US Banking System + Washington Mutual (WaMu)
I don't like to post an off topic message as a general rule. But this is important.
I am not trying to cause a panic here but as an active investor, I watch the markets very closely. There has been considerable concern about many banks - from investment banks, extending to stalwarts of industry that are failing left and right. Goes with the territory when you leverage yourself 30x or more. While FDIC insurance exists, it fails to cover account balances in excess of $100,000.00. Plus, it is grossly underfunded and payouts can take months or years. There are a number of banks that will implode or have already. Some are difficult to forecast but there are usually warning signs. I would urge anybody who banks with Washington Mutual (WaMu) to look at their numbers and make an informed decision as to if that institution is the type that you feel comfortable leaving your money in. Myself? I would not touch it with a 10 ft pole. If you are in excess of the 100k limit, at WaMu or elsewhere, you are a fool. It is possible somebody buys WaMu and bails everything out but why bet the farm on it? Take the time to consider current market conditions and ensure you take the proper steps to protect yourself.
http://chart.finance.yahoo.com/c/2y/w/wm
Edit: 9/25/08 - WaMu has gone under. Biggest bank failure in history. JPM Chase has bought most of their assets and it appears that they are backing up the deposits. Which is good, because the FDIC only has less than 50 billion and WaMu had more than 300 billion. Not all of that was on the line mind you but a decent percentage was. Most likely in excess of 50 billion. It would have wiped out the FDIC's entire balance.
