WaMu on auction block, Goldman hired on for sale as FDIC shops bank around

September 17, 2008 by · Leave a Comment
Filed under: Industry News 

Well is has been rumored for some time now. With Goldman Sachs hired on with assistance of the FDIC to find a suitor for the nations largest deposit savings bank. The Texas Pacific Group has giving their blessing for a sale after investing $1.5 billion dollars into Washington Mutual in April of 2008.

I have heard estimates that they have $19.5 billion dollars of mortgages on their books with many of them being Option-ARM which are resetting to payments the borrowers can not afford. At the time of this writing, WaMu has a market capitalization of $3.43 billion dollars that make this a difficult situation with no silver linings. This is sad because I personally use WaMu for one of my accounts and I do like their customer service.

Article:

Washington Mutual appeared closer to finding a new owner Wednesday. The Seattle bank hired Goldman Sachs to explore a possible sale, while news reports said federal regulators recently approached Wells Fargo, J.P. Morgan Chase, and others about a possible buyout should WaMu fail.

Goldman reportedly has been shopping the bank around for several days and has approached Wells Fargo, HSBC, Citigroup and J.P. Morgan Chase, among others, about a possible deal.

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WaMu debt downgraded to “junk,” projects $4.5 billion loss reserve

September 11, 2008 by · Leave a Comment
Filed under: Industry News 

Good to hear they have long term funding in place so this hopefully won’t affect them too much.  They did re-affirm their commitment to maintaining there preferred dividend in this volatile market.  Their stock is down to 1990 levels which is not a good sign.

They are still the largest deposit bank in the U.S., it would be ashame to see them lose their independence because of the aggressive lending practices.  With their deposit base they will retain value in any acquisition.

Release:

In a statement, the thrift called the Moody’s downgrade “inconsistent” with its finances, but said it does not expect a “material” impact on borrowings, collateral or margin requirements, or to suspend dividends on its preferred stock.

It also said it has $50 billion of liquidity from “reliable funding sources,” and expects capital to remain “significantly above” regulatory minimums for “well-capitalized” lenders.

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Washington Mutual (WaMu) REO Department

August 18, 2008 by · 5 Comments
Filed under: Regional REO Banks 

No review for WaMU REO properties as this time.  I could not find any information on their website or a link to a national broker that was handling their REO listings.  Through searching the web I did happen to pull up a phone number you can call that has a automated voice menu.  Enjoy

REO Phone Number:

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Washington Mutual says its operations are not dependant on commercial paper

July 24, 2008 by · Leave a Comment
Filed under: Industry News 

Bloomberg reported that the largest U.S. savings and loan bank based out of Seattle, Washington is not reliant on commercial paper to fund its banking operation. After the record losses they have posted in recent quarters and the failure of the California bank of IndyMac, much criticism has been given to WaMu the last couple of weeks. This has fueled much speculation that the Seattle bank would be next to have a crisis in the coming weeks.

Even in my reading of other discussions about the U.S. banking industry in general, many pundits and analysts have also mention that they feel WaMu is “not too big to fail” and could meet the same fate as IndyMac or other regional banks. They do on the other hand have a strong deposit base so in was a good move to make this statement to reduce the amount of speculation.

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