DISQUS

Blown Mortgage: I hate to say it, but I told you so about Washington Mutual

  • Aaron Krowne · 1 year ago
    The final chapter hasn't been written on WaMu yet.

    Billions in liabilities have been stashed somewhere. I'm not sure this was done "legally". Debt and shareholders may have valid complaints.

    The JP Morgan value case depends on some massive, omnibus bailout plan passing, a-la Paulson. If it doesn't, there will be big fireworks.
  • Toby · 1 year ago
    The only people getting wiped out at WAMU are the shareholders. OK, not completely, they do get a buck and a half or so. The FDIC dodged a bullet on this one. However, there are no more American mega banks like Morgan/Chase to step in and take over.

    If the Citigroup-Wachovia merger doesn't go through then we can expect Wacovia to become a division of a Chinese or Dubai bank.