By MADLEN READ, AP Business Writer

NEW YORK - As the debate over a $700 billion bank bailout rages on in Washington, one of the nation's largest banks — Washington Mutual Inc. — has collapsed under the weight of its enormous bad bets on the mortgage market.

The Federal Deposit Insurance Corp. seized WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase & Co. for $1.9 billion.

Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July.

One positive is that the sale of WaMu's assets to JPMorgan Chase prevents the thrift's collapse from depleting the FDIC's insurance fund. But that detail is likely to give only marginal solace to Americans facing tighter lending and watching their stock portfolios plunge in the wake of the nation's most momentous financial crisis since the Great Depression.

link - http://news.yahoo.com/s/ap/20080926/ap_on_bi_ge/washington_mutual_future


What's your take? any other banks near collapse that anyone knows of?

Does my wallet count?

yours, mine and ours

I know.

it's kind of something that I think is getting missed

all these banks are going under as a result of making loans to people (Americans) who aren't paying back their loans. People who should have never have gotten loans in the first place

the big bailout thing is an attempt to cover all these bad loans for people

some say it is an unintended consequence from Congress attempting social engineering in the 90's. from forcing the banks to accept more lower income and sub-prime mortgages

To me the numbers don't add up..Today I hear its %5( even at %10) of fail mortgages..Does that justify all these failers..Something just sounds a little fishy for me..JMO

meh I dunno

I'm sure we can somehow blame it on Bush

it's funny how many credit card offers i received in the mail in the last 2 weeks from WAMU

It's not just that.

Some of the banks lied about the interest rates on the loans.

And there are many people that have lost their jobs. Should they have not bought a home while they were working?!!!

You cant blame it all on Bush just like you can blame it on a Dem congress who has been in office for the last 1 1/2 years.

Quiet, I agree to a point, banks and mortgage ultimate goal is to make money and it backfired big time.

But we are only talking about the most Ive heard so far %10..People lose that and more all the time on the markets..Should they be failing?

Which is why I'm asking if anyone has heard of any other banks/mortgage companies, etc going under, the numbers do not add up.

I agree!!! The lets say %10 is even spread over more than one institution..Why cant these companies obsorb that and not stay afloat?

because they like everything/everyone else is looking for the easy way out, claiming bankruptcy, chapter 11, chapter 13, selling, out of business - anything to avoid having to fulfill their obligations, contracts and loans. Ultimately the one thats affected is the one that had no dealings with these institutions

hmmmmm...

would it hurt YOU to lose 10% of your monthly budget?

what if ALL your creditors (car, home, cards) called in your debts due to be paid immediately? that is kinda what is happening to the banks

(and yeah there was a lot of fraud and finageling with the accounts, that always seems to happen too)

They couldnt do that as long as I have upheld my end of the contract. Losing %10 of my income wouldnt make me lose everything. I would cut back, make sacrifices and go on...

but what if?

that still is kinda what is happening to the banks

and if you own stock in a bank that is losing 10% of it's income, do you sell it? and then the stock sales tank and THAT drives the bank under