Latest bank failure: WAMU is no more (merged--link now in thread) MET

[pjfootballer]

I had WAMU in Florida. Hated them. Fees for EVERYTHING. Switched to BofA. Now with Wachovia since my wife works there.

[pjfootballer]

The safe money is on Wachovia. They're very similar to WaMu, and they also invested heavily in unsafe ARM-A mortgage loans.

My checking account is with Wachovia, so I hope I'm wrong. I fear I'm not, though...

I don't know. Wachovia is a huge bank. They are located here in Charlotte and they recently hired a new CEO and are looking to turn things around. I think they were trying to acquire Countrywide, but I don't know if that ever went through. I think Bank of America and Wachovia will be alright as long as they get bailed out.

[Kilmer17]

Wachovia. By the end of the year.

[GibbsFactor]

Wachovia and Bank of America are pretty much twins aren't they?

Plus, Bank of America were the idiots borrowing all the money from the Fed to buy up the likes of Countrywide.

Let's keep an eye on Bank of America.

[Mickalino]

I've been getting 2 Credit Card offers a week from WAMU, at both my PO Box address and my street address, and it's had me so infuriated that I was about to use one of their prepaid envelopes to send them back a pissed-off letter.

Does this banking collapse mean that ridiculous marketing campaign against me will finally stop ?!?!?!

[Fletch_Lives59]

Wachovia. By the end of the year.

shut your mouth Kilmer, don't even say it...:doh:

anyone hear anything good about PNC, branches are popping up all over the place around me?

[Fletch_Lives59]

I've been getting 2 Credit Card offers a week from WAMU, at both my PO Box address and my street address, and it's had me so infuriated that I was about to use one of their prepaid envelopes to send them back a pissed-off letter.

Does this banking collapse mean that ridiculous marketing campaign against me will finally stop ?!?!?!

me too Mick, it was getting out of hand this past summer...I hope so....

[RememberOsaka]

WAMU purchased the credit card accounts I had with Providian and customer service went right down the ****ter.

Their credit card operation has to be the absolute worst in the business and I'm glad to see them go under!!!!

[Predicto]

Uhhh. My money is in Wamu. What should I do?

Just leave it there. It's FDIC insured.

[Predicto]

Yeah, they got a "buyer".

Somehow, JP Morgan was able to purchase these assetts valued at over 300 billion for $1.9 billion.

How does that happen and why weren't the people able to make this purchase to offset the reaming we are about to take?

I just don't understand how this is...

Remember, the bank does not OWN that 300 billion you are taking about. Those are depositor's accounts. They can use that money to make loans but they have to give it back when withdrawn.

In other words, no bank has a net worth or more than about 5 percent of its total deposits. JP Morgan probably got a good deal, but not the kind of deal that you are thinking of. Make sense?

[chaddukes]

Considering that Morgan is taking over you'll be fine.

JP Morgan Chase is one of the most conservative, yet saavy banks out there. Thier phones are ringing off the hook with banks, brokers, etc. asking JP Morgan to please buy them! JP Morgan did not expose itself to the subprime market to nearly the level of the other institutions that you hear about. Additionally, they have more liquidity than many small nations.

My point.....You're better off!

[chaddukes]

All on a handshake type deal. Usually there are regulations involved with a bank takeover. There is none of that with this transaction.

The Fed's and Treasury's highest level reps have been on hand with JP Morgan, BofA, etc. for the past several days. Those regulators are right in the middle of the negotations....and putting significant pressure on the stronger institutions to buyout the weaker ones.

[Forehead]

I have a WAMU credit card...I wish my balance would just disappear. Probably not.

My banking is with Chevy Chase and Navy Federal...I wonder how they're holding up.

[chaddukes]

I don't know. Wachovia is a huge bank. They are located here in Charlotte and they recently hired a new CEO and are looking to turn things around. I think they were trying to acquire Countrywide, but I don't know if that ever went through. I think Bank of America and Wachovia will be alright as long as they get bailed out.

Wachovia is in bad shape. The only thing saving them is that they have a large depository arm. However, while they aren't a huge player in the mortgage market they still have a lot of mortgage debt on hand. And here is the kicker. The kinds of debts that they have are the absolute worst kinds out there, the negative amortization loans. The majority of thier portfolio is these types of loans. On the plus side they are more careful than most banks regarding the actual properties that they lend on. The types of mortgages that they do are very risky, but they are usually tied to stronger equity than most mortgage banks.

They're next.

[PleaseBlitz]

shut your mouth Kilmer, don't even say it...:doh:

anyone hear anything good about PNC, branches are popping up all over the place around me?

They are making a big push into this area, first by buying Riggs, then by building their own branches.

Wachovia and PNC are both doing ok.

[chaddukes]

Wachovia and Bank of America are pretty much twins aren't they?

Plus, Bank of America were the idiots borrowing all the money from the Fed to buy up the likes of Countrywide.

Let's keep an eye on Bank of America.

I can't speak for the depository side, but thier mortgage sides are like night and day. Bank of America is not exposed to the level of subprime risk that wachovia is. However, while they did get Countrywide at a good price, they also aquired a bunch of Countrywides bad debts! Still, they should be fine. The reason why countrywide couldn't continue was because they didn't have a huge depository cashflow. Thus, they just couldn't fund thier loans anymore. And the minute that they stopped buying loans from other smaller lenders was the minute that this crisis became exposed to the public last year. They put dozens of small lenders out of business in a few months, simply because they were the only place those smaller lenders could go to sell thier exotic loans.

[PleaseBlitz]

Wachovia is in bad shape. The only thing saving them is that they have a large depository arm. However, while they aren't a huge player in the mortgage market they still have a lot of mortgage debt on hand. And here is the kicker. The kinds of debts that they have are the absolute worst kinds out there, the negative amortization loans. The majority of thier portfolio is these types of loans. On the plus side they are more careful than most banks regarding the actual properties that they lend on. The types of mortgages that they do are very risky, but they are usually tied to stronger equity than most mortgage banks.

They're next.

Where did you see that? I know WAMU was huge into the neg-am loans, but Wachovia never was, at least not their retail arm.

[Hersh]

Wachovia would already have gone down if short-selling was still allowed. If there is no bail out then they are done by the end of next week.

[chaddukes]

Where did you see that? I know WAMU was huge into the neg-am loans, but Wachovia never was, at least not their retail arm.

They were both heavily into Neg-Am. Wachovia took over World Mortgage who did nothing but Neg-Am. Prior to that they weren't heavily involved in mortgages. Wachovia's wholesale arm is almost entirely Neg-Am. They only recently started selling to FHA and Fannie. They issued neg-ams and held a lot of the loans themselves.....hence they didn't pass the risk on! But, on the plus side Wachovia have a large depository arm. Banks like countrywide had virtually no depository cashflow. Wamu's greater use of depository banking allowed them to stay afloat a little longer than CW. Wamu's version of the Neg-Am was actually the most risky loan in the business, but it was a smaller portion of thier overall portfolio and they sold most of them to investors.

I know this because I've worked with, around, or even for a number of these banks. Almost every bank that I've worked for is now out of business.

[Hersh]

Apparently Wachovia is now in preliminary talks to merge with Citi Group.

[Reic]

so what exactly happens when a bank folds?

My dad is fine on money, but told me he did something with his equity and we need to really watch our spending and savings, not really sure Iget what is going on with all of this.

[Maximus71]

They are making a big push into this area, first by buying Riggs, then by building their own branches.

Wachovia and PNC are both doing ok.

PNC was bought out by Wells Fargo and they will be everywhere before you know it. Wells is in the top 10 most trusted banks right now, very strong player in all aspects of banking! Wachovia is doing ok? You might want to think again... they will go under and its just a matter of time.

[Oldskool]

Just leave it there. It's FDIC insured.

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

WaMu Customers, Welcome to JPMorgan Chase!

We're proud to welcome you to one of the nation's largest banks; as of September 25, 2008, All WaMu customer deposits are now deposits of JPMorgan Chase, one of the strongest financial institutions in the world.

WaMu customer deposits — including checking accounts, savings accounts and certificates of deposit — are now backed by the strength and security of JPMorgan Chase. JPMorgan Chase has more than $2 trillion in assets and is the largest depository bank in America.

Our combined company will offer superior banking convenience — over 5,400 branches and 14,000 ATMs in 23 states.

Here's what this change means for you:

What's different?

* Your deposits at WaMu are now backed by the financial strength of Chase in addition to continuing to be insured by the FDIC.

* If you bank at both WaMu and Chase, your deposits continue to be insured separately today just as they were yesterday, and generally will be for another six months. At that time, your deposits will be insured by the FDIC for up to $100,000 per depositor (with an additional $250,000 for self-directed retirement accounts), and will continue to be backed by the strength and security of JPMorgan Chase.

* Learn more about the size and strength of our company.

* Learn more about your FDIC coverage.

What stays the same?

Continue to bank just as you usually do:

* same account numbers,

* same Washington Mutual name on your account,

* same checks, debit cards, credit cards, deposit slips,

* same online banking website and passwords,

* same branches & ATMs,

* same familiar bankers, and

* same great service!

What will change? Soon

* You'll be able to use over 9,300 Chase ATMs fee-free - jointly, that's 14,000 ATMs for your banking convenience!

In the future

* You'll begin to see the Chase name on your statements, online, and on your credit cards as they reissue.

* Your branch will be re-named Chase and you'll be re-issued new debit cards with the Chase name. Until then, bank as you do today.

* As our systems merge, you'll be able to use any of the Chase branches nationwide. This won't take place this year, and we'll let you know well in advance of any changes.

We look forward to serving you, and to introducing new products, services, and convenience in the coming months.

Tell me more* about the change to JPMorgan Chase.

Visit WaMu online.

Frequently Asked Questions:

Q. What will happen to my account at WaMu? And to my branch?

A. It's business as usual. As of September 25, 2008, JPMorgan Chase has assumed the deposit and loan accounts, and all branches, of Washington Mutual. You can continue to access your accounts just the way you've accessed them in the past: use your same branch, same debit, credit and ATM cards, same checks.

Q. Is my money safe?

A. Yes; in addition to FDIC insurance, now you're assured your bank is backed by the strength and security of JPMorgan Chase. If you have money in both banks, your deposits have separate FDIC insurance for up to six months. Come see us and we can help you review your coverage.

Q. What if I have more than $100,000 at WaMu?

A. Your money is secure and now protected by the strength of Chase. Chase assumed all deposits of Washington Mutual.

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.

Q. Do my direct deposit, automated payments and transfers remain the same?

A. Yes. These services all continue for you without interruption or action on your part.

Q. Where do I send my credit card and loan payments?

A. There is no change in how or where you make payments; payment instructions and addresses remain unchanged.

Q. I have a Chase credit card, car loan, and mortgage. Can I make payments at a WaMu branch now?

A. Not yet! We'll let you know when you can make Chase credit card, car loan, mortgage or other loan payments at WaMu branches, or vice versa.

Q. I have deposit accounts at both WaMu and Chase. Are both of my accounts insured?

A. Yes! Your deposits are insured separately today just as they were yesterday, and generally will be for another six months. At that time, your deposits will be insured by the FDIC for up to $100,000 per depositor (with an additional $250,000 for self-directed retirement accounts), and will continue to be backed by the strength and security of JPMorgan Chase.

Q. I'm a small business owner. What will change for my business?

A. Immediately, no change at all – bank just as you do today. As our systems merge, we look forward to bringing you innovative services ranging from online invoicing to convenient ways to help you manage your cash flow. Chase is a national leader in business banking services, and is the nation's #1 SBA lender.

Q. I have a relationship with the WaMu Commercial Group. What will change for my business?

A. Immediately, no change at all - work with the Commercial Group just as you do today. As our systems merge, we look forward to bringing you innovative services. Chase is a national leader in commercial lending and cash management solutions.

[dockeryfan]

So to all you financially savvy individuals...

what about retirement accounts? Are they safe? I have been told by TD Ameritrade that my Roth and SEP IRAs are safe, because they are not allowed to use that capital. That even if they were to go under, those funds are safe.

Now, lately, I don't trust any of these banking fools, so who knows the real deal?

[techboy]

So to all you financially savvy individuals...

what about retirement accounts? Are they safe? I have been told by TD Ameritrade that my Roth and SEP IRAs are safe, because they are not allowed to use that capital. That even if they were to go under, those funds are safe.

Now, lately, I don't trust any of these banking fools, so who knows the real deal?

It depends upon what your holdings are. IRA is just a tax status. That has no bearing on what you've got in the account, or how safe it is.