Saturday, September 13, 2008

WaMu RIP....,

Since the quasi-nationalisation of Fannie Mae and Freddie Mac last, investor attention has now turned to Washington Mutual and Lehman Brothers, with many questioning their ability to survive at their current capitalisation. Their problems have been compounded this week as investors have deserted them. By midday Thursday in the US shares in Washington Mutual had halved over the week. Its share price fell from $4.12 at the opening bell on Monday to $1.89. The bank’s 52-month high on 19 September 2007 was $39.25.

If Washington Mutual goes into administration I don't believe the Federal deposit system has enough funds to rescue it. In this morning's Chicago Sun-Times;
Investors remained wary about buying financial stocks in a climate where the spiraling credit crisis already has felled one major investment bank, Bear Stearns Cos., and brought another, Lehman Brothers Holdings Inc., to the brink of a possible fire sale. In addition, 11 retail banks have been seized by the government.

''Every time we have these types of financial crises, you have casualties,'' said Dan Veru, co-chief investment officer of Palisade Capital Management in New Jersey. ''You get rid of the weak players and at the end of the day the strong players are stronger.''

Wall Street is contemplating WaMu's future after the nation's largest savings and loan pre-released some third-quarter financial metrics in an attempt to reassure the market late Thursday. The shares ended the week down 36 percent.

The bank insisted it has adequate capital to fund its operations even as it announced another multibillion dollar write-down on bad mortgage loans. But ratings agencies Moody's and Fitch cautioned that WaMu may not be able to raise additional funds.
First IndyMac, now the nations biggest S&L out there in killaCali. Looks like the California wing of the U.S. financial system is going to fall into the ocean first and take the rest of the system with it...,


Anonymous said...

buy ativan ativan and alcohol death - ativan generic name classification