As in “Washington Mutual”: Government Seizes WaMu and Sells Some Assets – NYTimes.com
Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators on Thursday night, in what is by far the largest bank failure in American history.
Regulators simultaneously brokered an emergency sale of virtually all of Washington Mutual, the nation’s largest savings and loan, to JPMorgan Chase for $1.9 billion, averting another potentially huge taxpayer bill for the rescue of a failing institution.
[…] Customers of WaMu, based in Seattle, are unlikely to be affected, although shareholders and some bondholders will be wiped out. WaMu account holders are guaranteed by the Federal Deposit Insurance Corporation up to $100,000, and additional deposits will be backed by JPMorgan Chase.
[…] JPMorgan Chase, which acquired Bear Stearns only six months ago in another shotgun deal brokered by the government, is to take control Friday of all of WaMu’s deposits and bank branches, creating a nationwide retail franchise that rivals only Bank of America. But JPMorgan will also take on Washington Mutual’s big portfolio of troubled assets, and plans to shut down at least 10 percent of the combined company’s 5,400 branches in markets like New York and Chicago, where they compete.
Our bank accounts are at WaMu, which Margie’s mom used to work for, and which has a convenient storefront by our supermarket.
I’ve not been unaware of WaMu’s woes, and considered pulling our accounts. But first off, I knew that, well, we were well within the FDIC limit, and secondly, where? I’m not convinced that JPMorgan Chase is long-term healthier, BofA just saddled themselves with huge debt, USBank sucks (or so I hear), etc. At the moment, no particular bank seems any safer than any other.
Ain’t that a kick in the groan, as Archie Bunker used to say.
The most negative impact of this, at the moment, may be the closing of our convenient branch, as there is a Chase across the street (and far less convenient). And the fact is, I’ve liked dealing with WaMu — it’s tended to be a friend and useful environment as a customer. It’s a shame to see them go.
Next?
I’ve not used a bank in years. Always seemed to prefer credit unions. So far the one I’m a member of seems to be weathering this storm pretty well.
Well, that’s a thought. We do actually have a credit union available through Margie’s work, though it’s less convenient. Sounds like fodder for a good chat.w
Buggery! That’s my work accounts, too. I think I’m leaning towards Wachovia now.
Rumours are that Wachovia is next to end up in the dust bin of history.
…or something called National City, whom I have never heard of.
We’ve got National City banks all over Michigan. They bought out some local bank awhile back. I forget who.
I was going to mention credit unions, but Les beat me to it!
I was going to mention credit unions, but Les beat me to it!
Wachovia has the world’s ugliest logo, and I refuse to be a part of it. 🙂
Wachovia was just eaten up by Citigroup.