Comments | poetpaladin: WaMu Got RePo'd §

poetpaladin

WaMu Got RePo'd §

Sep 25, 2008 21:04

Remember when I mentioned Washington Mutual being in trouble back in July? "One major bank that you should be concerned about is Washington Mutual. According to Bove, it is not in the danger zone, but on the very edge of it. Personally, I think Washington Mutual already is in danger."Federal regulators stepped in today and seized Washington ( Read more... )

Comments 5

i_amsherlocked September 26 2008, 04:58:19 UTC

If my bank tanks there won't be any money left for the FDIC to bail it out with after all of those ones go. At least it's not on the list. What happens to mortgages and such when a bank that holds them gets repo'd?

poetpaladin September 26 2008, 05:48:59 UTC

The FDIC's reserves currently stand at $45.2 billion. Paying off Washington Mutual's reserves may wipe out half of that. But with JP Morgan Chase buying WaMu's deposits, the depositors may be fine.

You're still legally obligated to pay on the mortgage unless you decide to default or "walk away". The mortgages are still worth something to buyers - just not as much as their face value states they are worth.

What would be interesting and funny is if homeowners were allowed to go to another bank and get a smaller mortgage loan to short-buy their own original mortgage. Hah. Like that's gonna happen.

i_amsherlocked September 26 2008, 05:53:47 UTC

hmmm...that would be cool for some folk, lol.
I was wondering who we'd end up owing the money to!

red_paperdoll September 26 2008, 19:20:35 UTC

Outrageous, huh? What a shit-show. I'm actually counsel for Washington Mutual (that's what I've been doing that's keeping me away from LJ) and we defend their premises liability lawsuits. Nevertheless, my boss is il communicado about the whole thing. apparently, he was there when it happened.

poetpaladin January 30 2009, 04:08:51 UTC

WaMu is offering $100 to people who open a checking account with them and sign up for direct deposit. Desperate, huh?