Results tagged “jpmorganchase”

It was nearly a year ago we when witnessed the financial meltdown and takeover of 119-year old Washington Mutual. Banking FAIL! Flash forward to today, KING5-TV reports close to 100 former vice-presidents and other mid-to-senior level executives of the now-defunct WaMu have filed lawsuits against the Federal Deposit Insurance Corporation (FDIC) seeking the government (or, perhaps ultimately the taxpayers) to pay up the millions they're owed.

For a few months now, emails from our friend who still works at WaMu have come with the epilogue: "WaMu, now backed by the strength of JPMorgan Chase."

Today, we decided to call WaMu to ask about getting our mortgage bailed out in some sort of way, since all the other kool kids are doing it, including WaMu's new sugar daddies themselves.

We switched most of our banking over to USAA last year (WaMu was pretty good for a bank, but USAA is stellar). We've still got an account at WaMu, though. As recommended, we'll continue to use WaMu's website as usual, and we're not really worried about the security of our well-under-$100,000 deposit. But we were curious about what's going to happen when at our local branches. Consumerist found a banking insider to provide a one-year timeline of the assimilation process. Short version of the prediction: No big changes for about 6 months, but by the end of the year you'll be writing Chase-logoed checks and saying "good morning" to different faces at your local branch.

Marketwatch has a good FAQ for Washington Mutual clients wondering if their money is still there. Short answer: it's all good. Unless you're a shareholder. Shareholders are screwed--officially, whenever what's left of WaMu declares bankruptcy. Alan Fishman, WaMu's 3-week CEO, is not screwed, though it may be difficult for him to find another job that pays $18 million per month. WaMu depositors precipitated the bank's failure by withdrawing $16.7 billion in a little over a week. The only silver lining is that buyer "JPMorgan Chase will absorb at least $31 billion in losses that would normally have fallen to the F.D.I.C."

JPMorgan Chase is holding a conference call at 6:15 p.m. today, and the expected topic is its purchase of (part of) Washington Mutual. WaMu was frenetically batting its eyelashes at any suitor within bidding distance, especially with news of a bailout in the offing, potentially keeping WaMu's toxic mortgage holdings from being a dead loss. Bloomberg says that federal regulators decided to press the issue, and seized the bank's assets today. JPMorgan Chase is apt to pluck the shiniest apple, WaMu's thriving retail bank.

It seems like only days ago that we were being told that WaMu's incoming CEO, Alan Fishman was ready to turn lead into gold: "I do think I have the skills to take it to the next level." But the next level sounds like drumming up curb appeal for the beleaguered savings and loan. Today the New York Times says that WaMu's shopping for buyers. Goldman Sachs is playing matchmaker, and has sounded out Wells Fargo, JPMorgan Chase and HSBC. Good luck with that. WaMu closed today at $2.01, rising slightly in after hours trading.

WaMu is like a free public water fountain these days. Except instead of water, it's all bad news. And it's not free, it's costing billions. But it is highly public!