Thursday, September 25, 2008

Bank Failure

BushCo can't stop the tsunami

Washington Mutual is DONE! :

On September 25, 2008, the banking operations of Washington Mutual, Inc -
Washington Mutual Bank, Henderson, NV and Washington Mutual Bank, FSB, Park
City, UT (Washington Mutual Bank) were sold in a transaction facilitated by the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC).

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information which should answer many of your questions.

10 comments:

Ichabod said...

I was talking to a friend about this. The main point in our discussion was the importance of WAMU's fall in the eyes of the "little guy." Lehman Brothers, unless you're into investing and Wall Street, is pretty much unknown to us common folk. Besides the cute commercials with the kids acting with adult sense, most of us know little about AIG. Washington Mutual??? On every stinkin' corner in town! This may cause a serious concern in people's minds about the safety of our money in the hands of the banks... i.e. - Bank of America, Wells Fargo, Credit Unions, etc. It may cause a panic when people hear a common bank is going through this stuff. Whattya think?

Bakersfield Bubble said...

I agree. I think we still have a hundred of these banks to go before we are done...I think the pace is going to pick up as we clean out the excesses of this bubble...

Realestateslasher said...

at least people are not jumping off the top of the roof of Padre Hotel LOL

Bakonewbie said...

It is nice to see a free market at work. A company fails and another feeds off the corpes. Bravo!
I think it may drive the point home, I was shocked at how little air time it got yesterday though. It was more of a side note then a news story.

Looks like the repubs aren't going along with the bail out scam. Good for them. They were the ones who warned about this in '06...I'd like the see more of that footage on the news. Like to see the video of B. Frank telling the world how great Freddie and Fannie were and how there were no problems with them back in 2006!
This is Bush's fault? No way, dems get this blame. DEMS killed the bills that would have put over-sight on fannie and freddie even after Greenspan said it was needed!
The media won't talk about that, but the videos don't lie.

Bakersfield Bubble said...

bakonewbie-

I think both parties are to blame. However, these excesses occurred in 2002-2006 when the republicans had control of the white house and congress. Which means they had control of the two agencies that could have prevented this from happening - the Fed and the SEC. They were stocked full of Bush appointees who trumpted free markets and let the derivatives market explode with NO regulation.

Bakersfield Bubble said...

FNM and FRE are a small part of what is happening right now...this is a result of excessive leverage and the rule change by the SEC in 2004 (by a republican appointee) to allow investment banks to increase their leverage from 12-1 to 40-1...the leverage will now unwind..


The Great Unwind continues

Bakonewbie said...

BB- this can't be pinned on any single person but it is a fact that the repubs and even Bush warned about this years ago. (back in 2003)
Interesting info here:
http://www.youtube.com/watch?v=LPSDnGMzIdo





2003 reform was proposed on Freddie Mac / Fannie Mae -
This is Barney Franks Response: ''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Realestateslasher said...

WHY BLAME WE JUST HAVE TO SEE WHAT COMES OUR WAY

Lone Ranger said...

Hmmm, anyone see a pattern here?

In the early 1980’s Savings and Loan banks were deregulated.

S&Ls expanded into highly risky activities such as speculative real estate ventures. In many cases, these ventures proved to be unprofitable, especially when economic conditions turned unfavorable. Indeed, many S&Ls were taken over by crooks who plundered them. Many S&Ls ran up huge losses. Government was slow to detect the unfolding crisis because budgetary stringency and political pressures combined to shrink regulators' staffs. Thanks Ronny.

In 1989, Congress and the President agreed on a taxpayer-financed bailout measure known as the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).

A new government agency called the Resolution Trust Corporation (RTC) was set up to liquidate insolvent institutions with initial government capitol inputs of 50 billion dollars. In March 1990, another $78 billion was pumped into the RTC. But the total cost of the S&L cleanup continued to mount, topping the $200 billion mark.

200 billion of OUR money.

We were told that the taxpayer would eventually come out ahead on the deal.......still waiting for that.

Neil Bush walked away from Lincoln Savings with a cool quarter billion.

Henry Paulson was one of the main architects of that bailout also.

Caught up in the related Savings and Loan corruption was Charles Keating, and his enablers, the Keating 5, which included Senator John McCain.

The free unregulated market works just great!

bob said...

wrong bakonewbie...schumer and barney frank resisted administration attempts to get tighter controls and oversight in banking and with freddie and fannie...in fact, that johnson character,former ceo of fannie(made himself 90mil in 6yrs) is now a chief advisor with the Obama campaign....