WaMu

[desrat]

A lot of buzz about an FDIC takeover on the 19th. Dropped some of my lottery money on +WMVI. If this cat bounces over $3.00 you can probably get in where I did around .60. A blowup will give you an easy triple or so. This is money I am willing to kiss goodbye should I be proven wrong (thanks Mr. Fuld for giving me more cash to play with!). Of course this will cause the FDIC's balance sheet to implode and force them to borrow from the Treasury which means you could just as well short the phone book...

Talking my book but if Bill Gross can do it why not the rest of us. Do your own DD and for God sakes if your an account holder at WaMu make sure your within the FDIC limits and have some cash on hand in case of a Holiday while the FDIC does it's job.

 

[gbogo]

i already posted last friday that the regulators had asked them to keep operating till end of dec... and everyone to adjust their positions... but someone felt the need to delete it.

 

[desrat]

Due to the mess over the weekend, it seems anything posted last Thursday or Friday was lost in the Great Database SNAFU.

I thought they would make it till year end at least. It seems that Skelator... err Paulson's great bailout plan has royally screwed any financial institution's ability to go to the Preferred Stock well in an effort to raise capital. That, the amount of negative press about them this week, and Buffets decision with Kansas Bankers Surety seems to be starting a chain reaction the FDIC may not be able to stop. From what I gathered the only thing preventing an immediate seizure is the lack of manpower in the FDIC. It seems every branch must have one FDIC employee in it to reopen and WaMu has about 2600 IIRC.

 

[ivyconniver]

You realize the FDIC is less than 1% capitalized to cover all of the deposits at risk right? It's leveraged to hell just like all of the institutions that are going under. If non-trivial sized banks actually go under, FDIC will not save your money for years, if ever.

 

[desrat]

Yes. The FDIC is EXPLICITLY backed by the US Government. They don't have enough on their balance sheet, but they can legally borrow from the Treasury to meet the needs. If they don't follow through on their promise you can be sure you will be seeing pitchforks and torches in the streets.

 

[tanner12oz]

supposedly there is no length of time the fdic has to get your money to you in. it could lollygag around for years while your money is tied up in litigations and such.

 

[ivyconniver]

[FONT=arial, helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif]Federal law requires the FDIC to make payments of insured deposits "as soon as possible".

Nice and vague for you, right? But I'm sure you'll counter with the fact that the government is always the model of quickness and efficiency.
[/FONT][/FONT]

 

[desrat]

[FONT=arial, helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif] But I'm sure you'll counter with the fact that the government is always the model of quickness and efficiency.
[/FONT][/FONT]

Not sure if your directing this at me. If so your a little off. I have no faith in the FDIC or the government. My money is in the Bank of Sealy or Treasury Direct. My post was about an investment, not a backing of the FDIC. I just added the account limit bit because it seems some people are still caught unaware and didn't want to be accused of causing a run :missingte

I think we are headed to GD v2.0 and the borrowing from the Tres. that will be needed by all the upcoming failures will just add to the accelerating spiral to those depths. In spite of that they will have to keep up the farce in order to keep everyone sedated or risk people actually shutting off American Idol and taking to the streets... well keep it up as long as they possibly can. Eventually people will wake up.

 

[desrat]

Closed position @ $1.4 today. Fear that all the recent crap will keep this zombie afloat. If the bailout gives this a nice bounce I will look to reenter with some Jan puts. No way this thing survives the upcoming fiasco.

 

[desrat]

Damn! One more day...
Money Management always wins.
Money Management always wins.
Money Management always wins.
and pigs get slaughtered.

This beast is dead.
Deposits to JP Morgan, debt to the taxpayer, assets to FDIC.