Lords of Death Forums Lords of Death Forums LoD General Discussion WaMu

for everyone who said "no way that could happen, that bank is too big" etc... all I can say is ..... " told ya"
We're in the 5th inning of this game now.

Hey, tell us whats up with WaMu

Went Wammo.
They're not the last one either. Wait till the restatements start. There's some big banks sitting on massive losses they've hidden on the books which have to pop up soon. Just look at the list of exposure and you can pick them out easily 16+ months ago.
It's a shame that the free market is not allowing shorting anymore. Guess they couldn't have put similar controls in place when the punch bowl was full.

i think it all depends how the banks are organized and what charter they have....i could be wrong (this is not my area, im a capital markets guy) but i THINK that the FDIC has oversight on Federal Banks and companies organized as commercial banks...i THINK the OTS manages banks under state charters (state only banks not cross state line banks), thrifts institutions and co-op banks
**EDIT**
i looked at the OTS site and found this...
"In 1989, Congress passed a law that dramatically restructured the banking business, moved deposit insurance for savings associations to the Federal Deposit Insurance Corporation and established the OTS to supervise, charter and regulate the thrift industry"
**EDIT 2**
After deeper digging, looks like they supervise while the FDIC manages and insures....after reading this:
OTS is unique among the federal bank regulatory agencies in that it supervises holding companies as well as thrift institutions. This results in OTS providing consolidated supervision for such well-known firms as General Electric (GE), AIG, Inc., Ameriprise Financial, American Express, Morgan Stanley, Merrill Lynch and Lehman Brothers. OTS's consolidated supervision program for GE, AIG Inc., and Ameriprise has been recognized as "equivalent" by the European Union ? allowing these firms to operate their financial businesses in the EU without forming an EU holding company and submitting to supervision in the EU.
we sure we REALLY want them to take over anything?
haha

*NT*

It ends with JP Morgan staging a military invasion of China and Russia using Blackwater and old South African Mercenaries and taking over the world completely...

JP Morgan
Wells Fargo
Bank of America
Goldman Sachs (they will be using that $10 billion war chest they just raised to snap up every delicious regional bank they can)
are all AMAZING deals....
if you want to take a flyer, dig your heels into Wachovia...

My only concern would be the exposure wells has to rotten debt, unsure if they unloaded it early enough or have too much still on hand.
Great time to get out of USD into anything else solid (iceland, norway, nz....), silver, gold, wombat pelts, chuckie cheese tokens..anything. I'ld be cautious about commodity countries now due to the recession (ie: aus, cdn). Cdn has to tank anyway, too tied to USD, they get the double wammy.

the somewhat good news to that is Wells has been doing a v. good job of aggressively marking down assets (FAS 157) and booking losses as they come up.
When Lehman went tits up they immediately wrote it all down and the street didnt blink....
Wells Fargo is a prime bank to take someone over if they struggle....or even one of the last two investment banks....