I went through WAMU’s Q2 unaudited balance sheet this evening with an accountant friend. In our opinion, when assets are marked to market, they are bankrupt/insolvent. In fact, there really isn’t much wiggle room. We didn’t even have to spend much time on it.

Given the provisions TPG put on the purchase agreement, I see no way that WAMU can make it through this thing in one piece. Seriously.

Can anyone paint a scenario saying otherwise? Honestly, I would love to hear it, because I do not see any light in this tunnel. What would they need to do? Get a $15B infusion from a Sovereign Wealth Fund, and then pull a Merrill on top of that?

In my opinion, these guys are totally gone. I’m sick of all of their flip-flopping in the news/financials. There are strong banks out there that never made these toxic loans, and that are well-positioned to benefit from this whole debacle, if only we give them the chance. Those banks, collectively, will also benefit our economy.

Great posts… I am new to this board, and really appreciate all of the comments and insight!

BS was a primary dealer. As a primary dealer, it was a principal “Underwriter” for the open market operations of the Fed and in daily contact with the NY Fed every morning.

WM is (and never was) in such a position.

Here is a list of primary dealers.

http://www.newyorkfed.org/markets/pridealers_current.html

Tony