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Washington Mutual Stock Under Heavy Assault

Wednesday, September 10, 2008, 10:00 AM

The stock price of Washington Mutual (WM) is down another 25% this morning, at well under $3/shr.

There is no way for this company to raise capital, and therefore no way for this company to survive without a bailout. This company is toast. Time to write the obituary.


I am expecting FDIC receivership any day now, perhaps this weekend?  Who knows.
 

Whatever the case, I would not have my money in this institution at this time.  I'd find a safer bank.

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11 Comments

zymur1's picture
zymur1
Status: Member (Offline)
Joined: Jun 17 2008
Posts: 2
WAMU mortgage
If you have no money in Washington Mutual, but they hold your mortgage, how is that affected? Does the FDIC become the mortgagee?
cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5569
  That's exactly what

 

That's exactly what happened for IndyMac mortgages...they are now held by the FDIC who is convinced they can do a better job at renegotiating and servicing those mortgages than a private bank.


Maybe, maybe not.  But the people holding those IndyMac mortgages that are in financial trouble are getting some really excellent breaks courtesy of the US taxpayer.

 

Chris Martenson, PhD.

theleimers's picture
theleimers
Status: Member (Offline)
Joined: Sep 10 2008
Posts: 4
Thank you Chris
Chris, I have just finished you series (up to 17c) on your crash course. Thank you very much for that explanation of our dire situation. I knew that we were/are in trouble as a society, I just needed your layman's explanation of how deep the hole is. I am indebted to your information as are all my friends who found your work stunning. I am a Wamu customer with auto payments set up. I will look into another institution to switch my banking to for security purposes. Fortunately I am a small account holder with only a few hundred dollars in the account. Either way, it is getting scary out there. I appreciate your voice. John
bolweevil's picture
bolweevil
Status: Member (Offline)
Joined: Aug 24 2008
Posts: 4
Conservatorship
Breaks on interest rates are nice for those in financial trouble, but doesn't the US's (FDIC, FedRes, Govt) involvement in bank and FNM/FRE bailouts effectively make it owner of approximately half of all homes in the US? Scary.
djradder's picture
djradder
Status: Member (Offline)
Joined: Aug 6 2008
Posts: 1
Thank you so much for your
Thank you so much for your skillful eye and gift for explaining the complicated. Do you have an opinion concerning which banks are in the strongest position right now? We are moving our money out of WaMu but don't necessarily know where to put it. Wells Fargo? Bank of America? Thanks.
simpl1's picture
simpl1
Status: Member (Offline)
Joined: Sep 11 2008
Posts: 2
Where do I move my money to?
I live in Southern California. My bank is currently Washington Mutual. What banks are stable at this time? Please help! Thank you.
Barnside's picture
Barnside
Status: Member (Offline)
Joined: May 16 2008
Posts: 5
The Government's own bank -
The Government's own bank - see http://www.treasurydirect.gov/ But you may not have time to open an account.
simpl1's picture
simpl1
Status: Member (Offline)
Joined: Sep 11 2008
Posts: 2
Thanks! I appreciate your
Thanks! I appreciate your help.
cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5569
  I created the most

 

I created the most recent blog posting just for this question.

 

Be sure to check it out.

 

Chris Martenson

ryanmacartney's picture
ryanmacartney
Status: Member (Offline)
Joined: Sep 3 2008
Posts: 1
WaMu
Chris, Thank you for this information, and all of the hard work. I found out about this, first, from your website. Time to pull the funds from Washington Mutual.
008's picture
008
Status: Member (Offline)
Joined: Oct 19 2008
Posts: 1

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