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.
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