wamu

[RTRUJILLO]

Feds seize Washington Mutual, sells assets (http://www.msnbc.msn.com/id/26893612)

[ncttrnl]

I can't say that I'm surprised but at the same time I am totally surprised.

All I can say is f'n wow!

[GTiGirl]

We all saw this coming. I skimmed an article on Yahoo! Finance very briefly, but didn't see any specific info - I wonder what this means for WaMu customers? It says that it will be "seamless" but I'm skeptical about anything anybody says about money these days. I know some peeps with multiple 12-month CD's (9 months left before maturity) in the $400-$500K range; I wonder if it just merely be a change of name on the certificate or what???

[v2rocket]

so what happened to every who was an account holder with them?

[ncttrnl]

so what happened to every who was an account holder with them?

Most likely nothing. It seems like wamu has enough assets to cover their deposits

If the account is FDIC insured, which some types are not but most are, it is usually covered up to $100K. There are some types of accounts covered for more. Over $100K, if the bank doesn't have cash or assets to cover the deposits, you're pretty much screwed. That's why they generally advise the average person not to keep more that $100K in a single account. Each account can be separately insured.

[GTiGirl]

Most likely nothing. It seems like wamu has enough assets to cover their deposits

If the account is FDIC insured, which some types are not but most are, it is usually covered up to $100K. There are some types of accounts covered for more. Over $100K, if the bank doesn't have cash or assets to cover the deposits, you're pretty much screwed. That's why they generally advise the average person not to keep more that $100K in a single account. Each account can be separately insured.

Actually, I believe it is $100K per account holder, not account, per financial institution. We should probably find the legalese on this, but this is the example I was given by the folks I reference in my previous post:

1. Account holder A and B are a married couple
2. A and B had an investment worth $400-$500K liquidate (unknown circumstances)
3. A and B want to turn said investment into a CD (or even money market account) for easy access
4. WaMu tells them it's $100K per account holder
5. To be FDIC insured for $300K at WaMu, they create 3 separate accounts
6. Account #1 = Account Holder A and B for $100K
7. Account #2 = Account Holder A and B and C for $100K (Holder C is an adult child)
8. Account #3 = Account Holder A and B and D for $100K (Holder D is also an adult child)
9. In the event of bank failure and need for FDIC claim, account holders A or B, and C and D will all make separate claims, one account each.

I think they put the rest of it back into uninsured accounts through their standard broker (I think and I hope).

Further, this same arrangement can be duplicated at multiple institutions to insure even cash. However, I'm cautioned to even think about the true "value" of FDIC or FCUA insured accounts. In one of those WaMu articles, it said that the IndyMac drama depleted a lot of the FDIC funds. WaMu could have bankrupted FDIC. What happens when more and more banks go under, claiming FDIC insurance... it's going to run out sometime!

We'll be back to burning cash for fuel because the paper is worth more than the "value".

Someone get the real info on this. I'm lazy to search. (Wow, did I just say that?)

[youUGLI]

so i have like a $280.00 overdraft fee with them does that mean i dont have to pay it? FTW! haha

[madajb]

Most likely nothing. It seems like wamu has enough assets to cover their deposits

I admit to not RTFA, but if this is the case, why the collapse?

-ajb

[madajb]

Actually, I believe it is $100K per account holder, not account, per financial institution. We should probably find the legalese on this, but this is the example I was given by the folks I reference in my previous post:



It's $100k per depositor, so:
A) Mary has a checking account in Bank C, she gets 100k insurance.
B) Mary and Jack have a joint checking in Bank C, they get $200k insurance.
C) Mary and Jack have a joint checking and joint savings in Bank C, they get 200k insurance.

IRAs and some other retirement vehicles are insured up to 250k.
More here (http://www.fdic.gov/deposit/deposits/insuringdeposits/)
-ajb

[ncttrnl]

I admit to not RTFA, but if this is the case, why the collapse?

-ajb

There was a run on the bank so failure was imminent. They had/have assets but they lacked liquidity so the FDIC had to step in to cover the deposits. JP got it when the FDIC tossed the hot potato to someone else so it could avoid taking a hit on WaMu. The FDIC already had potential buyers lined up.

[creanium]

There was a run on the bank so failure was imminent. They had/have assets but they lacked liquidity so the FDIC had to step in to cover the deposits. JP got it when the FDIC tossed the hot potato to someone else so it could avoid taking a hit on WaMu. The FDIC already had potential buyers lined up.

Which is why people are stupid. "OMG WaMu is failing, I better take my money out and accelerate the process!" :rolleyes:

[paultakeda]

In other news, Wachovia seeking merger with either Citigroup or Wells Fargo. (http://dealbook.blogs.nytimes.com/2008/09/26/wachovia-begins-early-deal-talks-with-citi/index.html?hp)

We're running out of national banks.

[PhätTony]

so i have like a $280.00 overdraft fee with them does that mean i dont have to pay it? FTW! haha


lol....how bout $450.00?

[creanium]

http://www.chase.com/welcomewamu/

[ncttrnl]

Which is why people are stupid. "OMG WaMu is failing, I better take my money out and accelerate the process!" :rolleyes:

People don't care about all that as long as they get what they want. Most of the people that got their money out are probably feeling pretty proud of themselves for being so keenly aware of the market that they managed to get their money out just in time.

All I know is that, if I were a criminal, I'd be checking under mattresses.

[creanium]

All I know is that, if I were a criminal, I'd be checking under mattresses.

... or shoe boxes.

[madajb]

There was a run on the bank so failure was imminent. They had/have assets but they lacked liquidity so the FDIC had to step in to cover the deposits. JP got it when the FDIC tossed the hot potato to someone else so it could avoid taking a hit on WaMu. The FDIC already had potential buyers lined up.

I suppose that makes sense, but it's a bit disingenous to say "we have assets to cover liabilities" if those assets are not available for actual use in covering the liabilities.
But, I suppose that's the risk of fractional reserve banking.

-ajb

[madajb]

http://www.chase.com/welcomewamu/

"Q. When can I bank at Chase branches in my area?
A. We'll be working hard to combine systems as quickly as possible so you can begin to enjoy expanded branch convenience in your area, and we expect system changes to begin late next year. We'll let you know in advance of any changes; in the meantime, simply continue to bank at WaMu branches as you do today."

This from the same people who told me I couldn't make any changes on my "California account" because I was now in Oregon.
I'm not holding my breath that this goes smoothly.

-ajb