Citing unnamed people familiar with the talks, said possible bidders hope for regulatory assistance to deal with WAMU's troubled mortgage portfolio, but such help remains uncertain. The discussions may cover part or all of WAMU, the Financial Times said.
That newspaper and other reports have listed JPMorgan Chase, Wells Fargo, Citigroup, HSBC, Banco Santander and Toronto-Dominion Bank as potential bidders.
The Office of Thrift Supervision is pushing for a speedy sale.
If one isn't forthcoming, it may arrange a deal that splits WAMU's assets among several buyers, the reports have said.
Anyone want to bet when WAMU will get broken up as I have a felling no one is willing to buy WAMU in it current state? With the Office of Thrift Supervision pushing WAMU to sell itself I assume this means WAMU would become a major nightmare for FDIC is they had to take them over. So I guess FDIC is hoping they sell themselves in an effort to save tax payers money as equity and bondholders would be wiped out anyways if FDIC takes them over.
Despite reports that Washington Mutual is seeking a buyer, skepticism grows about whether a deal will happen following bank bailout agreement and more credit downgrades.
While the exact structure of the transaction wasn't immediately known, J.P. Morgan is expected to acquire Washington Mutual's deposits and branches, as well as other operations.
The deal isn't expected to result in any hit to the bank-insurance fund, which would be a huge relief given that some analysts worried that a failure of the thrift could cost more than $20 billion.
Zro
Member
posted: Sep. 25, 2008 @ 6:38p
JP Morgan is still reportedly buying WAMU - but it's from the FDIC, which moved in to close WAMU tonight. This would be the largest bank failure in history, with $130 billion in deposits. [CNBC] [seekingalpha.com]
Zro said: JP Morgan is still reportedly buying WAMU - but it's from the FDIC, which moved in to close WAMU tonight. This would be the largest bank failure in history, with $130 billion in deposits. [CNBC] [seekingalpha.com] Do you have a source for this?
mhudson
Senior Member
posted: Sep. 25, 2008 @ 6:51p
CNBC just said the same thing. Chase is buying the assets and deposits. Shareholders are wiped out. Going to happen overnight.
Even wiki says its true.
On September 25, 2008 the FDIC announced that it is seizing WAMU and will sell its assets to JP Morgan.
PolarDude
Senior Member - 1K
posted: Sep. 25, 2008 @ 7:05p
WM trading at .38 from 1.70s earlier
The s*** really hit the fan.
aandt1999
Member
posted: Sep. 25, 2008 @ 7:07p
Bye Bye WAMU... it's a shame too... I kind of liked them.
So will their branches become Chase now? Sweet! There's no chase branches in Socal, this should open up some doors for AoRs..
aandt1999
Member
posted: Sep. 25, 2008 @ 7:19p
that is my understanding, one of the reasons JP Morgan wanted WAMU was their branch presence in areas untapped by Chase.
Ank329
Member
posted: Sep. 25, 2008 @ 7:20p
From Dealbreaker: JPMorgan Chase & Co. (NYSE: JPM) will host a conference call at 9:15 p.m. (Eastern Time) tonight, September 25, 2008. You may access the conference call by dialing 1 877 238 4671 (U.S. and Canada) / 1 719 785 5594 (International) - access code: 814030 or via live audio webcast at jpmorganchase.com under Investor Relations/Investor Presentations. Materials and further communication will be available on this website at the time of the call.
psychtobe
Senior Member - 2K
posted: Sep. 25, 2008 @ 7:29p
PolarDude said: WM trading at .38 from 1.70s earlier
The s*** really hit the fan.
obviously they are not buying for a premium - current shareholders must somehow be getting shafted.
Just curious about how this will effect my checking account because all my check from work are directly deposited to WAMU. Would I get enough notice so I'll be able to take action?
m0n0t0ne said: Just curious about how this will effect my checking account because all my check from work are directly deposited to WAMU. Would I get enough notice so I'll be able to take action? You don't have to do anything.
PMonkeyDishwasher said: Guess that ban on short selling didn't work. What a surprise! It is not at 0.43 b/c of shortsellers; it is that low b/c they effectively are bankrupt with JP Morgan taking on a few pieces of what is left.
gate09
Member
posted: Sep. 25, 2008 @ 7:45p
I was going to open the WAMU checking/saving combo tonight for the 4%. What would happen now if I do? I'm thinking about going ahead still in case JPMorgan honors the rate.
gate09
Member
posted: Sep. 25, 2008 @ 7:46p
gate09 said: I was going to open the WAMU checking/saving combo tonight for the 4%. What would happen now if I do? I'm thinking about going ahead still in case JPMorgan honors the rate.
I already have a CD with WAMU if that makes a difference.
Ank329
Member
posted: Sep. 25, 2008 @ 7:46p
bozo007 said: m0n0t0ne said: Just curious about how this will effect my checking account because all my check from work are directly deposited to WAMU. Would I get enough notice so I'll be able to take action? You don't have to do anything.
I would just print out the online account statement when you get a direct deposit, just in case you need proof that you got the direct deposit.
Chase is alrdy all over Chicago so most likely a lot of the WAMU branches here will close unless another buyer comes along and takes over the branches that Chase doesnt want
Now I have to look for another local bank with free ACH (Citi's daily limits are too small and Chase charges $3 for each outgoing)
The saddest part of the story is that WAMUs CEO who took the job only a couple of weeks ago will walk away with a $7.5 million signing bonus. Not to mention the clause in his contract regarding "constructive terminations" which could pay this man 2.5 times the sum of his base salary or $2,500,000. So that would be $10,000,000 for two weeks work, or roughly $250,000 per hour to watch his company fail. This is a joke right? No, the joke is the person who actually defends this absurd level of pay. Speaking unequivocally, no one person provides this much benefit to a company. Even the most brilliant genius or most crafty salesman is not that much more valuable than the typical joe. As the owner of index funds and therefore the ex-owner of this company, I am sickened.
Edit: base salary is $1 million, but sickening nonetheless.
Ank329
Member
posted: Sep. 25, 2008 @ 7:51p
ajohnamous said: The saddest part of the story is that WAMUs CEO who took the job only a couple of weeks ago will walk away with a $7.5 million signing bonus. Not to mention the clause in his contract regarding "constructive terminations" which could pay this man 2.5 times the sum of his base salary or $18,750,000. So that would be $26,250,000 for two weeks work, or roughly $330,000 per hour to watch his company fail. This is a joke right? No, the joke is the person who defends this level of pay. No one provides this much benefit to a company since even the smartest genius or most crafty salesman is not that much more valuable than the typical joe.
I haven't seen the documents yet, but I can pretty confidently say that most of that money would have been in options or restricted stock and not in cash. The options and RS are worthless now, so he's probably not going to get that much money...
normdata
New Member
posted: Sep. 25, 2008 @ 7:53p
I had a good banking experience with them. It's a shame that they failed. I knew something was up, because they just posted a 4.0% interest rate on their online savings account today. I guess it a final act of desperation. One article mentioned that the NY branches are not included in the purchase. I wonder who's buying them? Bye, bye WAMU. You will be missed. (
normdata
New Member
posted: Sep. 25, 2008 @ 7:54p
I had a good banking experience with them. It's a shame that they failed. I knew something was up, because they just posted a 4.0% interest rate on their online savings account today. I guess it a final act of desperation. One article mentioned that the NY branches are not included in the purchase. I wonder who's buying them? Bye, bye WAMU. You will be missed. (
I haven't seen the documents yet, but I can pretty confidently say that most of that money would have been in options or restricted stock and not in cash. The options and RS are worthless now, so he's probably not going to get that much money...
The $7.5 million was a cash offer. It is now in Fishman's account.
Ank329
Member
posted: Sep. 25, 2008 @ 7:58p
ajohnamous said: The saddest part of the story is that WAMUs CEO who took the job only a couple of weeks ago will walk away with a $7.5 million signing bonus. Not to mention the clause in his contract regarding "constructive terminations" which could pay this man 2.5 times the sum of his base salary or $18,750,000. So that would be $26,250,000 for two weeks work, or roughly $330,000 per hour to watch his company fail. This is a joke right? No, the joke is the person who actually defends this absurd level of pay. Speaking unequivocally, no one person provides this much benefit to a company. Even the most brillian genius or most crafty salesman is not that much more valuable than the typical joe. As the owner of index funds and therefore the ex-owner of this company, I am sickened.
Ok, so after a really quick read of the employement agreement, it seems that he won't be getting any of that sign on bonus. All of the options and RS are linked to performance of the stock. It has to hit certain levels before the CEO gets control over it. The cash (7.5 million) he might get to keep, there is nothing about performance in there regarding that. But since the FDIC is probably taking over the bank, I doubt he will get anything.
jlgrandam
Addicted Member
posted: Sep. 25, 2008 @ 8:01p
Sad, WAMU was a good banking experience for me as well. Hope that Chase honors the 5% CDs I opened.
Ok, so after a really quick read of the employement agreement, it seems that he won't be getting any of that sign on bonus. All of the options and RS are linked to performance of the stock. It has to hit certain levels before the CEO gets control over it. The cash (7.5 million) he might get to keep, there is nothing about performance in there regarding that. But since the FDIC is probably taking over the bank, I doubt he will get anything.
My calculations involved only his signing bonus and "constructive termination" clause.
In your reply you say that "he won't be getting any of that sign on bonus" which is false. But apparently you know you are incorrect because in the very same paragraph you say that he will get to keep the signing bonus. Sorry to squabble, I'm just pissed at this situation and those who see nothing wrong with it.
Ank329
Member
posted: Sep. 25, 2008 @ 8:05p
ajohnamous said: My calculations involved only his signing bonus and "constructive termination" clause.
Unfortunately, I don't know what the constructive termination clause actually means in this case... the 8-k, that has the press release, doesn't define the term and I don't know where the rest of the employment agreement is. I don't think that has been filed with the SEC yet. It would have been in the next 10-Q... but not going to happen now...
Ank329 said: From Dealbreaker: JPMorgan Chase & Co. (NYSE: JPM) will host a conference call at 9:15 p.m. (Eastern Time) tonight, September 25, 2008. You may access the conference call by dialing 1 877 238 4671 (U.S. and Canada) / 1 719 785 5594 (International) - access code: 814030 or via live audio webcast at jpmorganchase.com under Investor Relations/Investor Presentations. Materials and further communication will be available on this website at the time of the call. The server at www.jpmorganchase.com is taking too long to respond! And the phone number is busy! Wonder what the big interest is
jdopple
Senior Member - 1K
posted: Sep. 25, 2008 @ 8:07p
Who is eating the toxic waste Wamoo left behind
Skipping 137 Messages...
thok
Tired Member
posted: Sep. 30, 2008 @ 1:41p
sechs said: thok said: dolmar said: You know Citi raised there rates today on Citi Ultimate Savings account to 3.5%. And that account does not even requiring a checking account with Citi.
Looks like it's time to start moving some deposits back to Citi... 'Cause 4% is too rich for your blood?
...Wait, I want you to take your money out of WaMu so that the rates stay high. Nevermind.
I don't expect the rates to stay high. Even if they do stay high I'll probably move some of my money back to Citi because it's convenient for me to have the funds there and 3.5% is a pretty decent rate. If WaMu goes lower than 3.5% (or Citi goes higher) then I'll move all my funds there.
In any case I don't think how much money I keep at WaMu is going to affect your rate too much. I'm not that high a roller. And Chase will probably do what Chase will do even if there are outflows.
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