Remember when Countrywide and Indymac were paying the highest rates in the US?
Well, now WaMu is offering a 5% CD, in a desperate attempt to raise cash (and stay afloat)
Hell, why not? After taking in a bunch of new sucker money, it's the taxpayers and FDIC that'll get stuck with the tab (again).
This. Should. Be. Illegal. And it should be ESPECIALLY illegal for WaMu to take in any new deposits over the FDIC limits.
And yet it's not.
From Mish:
Desperation at WaMu Puts Taxpayers at Risk
Desperation is in the air at Washington Mutual (WM). That WaMu is offering 5% on CDs should be proof enough. From LastNightInVegas.
If the 5% rate WaMu is offering on CDs isn't indication enough that there's trouble brewing, the fact that WaMu is promoting it with a hand drawn white board sign certainly clinches it.
September 02, 2008
Want to know what bank is gonna fail next? Just look for crazy rates on CD's and savings accounts
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3 comments:
I pulled my money out of Wamu weeks ago. As soon as IndyMac failed and the HP DeathWatch started, I knew it was time to bail. It's only a matter of time before we see the sheep lined up outside of the Wamu branches desperately trying to get their money back.
5 percent is a lousy return if looked at historically,. by todays ecrapomy its high...........
Yeah, I saw a crazy rate (5%!) on a billboard today for another bank too. I forget what it was, but will note the next time I see it. How can banks give 5% returns when their loans are for 6%?
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