As advised by OTS, WaMu was actively seeking to raise capital and discuss terms with potential suitors, including Citi-Group, J.P. Morgan, Wells Fargo, TD Bank from Canada, Banco Santander from Spain and HSBC from Hong Kong through investment bank Goldman Sachs.
While this was happening in the front, WaMu’s CEO, Mr. Fishman, never knew that OTS, and FDIC went behind his back to forge a dirty deal with JP Morgan. Unbeknownst to WaMu, the OTS had talks with all the potential buyers, exaggerated WaMu’s problems and threatened that the FDIC was going to seize WaMu soon, so that nobody would dare to make an offer. The FDIC then seized WaMu and gave to JP Morgan. A decent, well-funded (and the country's largest) U.S. savings bank that had served the American people for over 100 years was suddenly killed by the OTS and FDIC’s premeditated conspiracy. An article from WSJ is enclosed to validate this claim.
OTS and FDIC seized WaMu and gave it to JP Morgan for next-to-nothing. JP Morgan had long wanted to buy WaMu, but their low offer had been rejected by WaMu earlier. This time, for a mere 1.9 billion dollars, JP Morgan got WaMu’s 310 billion dollars in assets, plus 2239 WaMu branches nationwide, including those in California, where JP Morgan did not have a foothold, but had long dreamed to have one. JP Morgan kept WaMu’s huge assets and 2239 very profitable branches, but dumped the trouble loans to the government and us, the American taxpayers. This transaction is like getting a $310K house, for only $1900 and then asking government and taxpayers to fix the house for the new owner.
It is believed that the fraud, wrongdoing, and misconduct of the OTS and FDIC helped JP Morgan steal WaMu from investors. It is theft and criminal like on the part of JP Morgan to exploit high ranking officials at government agencies and benefiting to take WaMu’s $310 billion dollars in assets plus 2239 very profitable branches at an exorbitant discount. Not only did we WaMu shareholders lose all our savings due to the OTS and FDIC’s unlawful act of snatching the share value by conspiracy, but by also being taxpayers, we now have to pay for the loans that JP Morgan will dump. A perfect example of double shafting.
Because of their less stringent policy, WaMu was ripped off by mortgage agents who got the biggest commission from WaMu. WaMu has lost huge and become the biggest victim. Congress just passed the $700 billion bailout bill and President Bush signed this rescue plan. The real victim, decent, hard working WaMu, who was supposed to be rescued was unfortunately untimely killed by the OTS, FDIC and JP Morgan’s collusion right before this rescue plan. Now the biggest corruptor - JP Morgan’s CEO Mr. James Dimon will benefit on WaMu’s behalf from this 700 billion dollars rescue plan. Mr. Dimon, who has a salary of 15.5 millions plus option 40 millions per year, will get double and triple next year because he will proudly take credit for corrupting huge WaMu assets for free through a collusion with Sheila Bair of FDIC.
It was Ms. Sheila Bair of FDIC who destroyed the American people’s confidence in the stock market by this illegal seizure of well-funded WaMu and wiping out all shareholders. According to Wachovia, after Sheila Bair threatened Wachovia with either being seized by FDIC or accepting Citigroup’s $2.1 billion arbitrarily set by Sheila Bair, Wachovia chose the less lethal option.
The American people were totally astonished and panicked. Who would be the next victim? They worried that their lifetime savings and retirement investment could be plundered by Sheila Bair of the FDIC without any justification and given away for free. Even though Congress passed the $700 billion bailout bill, American investors -- scared by Sheila Bair -- still pulled their money out of the stock market to avoid having the same fate of WaMu shareholders.
this is exactly why i decided to pull all my money out of the stock market and just put it into savings. can not trust the FDIC or the US govt. They'll do whatever they please even at the cost of wiping out the taxpayer for their own benefit.
Apparently, the FDIC and JPM cannot get enough of their need to a$$pound WAMU shareholders and WAMU employees holding WAMU shares in their retirement accounts.
The FDIC by it's RECKLESS action of jumping the gun in front of the pending bailout plan, CAUSED a crisis of confidence in the financial sector.
At the same time the pre-emptive FDIC action killed off any opportunity for WAMU shareholder's investment to heal over time as the financial and banking sector recovers.
The cruelest cut of all is that the FDIC/OTS/Treasury are in the process of sacrificing some in the industry to help shore up others. Obviously, JPM was singled out as one to be saved and WAMU was singled out as one to be sacrificed.
Thank you Mr. Bush and cronies. Hoof.
The stock market start to crash the Monday after the FDIC seized WaMu Bank on Thursday night and the House failed to pass the $700 Billions bailout plan Sunday. Now, the bailout plan was passed but the stock market is still tanking. Who is the responsible for this mess which could lead to the second great depression in human history?
Are you serious???
This World-Wide economic crisis was not caused by WAMU’s failure. JEEZ, what color is the sky in your world? The economic crisis CAUSED the failure of WAMU.
Nobody outside of this country knows WAMU, nor do they care. As a matter of fact, if you went to any area of this country where WAMU has no presence, and asked the local people what a WAMU is, half of them would think it is a very large bird, native to Australia.