WTG WaMu
danger boy
Posts: 15,722
OMG! after reading in depth the horrible financial decision made by everyone at WaMu just because they were greedy and didn't know when to stop writing bad mortgage loans.
here is a choice except from one article.
The downfall of WaMu has been widely anticipated for some time because of the company's heavy mortgage-related losses. As investors grew nervous about the bank's health, its stock price plummeted 95 percent from a 52-week high of $36.47 to its close of $1.69 Thursday. On Wednesday, it suffered a ratings downgrade by Standard & Poor's that put it in danger of collapse.
WaMu "was under severe liquidity pressure," FDIC Chairman Sheila Bair told reporters in a conference call.
The seizure by the government means shareholders' equity in WaMu was wiped out. The deal leaves private equity investors including the firm TPG Capital, which led a $7 billion cash infusion in the bank this spring, on the sidelines empty handed.
WaMu ran into trouble after it got caught up in the once-booming subprime mortgage business. Troubles then spread to other parts of WaMu's home loan portfolio, namely its "option" adjustable-rate mortgage loans. Option ARM loans offer very low introductory payments and let borrowers defer some interest payments until later years. The bank stopped originating those loans in June.
Problems in WaMu's home loan business began to surface in 2006, when the bank reported that the division lost $48 million, compared with net income of about $1 billion in 2005.
At the start of 2007, following the release of the company's annual financial report, then-CEO Kerry Killinger said the bank had prepared for a slowdown in its housing business by sharply reducing its subprime mortgage lending and servicing of loans. Alan H. Fishman, the former president and chief operating officer of Sovereign Bank and president and CEO of Independence Community Bank, replaced Killinger earlier this month.
As more borrowers became delinquent on their mortgages, WaMu worked to help troubled customers refinance their loans as a way to avoid default and foreclosure, committing $2 billion to the effort last April. But that proved to be too little, too late.
here is a choice except from one article.
The downfall of WaMu has been widely anticipated for some time because of the company's heavy mortgage-related losses. As investors grew nervous about the bank's health, its stock price plummeted 95 percent from a 52-week high of $36.47 to its close of $1.69 Thursday. On Wednesday, it suffered a ratings downgrade by Standard & Poor's that put it in danger of collapse.
WaMu "was under severe liquidity pressure," FDIC Chairman Sheila Bair told reporters in a conference call.
The seizure by the government means shareholders' equity in WaMu was wiped out. The deal leaves private equity investors including the firm TPG Capital, which led a $7 billion cash infusion in the bank this spring, on the sidelines empty handed.
WaMu ran into trouble after it got caught up in the once-booming subprime mortgage business. Troubles then spread to other parts of WaMu's home loan portfolio, namely its "option" adjustable-rate mortgage loans. Option ARM loans offer very low introductory payments and let borrowers defer some interest payments until later years. The bank stopped originating those loans in June.
Problems in WaMu's home loan business began to surface in 2006, when the bank reported that the division lost $48 million, compared with net income of about $1 billion in 2005.
At the start of 2007, following the release of the company's annual financial report, then-CEO Kerry Killinger said the bank had prepared for a slowdown in its housing business by sharply reducing its subprime mortgage lending and servicing of loans. Alan H. Fishman, the former president and chief operating officer of Sovereign Bank and president and CEO of Independence Community Bank, replaced Killinger earlier this month.
As more borrowers became delinquent on their mortgages, WaMu worked to help troubled customers refinance their loans as a way to avoid default and foreclosure, committing $2 billion to the effort last April. But that proved to be too little, too late.
PolkFest 2012, who's going>?
Vancouver, Canada Sept 30th, 2012 - Madonna concert :cheesygrin:
Vancouver, Canada Sept 30th, 2012 - Madonna concert :cheesygrin:
Post edited by danger boy on
Comments
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Beyond the "why" and who's at fault, unfortunately the reality is very bleak for the FED. In essence, any run on any banks today meant a run on the FED, and no bank regardless of their standings, can survive a RUN. I remembered the taglines from the late eighties: Resolving The Crisis, Restoring The Confidence, sounds familiar?I am sorry, I have no opinion on the matter. I am sure you do. So, don't mind me, I just want to talk audio and pie.
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Beyond the "why" and who's at fault, unfortunately the reality is very bleak for the FED. In essence, any run on any banks today meant a run on the FED, and no bank regardless of their standings, can survive a RUN. I remembered the taglines from the late eighties: Resolving The Crisis, Restoring The Confidence, sounds familiar?
great, thats where my checking account is, and i literally paid all my monthly bills online yesterday morning. I know they're gonna clear, still unsettling though. guess for the moment I will be a JP Morgan Chase customer..LOLLiving Room 2 Channel -
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So I guess giving mortgages to illegal aliens, welfare recipients and seasonal crop workers wasn't a good idea. Who would have thunk it!!!
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It gets worse! I'm just glad I don't/ didn't bank w/ them!
http://www.foxnews.com/story/0,2933,428641,00.htmlI refuse to argue with idiots, because people can't tell the DIFFERENCE! -
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Make you want to hide your cash under the mattress right? Don't do that though, that will just make things worse lol
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So I guess giving mortgages to illegal aliens, welfare recipients and seasonal crop workers wasn't a good idea. Who would have thunk it!!!
And a few white-collar regular citizens like this good old boy.
http://www.kansascity.com/105/story/811065.html -
So I guess giving mortgages to illegal aliens, welfare recipients and seasonal crop workers wasn't a good idea. Who would have thunk it!!!
Actually I think the over-extended middle class buyers and investors in real estate have more to do with it that than those you listed. Not to mention all the fraud committed by loan officers and realtors who just wanted to cheat the easy system.
But I'm so glad responsible people get to pick up the tab for everyone else's stupidity. :rolleyes: -
Hey, don't lump the Realtors in there. We didn't write the bad loans.
In 2005-2007 I personally turned in 8 lenders to the Feds for bad/ predatory lending practices. I care about my customers and clients.If there ain't no gold at the end of the rainbow, I'll settle for the pot.
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The problem was the lenders were over qualifying many buyers. And they wereActually I think the over-extended middle class buyers and investors in real estate have more to do with it that than those you listed. Not to mention all the fraud committed by loan officers and realtors who just wanted to cheat the easy system.
But I'm so glad responsible people get to pick up the tab for everyone else's stupidity. :rolleyes:
also taking people with really bad credit, and getting them crummy
loans with huge closing fees. Putting desperate people in homes was
a very lucrative business for a while. You make a lot of cash up front
with a no money down loan, and roll in the closing costs. The buyers didn't
care, because it didn't come directly out of their pocket. Then sell the loan
quick, and line up some more saps.
The problem is, when things go bad, the loan is upside down. Suddenly
the bank loses $10-20k before even paying the cost of foreclosure.
Add even more in some markets like California or Florida that dropped bigtime.
Easy credit needs to stop NOW! When I was young, It took years to
get credit established. Even with a good job. Now they send credit cards to
college kids with no damn job."The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
+1 ...actually i think the over-extended middle class buyers and investors in real estate have more to do with it that than those you listed. Not to mention all the fraud committed by loan officers ... Who just wanted to cheat the easy system. ...Alea jacta est! -
My mortgage is with them, does this mean I'm off the hook!! :rolleyes:"2 Channel & 11.2 HT "Two Channel:Magnepan LRSSchiit Audio Freya S - SS preConsonance Ref 50 - Tube preParasound HALO A21+ 2 channel ampBluesound NODE 2i streameriFi NEO iDSD DAC Oppo BDP-93KEF KC62 sub Home Theater:Full blown 11.2 set up.
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I get TONS of credit card offers in the mail. Not a day goes buy when there isn't an Amex card offer in my mailbox offering some type of rewards crap. Sony and discover cards show up too. It's nuts and they all have nutso rates like variable 21%.
I fall into the college kid w/o a steady job category who only has federal education loans and one CC with a $1k limit. I need atleast 1 CC to use when I get the honor of dropping ~$500 on books each semester but if I accepted all the offers I got sent I could probably run up $10k of debt easily with a huge rate tacked onto it.
I guess in my case it's not really predatory, as I can make a conscious decision unaffected by an ubstable financial situation to shred the offers. But I suppose if I was down and out and starting to get desperate, all those CC offers might start looking nice and then I think that would be predatory. -
It's all a viscious circle, with no one to blame, and every one to blame. Developers needed to build and sell houses, so lenders devised ways to qualify more people to buy the houses, a strong housing market meant that a loan at 125% of the homes value going up at 10% a year, shouldn't of taken long to get on the right side of things, and then if the borrower went south the property would sell and cover the loan. Everyone got greedy. They pushed us in the credit bureaus hard to build new products that told them which people who had low credit scores might be nice OK people that just needed a wish and a dream to make it right. And we either did it or our competition would.
I wonder how this whole thing would of went if the mortgage originator had more skin in the game and couldn't as easily sold the paper?DKG999
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I wonder how this whole thing would of went if the mortgage originator had more skin in the game and couldn't as easily sold the paper?
That's the problem in a nutshell. The guys making the loans didn't have to
live with the long term risk. Like a damn MacDonalds. In and out in minutes.
No wait. Want that loan super sized?"The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
pearsall001 wrote: »My mortgage is with them, does this mean I'm off the hook!! :rolleyes:
I'm hoping for the same on my WaMu credit card. -
Actually I think the over-extended middle class buyers and investors in real estate have more to do with it that than those you listed. Not to mention all the fraud committed by loan officers and realtors who just wanted to cheat the easy system.
But I'm so glad responsible people get to pick up the tab for everyone else's stupidity. :rolleyes:
http://www.youtube.com/watch?v=H5tZc8oH--o -
Definitely worth the watch.Please. Please contact me a ben62670 @ yahoo.com. Make sure to include who you are, and you are from Polk so I don't delete your email. Also I am now physically unable to work on any projects. If you need help let these guys know. There are many people who will help if you let them know where you are.
Thanks
Ben -
Nice Polk user, I think that should be embedded.
<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/H5tZc8oH--o&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.youtube.com/v/H5tZc8oH--o&hl=en&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="344"></embed></object>
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I know, but I can't find it in myself to be able to disconnect in this world.
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EFF WaMu those pr!(K ****, they lowered my credit line for no reason, just when I needed it most. I closed the account and am in the process of getting rid of it.
AGAIN EFFFFFFFFFFFFFFFFF THEM I HOPE THEY FOLD INTO DUST AND THE CEO GETS BUGGERED WITH SAND AS A LUBRICANT! -
hearingimpared wrote: »EFF WaMu those pr!(K ****, they lowered my credit line for no reason, just when I needed it most. I closed the account and am in the process of getting rid of it.
AGAIN EFFFFFFFFFFFFFFFFF THEM I HOPE THEY FOLD INTO DUST AND THE CEO GETS BUGGERED WITH SAND AS A LUBRICANT!
I can't wait to see the reaction when the new CEO of three weeks' severence package is posted. I think I heard he keeps his 7.4 million dollar signing bonus and gets a 6.0 million dollar parachute.. -
I can't wait to see the reaction when the new CEO of three weeks' severence package is posted. I think I heard he keeps his 7.4 million dollar signing bonus and gets a 6.0 million dollar parachute..
His $20M parachute was posted in post #5I refuse to argue with idiots, because people can't tell the DIFFERENCE! -
Anybody wanna bet that video gets pulled off of 'youtube' by next week?
George Soros has got very DEEP pockets!
Legal question: Can WE impeach members of Congress?I refuse to argue with idiots, because people can't tell the DIFFERENCE! -
So let's add this up who got screwed in this scheme?
I have a co-worker who states his bed sheet has a hole in them just for this reason you never know when or where.
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[ below shamelessly copied and pasted from elsewhere ]
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As Robert Gordon shows,... this is crap. First, there's the timing. CRA came in 1977. The crisis came in 2007. Indeed, by 2004, the Bush administration had weakened the CRA -- and after that (though not, presumably, because of it), bubble lending really took off. Further, CRA only governs a certain class of federally insured banks. Problem is, half of the subprime loans came from mortgage companies with no CRA involvement at all. Another 25%-30% came from companies with very little CRA exposure. For those who left their abacus at home, that's 80% of the loans which were fully or largely outside CRA jurisdiction. More than that, the non-CRA mortgage firms made subprime loans at twice the rate of CRA-covered firms. Which basically leaves a stake in the heart of this particular theory. Indeed, until now, some conservatives have been moaning that no one is talking about the CRA part because it's so racially charged. Poppycock. It's just a false charge... -
27 September 2008
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Barney Frank and Chris Dodd should be thrown out of congress. Asswipes.
http://www.businessandmedia.org/printer/2008/20080924145932.aspx -
I bet the whole mess can be pinned on one or two people.....yup......not the morons who actually TOOK the loans........:rolleyes::rolleyes:comment comment comment comment. bitchy.
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I bet the whole mess can be pinned on one or two people.....yup......not the morons who actually TOOK the loans........:rolleyes::rolleyes:
It is a systemic problem. Republicans, Democrats, Independents, CEOs, janitors, investors, savers, borrowers, homeowners, renters...etc...ALL have a hand in this. In order to lay blame..one must understand not only the scope of the problem but all the moving pieces...and there are lots of moving pieces.
It is easy to say I had no part of this...but in reality there are few of us who haven't contributed in some way. The resulting problem is what we have...no one has even discussed or scratched the surface of the cause. It's easy to just say "greed" or "CEO compensation" or "fraud" but even those are but a part of the problem. Let's stop blaming and JUST FIX IT!"Just because youre offended doesnt mean youre right." - Ricky Gervais
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