Well, it happened ...

[unixronin]

Washington Mutual has gone tits-up.  WaMu was seized by the FDIC late yesterday, and acquired from the FDIC by JP Morgan Chase.

This is the biggest single bank failure in US history.  JP Morgan Chase paid $1.9 billion to the FDIC, will sell $8 billion in stock to raise additional capital, and will take a $31 billion markdown on the value of subprime and option-ARM mortgages ... but hey — that's cheap at the price when you're acquiring $307 billion in assets, $188 billion in deposits, and a pre-built branch network in several states.

Meanwhile, Capitol Hill is running in circles snapping at its own tail.  (Link from randwolf)

Comments

[radarrider.livejournal.com]

Yeah, that's wenchita's bank and the one we have our home equity loan with. I figure they won't have any problem continuing to take our monthly payments.

[unixronin.livejournal.com]

I'm given to understand the customers are safe, but the stockholders are screwed.

[tabbifli.livejournal.com]

Great. That's our main mortgage. Interest only at the moment (3 year interest only ARM which we'd intended to refi in June - only it got pushed to next June). Hopefully they ignore us for another nine months.

[unixronin.livejournal.com]

Erk. Best of luck with that... it's not a good place to be.