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Washington Mutual Seized

Thursday, September 25th, 2008
Posted in Education by Joel Gross

The federal government has seized Washington Mutual and sold it to JP Morgan.‚  Shareholders and bondholders will get nothing.‚  I agree with the federal government’s action here because it is not sticking the taxpayer with the bill.‚  Essentially, Washington Mutual was bankrupt and about to become a liability on the FDIC (which after IndyMac didn’t have the cash to pay depositors), so the federal regulators took it over Thursday night.‚  This now makes JP Morgan Chase even more powerful.‚  If the economy rights itself, JP Morgan will be one of the most powerful banks on earth; but if the economy continues to take hits we could see a true giant fall.‚  WaMu has billions of bad mortgages on its books that JP Morgan now has to account for.

2 thoughts on “Washington Mutual Seized

  1. if the economy keeps going in the direction it has maybe your dream of total chaos will come true. actually would love it because then we have to start building our secret bunker and make a trip to Wal Mart and visit the gun and ammo section.

  2. Yes, we would build a secret bunker and fill it with women to create our own little harem. I am actually looking forward to the end of the world now…

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