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FEDS SEIZE WASHINGTON MUTUAL
Sep 26, 2008 | 7:51 AM
Category: News
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September 26, 2008

Government Seizes WaMu and Sells Some Assets

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.

Washington Mutual, with $307 billion in assets, is by far the biggest bank failure in history, eclipsing the 1984 failure of Continental Illinois National Bank and Trust in Chicago, an event that presaged the savings and loan crisis. IndyMac, which was seized by regulators in July, was one-tenth the size of WaMu.

But the seizure and the deal with JPMorgan came as a shock to Washington Mutual’s board, which was kept completely in the dark: the company’s new chief executive, Alan H. Fishman, was in mid-air flying from New York to Seattle at the time the deal was finally brokered, according to people briefed on the situation. Mr. Fishman, who has been on the job for less than three weeks, is eligible for $11.6 million in cash severance and will get to keep his $7.5 million signing bonus, according to an analysis by James F. Reda and Associates. WaMu was not immediately available for comment.

The deal will end WaMu’s 119-year run as an independent company and give JPMorgan Chase branches in California and other markets where it does not have a big presence.

FROM: http://www.nytimes.com/2008/09/26/business/26wamu.html?

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Member Comments Total Comments: 10
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toddt read my blog
Sep 26, 2008 | 2:54 PM

So this means I no longer have to pay my mortgage with them, right?
Cromagnonwoman read my blog view my photos
Sep 26, 2008 | 5:14 PM

No wonder they were calling like rabid dogs when I forgot to pay my credit card last month. Serves them right. I am a long time customer and never late until last month. Wont go into the reason but I should have remembered.
Abunai read my blog view my photos
Sep 26, 2008 | 5:26 PM

And then the entire even was solved without spending a single dollar of taxpayers money!!

Wow! Look at what can happen when we actually allow regulations to take effect instead of blocking them and crushing them for decades!!

BTW.. that 11.6 million is NOTHING compared to what ACCORN was going to get with the Democrat's initial plan on this bailout package!! Liberals calling for CEOs to be keelhauled, but then want to pop out 20% of certain parts of a 700BILLION dollar package?
shadows read my blog
Sep 27, 2008 | 6:17 PM

This is starting to sound like a middle school dance where the teacher decides on who "dances" with who.

Whatever happened to keeping government out of the affairs of businesses? Where are the free market advocates and economic theory "purists?"

Where was ACCORN mentioned in this blog? Is someone trying to change the topic again?
Abunai read my blog view my photos
Sep 27, 2008 | 6:41 PM

No shadows.. ACCORN is one of the "community groups" listed as being eligible for receiving as much as 20% of the profits made on this 700 Billion dollar tax payer bailout! It is a cleverly written part of the bill burried deep inside, but Sen. Gramm found it earlier this week. OF COURSE the liberal media isn't reporting this (yet)

To your question of "keeping government out of the affairs of businesses." GREAT QUESTION! Republicans have been asking that of Barney Franks and Chris Dodd for YEARS with their messing around with Feddie/Fannie.

We need a 9/11 style commission to get to the bottom of this, and THIS TIME Jamie Gorelick who is the receiptiant of MILLLIONS in this scam will FINALLY be on the correct side of the table ANWERING QUESTION instead of asking them!
Abunai read my blog view my photos
Sep 27, 2008 | 6:53 PM

From the legislation:
TRANSFER OF A PERCENTAGE OF PROFITS.
DEPOSITS.Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).
USE OF DEPOSITS.Of the amount referred to in paragraph (1)
65 percent shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act of 1992 (12 U.S.C. 4568); and
35 percent shall be deposited into the Capital Magnet Fund established under section 1339 of that Act (12 U.S.C. 4569).
REMAINDER DEPOSITED IN THE TREASURY.All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt.

This is the section that Democrats use to hand out money to ACORN and National counsel of La Raza!! It was worded in this fashion as camoflague, but EVERYONE knows who they are talking about.
Abunai read my blog view my photos
Sep 27, 2008 | 6:57 PM

Cont. Now you can go to say Yahoo or other liberal forums, and they dismiss this notion, but history will show how this has been used before.

Tom.. you and your investigative skills won't need 5 minutes to look at it and reguardless of what your liberal agenda might try to report, the GOP knows better and isn't buying it.
DEOP read my blog view my photos
Sep 27, 2008 | 8:11 PM

The Abunai creed (also applies to other weak minded brainwashed conservatives. Just switch the parties for the weak minded brainwashed liberal creed):
1)if it's a Democrat President & a Republican Congress, everything that is bad is due to the President.
2)if it's a Republican President & a Democrat Congress, everything bad is due to the Congress.
3)If it's a Republican President & a Republican Congress, everything bad is due to the prior President or prior Congress
4)If it's a Democrat President & a Democrat Congress, everything bad is their fault & had nothing to do with anything that happened before their terms.
DVS11965 read my blog view my photos
Sep 28, 2008 | 10:53 PM

Fed's seize WAMU, and CEO get $15 million for his 3 months of work. Workers are sent home with nothing when they show up in the morning.

Now that's the headline.
TM6068 read my blog
Sep 29, 2008 | 10:36 PM

DVS - it was actually 11 days of work for the CEO...whew! tough job to make $15mil...
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DEOP

How sad it is when people hide behind the delete button. If someone is rude, obnoxious, or obscene, why not let the world see this? The truth is the delete button is used by some when they disagree or want to hide the facts that shoot down their beliefs. But worse is the chickens that don't allow any comments on their threads.

Member Since: 11/21/2006


 

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