtyTrac ranks, up from 147th in July.

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]]> By: Sniglethttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56457 Sniglet Fri, 12 Sep 2008 16:20:56 +0000 http://seattlebubble.com/blog/?p=2731#comment-56457 The markets certainly don't seem to be all that concerned about WaMu today. Their stock is actually in positive territory.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56457','Sniglet',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56457','Sniglet','The markets certainly don\'t seem to be all that concerned about WaMu today. Their stock is actually in positive territory.',''); return false;">Quote</a></div> The markets certainly don’t seem to be all that concerned about WaMu today. Their stock is actually in positive territory.
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]]> By: Dave0http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56456 Dave0 Fri, 12 Sep 2008 16:15:13 +0000 http://seattlebubble.com/blog/?p=2731#comment-56456 Cheapseats was talking about the prefered stock (WM-K) and Matthew's talking about the common stock (WM)<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56456','Dave0',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56456','Dave0','Cheapseats was talking about the prefered stock (WM-K) and Matthew\'s talking about the common stock (WM)',''); return false;">Quote</a></div> Cheapseats was talking about the prefered stock (WM-K) and Matthew’s talking about the common stock (WM)
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]]> By: Bucerihttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56455 Buceri Fri, 12 Sep 2008 16:15:02 +0000 http://seattlebubble.com/blog/?p=2731#comment-56455 Anonymous??<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56455','Buceri',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56455','Buceri','Anonymous??',''); return false;">Quote</a></div> Anonymous??
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]]> By: Bucerihttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56454 Buceri Fri, 12 Sep 2008 16:11:13 +0000 http://seattlebubble.com/blog/?p=2731#comment-56454 Washington Mutual falls after outlook, cut to junk Fri Sep 12, 2008 9:36am EDTNEW YORK (Reuters) - Washington Mutual Inc shares fell on Friday after the largest U.S. savings and loan projected another big write-down for soured loans and was downgraded to "junk" status by a leading credit rating agency.At least four analysts cut their price targets for the thrift, though Goldman Sachs & Co raised its rating to "neutral" from "sell."Washington Mutual shares were down 16 cents, or 5.7 percent, to $2.67 in pre-market trading. Through Thursday, the shares had fallen 34 percent this week and 92 percent in the last year.In an unusual move to quell investor anxiety about its survival prospects, Seattle-based Washington Mutual late Thursday released third-quarter projections six weeks early and said it had ample liquidity. The thrift has said losses from home loans could reach $19 billion through 2011.But Moody's Investors Service lowered Washington Mutual to below investment-grade status, citing "reduced financial flexibility, deteriorating asset quality, and expected franchise erosion." Fitch Ratings also downgraded the thrift.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56454','Buceri',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56454','Buceri','Washington Mutual falls after outlook, cut to junk\nFri Sep 12, 2008 9:36am EDT\n\nNEW YORK (Reuters) - Washington Mutual Inc shares fell on Friday after the largest U.S. savings and loan projected another big write-down for soured loans and was downgraded to \"junk\" status by a leading credit rating agency.\n\nAt least four analysts cut their price targets for the thrift, though Goldman Sachs & Co raised its rating to \"neutral\" from \"sell.\"\n\nWashington Mutual shares were down 16 cents, or 5.7 percent, to $2.67 in pre-market trading. Through Thursday, the shares had fallen 34 percent this week and 92 percent in the last year.\n\nIn an unusual move to quell investor anxiety about its survival prospects, Seattle-based Washington Mutual late Thursday released third-quarter projections six weeks early and said it had ample liquidity. The thrift has said losses from home loans could reach $19 billion through 2011.\n\nBut Moody\'s Investors Service lowered Washington Mutual to below investment-grade status, citing \"reduced financial flexibility, deteriorating asset quality, and expected franchise erosion.\" Fitch Ratings also downgraded the thrift.',''); return false;">Quote</a></div> Washington Mutual falls after outlook, cut to junk
Fri Sep 12, 2008 9:36am EDT

NEW YORK (Reuters) – Washington Mutual Inc shares fell on Friday after the largest U.S. savings and loan projected another big write-down for soured loans and was downgraded to “junk” status by a leading credit rating agency.

At least four analysts cut their price targets for the thrift, though Goldman Sachs & Co raised its rating to “neutral” from “sell.”

Washington Mutual shares were down 16 cents, or 5.7 percent, to $2.67 in pre-market trading. Through Thursday, the shares had fallen 34 percent this week and 92 percent in the last year.

In an unusual move to quell investor anxiety about its survival prospects, Seattle-based Washington Mutual late Thursday released third-quarter projections six weeks early and said it had ample liquidity. The thrift has said losses from home loans could reach $19 billion through 2011.

But Moody’s Investors Service lowered Washington Mutual to below investment-grade status, citing “reduced financial flexibility, deteriorating asset quality, and expected franchise erosion.” Fitch Ratings also downgraded the thrift.

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]]> By: Matthewhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56453 Matthew Fri, 12 Sep 2008 15:34:14 +0000 http://seattlebubble.com/blog/?p=2731#comment-56453 Don't worry, it's dropping like a lead balloon. Now at 2.78 (-.05).<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56453','Matthew',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56453','Matthew','Don\'t worry, it\'s dropping like a lead balloon. Now at 2.78 (-.05).',''); return false;">Quote</a></div> Don’t worry, it’s dropping like a lead balloon. Now at 2.78 (-.05).
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]]> By: cheapseatshttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56452 cheapseats Fri, 12 Sep 2008 14:14:15 +0000 http://seattlebubble.com/blog/?p=2731#comment-56452 Looks like that was a fluke, though it is still doing well today.4.11 +0.96 (30.48%) Real-time: 10:13AM EDT<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56452','cheapseats',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56452','cheapseats','Looks like that was a fluke, though it is still doing well today.\r\n\r\n4.11 +0.96 (30.48%) Real-time: 10:13AM EDT',''); return false;">Quote</a></div> Looks like that was a fluke, though it is still doing well today.

4.11 +0.96 (30.48%) Real-time: 10:13AM EDT

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]]> By: Alanhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56449 Alan Fri, 12 Sep 2008 07:22:08 +0000 http://seattlebubble.com/blog/?p=2731#comment-56449 I did the calculation the day after Bear Sterns dropped. I forget the exact numbers. I think it dropped from $60 to $2 overnight. You could have purchased options to sell a share of Bear Sterns at $30 for something like $0.02 the week before the drop. $1k would buy options on 50k shares. After the drop, each option would have been worth $28. 50k times $28 is $1.4 million. The multiplied I worked out with the actual numbers was around 2500x.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56449','Alan',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56449','Alan','I did the calculation the day after Bear Sterns dropped. I forget the exact numbers. I think it dropped from $60 to $2 overnight. You could have purchased options to sell a share of Bear Sterns at $30 for something like $0.02 the week before the drop. $1k would buy options on 50k shares. After the drop, each option would have been worth $28. 50k times $28 is $1.4 million. The multiplied I worked out with the actual numbers was around 2500x.',''); return false;">Quote</a></div> I did the calculation the day after Bear Sterns dropped. I forget the exact numbers. I think it dropped from $60 to $2 overnight. You could have purchased options to sell a share of Bear Sterns at $30 for something like $0.02 the week before the drop. $1k would buy options on 50k shares. After the drop, each option would have been worth $28. 50k times $28 is $1.4 million. The multiplied I worked out with the actual numbers was around 2500x.
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]]> By: Scotsmanhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56448 Scotsman Fri, 12 Sep 2008 06:53:07 +0000 http://seattlebubble.com/blog/?p=2731#comment-56448 I don't think it's a legit print- the "R" is at $200, up from $3.00. But we'll see tomorrow!<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56448','Scotsman',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56448','Scotsman','I don\'t think it\'s a legit print- the \"R\" is at $200, up from $3.00. But we\'ll see tomorrow!',''); return false;">Quote</a></div> I don’t think it’s a legit print- the “R” is at $200, up from $3.00. But we’ll see tomorrow!
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]]> By: cheapseatshttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56446 cheapseats Fri, 12 Sep 2008 06:33:56 +0000 http://seattlebubble.com/blog/?p=2731#comment-56446 Lots of shorts hurting? Or not on the PK??<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56446','cheapseats',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56446','cheapseats','Lots of shorts hurting? Or not on the PK??',''); return false;">Quote</a></div> Lots of shorts hurting? Or not on the PK??
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]]> By: TJ_98370http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56445 TJ_98370 Fri, 12 Sep 2008 05:59:57 +0000 http://seattlebubble.com/blog/?p=2731#comment-56445 <a href="http://finance.google.com/finance?q=WM-K" rel="nofollow">Washington Mutual Inc. PRFD 'K'</a>(Public, NYSE:WM-K) 3.15 +0.14 (4.65%) Sep 11 - Close Open: 2.70 Mkt Cap: 60.20M P/E: - Dividend: - High: 3.23 52Wk High: 24.40 F P/E: - Yield: - Low: 2.50 52Wk Low: 2.25 Beta: - Shares: 19.11M Vol: 1.02M Avg Vol: 101,000.00 EPS: - Inst. Own: - <b>After Hours: 15.40 +12.25 (388.89%) - Sep 11, 4:43PM EDT </b><div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56445','TJ_98370',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56445','TJ_98370','<a href=\"http:\/\/finance.google.com\/finance?q=WM-K\" rel=\"nofollow\">Washington Mutual Inc. PRFD \'K\'<\/a>\r\n\r\n (Public, NYSE:WM-K) \r\n \r\n\r\n \r\n3.15 +0.14 (4.65%)\r\nSep 11 - Close Open: 2.70 Mkt Cap: 60.20M P\/E: - Dividend: -\r\n High: 3.23 52Wk High: 24.40 F P\/E: - Yield: -\r\n Low: 2.50 52Wk Low: 2.25 Beta: - Shares: 19.11M\r\n Vol: 1.02M Avg Vol: 101,000.00 EPS: - Inst. Own: -\r\n<b>After Hours: 15.40 +12.25 (388.89%) - Sep 11, 4:43PM EDT <\/b>',''); return false;">Quote</a></div> Washington Mutual Inc. PRFD ‘K’

(Public, NYSE:WM-K)

3.15 +0.14 (4.65%)
Sep 11 – Close Open: 2.70 Mkt Cap: 60.20M P/E: - Dividend: -
High: 3.23 52Wk High: 24.40 F P/E: - Yield: -
Low: 2.50 52Wk Low: 2.25 Beta: - Shares: 19.11M
Vol: 1.02M Avg Vol: 101,000.00 EPS: - Inst. Own: -
After Hours: 15.40 +12.25 (388.89%) – Sep 11, 4:43PM EDT

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]]> By: Jillayne Schlickehttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56444 Jillayne Schlicke Fri, 12 Sep 2008 05:43:02 +0000 http://seattlebubble.com/blog/?p=2731#comment-56444 Went to both a wamu and wells fargo today. The wamu branch was extremely busy. Lots of transactions, lots of interest in their 5% CD promotion which, i believe ends tomorrow?Wells Fargo was dead.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56444','Jillayne Schlicke',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56444','Jillayne Schlicke','Went to both a wamu and wells fargo today. The wamu branch was extremely busy. Lots of transactions, lots of interest in their 5% CD promotion which, i believe ends tomorrow?\r\n\r\nWells Fargo was dead.',''); return false;">Quote</a></div> Went to both a wamu and wells fargo today. The wamu branch was extremely busy. Lots of transactions, lots of interest in their 5% CD promotion which, i believe ends tomorrow?

Wells Fargo was dead.

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]]> By: Scotsmanhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56442 Scotsman Fri, 12 Sep 2008 05:27:39 +0000 http://seattlebubble.com/blog/?p=2731#comment-56442 The ticker symbol for WAMU is WM. For Weis, it's WM-k. I think the previous poster made an error. WAMU has only gone up a bit after-hours.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56442','Scotsman',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56442','Scotsman','The ticker symbol for WAMU is WM. For Weis, it\'s WM-k. I think the previous poster made an error. WAMU has only gone up a bit after-hours.',''); return false;">Quote</a></div> The ticker symbol for WAMU is WM. For Weis, it’s WM-k. I think the previous poster made an error. WAMU has only gone up a bit after-hours.
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]]> By: TJ_98370http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56441 TJ_98370 Fri, 12 Sep 2008 05:24:04 +0000 http://seattlebubble.com/blog/?p=2731#comment-56441 . <i>Google Finance ---- NYSE:WM-K - After Hours: 15.40 +12.25 (388.89%) - Sep 11, 4:43PM EDT </i> . Holy Sh*t !!! What the heck is going on !?!<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56441','TJ_98370',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56441','TJ_98370','.\r\n<i>Google Finance ---- NYSE:WM-K - After Hours: 15.40 +12.25 (388.89%) - Sep 11, 4:43PM EDT <\/i>\r\n.\r\nHoly Sh*t !!! What the heck is going on !?!',''); return false;">Quote</a></div> .
Google Finance —- NYSE:WM-K – After Hours: 15.40 +12.25 (388.89%) – Sep 11, 4:43PM EDT
.
Holy Sh*t !!! What the heck is going on !?!
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]]> By: Bobhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56440 Bob Fri, 12 Sep 2008 05:10:16 +0000 http://seattlebubble.com/blog/?p=2731#comment-56440 With this much warning in advance, I doubt there are any remaining WAMU checking accounts with more than $100,000 in them.The risk to the FDIC is minimal.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56440','Bob',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56440','Bob','With this much warning in advance, I doubt there are any remaining WAMU checking accounts with more than $100,000 in them. \r\n\r\nThe risk to the FDIC is minimal.',''); return false;">Quote</a></div> With this much warning in advance, I doubt there are any remaining WAMU checking accounts with more than $100,000 in them.

The risk to the FDIC is minimal.

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]]> By: Dave0http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56439 Dave0 Fri, 12 Sep 2008 04:56:29 +0000 http://seattlebubble.com/blog/?p=2731#comment-56439 Alan, please explain exactly how you could have turned $1k to $2.5M with the right Bear Stearns options. I'm curious... seriously.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56439','Dave0',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56439','Dave0','Alan, please explain exactly how you could have turned $1k to $2.5M with the right Bear Stearns options. I\'m curious... seriously.',''); return false;">Quote</a></div> Alan, please explain exactly how you could have turned $1k to $2.5M with the right Bear Stearns options. I’m curious… seriously.
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]]> By: Alanhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56438 Alan Fri, 12 Sep 2008 04:48:37 +0000 http://seattlebubble.com/blog/?p=2731#comment-56438 Imagine if you had bought $1k of Bear Sterns options the week before they went kaput. The right options would have turned $1k into $2.5M.Buying Wamu common stock is a suckers game.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56438','Alan',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56438','Alan','Imagine if you had bought $1k of Bear Sterns options the week before they went kaput. The right options would have turned $1k into $2.5M.\r\n\r\nBuying Wamu common stock is a suckers game.',''); return false;">Quote</a></div> Imagine if you had bought $1k of Bear Sterns options the week before they went kaput. The right options would have turned $1k into $2.5M.

Buying Wamu common stock is a suckers game.

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]]> By: Dave0http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56437 Dave0 Fri, 12 Sep 2008 04:32:25 +0000 http://seattlebubble.com/blog/?p=2731#comment-56437 http://finance.google.com/finance?q=NYSE%3AWM-Kcheck out the after hours price.... (I love this new edit feature!)<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56437','Dave0',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56437','Dave0','http:\/\/finance.google.com\/finance?q=NYSE%3AWM-K\n\ncheck out the after hours price.... (I love this new edit feature!)',''); return false;">Quote</a></div> http://finance.google.com/finance?q=NYSE%3AWM-K

check out the after hours price…. (I love this new edit feature!)

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]]> By: TJ_98370http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56436 TJ_98370 Fri, 12 Sep 2008 04:25:05 +0000 http://seattlebubble.com/blog/?p=2731#comment-56436 ….Don’t worry, try NYSE:WM-K, it went up to 15 dollar….

.
victorchai-
.
Humor us incompetents, can you make a link to NYSE:WM-K? I would like to see what you are talking about.
.

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]]> By: Dave0http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56435 Dave0 Fri, 12 Sep 2008 04:24:12 +0000 http://seattlebubble.com/blog/?p=2731#comment-56435 <blockquote> Dave0,Were you the guy that was arguing with me some 6-12 months ago on here that the financials were historically cheap and ready to rebound and that there was no way we would see major bank failures?I can swear it was you but I could be wrong.</blockquote> Nope, that wasn't me. I've been on board that the end of the world is coming for a while now. I just had a extra few hundred dollars in my brokerage account so I decided to gamble a bit and try to make some quick money on WaMu's volatility before they fell (it worked with Fannie Mae a couple weeks ago). I think I might have held on a little too long though. We'll see tomorrow if I can make some money and get out.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56435','Dave0',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56435','Dave0','<blockquote>\r\nDave0,\r\n\r\nWere you the guy that was arguing with me some 6-12 months ago on here that the financials were historically cheap and ready to rebound and that there was no way we would see major bank failures?\r\n\r\nI can swear it was you but I could be wrong.<\/blockquote>\r\nNope, that wasn\'t me. I\'ve been on board that the end of the world is coming for a while now. I just had a extra few hundred dollars in my brokerage account so I decided to gamble a bit and try to make some quick money on WaMu\'s volatility before they fell (it worked with Fannie Mae a couple weeks ago). I think I might have held on a little too long though. We\'ll see tomorrow if I can make some money and get out.',''); return false;">Quote</a></div>

Dave0,

Were you the guy that was arguing with me some 6-12 months ago on here that the financials were historically cheap and ready to rebound and that there was no way we would see major bank failures?

I can swear it was you but I could be wrong.

Nope, that wasn’t me. I’ve been on board that the end of the world is coming for a while now. I just had a extra few hundred dollars in my brokerage account so I decided to gamble a bit and try to make some quick money on WaMu’s volatility before they fell (it worked with Fannie Mae a couple weeks ago). I think I might have held on a little too long though. We’ll see tomorrow if I can make some money and get out.

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]]> By: TJ_98370http://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56434 TJ_98370 Fri, 12 Sep 2008 03:22:32 +0000 http://seattlebubble.com/blog/?p=2731#comment-56434 FWIW – Washington Mutual is indeed a savings and loan association and it apparently does have access to the discount window:
.
Federal Reserve Bank of San Fransisco
.
…..Most discount window borrowing from the Federal Reserve is done by commercial banks. However, credit unions, along with other types of depository institutions (including federal savings banks, mutual savings banks, and savings and loan associations), also may borrow from the Fed’s discount window to offset temporary shortages of funds. …
..
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]]> By: victorchaihttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56433 victorchai Fri, 12 Sep 2008 03:20:40 +0000 http://seattlebubble.com/blog/?p=2731#comment-56433 Don't worry, try NYSE:WM-K, it went up to 15 dollar...almost 400% aftermarket, so it's safe to say the whoever bought WM, the buy out was above $10...so, no, wm will not sink... PS I like the new Edit tool... just found out.Thanks Tim<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56433','victorchai',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56433','victorchai','Don\'t worry, try NYSE:WM-K, it went up to 15 dollar...almost 400% aftermarket, so it\'s safe to say the whoever bought WM, the buy out was above $10...so, no, wm will not sink...\nPS I like the new Edit tool... just found out.Thanks Tim',''); return false;">Quote</a></div> Don’t worry, try NYSE:WM-K, it went up to 15 dollar…almost 400% aftermarket, so it’s safe to say the whoever bought WM, the buy out was above $10…so, no, wm will not sink…
PS I like the new Edit tool… just found out.Thanks Tim
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]]> By: matthewhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56432 matthew Fri, 12 Sep 2008 03:18:17 +0000 http://seattlebubble.com/blog/?p=2731#comment-56432 FDIC down to about 45 billion in their insurance fund.... No wonder they have been talking about borrowing money from the Treasury...tick... tick... tick... tick...<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56432','matthew',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56432','matthew','FDIC down to about 45 billion in their insurance fund.... No wonder they have been talking about borrowing money from the Treasury...\r\n\r\n\r\ntick... tick... tick... tick...',''); return false;">Quote</a></div> FDIC down to about 45 billion in their insurance fund…. No wonder they have been talking about borrowing money from the Treasury…

tick… tick… tick… tick…

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]]> By: sanguishttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56431 sanguis Fri, 12 Sep 2008 03:15:16 +0000 http://seattlebubble.com/blog/?p=2731#comment-56431 I have money in WAMU. FDIC means the US government guarantees the deposit under 100k. If the US government fails we aren't in a great depression, we would be in hell on earth. I think we are headed towards massive inflation to help wash away all these bad debts.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56431','sanguis',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56431','sanguis','I have money in WAMU. FDIC means the US government guarantees the deposit under 100k. If the US government fails we aren\'t in a great depression, we would be in hell on earth. I think we are headed towards massive inflation to help wash away all these bad debts.',''); return false;">Quote</a></div> I have money in WAMU. FDIC means the US government guarantees the deposit under 100k. If the US government fails we aren’t in a great depression, we would be in hell on earth. I think we are headed towards massive inflation to help wash away all these bad debts.
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]]> By: matthewhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56430 matthew Fri, 12 Sep 2008 03:10:05 +0000 http://seattlebubble.com/blog/?p=2731#comment-56430 Interesting article on just how large WaMu is:https://self-evident.org/?p=217Washington Mutual has $310 billion in assets and $182 billion in deposits. (Their market cap is now below $4 billion.) So think of WaMu as 10 IndyMacs.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56430','matthew',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56430','matthew','Interesting article on just how large WaMu is:\r\n\r\nhttps:\/\/self-evident.org\/?p=217\r\n\r\nWashington Mutual has $310 billion in assets and $182 billion in deposits. (Their market cap is now below $4 billion.) So think of WaMu as 10 IndyMacs.',''); return false;">Quote</a></div> Interesting article on just how large WaMu is:

https://self-evident.org/?p=217

Washington Mutual has $310 billion in assets and $182 billion in deposits. (Their market cap is now below $4 billion.) So think of WaMu as 10 IndyMacs.

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]]> By: matthewhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56429 matthew Fri, 12 Sep 2008 02:10:33 +0000 http://seattlebubble.com/blog/?p=2731#comment-56429 Dave0,Were you the guy that was arguing with me some 6-12 months ago on here that the financials were historically cheap and ready to rebound and that there was no way we would see major bank failures?I can swear it was you but I could be wrong.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56429','matthew',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56429','matthew','Dave0,\r\n\r\nWere you the guy that was arguing with me some 6-12 months ago on here that the financials were historically cheap and ready to rebound and that there was no way we would see major bank failures? \r\n\r\nI can swear it was you but I could be wrong.',''); return false;">Quote</a></div> Dave0,

Were you the guy that was arguing with me some 6-12 months ago on here that the financials were historically cheap and ready to rebound and that there was no way we would see major bank failures?

I can swear it was you but I could be wrong.

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]]> By: Jayhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56428 Jay Fri, 12 Sep 2008 00:57:16 +0000 http://seattlebubble.com/blog/?p=2731#comment-56428 As for WaMu's DW eligibility.. I think it qualifies. It's a deposit institution, isn't it? Besides, if the Fed created the TSLF for <i>brokers</i>, it's somewhat ludicrous to think that WaMu would not be allowed to use the TAF. As for collateral, let's just say the Fed didn't create TAF to make money. In any case though, despite the billions and billions of losses, I think WaMu can survive, IF IT DOES NOT LOSE THE CONFIDENCE OF DEPOSITORS. See, the Fed can extend emergency credit line to WaMu or engineer some other alternatives (such as break-up of good and bad bank), but "run on the bank" situation can develop into something more lethal and uncontrollable. At the end of the day, for the Fed, it's yet another moral hazard vs. market stability question, and I do expect that they will act before the bank run really starts, and another shotgun marriage is likely IMO. Maybe James Dimon is screening calls from Seattle for the one from New York or Washington.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56428','Jay',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56428','Jay','As for WaMu\'s DW eligibility.. I think it qualifies. It\'s a deposit institution, isn\'t it? Besides, if the Fed created the TSLF for <i>brokers<\/i>, it\'s somewhat ludicrous to think that WaMu would not be allowed to use the TAF. As for collateral, let\'s just say the Fed didn\'t create TAF to make money. In any case though, despite the billions and billions of losses, I think WaMu can survive, IF IT DOES NOT LOSE THE CONFIDENCE OF DEPOSITORS. See, the Fed can extend emergency credit line to WaMu or engineer some other alternatives (such as break-up of good and bad bank), but \"run on the bank\" situation can develop into something more lethal and uncontrollable. At the end of the day, for the Fed, it\'s yet another moral hazard vs. market stability question, and I do expect that they will act before the bank run really starts, and another shotgun marriage is likely IMO. Maybe James Dimon is screening calls from Seattle for the one from New York or Washington.',''); return false;">Quote</a></div> As for WaMu’s DW eligibility.. I think it qualifies. It’s a deposit institution, isn’t it? Besides, if the Fed created the TSLF for brokers, it’s somewhat ludicrous to think that WaMu would not be allowed to use the TAF. As for collateral, let’s just say the Fed didn’t create TAF to make money. In any case though, despite the billions and billions of losses, I think WaMu can survive, IF IT DOES NOT LOSE THE CONFIDENCE OF DEPOSITORS. See, the Fed can extend emergency credit line to WaMu or engineer some other alternatives (such as break-up of good and bad bank), but “run on the bank” situation can develop into something more lethal and uncontrollable. At the end of the day, for the Fed, it’s yet another moral hazard vs. market stability question, and I do expect that they will act before the bank run really starts, and another shotgun marriage is likely IMO. Maybe James Dimon is screening calls from Seattle for the one from New York or Washington.
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]]> By: Sniglethttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56426 Sniglet Thu, 11 Sep 2008 23:33:19 +0000 http://seattlebubble.com/blog/?p=2731#comment-56426 WaMu stock is up above $3 in after hours trading. I guess people were expecting even a BIGGER write-down.http://calculatedrisk.blogspot.com/2008/09/wamu-45-billion-in-loan-loss-provisions.html<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56426','Sniglet',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56426','Sniglet','WaMu stock is up above $3 in after hours trading. I guess people were expecting even a BIGGER write-down.\r\n\r\nhttp:\/\/calculatedrisk.blogspot.com\/2008\/09\/wamu-45-billion-in-loan-loss-provisions.html',''); return false;">Quote</a></div> WaMu stock is up above $3 in after hours trading. I guess people were expecting even a BIGGER write-down.

http://calculatedrisk.blogspot.com/2008/09/wamu-45-billion-in-loan-loss-provisions.html

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]]> By: Notorious ARThttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56425 Notorious ART Thu, 11 Sep 2008 23:02:41 +0000 http://seattlebubble.com/blog/?p=2731#comment-56425 I wonder how "reliable" the funding sources are...."In addition, the company continues to maintain a strong liquidity position with approximately $50 billion of liquidity from reliable funding sources."<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56425','Notorious ART',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56425','Notorious ART','I wonder how \"reliable\" the funding sources are.... \r\n\r\n\"In addition, the company continues to maintain a strong liquidity position with approximately $50 billion of liquidity from reliable funding sources.\"',''); return false;">Quote</a></div> I wonder how “reliable” the funding sources are….

“In addition, the company continues to maintain a strong liquidity position with approximately $50 billion of liquidity from reliable funding sources.”

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]]> By: AndyChttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56424 AndyC Thu, 11 Sep 2008 22:37:34 +0000 http://seattlebubble.com/blog/?p=2731#comment-56424 Here's another report from Fitch Ratings:"SAN FRANCISCO (MarketWatch) -- Fitch Ratings late Thursday downgraded Washington Mutual Inc.'s WM long- and short-term issuer default ratings because of continuing asset-quality challenges amid a gloomy financial-sector outlook. Fitch cut its long-term IDR for WaMu to BBB- from BBB, and its short-term IDR to F3 from F2. The rating outlook is negative."<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56424','AndyC',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56424','AndyC','Here\'s another report from Fitch Ratings:\r\n\r\n\"SAN FRANCISCO (MarketWatch) -- Fitch Ratings late Thursday downgraded Washington Mutual Inc.\'s WM long- and short-term issuer default ratings because of continuing asset-quality challenges amid a gloomy financial-sector outlook. Fitch cut its long-term IDR for WaMu to BBB- from BBB, and its short-term IDR to F3 from F2. The rating outlook is negative.\"',''); return false;">Quote</a></div> Here’s another report from Fitch Ratings:

“SAN FRANCISCO (MarketWatch) — Fitch Ratings late Thursday downgraded Washington Mutual Inc.’s WM long- and short-term issuer default ratings because of continuing asset-quality challenges amid a gloomy financial-sector outlook. Fitch cut its long-term IDR for WaMu to BBB- from BBB, and its short-term IDR to F3 from F2. The rating outlook is negative.”

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]]> By: check it outhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56423 check it out Thu, 11 Sep 2008 22:21:46 +0000 http://seattlebubble.com/blog/?p=2731#comment-56423 http://newsroom.wamu.com/phoenix.zhtml?c=189529&p=irol-newsArticle&ID=1196448&highlight=For some reason I don't think i'll be seeing pizzas being delivered tomorrow afternoon here...<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56423','check it out',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56423','check it out','http:\/\/newsroom.wamu.com\/phoenix.zhtml?c=189529&p=irol-newsArticle&ID=1196448&highlight=\r\n\r\nFor some reason I don\'t think i\'ll be seeing pizzas being delivered tomorrow afternoon here...',''); return false;">Quote</a></div> http://newsroom.wamu.com/phoenix.zhtml?c=189529&p=irol-newsArticle&ID=1196448&highlight=

For some reason I don’t think i’ll be seeing pizzas being delivered tomorrow afternoon here…

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]]> By: WestSideBillyhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56422 WestSideBilly Thu, 11 Sep 2008 22:17:38 +0000 http://seattlebubble.com/blog/?p=2731#comment-56422 gpxl @ 54 :If you were buying WM with borrowed money, then yes, it'd be similar in terms of speculation. If you're buying it with real money, then it'd just be gambling.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56422','WestSideBilly',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56422','WestSideBilly','gpxl @ 54 :\r\n\r\nIf you were buying WM with borrowed money, then yes, it\'d be similar in terms of speculation. If you\'re buying it with real money, then it\'d just be gambling.',''); return false;">Quote</a></div> gpxl @ 54 :

If you were buying WM with borrowed money, then yes, it’d be similar in terms of speculation. If you’re buying it with real money, then it’d just be gambling.

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]]> By: Markorhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56421 Markor Thu, 11 Sep 2008 21:31:47 +0000 http://seattlebubble.com/blog/?p=2731#comment-56421 I have some money in WaMu, and use their bill-payer service. I expect a seamless transition if they are taken over, including by the feds. If not, I'll pay my bills separately until things are restored. If something worse happens I win big because I'll get to buy properties for dimes on today's dollar after there are runs on all major banks and we step firmly into Great Depression II.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56421','Markor',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56421','Markor','I have some money in WaMu, and use their bill-payer service. I expect a seamless transition if they are taken over, including by the feds. If not, I\'ll pay my bills separately until things are restored. If something worse happens I win big because I\'ll get to buy properties for dimes on today\'s dollar after there are runs on all major banks and we step firmly into Great Depression II.',''); return false;">Quote</a></div> I have some money in WaMu, and use their bill-payer service. I expect a seamless transition if they are taken over, including by the feds. If not, I’ll pay my bills separately until things are restored. If something worse happens I win big because I’ll get to buy properties for dimes on today’s dollar after there are runs on all major banks and we step firmly into Great Depression II.
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]]> By: The Timhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56420 The Tim Thu, 11 Sep 2008 21:21:25 +0000 http://seattlebubble.com/blog/?p=2731#comment-56420 Yes well there's a reason I said "imagine" instead of "you should be."<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('56420','The Tim',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('56420','The Tim','Yes well there\'s a reason I said \"imagine\" instead of \"you should be.\"',''); return false;">Quote</a></div> Yes well there’s a reason I said “imagine” instead of “you should be.”
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]]> By: gpxlhttp://seattlebubble.com/blog/2008/09/11/open-wamu-thread/#comment-56419 gpxl Thu, 11 Sep 2008 21:18:54 +0000 http://seattlebubble.com/blog/?p=2731#comment-56419 “Imagine buying 5,000 shares @ $2, and 5 years from now they’re back up to $30. $10k becomes $150k Dang.”

Wasn’t it that kind of speculation that has so many homebuyers underwater? ;-)

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