Something Happening at WAMU! And More!

Posted on July 14th, 2008 in Daily Mortgage/Housing News - The Real Story, Mr Mortgage's Personal Opinions/Research

1:23pm PST Update – WAMU just put out news that their ‘liquidity exceeds regulatory requirements’. Whew!  Haven’t they learned by now that a statement such as this always brings about bad things.

1:01pm PST Update – MORE BANK OF AMERICA NEWS. My friend just left another local BofA branch in more of an industrial area of Oakland, CA and this branch had significant deposits pulled by noon.  To counter people pulling money, they are advising people to split up deposits into different family member’s names and SSN’s in order to be covered by the FDIC insurance and nobody went for it. Again, this one small BofA branch lost serious 6-figures in a single morning and I was told this never happens.

12:30pm PST Update – BIG BANK OF AMERICA NEWS. I just talked to a friend who has good insight into Bank of America’s retail branches. He said several branches are taking in MAJOR DEPOSITS today. He said people are coming in depositing large checks. One person brought in a $134k check from Wells Fargo when he was there.  

About BofA:BofA is thought to be one of the ‘safer’ banks as they did not actively make many subprime or Alt-A loans. They operated mostly in the mortgage ‘banker’ capacity throughout the bubble years, chosing to sell most of what was originated. They do, however, have significant Home Equity Line/Loan exposure but are probably one of the best as far as total exposure goes. This was prior to the Countrywide acquisition of course. Who knows now.

12:20pm PST Update – Update. Reports have come back from several people out at local branches and most said it looks like ‘business as usual’. A couple reported what looked like ‘heavier than normal activity’ based upon their experience at their local branch. We will keep an eye on this for you for any new developments.

10am PST – THIS IS ALL MY PERSONAL OPINION BASED UPON WHAT WAS VIEWED AT TWO LOCAL NORTHERN CA WAMU BRANCHES. I HAVE RECEIVED NO REPORTS OF THIS HAPPENING ANYWHERE ELSE OR NATIONALLY.

I was out and noticed a line out of my local WAMU branch this morning. I then drove a few miles away and saw another branch with many people in line. I talked to someone there and they said the lines started before the bank opened and many people are sweeping their accounts. They did not say ‘everyone’ but they did say ‘many people are sweeping their accounts’.

Today is not payday or Government check day. I could be wrong but I do not think this is to open an account and get a free toaster, as the opening of new accounts has reportedly slowed in recent months.

To prevent runs on other regional banks holding similar mortgage paper is exactly why I think they tried to cover up the IndyMac bank seizure by calling it a bank-initiated shut down of the mortgage unit, which was essentially all they were.

This story is all visual speculation on my part, but in my short years on this planet I have never seen anything like this. This is hopefully and probably justifiable blow-over from IndyMac and the horrible way they managed that takeover, complete with a finger pointing contest between the OTS and Schumer. 

It is also my opinion, that WAMU is too big to fail and if anything bad was happening somebody would come to the rescue. In addition as you see with IndyMac, the feds are handing out money to depositors even on non-insured accounts.

This could be all nothing as well, only a larger than usual number of people coming to the bank to withdraw money after a weekend. Who knows. -Best Mr Mortgage.

Other Related Mr Mortgage Stories

Mr Mortgage on Fannie/Freddie Massively Underestimated Risks

IndyMac: Significant Seizure Chatter – Is this finally the end?

IndyMac: One More Lie for the Road! Consumers and Brokers Beware

The Pay Option Implosion – Subprime’s Big Brother

Look OUt! Here Comes the Alt-A Implosion

Mr Mortgage on Mortgage Modifications – You May Qualify!

Mr Mortgage onMortgage Modifications Part 2 – BEING FORWARD THINKING! 

 

56 Responses to “Something Happening at WAMU! And More!”

  1. Very interesting. Today I went to buy some gold from my dealer, and his office was closed. The note on the door said, “Thursday, July 10th. Clients, I have just been approved to do an appraisal for one of the countries’ largest banks. For security reasons, I will have to close my doors for two weeks. Please call _______ for updates.” My coin and bullion dealer is one of the oldest in the business. He’s had his coin shops (now down to one) for over 50 years. The only thing I can imagine is that a “large” bank needs a specialist in metals and coins to appraise their holdings for official reasons. Very interesting. BTW, I live in Las Vegas.

  2. Well you can be sure that foreigners have stopped believing in the bullshit produced in industrial quantities by the US financial industry. Two days ago Fannie and Freddie were going bust. Indymac is busted.

    And wow suddenly like by miracle all the banks earnings are not that bad. Bastards ! I have finished believing any bullshit coming out of banks. They make the numbers they want. It’s like the phoney government statistics and the psychopath Bush. “Our banking system is solid.” Bullshit.

  3. Even the credit default swaps on the debts of the US government are exploding. Now this is real news. Woa !

    http://www.nakedcapitalism.com/2008/07/phony-accounting-on-fannie-freddie.html

  4. Are they next after Indymac ? Can we venture that there is a strong probability of a bank run on Wamu ?

  5. I dunno… I can see Wamu’s HQ from my over-priced apartment. Looks like business as usual here on the streets of Seattle….

  6. The Titanic was too big to sink.

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