Comments on: The Last Days of WAMU http://www.ritholtz.com/blog/2009/10/the-last-days-of-wamu/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 14:38:36 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: David Merkel http://www.ritholtz.com/blog/2009/10/the-last-days-of-wamu/comment-page-1/#comment-221393 David Merkel Thu, 01 Oct 2009 19:03:51 +0000 http://www.ritholtz.com/blog/?p=39764#comment-221393 Talked with several industry insiders -- they both felt that Wamu was leading the race to the bottom in underwriting. They would have died eventually; it was just a question of when and how. Talked with several industry insiders — they both felt that Wamu was leading the race to the bottom in underwriting. They would have died eventually; it was just a question of when and how.

]]> By: HROLLER http://www.ritholtz.com/blog/2009/10/the-last-days-of-wamu/comment-page-1/#comment-221253 HROLLER Thu, 01 Oct 2009 15:59:32 +0000 http://www.ritholtz.com/blog/?p=39764#comment-221253 Wamu TRUTH... Please, take some time and read these documents. They are a bit long but well worth the read. Don't you wonder why the main stream media doesn't mention the suppose "failure" of the largest financial institution in America? Wamu was a 100+ year old company.....Here is a link to all documents filed through the BK Court; http://www.kccllc.net/wamu Jamie Dimon planted "moles" in Wamu??? JPMorgan committed corporate fraud??? http://www.kccllc.net/documents/0812229/0812229090501000000000002.pdf Wamu's claims against JPMorgan/Chase; http://wmish.com/doc/gov/0603/JPM_V_WMI_-_ANSWER.PDF I'm also enclosing another link that quotes Judge Hughes from a case against the FDIC that was wrapped up on August 24, 2005; http://blog.kir.com/archives/2005/08/judge_hughes_ha.asp "The record shows that the swap was the only reason for this suit. It also shows that the FDIC knew that it had no factual or legal basis for its claims, and that its cases here and in Washington were shams." As usual, Judge Hughes is acerbic in his opinion regarding the FDIC's conduct, noting in particular that FDIC officials "lied about it all under oath" and they "discarded the mantle of the American Republic for the cloak of a secret society of extortionists." "It's hard to find a word that captures the essence of the FDIC's bringing this action. Irresponsible is close. Arbitrary, dishonest, exploitative, extortionate, and abusive all fit." Judge Hughes concluded that Hurwitz and Maxxam "will recover their costs because the record reveals corrupt individuals within a corrupt agency with corrupt influences on it, bringing this litigation." Wamu TRUTH…

Please, take some time and read these documents. They are a bit long but well worth the read. Don’t you wonder why the main stream media doesn’t mention the suppose “failure” of the largest financial institution in America? Wamu was a 100+ year old company…..Here is a link to all documents filed through the BK Court;

http://www.kccllc.net/wamu

Jamie Dimon planted “moles” in Wamu??? JPMorgan committed corporate fraud???

http://www.kccllc.net/documents/0812229/0812229090501000000000002.pdf

Wamu’s claims against JPMorgan/Chase;

http://wmish.com/doc/gov/0603/JPM_V_WMI_-_ANSWER.PDF

I’m also enclosing another link that quotes Judge Hughes from a case against the FDIC that was wrapped up on August 24, 2005; http://blog.kir.com/archives/2005/08/judge_hughes_ha.asp

“The record shows that the swap was the only reason for this suit. It also shows that the FDIC knew that it had no factual or legal basis for its claims, and that its cases here and in Washington were shams.”

As usual, Judge Hughes is acerbic in his opinion regarding the FDIC’s conduct, noting in particular that FDIC officials “lied about it all under oath” and they “discarded the mantle of the American Republic for the cloak of a secret society of extortionists.”

“It’s hard to find a word that captures the essence of the FDIC’s bringing this action. Irresponsible is close. Arbitrary, dishonest, exploitative, extortionate, and abusive all fit.”

Judge Hughes concluded that Hurwitz and Maxxam “will recover their costs because the record reveals corrupt individuals within a corrupt agency with corrupt influences on it, bringing this litigation.”

]]> By: Pat Shuff http://www.ritholtz.com/blog/2009/10/the-last-days-of-wamu/comment-page-1/#comment-221205 Pat Shuff Thu, 01 Oct 2009 15:21:41 +0000 http://www.ritholtz.com/blog/?p=39764#comment-221205 Under former CEO Kerry Killinger, WaMu had written subprime and option-ARM loans to hundreds of thousands of home buyers with shaky credit, particularly in California. The loans generated healthy fees, and the bank could offload the risk by selling them to firms that turned them into mortgage-backed securities. But when the market for those securities crashed along with the housing market in mid-2007 and borrowers were foreclosed on, WaMu and other banks were left holding large numbers of bad loans. WaMu all but stopped writing these sorts of loans in late 2007, but it was too late. At the end of June 2008, there were still $69 billion of them on WaMu’s books—58 percent of all its home loans. ~~~~~~~~~~~~~~~~~~~ Despite this forum and proprietor's differing view, it must be said--Wall Street greed and politician's depravity have always existed, but this time an uncritical view of diversity let them both out of their cages at the same time. Under former CEO Kerry Killinger, WaMu had written subprime and option-ARM loans to hundreds of thousands of home buyers with shaky credit, particularly in California. The loans generated healthy fees, and the bank could offload the risk by selling them to firms that turned them into mortgage-backed securities. But when the market for those securities crashed along with the housing market in mid-2007 and borrowers were foreclosed on, WaMu and other banks were left holding large numbers of bad loans. WaMu all but stopped writing these sorts of loans in late 2007, but it was too late. At the end of June 2008, there were still $69 billion of them on WaMu’s books—58 percent of all its home loans.

~~~~~~~~~~~~~~~~~~~

Despite this forum and proprietor’s differing view, it must be said–Wall Street greed and politician’s depravity have always existed, but this time an uncritical view of diversity let them both out of their cages at the same time.

]]> By: ZackAttack http://www.ritholtz.com/blog/2009/10/the-last-days-of-wamu/comment-page-1/#comment-221195 ZackAttack Thu, 01 Oct 2009 15:12:15 +0000 http://www.ritholtz.com/blog/?p=39764#comment-221195 Even though it was clear *exactly* what was going to happen to them, they were so, so hard to short until the collapse was really well underway. The problems started to become apparent back in February, 2007. Cramer pumped them on his show, saying that their deposit base would cover any and all sins. They were still around 45, as I recall, in May, 2007, after Killinger faked that quarter where he moved credit card reserves to earnings - burning the seed corn to bump the dividend. They really only started their collapse, as I'm remembering, in late September of that year. The bulk of my bear spread expired that month. I left a lot of money on the table picking the wrong instrument. Even though it was clear *exactly* what was going to happen to them, they were so, so hard to short until the collapse was really well underway.

The problems started to become apparent back in February, 2007. Cramer pumped them on his show, saying that their deposit base would cover any and all sins. They were still around 45, as I recall, in May, 2007, after Killinger faked that quarter where he moved credit card reserves to earnings – burning the seed corn to bump the dividend.

They really only started their collapse, as I’m remembering, in late September of that year. The bulk of my bear spread expired that month. I left a lot of money on the table picking the wrong instrument.

]]> By: Barry Ritholtz http://www.ritholtz.com/blog/2009/10/the-last-days-of-wamu/comment-page-1/#comment-221177 Barry Ritholtz Thu, 01 Oct 2009 14:42:38 +0000 http://www.ritholtz.com/blog/?p=39764#comment-221177 No -- that was for the purchase of Bear Stearns ($29B) -- not WAMU No — that was for the purchase of Bear Stearns ($29B) — not WAMU

]]> By: jc http://www.ritholtz.com/blog/2009/10/the-last-days-of-wamu/comment-page-1/#comment-221144 jc Thu, 01 Oct 2009 13:32:02 +0000 http://www.ritholtz.com/blog/?p=39764#comment-221144 The Wamu shutdown didn't cost the FDIC a penny? Isn't there a $30B US loss guarantee to Chase? Loss free but not risk free yet. I wonder what the annual premium would be for a $30B insurance policy (like AIG) would cost? Thats the implied cost of this pwnny free WAMU solution, no? The Wamu shutdown didn’t cost the FDIC a penny? Isn’t there a $30B US loss guarantee to Chase? Loss free but not risk free yet. I wonder what the annual premium would be for a $30B insurance policy (like AIG) would cost? Thats the implied cost of this pwnny free WAMU solution, no?

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