WaMu Slumps as Gimme Credit Cites Liquidity Concern

[harry123]

http://www.bloomberg.com/apps/news?pid=20601087&sid=a2ZCdg_BBYlk&refer=home

Washington Mutual is the largest financial institution without an implicit backstop from the US Governmen.

[kenny blankenship]

1. WHat is your opinion of Wachovia?

They aren't on the list of 19 Untouchables either.
Is the new CEO there to right the ship? Or was he picked to liquidate them so their good assets can be picked over and the bad stuff written-off or awarded to the taxpayers as a prize for being good sports?

[harry123]

2. He's there to right the ship

But the damage may already be done. Look at Merrill Lynch. It's the same story there. John Thain is great but.... he can't turn coal into diamonds. Back to WaMu, it is one of the weakest of those not covered in the famous list of 19. In my opinion, they are NOT too big to fail and investors are very nervous as a result.

[2Design]

3. they have been in the news alot lately as a problem - search using dogpile search engine n/t

[2Design]

4. I guess I have seen them a lot at a site I frequent - here is something from today n/t

The Charlotte Observer. “Amid ballooning loan losses, Wachovia Corp. is taking more steps to unwind its troubled $122 billion Pick-A-Payment mortgage portfolio. But it’s not going to be a quick fix - or a cheap one.”

“Wachovia last month said it would stop offering a minimum payment option that causes a borrower’s loan balance to increase, essentially eliminating the Pick-A-Payment product.”

“One step Wachovia is not taking now: an outright sale of the Pick-A-Payment portfolio. Chief executive Bob Steel said it didn’t make sense to sell the loans into a ‘distressed market.’ The bank’s models have it setting aside $8.7 billion in 2008 to cover Pick-A-Payment losses and expected losses, followed by another $5.6 billion in 2009. The bank’s calculations are based on housing declines bottoming out in 2010.”

from www.thehousingbubbleblog.com