One of Country's BIGGEST Banks goes Belly-Up

September 28, 2008

in Drive-to Vacation Destination, Emerald Coast Real Estate, Real Estate News

I’m sure you have heard the news…

Daily Real Estate News | September 26, 2008 WaMu’s Home Loan Biz Led to Bank’s Failure

The Federal Deposit Insurance Corp. seized Washington Mutual Inc., one of the country’s biggest banks, and then sold the Seattle-based thrift’s banking assets to JPMorgan Chase & Co. for $1.9 billion.

Because of WaMu’s heavy mortgage-related losses and other risky debt, JPMorgan will write down the thrift’s loan portfolio by roughly $31 billion, a figure that could change if the federal bailout plan is enacted and JPMorgan opts into it.

Problems in WaMu’s home loan business became evident as far back as 2006, when the division recorded losses of $48 million versus net income of approximately $1 billion a year earlier.

Source: Associated Press; Marcy Gordon, Sarah Lepro, Madlen Read

This is incredible…just amazing how in the span of just under 3 weeks that…

  • Fannie Mae & Freddie Mac were seized by the government
  • Lehman Brothers went into bankruptcy
  • Bank of America buys Merrill Lynch before they go into bankruptcy
  • The Federal Reserve gives AIG an $85 billion loan
  • President Bush seeks a $700 billion Bailout
  • Goldman Sachs & Morgan Stanley turn into regulated commercial banks
  • Warren Buffet buys $5 billion of Goldman Sachs stock
  • Washington Mutual is seized by the government & sold to JP Morgan ChaseCertainly historical times we are living in.For more information about real estate along the Emerald Coast visit my website.

    Debbie James
    850.450.2000

    Email this Post

  • Subscribe to my blog by entering your email address:

    Leave a Comment

    Please copy the string 7Ate7H to the field below: