In case you did not hear this just in ...JPMorgan Chase buys WaMu assets after FDIC seizure JPMorgan Chase & Co. Inc. came to the rescue of ailing Washington Mutual Inc. Thursday, buying the ailing thrift's banking assets after WaMu was seized by the Federal Deposit Insurance Corp. The FDIC, which insures bank deposits, said it would not have to dip into the insurance fund as a result of the seizure. There had been concerns that the fund, which took a big hit after the seizure of IndyMac Bank, could be depleted by a WaMu seizure. In a statement, JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of Washington Mutual's banks, or any assets or liabilities of the holding company, Washington Mutual Inc.
So what does this mean .. in short JP CHASE does not see the "sky is falling" but that this was an opportunity to expand it's sound business model.
Darn! Someone always beats me to the sale items... I was just pulling my checkbook out...
It seems that Chase seems to have deals worked out with the FDIC, before FDIC announced the seizure. I mean Chase could have purchased this bank when it was up for sale. Funny Chase became big after the market crash in the 20's in the same fasion. Someone announced bank problems, everyone pulled their money out, Bank can't back the widrawls and here comes Chase. That is where the investigation should start.
Everyone was talking about Indymac's failure earlier this summer at $31 billion. Washington Mutual is 10 times that! Absolutely amazing.
The government might be able to bail everyone out this time, but with $6 trillion in debt, there might come a point where we need someone to bail out the government. At that point, OPEC, China, or possibly a member of OPEC might be our only help. We could become a satellite of China, or a fiefdom to Saudi Arabia's kingdom. Finally, the religious political extremists would have their religious theocracy. LOL