Government takes over Washington Mutual

[MyopicJoe]

From US News & World Report (http://www.usnews.com/blogs/planning-to-retire/2008/09/26/how-the-washington-mutual-takeover-will-affect-consumers.html):

The government seized banking giant Washington Mutual last night and then sold some pieces of it to JPMorgan Chase for approximately $1.9 billion.

Isn't WaMu the largest savings & loan? Is it going under gonna kill FDIC protection for all other bank acounts?

[MyopicJoe]

Here's another article from CNN which says JP is getting all of WaMu:
http://money.cnn.com/2008/09/25/news/companies/JPM_WaMu/index.htm?postversion=2008092612


Does anyone know a good source for this late breaking financial news?

[MyopicJoe]

Ahhh. Apparently this isn't "breaking news". My friend in the banking industry says they knew it was coming for the past month. He says Suntrust is next on the chopping block.

Guess I need to get my head out of the sand.

And I need to stop replying to my own posts :p

[GregLee]

[URL="http://www.usnews.com/blogs/planning-to-retire/2008/09/26/how-the-washington-mutual-takeover-will-affect-consumers.html"] Is it going under gonna kill FDIC protection for all other bank acounts?
I heard that no FDIC funds were used, though $180 billion in bank customers' deposits were protected.

[MyopicJoe]

Whoopsy. I didn't notice the topic was already broached on the Unsettled Economy thread. I got scooped by Frankie at 3:47 AM. Go to sleep, dude! :)

[turtlegirl]

Ahhh. Apparently this isn't "breaking news". My friend in the banking industry says they knew it was coming for the past month. He says Suntrust is next on the chopping block.

Guess I need to get my head out of the sand.

And I need to stop replying to my own posts :p

Thanks so much for passing that info along, MJ! I just got off the phone with my mom, and together we devised a plan for her to move some of her assets from Suntrust. Even if Suntrust doesn't fold, at least she's prepared. Additionally, she had asked the Suntrust teller this week if the bank was sound, and would everything be okay, and they replied...sure, we're FDIC insured. Well, duh, mom, what are they gonna say - "Panic! Withdraw everything!!" Yeah, I think not.

She told me that the word around Florida is that Wachovia is going to be the next to go. :eek:

[MyopicJoe]

Thanks so much for passing that info along, MJ! I just got off the phone with my mom, and together we devised a plan for her to move some of her assets from Suntrust.

I'm glad see you're watching out for your mom. It can't hurt to diversify her assets. FDIC should cover any loss (assuming it stays afloat, but it seems to be doing ok). Having her money in two places can help in case there's a temporary disruption (like say Suntrust won't let her take money out for 2 weeks).


She told me that the word around Florida is that Wachovia is going to be the next to go. :eek:

I think at this point everyone is getting paranoid. After the Lehman Brothers thing, people panicked and withdrew $16.7B from WaMu over just a 10 day period, which is one reason why they went under. Did the panic cause something that normally wouldn't have happened, or did it just speed up the inevitable?


Finally, a disclaimer: I'm am very ignorant about America's financial system. Even though my friend is in the "banking industry" (a very broad term) and he knows more than me, he's doesn't know what the future holds either. So though it's wise to take prudent measures, please don't do anything drastic based on what I or anyone says on the Internet.

[timkona]

I'm gonna go with a "Watch out for Monday" theme this weekend.

A nationwide run on the banks is just around the corner, imho. Matters not what the economy is doing. Matters most what people believe in their minds.

Cash is king.

[Ron Whitfield]

US cash is king of the toilet. Gold is better at this point.

[tutusue]

[...]Having her money in two places can help in case there's a temporary disruption (like say Suntrust won't let her take money out for 2 weeks).
Exactly. Temporary accessibillty (rather, lack of) must be anticipated. At this stage of the game it doesn't hurt to have 2 FDIC insured money market accounts with check writing and a debit card for each. While I do have that, what gets dicey for me and a lot of others are all those automatic bill payments. Hmmm...now I'm wondering if it might be wise to stop those and pay either the old fashion way (checks) or online.
I'm gonna go with a "Watch out for Monday" theme this weekend.
I've been thinking the same thing! Was the debate scheduled for a Friday night on purpose so as not to create a panic the next day and allow people a couple of days to think about things?

[Nords]

I've been thinking the same thing! Was the debate scheduled for a Friday night on purpose so as not to create a panic the next day and allow people a couple of days to think about things?
The FDIC typically takes over banks on a Friday afternoon to give their staff time to sort through the situation (and arrange sales like to JPM) before re-opening on Monday "under new management". Holiday weekends are considered even better-- and wait until Thanksgiving weekend!

Speaking of alternate sources of cash, I'm trying to remember the last time I heard of a credit union going under. Especially a local credit union, let alone something like Pentagon Federal CU (which has membership available to just about everyone).

As for the presidential debates, I think they've decided to go with Friday night to reduce the time available for the Saturday Night Live writers & cast to slap the skits together. Heck, it probably takes a couple hours just for Tina Fey to get her head inside her Sarah Palin character...

[MyopicJoe]

what gets dicey for me and a lot of others are all those automatic bill payments.

Good point, TS. Instead of splitting your assets 50/50, what if your second account only contained enough cash to tide you over for a month or two?


As for the presidential debates, I think they've decided to go with Friday night to reduce the time available for the Saturday Night Live writers & cast to slap the skits together.

Haha, I never thought of that angle.

[Vanguard]

Yay, we're this much closer to having all our transactions handled by "The Bank". Somewhere, George Soros has creamed his pants.

[tutusue]

[...]
As for the presidential debates, I think they've decided to go with Friday night to reduce the time available for the Saturday Night Live writers & cast to slap the skits together.
Bwahahaha!!! Hmmm...I'll have to watch tonight or check YouTube earlier in the evening. Great writers can bat scripts out in no time. If the producers go with a debate skit then I wouldn't be surprised if the SNL writers and cast watched the debate together then went right to work. Gotta strike while the iron's hot, ya know!
Heck, it probably takes a couple hours just for Tina Fey to get her head inside her Sarah Palin character...
I kinda doubt that. Fey is a pro and should have no problem getting into character. I wouldn't be surprised if she contributed to the writing. If so, by the time rehearsals start she's already in character. There just has to be a spoof of the Katie Couric interview. SNL better not let that one get away! :D
Good point, TS. Instead of splitting your assets 50/50, what if your second account only contained enough cash to tide you over for a month or two?
There are some decent MMA rates (3%-4% range) out there so while a 50/50 isn't necessary, it's not a problem either. I think I'll keep my automatic deductions in place. If my bank goes under I have a list of those ADs and can write checks. Ha! Writing checks just seems so...old...fashion! :D

[tutusue]

[...]
As for the presidential debates, I think they've decided to go with Friday night to reduce the time available for the Saturday Night Live writers & cast to slap the skits together. Heck, it probably takes a couple hours just for Tina Fey to get her head inside her Sarah Palin character...
Both skits are on tonight! (http://news.yahoo.com/s/ap/20080928/ap_en_tv/tv_snl)

[MyopicJoe]

Thanks for the link, TS.


When Poehler's Couric pushed Fey's Palin to specifically discuss how she would help facilitate democracy abroad, Fey gave in: "Katie, I'd like to use one of my lifelines. ... I want to phone a friend."

ROTFL

xD

I love comedians. They say what we're all feeling. We laugh because we know it's true.

[timkona]

Post #8............spot on ..... ya think?

When will you people start listening to me? :p

The run on banks could start any minute. Most especially if Wall St. gets hammered again on Tuesday.

[Jim75]

. . . please don't do anything drastic based on what I or anyone says on the Internet.I can hear bubbles popping all over cyberspace.:D