Washington Mutual--WaMu, Subprime Lending Pioneer!Not the only 'cockroach', says Peter Schiff.
Words/phrases used to describe WaMu:
'metastasizing'
'lethal damage'
'fundamental problems'
Who is going first: WaMu or Lehman?
2008-04-11: WaMu Estimates Cut by Goldman, Short Sale Recommended
April 11 (Bloomberg) -- Washington Mutual Inc.'s full-year loss will be wider than first estimated, according to Goldman Sachs Group Inc. analysts, who recommended selling the shares short.
Washington Mutual, the biggest U.S. savings and loan, may lose $3.30 a share this year, said Goldman Sachs analysts including New York-based James Fotheringham in a note to investors today. Goldman previously forecast a 2008 loss of $1 a share for the Seattle-based company.
2007-12-10: Mortgage Crisis Forces Big Cuts at WaMu
Mortgage Problems Force WaMu to Close Offices, Fire Workers and Drop Subprime Loans
SEATTLE (AP) -- Washington Mutual Inc., the nation's largest savings and loan, said Monday problems in the mortgage and credit markets are forcing it to close offices, lay off more than 3,000 workers and set aside up to $1.6 billion for loan losses in its fourth quarter.
2007-12-21: WaMu Says Cooperating with SEC on Home Appraisals
NEW YORK (Reuters) - Washington Mutual Inc (WM.N: Quote, Profile, Research) said on Thursday it is cooperating with a U.S. Securities and Exchange Commission inquiry into the handling and reporting of mortgage loans that may have been based on inflated home appraisals.
"After spending a month and a half investigating these allegations, we can say with confidence that there has been no systematic effort by WaMu to inflate home appraisals. We take these allegations very seriously."
2008-04-08: Washington Mutual Gets $7 Billion Boost
Washington Mutual, the nation's largest savings and loan, said yesterday that it is getting a $7 billion cash injection from private investors to help shore up its financial position as it continues to weather losses from U.S. subprime mortgages.
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Company Philosophy:
We constantly ask ourselves, do our products and services save time, save money and reduce hassles for our customers?
Perhaps they should have asked themselves if there was any chance that borrowers would pay back these ridiculous "loan products".
2008-09-10: Carnage continues for Washington Mutual
Washington Mutual shares plummeted to a 17-year low on Wednesday, hammered by investors who fear its metastasizing home loans could inflict lethal damage.
"They are a company with fundamental problems that is getting the worst of the brunt of the market," said Jaime Peters, an analyst with Morningstar in Chicago. "That is scary because finance is all about confidence."
The worst-case scenario would be WaMu failing - or coming to the brink, if Uncle Sam swooped to the rescue a la Bear Stearns. A collapse of the nation's largest S&L would be devastating. But Peters and others said they don't think the situation is that dire yet.
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2008-09-15: S&P Lowers WaMu Credit Rating to Junk
Washington Mutual Inc. ... had its credit rating cut to junk by Standard & Poor's because of the deteriorating housing market.
6 comments:
I'm betting WM, along with CFC, FED, DSL and (maybe even C) are going to go bust. The rot needs to be purged out of the financial system.
Let them fold and go away. In 3 years, no one will even care or miss them, just as no one misses Worldcom or Enron today.......
Now Henry Paulson is on record opposing any further taxpayer bailout. Check the link below. Do you believe this, or is it a matter of time before the federal government does a 180 degree turn and intervenes again?
Tom
http://tinyurl.com/6dwupn
It's always interesting to see how Alan Greenspan is going weigh in on things.
What I found interesting about this article is that Greenspan did not explicitly rule out any particular institutions, but framed his position in terms of the overall stability of the U.S. economy. In other words, the government has to guess what will happen if WaMu and LB go under without any federal intervention, and what will happen if one or both get a bailout.
I feel like Jeff does. But in the age of welfare for the wealthiest, I don't think Washington has the will to let the disease run its course. Thoughts?
http://tinyurl.com/6gvudy
Now, Alan Greenspan offers a tautology about calculated risk. I call his pronouncements tautological because they don't tell us if he thinks letting WaMu, LB, or any other institution sink is good or bad policy; he only says that the benefit of a bailout varies directly in proportion to the risks posed to the U.S. economy by doing nothing. What are those risks? He doesn't say! As we say in the South, "Bless his heart!"
http://tinyurl.com/6gvudy
Tom,
Sorry for not posting your comments sooner, and for my lack of posting, lately. I'm on travel for--have been since 9/10--and my trip got extended until 9/19. Might get stuck here longer.
Thanks for your comments and links.
Ty
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