naked capitalism

DaddieMac says:

More than 2600 branches nationwide…

dearieme says:

I hope that HSBC don’t buy them, we might need them to buy RBS on our side of the Atlantic.

Anonymous says:

My friends have taken up a collection for a buy out but only came up with $5.10…sorry money is tight right now. Just change the WaMu signs to ‘US Treasury Savings and Loan Bank’

dd says:

Some not so comic relief:
Henry Paulson’s Frankenstein
http://dealbook.blogs.nytimes.com/2008/09/17/henry-paulsons-frankenstein/

Anonymous says:

Physical gold and miners.

Steve says:

If WaMu fails, the only way FDIC will sell the bank is if the purchaser will take ~$110 B in assets. Otherwise it will be a conservatorship. The cost of a deposit transfer without an asset sale is prohibitive.

For anyone who wants to predict what FDIC will do, remember FDIC is not on GAAP. So, in a conservatorship such as IndyMac, FDIC doesn’t book a deferred liability for the deposits under its control. When FDIC does a cost test to select the transaction type, it’s an NPV calculation with lots of wiggle room. For example, they can assume that market conditions will be more favorable for asset sales in the future, so that a buyer will eventually take the assets held in conservatorship, thereby reducing the cash cost to the insurance fund.

Anonymous says:

Yes, Paulson’s and the Fed’s bazooka doesn’t have enough shots to kill all the shorts, but the ones they do shoot will die. That threat will keep the shorts from using too much leverage in their short positions. On the other hand, that uncertainty also discourages private investors from recapitalizing the system. This uncertainty cuts both ways.

Moopheus says:

“Where to put assets?”

In a suitcase. Preferably one within arm’s reach.

on the outside says:

Does anyone know where JPM and WFC stand w/r/t the 10% deposit cap were they to take on WaMu’s deposits?

dd says:

Great now even 3rd world mafia drug dealers don't want dollars:
U.S. Busts Mexican Drug Ring With Appetite for Strong Euro
"The European cocaine market is even more attractive than the American one because of robust demand and a strong euro, said Russell Benson, the regional director of the DEA in Europe and Africa."
http://www.bloomberg.com/apps/news?pid=20601086&sid=ac4NccJve9NQ&refer=latin_america

Abbott_Of_Iona says:

Sorry OT

From Bloomberg

"JPMorgan Chase & Co. gave $138 billion this week in Federal Reserve-backed advances to the broker dealer unit of Lehman Brothers Holdings Inc. to settle Lehman trades and keep financial markets stable amid the biggest bankruptcy in history, according to a court filing"

Does this mean that the Fed DID provide a loan for Lehman??

Didn't Paulson say categorically that was not the case?

Hu Flung Pu says:

I just heard a rumor from a well-connected friend that the following are being bantered about among the principals:

(1) Merger of Wachovia and Morgan Stanley
(2) Citigroup and JP Morgan splitting up the WaMu franchise

Now, where these clowns get the capital to do such proposed deals is another question.

mxq says:

CNBC just said they are going to auction themselves off.

Maybe they’ll do it through ebay.

Of course, i have a feeling they’ll only accept bids if the buyer has a paypal account. Just a hunch.

n/p

bg says:

Overheard someone in an elevator in Seattle today saying they pulled all of their money our of their WAMU account. I quized him, and he said “I can’t afford to have my money tied for a couple of months at FDIC”.

Last night at a school event for my kids gentlemen were talking about how they “closed all their money market accounts moved to treasuries”.

The run-on-the-bank is underway.

Blackmike313 says:

Im sorry but the Government has been taken over by the Federal Reserve and the central banks. They are bailing out these corporations but in actuality they are buying the country and its people. They now own most of the mortgages and with these bail outs we will be forced to pay the bill involuntarily. And the sad part of it all is that we as Americans will let it happen because the average person has been so dumbed down by the education system they can’t understand whats going on. Regular working people can’t afford anything and the ones that are unemployed can’t find a job that pays enough to put the fuel in their vehicle to get there.

We have been screwed, We have been divided in this country by race far too long and that has been the major smoke screen that the Illuminati has used to distract us from the real issues. We are f*cked!!!