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Edmundo Braverman's picture

WaMu circling the drain...

by Edmundo Braverman Certified User (Senior Orangutan, 387 Banana Points Points) on 9/10/08 at 9:52pm
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Lehman Bros, and the bloodbath therein, is so forty-five minutes ago. Let's talk about something that Johnny Lunchbucket at the corner bar is losing sleep over - the fact that his Christmas Club account might be going tits-up as Washington Mutual heads for the dirt nap.

Down 44% in the last two days, the share price is less than a decaf latte. WaMu shareholders are about to experience serious deceleration trauma.

Will the Fed step in to save a consumer giant? Or are they only interested in wrapping the security blanket around Wall Street skulduggery?

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prospie's picture

A+ for introducing me to the

by prospie (Senior Orangutan, 439 Banana Points Points) on 9/10/08 at 10:28pm

A+ for introducing me to the expression "tits up"

Alphaholic's picture

Agreed, A+ all around

by Alphaholic (Orangutan, 372 Banana Points Points) on 9/11/08 at 1:40am

"Tits up"...haha, very nice. I like dirt nap too, though I don't think it tops the tits.

I don't think the government will swoop in to save WaMu. They've already had a big injection frmo TPG: I can't imagine that TPG wouldn't take on the more-than-likely-doomed company and take it private. They'd get it at a damn cheap valuation, if they can persuade the stock holders, which should be cake, considering.

I heard Bill Longbrake, one of the board members of WaMu speak about their situation and how they weren't responsible for the problems associated with the firm. Bull shit, but then who knows. There seems to be alot of zombie companies out there (see: dead and walking).

Edmundo Braverman's picture

More to come, FDIC underfunded

by Edmundo Braverman Certified User(Senior Orangutan, 387 Banana Points Points) on 9/11/08 at 9:21am

What cracks me up about situations like this is that the govt really can't let them fail. There are many more of these fuck-stories lurking in the shadows, waiting to come public. But the govt can't just say, "Hey, you're screwed. You made bad loans, you pay the price." because of FDIC insurance.

There is bound to be an IndyMac-style run on WaMu, and then things are gonna get REAL ugly. Who knows if the FDIC even has any money left over after the IndyMac debacle? The GAO certainly isn't going to tell you. Those douchebags help the feds cook the books like they were the accounting firm of Chef Boy R. Dee.

Gotta love fractional reserve banking!