Interesting comment which was provided to the article:
I worked for WaMu in Strategic Ops and can assure everyone that the bank was not insolvent nor were the anticipated loan losses going to impact solvency. The day before WaMu was seized Ken Kido(EVP OPS) met with a small group of us for, what was becomming a pretty regular, open door session. The meetings, this one in particular, were brutal for bank leadersip. Ken laid out the current state of the bank and previewed Qtr end. We discussed the current outflow of deposits and its impact. To call it a "Run on the bank" is assinine. The biggest concern for the bank at the time was resigning departed customers and ensuring that the Stores(branches) were ordering enough cash to service the increase in withdrawls. We beat the numbers to death that day there was nothing to indicate that WaMu was in jeopardy, or would be prior to Q4 2010. one other nte, when WaMu looked at withdrawl and loan loss predictions it was done in a "worst case scenario" manner, almost to a fault. WaMu was not in danger of failing. WaMu was well capitalized and had the liquidity to continue operating for 2 years. If there are any doubts about this look at JPMs earnings. JPM realized profit as soon as the deal was complete and have posted huge WaMu based profits each Qtr since. It is nice to see this finally getting a little attention, but Dan don't say that it would be nice if it got major media attention, push it. Load up on the pref'd and partner with K Grind to get this into the mainstream. The citizens of this country deserve to know how the Government contributed to the meltdown and what the true cost of the unnecessary seizure of WaMu. (Look at the NY fed report from Jan. 09, the impact of the WaMu deal is frightening and eyeopening)
By Brokandhungry on 12/31/09 10:15 AM
To openly quote the words of John Hempton, CIO of Bronte Capital, by The Street that "the WaMu seizure [was] 'the most capricious government action of this cycle and possibly the worst thing that has happened to American Capitalism this cycle.'" shows to some extent how much progress has been made in WAMU case after more than 15 arduous months.
Fully agree with what John Hempton said. Wrongs by the government must be righted.
the street, a balanced article, maybe, but here is the misdirection. if you read between the lines, it says:
a lot of chit happened to wamu, we have loaded up on the p's and are presently loading up on the commons but you retail folks have time to load up on the commons, let us do it first and our friendly mm's will try to hold the commons down for us. we know an ec is being pushed by the trustee, we know that the commons are going to be in the money. we know the lawsuits could hang bair, paulson, dimon etc., and thus have merit and value.
the street is always about misdirection, they won't mind if retail makes money, just so they get the largest chunk. it's cramers way.
yes tomti for me he stays just a MTHF white collar of Wall Street.I dont like the guy because the article is a clear response to what hapend lately and maybe also a ask for forgivenes from this circles(dirty).So this isn't enough for me.They have to acept their fault and mistakes they did.I don't see any one saying sorry for saying thanks to gangster(JPIGs) for Hitting the victime(WAMUq)Is just litl bit to late and to litl.F him and the others who spitted at us for more than a year.Did you fellows forget about the zombie?So give me a breke.He is just a dirty MTHF from the same dirty school.