WaMu May File For Bankruptcy Shortly, Merrill Lynch Says

Reuters:

(Reuters) - Washington Mutual (WM.N: Quote, Profile, Research, Stock Buzz) may file for bankruptcy shortly, said Merrill Lynch analyst Kenneth Bruce terminating coverage of the stock.

The top U.S. savings and loan bank, whose market value has been virtually wiped out because of soaring mortgage losses, was closed by regulators on Thursday, and its banking assets were sold to JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) for $1.9 billion.

The company witnessed $16.7 billion in deposit outflows from September 15 to September 24, according to an Office of Thrift Supervision statement.

Read the whole story: Reuters

Comments

[birdie2]

If JPMorgan can afford to buy WAMU why are we bailing them out?

[Vinca]

I AM V_E_R_Y ANGRY THAT WE HAVE TO PUT OUR COUNTRY D_E_E_P_E_R DEBT< WHILE THESE PIRATES WALK AWAY WITH A HUGESACK OF MONEY< THEY GOT THE GOLD MINE< TAXPAYERS GOT THE SHAFT

[nellie]

I thought they were just bought by Chase. What does Merrill Lynch have to do with WaMu?

[iambusto]

JPM bought the deposits and the branches. Not the holding company Washington Mutual. the holding company is filing bankruptacy.

thats what i think happened.

[KillTheMessenger]

I think it's just their analyst sounding off. After all, WaMu shareholders are in the slammer right now. Which is OK. I am not concerned about shareholders. If they complain about losing money they just haven't read the disclaimer that their investment in stocks is not insured. What is important is that WaMu customers are safe.

[DixieMelody]

Any other WAMU customers out there? Have you heard anything??

I have my mortgage and checking account with WAMU and not one word to me/ us from them and/or JP Morgan.

A blanket e-mail with a couple of sentences of reassurance and hand-holding would be nice (but they don't HAVE TO BE NICE TO US as we are ONLY customers. But it looks like those of us who have never been late with a payment or bounced a check or overdrawn our account would be considered an asset to them).

Having the bank named after a notorious robber baron does not instill confidence under any circumstances.

[KillTheMessenger]

Bubbles usually burst one at a time. This one just popped. And the world did not come to an end. Washington should take its time with the bailout. Let a few more pop before we step in.