April 16, 2008

Should corrupt toxic lender Washington Mutual be allowed to fail?



Yes or no? Will Bennie and the inkjets bail out one of the slimiest lenders in the world? Or is that honor reserved just for Hank Paulson's investment banker buddies?

Bonus question - will their executives go to jail?

And again, for anyone stupid enough to have an account still at Washington Mutual - GET YOUR MONEY OUT OF THAT BANK AND GET IT OUT NOW. How much warning do you need?

Note I have no position in or account with Wash Mut. Just got my popcorn. Extra butter.

Appraisers say WaMu cut corners to increase its mortgage business

Groups Press for WaMu Board Ouster

WaMu cites housing woes for $1.1B loss

Where WaMu went wrong

Washington Mutual to close home-loan offices

31 comments:

Anonymous said...

No Bailout! I remember when I was denied a checking account because i didn't pay the fee for a bounce check. I was blacklisted!
Shame on them that they would blacklist me on a fee but yet give millions of dollars in loans to fools that can't pay without thinking twice!

Anonymous said...

Yes

someone said...

If it's FDIC insured, should I be worry? I still have an account there and a CD as well, but if something happens, wouldn't I be covered?

Bitter Pennsylvanian said...

FAIL!

Lost Cause said...

Yes! Yes! Yeesss! Yeeessssss!!!!!

Anonymous said...

"I remember when I was denied a checking account because i didn't pay the fee for a bounce check"

Ladies and gents I present to you the typical HP blogger. No wonder you are bitter and renting. I wouldn't lend you $10 let alone money for a mortgage.

Hillary with kneepads said...

It has to crash & Burn.

What Benny seems to forget is that there is alot (unprecedented levels of cash "parked" in CD's and MMF) of money sitting around waiting for investment opportunities. New banking companies could form, but they are less likely to do so if they will have to compete with the existing institutions that are being supported by the government.

Nobody wants to start a new business when it must compete against rivals who are being supported by the federal govt through bailouts. Failure of WAMU would be an opportunity to pick up new branch offices on the cheap for a new market entrant.

So our govt. will entrench the stupidity of the likes of WAMU. So Few leaders seem to realize this. SAving jobs sounds nice, but These WAMu idiots need to be unemployed for the good of us all.

suzanne researched it... said...

"If it's FDIC insured, should I be worry? I still have an account there and a CD as well, but if something happens, wouldn't I be covered?"

Well someone,

FDIC will cover you. BUT you will not immediately see that money. It takes time, and by time I mean at least a year based on people I know who have had to go through the process. Why torture yourself if you don't have to? You know what's coming...

-SRI

Wham You said...

I got my money out of this stink hole the other day, and I'm glad I did.

When I said I wanted cash, and believe me it wasn't a HUGE amount, they said they didn't have it. When asked why I was leaving, I just smirked and gave a shoulder shrug. LOL

Bankruptcy Nation said...

Yes. Definitely.

Plow under their offices for fill.

Bye Bye moo moo.

Keyser Soze said...

Kilinger did an awesome job of building this tiny S&L into the largest in the USA. Somehow, he lost the script in the 21st century and started making toxic loans. You can not convince me that a mortgage lender with 35 years of experience, who survived the 1990 S&L collapse, doesn't know the difference between a good and bad loan.
If I were a shareholder...I'd request he be drawn & quartered.
Have a nice day.

Bitter Pennsylvanian said...

Time to pony up! I'm clinging to Guns and God here in Pennsylvania.
Other famous PA voter quote "You know you have liberal areas, Philly in the East, Pittsburgh in the West and.... Alabama in between".

Anonymous said...

good morning renting turds

quick recap of today's events

wamu up 3%

jp morgan up 5%

HP losers...still losers.

Buzz Saw said...

Gee, who could've seen that coming?

Anonymous said...

Keith never heard of FDIC?

marky marc said...

A few years ago, I got married and we were looking to open up a joint account. There had been some bank robberies in New York City, especially at Commerce Bank, so we were looking for a bank that had secure branches. It turned out that Washington Mutual had some of the most secure branches in town. How ironic that while their branches were secure, they were getting robbed by bad borrowers....

gutless and lazy anon said...

WAMU = Providian Financial.
So I say BURN, BABY, BURN!!!!

Anonymous said...

I have some accounts with Wamu that I want to close.

So what is a good alternative bank?

mairca izda debol said...

WaMu will not be bailed out. Bear Stearns was bailed out because they posed a systemic risk to the financial markets. WaMu did not write any derevatives contracts. The OTS will take them down hard.

Anonymous said...

Sorry to disappoint you. The only bad area of WaMu was mortgage, which has been cleaned now. Therefore, WaMu will merge with another larger bank and stay open.

Remember when WaMu merged with Great Western a few years back? Time to merge again.

Moving on, nothing to see here.

BMW driving sex machine said...

Wamu just secured 7 billion in funding which will easily keep them in business going into 2009.
They aren't going anywhere.

BondsOfSteel said...

WaMu doesn't have the counter-party risk like Bear did.

Bear's failure would have taken out other financials... and threatended the market as a whole. It was too big to fail.

Who else loses if WaMu goes under? No CDS counter-parties. They're not providing liquidty to hedge funds. No investment banking clients. It's not to big to fail.

mairca izda debol said...

WaMu has $189B in option ARMs, subprime, HELOCs, and assorted garbage loans on their balance sheet. If these loans lose 20% of their value, then it's a $37B loss for WaMu. That $7B is just a drop in the bucket. They need another 5 injections of $7B. Their shares will be at $2 before this is over if the OTS doesn't shut them down first

Anonymous said...

LET THEM FAIL! I recently chose to close a large $$$ account at WaMu (because of their financial condition) and getting the money out was like pulling teeth!!! It took several weeks of being jerked around to get the money! They clearly wanted to hang on to every dollar as long as possible. Longtime HP Fan.

Anonymous said...

Ladies and gents I present to you the typical HP blogger. No wonder you are bitter and renting. I wouldn't lend you $10 let alone money for a mortgage.


Dumbass prick.

Anonymous said...

Yes, it's a very corrupt company. I know, I worked there.

Lost Cause said...

I remember when I was denied a checking account because i didn't pay the fee for a bounce check"

Ladies and gents I present to you the typical HP blogger. [crap excised]


Why do we all have phat savings accounts, and these WaMu geniuses are worth less than a bum on the street?

Khan said...

Few years ago it was one of the fastest growing businesses in the US and one of the most admired banks. I wish they fail miserably.

Wamu has always been one of the greediest banks I have ever dealt with. If a deposit is coming to the checking account, they will also let the debit go through first before the deposit is credited, even if the deposit is made earlier than the debit. Say you have $200 balance and you deposit $800. You debit $198 and $5, and then $700. Their system is programmed to debit the $198 first, then $5, which causes overdraft, even if you made the deposit, then they will debit the $700 and then apply the deposit. This way they earn overdraft fee twice. I detest this practice and closed my account a long time ago, the other banks I use don't even come close to being such unscrupulous.

So, I wish Wamu goes into oblivion.

Anonymous said...

"Say you have $200 balance and you deposit $800. You debit $198 and $5, and then $700. Their system is programmed to debit the $198 first, then $5, which causes overdraft, even if you made the deposit, then they will debit the $700 and then apply the deposit."

All of you HPers have 7 figures in the bank and yet you're worried about $5 overdrafts. LOLZ.

Once again, HP is exposed for what it is. A bunch of $11 an hour McWokers without a pot to piss in that like to make believe online and wish that one day you'll buy a house.

Keep dreaming.

DOLTS
FOOLS
TOOLS

Khan said...

"All of you HPers have 7 figures in the bank and yet you're worried about $5 overdrafts. LOLZ.

Once again, HP is exposed for what it is. A bunch of $11 an hour McWokers without a pot to piss in that like to make believe online and wish that one day you'll buy a house."

You are digressing from the point and your condescending remarks shows your lack of comprehension ability. The point of the example is to illustrate the mathematic algorithm used in their software system to trigger overdraft, even when the overdraft fee could be 500% over the charge itself. This type of system is fraudulent in nature.

Anonymous said...

Yes! Why, because I have turned over to WaMu's "wetip.com," an employee who works in their Morro Bay, CA., branch who was fired from Homefed bank for improper banking techniques. (WaMu now sits in the same building where Homefed once was.) Using other people's moneys to inflate her sales ratio to acquire bigger insentives. this employee mixed accounts to make it appear she had bigger sales. Took home customers private info and then when questioned by Homefed's security, she has claimed to have lost her log book. She even transfered one of her customers $10,000 into her own account for one month just to steal the $300 interest payment, then transfered the money back to the that account. When asking other PFR's in that branch if this was a possible mistake, they claimed no, it had to have been a deliberate act.
She must've lied on her application to WaMu by not revealing her termination by Homefed Bank to acquire her palce with WaMu. Lucy Gil Baxter is her name. I have talked with some members of WaMu and they say that this is not acceptable, yet WaMu security does nothing about it. Or at least they do not answer my emails even after I have sent them full docs exposing Lucy Baxter's deception and thievery. Can she steal your money as well? Yes!!
We opened an account with WaMu with $150k and were ready to deposit another $150k until I had learned that Lucy Baxter starting working at the Morro Bay Branch.
So deception is not only at the top, but maybe as low as their PFR's level or teller line? Even thoe you may live all the way across the country, she can access your account. You are not invisible to Lucy Baxter.