WaMu is another Gasparino special. When the BAC/CFC deal was announced he reported several times that his "sources" were telling him that JPM is looking into buying WaMu. I haven't heard anything since. Gasparino has no credibility left.
I have lots of $$$ in CFC and WAMU banks. Methinks I may be getting acquainted with The Bank Of FDIC one day.
What will happen to WaMu's intrinsic value when a bank run starts? Will the rapid mass exodus of its depositors cause them to fire sale assets? In otherwords, will the loss of depositors cause some kind of equivalent margin call onto the bank? I ask, because I see it as a distinct possibility that a lot of their depositors in California are already beginning to get concerned about their deposits in a bank that had originated so many mortgages in CA and FL.
real estate here in california is on the edge of a major catastophic implosion.Its only dropped 17% from the manic highs...tons of short sales and foreclosures-if not the majority of sales.Wamu has tons of mortgage exposure on that.Dont know if thats priced-in in its current price.I just know that california real estate is a just a big disaster-to-be.
A loss of depositors is a margin call. If they can't pony up the cash, then they're bankrupt. Practically speaking, once they drop below a certain amount of required capital, the banking regulators simply shut them down.
Bleh, I dumped at 10.72. I don't want to get whipsawed. So this means it will probably go up Monday on some BS financing news.