This one hits close to home. I was a WaMu employee for a total of 5 years, finally losing my job as fallout from the WaMu "bank failure" that occurred in late 2008.
This video points out that, quite possibly, WaMu could have survived on its own and implies that perhaps the FDIC wanted JPMorgan Chase to take over WaMu.
I've had similar suspicions myself, thinking that there was some sort of grudge between Sheila C. Bair of the FDIC and somebody at WaMu. Was it Killinger? Rotella? Who? Anybody?
Who knows? When will the tell-all book come out? After all, this was the biggest bank failure in US history. Somebody smart should have something to say about it.
A quartet of top U.S. bank stocks rose on Wednesday after J.P. Morgan Chase & Co. reported earnings that surpassed Wall Street estimates, and the insurance sector also weighed in with gains to lift financial stocks more than 2%.
I suggest that the management at JPM horde all that cash, as the next big mortgage resets occur in 2012 (5 years after the peak of 2007, when everybody and their mother, dog, parakeet, and gerbil bought houses with no money down, poor credit, and insufficient income).
Now that many of those same people are now either unemployed or still making less money than their mortgage payment, the pressure is going to be HUGE on the housing market, banking sector, and overall economy. Let’s hope the news that the economy and employment pictures are improving, else we fall into a really nasty tailspin. Let’s also hope I’m wrong about the resets (here’s the good personal news: my mortgage from 2004 reset at a lower interest rate).