US Banking System + Washington Mutual (WaMu)

[Xzin]

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.



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.

[Hachoo]

Thats good advice. I don't use WaMu or have an excess of $100k at any specific bank, but my brother does use WaMu for his primary checking/savings, so I'll advise him to move to a new bank.

I personally use USAA for a lot of my finances and as far as I know they are still going strong.

[Qlimax]

Yeah, with Lehman Brothers, AIG and Merill Lynch's recent standings, I would love to be sitting on the Bank of Americas board of directors. The fact that they can afford to buy their 2nd rival in this market is quite peculiar.

[Anjuna]

I have a Visa with them, with a >$1000 balance. Should I pay it off and cut it up?

[Xzin]

Yeah, with Lehman Brothers, AIG and Merill Lynch's recent standings, I would love to be sitting on the Bank of Americas board of directors. The fact that they can afford to buy their 2nd rival in this market is quite peculiar.

They are still absorbing Countrywide no less. It was a shotgun marriage, at best. But who else? JPM just "bought" Bear Stearns. There is really nobody bigger.

[Multibocks]

Thats good advice. I don't use WaMu or have an excess of $100k at any specific bank, but my brother does use WaMu for his primary checking/savings, so I'll advise him to move to a new bank.

I personally use USAA for a lot of my finances and as far as I know they are still going strong.

I love USAA!

[Anjuna]

I have a Visa with them, with a >$1000 balance. Should I pay it off and cut it up?

Don't worry about debt. Somebody will ALWAYS be around to collect the payments.

Cool, I figured. I usually pay it off every month anyway.

[Xzin]

I have a Visa with them, with a >$1000 balance. Should I pay it off and cut it up?

Don't worry about debt. Somebody will ALWAYS be around to collect the payments.

Sadly, I have to /agree there. But if they implode, nobody is around to pay you. Debt however, is an asset and just gets bought by somebody else.

[Drizzit]

They are still absorbing Countrywide no less

oh no what is happening with countrywide? I have my mortgage though them.

[Xzin]

They are still absorbing Countrywide no less

oh no what is happening with countrywide? I have my mortgage though them.

And you still do. If you owe them money, you simply pay it to BAC instead of Countrywide. I am sure they will tell you where to keep sending funds to :)