Wamu bought out by JPMorgan Chase!!!

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djdlemma;2244433;2244433 said:
My fiance works for Wamu, and lemme tell you, yesterday was a stressful day. We are very worried about lay offs. I think she will be good though, cuz she has always been the top earner at her branch. Wish us luck!!
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yeah that sucks. im sure there will be layoffs at the support staff level like accounting, finance, IT, HR, risk mgmt, etc. there could be some duplicate positions here in these areas...
 
cassharper;2244626; said:
307 billion in assets + 108 billion in deposits - 1.9 billion paid = the best get rich quick scheme ever!
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And a huge portfolio of subprime loans, the have obviously not "repriced" that portfolio or there is a major shortcoming in ther loan allowance account. Their liquidity was in such a mess that they were seized on a THURSDAY, never seen a bank seized on a Thursday, they normally do it on Friday. WAMU must have been on the brink of a complete collapse.


you sure a bout this "get rich quick scheme" now?
 
wont these be picked up by the govt as part of the bailout package?
 
jcardona1;2244866; said:
wont these be picked up by the govt as part of the bailout package?
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Have you seen or heard any methodolgy on how all those billions were going to be spent?

Throwing money at a problem without a plan usually only causes more chaos.

I worked with the DHS during the formation of the TSA, you talk about throwing away money, I seen it all.

This is just another overreaction or late reaction to a problem by the government.
 
Not too much, i just read a few articles and from what i heard on the news. they dont go in too many details, but i just heard about them buying out a lot of bad MBS's so im assuming these bad wamu loans would be scooped up by the govt, is that correct?

and yeah, the govt is always reactive, never proactive. so you think the bailout is a bad idea? not sure how i feel about it yet. i mean it seems as though stuff can get a lot worse w/o govt intervention...
 
and our bank has had some troubles too, but nothing this bad. thankfully we never got involved with mortgage loans or we'd be in deep right about now
 
jcardona1;2244921; said:
Not too much, i just read a few articles and from what i heard on the news. they dont go in too many details, but i just heard about them buying out a lot of bad MBS's so im assuming these bad wamu loans would be scooped up by the govt, is that correct?

and yeah, the govt is always reactive, never proactive. so you think the bailout is a bad idea? not sure how i feel about it yet. i mean it seems as though stuff can get a lot worse w/o govt intervention...
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It is a difficult situation but one that has been seen and known about for quite some time. Many of the institutions that are having problems were not conforming to GAAP, their regulators knew they were not and let the situation grow to this point, in essence the government let it get to this point, now they are trying to fix the problem.

Like I said until the methodology is laid out I am not sure how this scenario will play out.
 
not conforming to GAAP in what sense, the loan loss allowance? yeah we got slammed hard too because of that. we dont do the typical home mortgages, but we do a lot of commercial real estate, construction, and ag loans. our problems started with the rapid decline in real estate values.

we werent obtaining updated appraisals, therefore loans that should have been impaired and reserved for were not, causing big material misstatments in the ALLL. as you said, regulators and external auditors didnt have any issues with this until late last year. thats when SHTF for us and its been a mess ever since.

what do you do for a living btw?
 
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