Too big to fail? WAMU at $2.01/share, reportedly seeks a buyer
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Headlines: The Dow industrials lost 449 points and change today. We are in the eye of the storm.
Washington Mutual shares closed at $2.01, and the thrift is a source of increasing concern to the government, which, according to Alexis Glick of Fox Business News, ‘cannot afford to let this bank fail.’ More from Glick:
This morning a source tells me that Washington Mutual, the 6th largest bank and largest savings and loan bank in this country, cannot legally fail... ...We’re talking about risk to the depositor and to the Federal Home Loan Banks of $239 billion. Let me remind you that the FDIC or the Federal Deposit Insurance Corporation has $45 billion. We are talking about a bank with $181 billion of deposits. They cannot afford to let this bank fail.
The New York Times reports WAMU has hired Goldman Sachs to find a buyer:
Washington Mutual, the struggling savings and loan, has been working on several efforts to save itself, including a potential sale, people briefed on the matter said Wednesday.
... Goldman Sachs, which Washington Mutual has hired, started the auction several days ago, these people said. Among the potential bidders that Goldman has talked to are Wells Fargo, JPMorgan Chase and HSBC.
Your thoughts? Comments? An update: your blogger has discovered Twitter, and I encourage you to join me, or perhaps even follow me. I’m hoping it’s a new way for me to learn more about the L.A. real estate market -- directly from you. Here’s my Twitter feed.
Hat tip: Michael Snyder, via e-mail.
-- Peter Viles
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