Friday, September 26, 2008
As many of us had perdicted and worried all summer, Washington Mutual hit the skids on Thursday Night, and was quietly seized by the FEDS FDIC and then sold at Firesale Price to JP Morgan. What happens to all of it's shareholders ? investors ? mortgages ? and it's employees time will tell. One of the Biggest and Oldest Banks in America ( read the WIKI article linked to the title). More Information down below about the History of this collapse and longterm implications. I will post more when I have it.
A Snippet from the Wikipedia::::
On September 25, 2008 (the 119th anniversary of WaMu's founding) the United States Office of Thrift Supervision (OTS) announced that it had closed the bank, and had placed it into the receivership of the Federal Deposit Insurance Corporation (FDIC). The FDIC announced that it had sold most of the bank's assets and liabilities, including covered bonds and other secured debt to JPMorgan Chase for $1.9 billion. Claims of equity holders, senior and subordinated debt holders were not acquired by JP Morgan Chase. Washington Mutual's government takeover is the largest bank failure in American financial history. Before the collapse, it was the sixth-largest bank in the United States. According to Washington Mutual's 2007 SEC filing, it held assets valued at $327.9 billion. However, its stock declined from a high of $45 per share in 2007 to 16 cents per share on September 25, 2008.
More on the Actual Collapse and how the Bank fell.
More on the Actual Acquisition by JP Morgan and what it means.
The World Wide Implications are staggering...Read this Article in Taiwan Paper it is time to better understand Global Problems that are being triggered from America.
Sadly the Golden Parachutes are still being given out, read about this 13 Million Dollar one ( for 18 days of work) he just came in Sept and NOW he is leaving with alot of money weeks later.