Posted on 09/14/2008 5:56:19 AM PDT by TigerLikesRooster
WAMU: NO WAMPUM EXPERT SAYS BANK MAY COST TAXPAYERS $24B
By TERI BUHL
Posted: 4:31 am September 14, 2008
US taxpayers could be on the hook for as much as $24 billion to rescue embattled Washington Mutual, the country's No. 1 savings and loan, a top banking analyst is warning.
The jaw-dropping tab would come in the form of federal mortgage loss guarantees needed to coax a buyer into purchasing WaMu, according to Landeburg Thalmann's Dick Bove, whose view on the need for a federal backstop is shared by an official with the Office of Thrift Supervision, WaMu's regulator.
Bove, in an exclusive interview with The Post, said the crushing $32.5 billion in mortgage defaults he is estimating WaMu will face over the next five quarters will force the federal government to guarantee as much as $24 billion in losses on defaulted option-ARM and subprime mortgages and home-equity lines of credit, or HELOCs.
(Excerpt) Read more at nypost.com ...
Ping!
I dumped my Wamu shares for a small loss a few days ago, just before they took another big plunge to $1.75 (although they’ve since rallied off that low). Playing around with financials right now is exciting, but very dangerous...
The country is going to go bankrupt bailing out the banks for making stupid business decisions.
Hey, my friend lost his job because his boss made stupid business decisions, any federal money for him?
So would this be a good time to close my account with them?
They publish their financials and usually, because they are more conservative, have healthy balance sheets.
It’s a lot like the Savings and Loan scandal, only you’d think we wouldn’t let that happen twice.
Between CDs, Money Market, and checking we are just under the $200k FDIC limit at WAMU!
No to worry the new party, demopublican will ride in and pass more business welfare, and the cool-aide drinkers here will say that is wonderful.
aww sweet tax payers the breadwinners for all the corporate wiz bang worthy ceo’s
so if i understand this right the 2500 bankrupt immigrant of your native origin of choice dont get to get bailed out
but the crooks that started it all get the almighty corporate welfare via future succers to foot the bill
at any rate during the great depression we had 100 or 1000 banks a week failure , what is the diff
its nice to see that we are in good hands, actually could we just offshore our banks and brokerage firms since all the funding is from china anyway and we just cut out the middle man that overpaid
A big problem is that WAMU, Wells-Fargo, and Bank of Amexico gave loans to Illegal Aliens who could never pay them back.
Look for those two to be next on the FAIL roster
Don’t bet on that. The trickle down effect has turned into a torrent for conservative bankers. They made many loans to Realtors, builders, craftsmen, small business’ and their own employees with AAA credit ratings at the time...
If you are in foreclosure with WAMU, you are in the catbird’s seat. Once they are scooped up with Fed backing, you can make any deal you want.
reports i got was that there are 1000 banks on the verge
which is nothing compared to savings and loans we bailed out
and coming bailout of the car industry
etc
just keep your nose to the grind stone, and make sure you check out all those awe inspiring entertainment show like the idol and look at chicks with suitcases its cool and nice
as far as immigrants go its a perfect group to spring the ponzi scheme on, they get loans they wont repay, the agents selling the mortgages get their cut and whomever gets holding the bag is as we see screwed
but no fear US taxpayer is here
The disease is more pronounced among politicians.
You’d be 100% wrong about BofA and Wells. They are two of the best run banks in the country and will emerge from this period as formidable competitors. p.s. WAMU is an S&L, not a bank.
You should learn something about it before you open your mouth.
They are bailing out the depositors, not the bank.
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