Thursday, September 25, 2008

Boom! Down Goes WaMu!

We finally get to see the dreaded bugaboo of the Republicans--The Domino Theory. Only they more than likely never thought of it in just this way. Well here's your laissez faire capitalism, your free market, and your deregulation gets you jack. And down goes WaMu to be plucked from the trading floor a worthless husk, a name only, one of many dominos.

Washington Mutual to Sell Deposits to JPMorgan
SEPTEMBER 25, 2008, 7:11 PM
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TOPICSMergers & Acquisitions INDUSTRIESFinancial Services

The federal government has arranged for Washington Mutual to sell its
deposits and some branches to JPMorgan Chase, people briefed on the
matter said Thursday night.

The deal does not include any branches in New York City.

Washington Mutual has seen its stock slide nearly 88 percent this year.

The firm recently hired Goldman Sachs to solicit potential buyers, and
the list has included the likes of Citigroup, Wells Fargo, HSBC and
Banco Santander.

While Washington Mutual argued that it has adequate capital, it has
suffered debilitating downgrades of its credit rating over the past
two weeks, endangering its financial health.

The talks have continued amid heightened concern about all financial
companies and an intense political battle over creation of a giant
bailout fund on Capitol Hill. Washington Mutual plunged into the
subprime mortgage and credit card business over the last few years,
and has been ravaged by the worsening housing crisis. Analysts suggest
that it could rack up losses totaling $30 billion or more.

Washingon Mutual had struggled to find a partner earlier this year
willing to inject fresh funds in its ailing business. This spring, it
balked at an offer from JPMorgan Chase to buy the entire company.
Instead, TPG, the big private equity firm, led a group of investors
that made a $5 billion capital injection in April.

–Andrew Ross Sorkin, Eric Dash and Michael J. de la Merced

8 comments:

Mauigirl said...

Holy sh*t, I didn't even hear this on the news! Another one bites the dust...

Utah Savage said...

I have a very good source. My history professor has contacts in DC. He emailed this to me late this afternoon.

D.K. Raed said...

TPG must really be pissed. Their investment is now pretty worthless.

Randal Graves said...

Just imagine of the House gooper extra laissez-faire version becomes the final plan. That would be fucking hilarious.

enigma4ever said...

so what is the part about the NY Branches ??? what?

Utah Savage said...

Real Estate baby, Real Estate.

Randal your notion of hilarious is getting very dark, but yes, it would be hilarious.

Stella said...

Once upon a time, I heard someone say only Herbert Hoover benefited from Bush's presidency. Now, that's not even true. God, what a mess.

Utah Savage said...

I just got back from picking up my prescriptions and had a chat with the old girl working as an aid in the pharmacy. She was complaining about the price of food. I said, "Thanks to the deregulating Republican Bush administration." She said, "Oh no, it's the Democrats." I said, "How's that, they've had control of everything for the past eight years?" "No," she says, "The Democrats have controlled the house and senate for the past four years." I said, "No, two, and not a veto proof majority at that." She says, Well then, it's all Clinton's fault."