FDIC Siezes WAMU

rays

Since they are my bank, I hope my uncleared checks for Long beach purchases are still good. I would assume so. This is getting a little scary.

brockdabadger

you have a link for the story

rays

Link

RYK

<< <i>Since they are my bank, I hope my uncleared checks for Long beach purchases are still good. I would assume so. This is getting a little scary. >>



According to the AP article:

<<The third-largest U.S. bank JPMorgan Chase & Co said it bought the deposits of Washington Mutual Inc, which has seen its stock price virtually wiped out because of massive amounts of bad mortgages. The government said there would be no impact on WaMu's depositors and customers. JPMorgan said it would be business as usual on Friday morning.>>

Sounds like you have little to worry about.

DeusExMachina

Actually your bank (well...our bank) is now much stronger thanks to the JPM purchase.

And the FDIC can breathe a bit. They seem stretched to say the least.

mrearlygold

I was supposed to pay someone just under 100K this week. He told me to hold on to the money till he finds a new home for his accounts which were at WAMU.

EVERY bank rep I spoke to in the last few weeks had a different story as to what is protected and what is not protected. I was told that there is no FDIC coverage for business accounts. Then I was told that 100K is "protected". Well good golly miss molly, if one has 7 figures in his company checkbook one week, most of it is vulnerable to being ripped off?

Isn't amazing how none of them have been arrested?

ChrisRx

Your money is SAFE. People need to stop worrying. JP has got yer' back

GrumpyEd

They said with WAMU the accounts just moved to Chase, nobody lost even if it was over 100K.

But no guarantees next time, I think it's only because Chase took it over.

dogwood

Wonder if JPMorgan Chase will still pipe in those cool 80's tunes in the lobby of my former WaMu branches. Always makes for a happy time when I'm withdrawing some cash before a COIN SHOW.

BlindedByEgo

Our corporation moved a substantial amout of cash out of WAMU late last week, just in case. Kind of a PITA juggling a six figure float between banks, but it seemed the only prudent action to take at the time.

This is the best possible outcome, though, unless you are a stockholder: "The FDIC said the acquisition does not cover claims of Washington Mutual equity, senior debt and subordinated debt holders. It also said the transaction will not affect its roughly $45.2 billion deposit insurance fund."

WTCG

No exaggeration, but less than an hour ago I drove by a WaMu branch (10:30pm pacific time) and there was about eight people in line to use the pair of outside ATM's.

Unfortunately for most the maximum amount of withdraw from an ATM is limited to $300.00 per day. Depending on the individuals' different account balances, I'm not sure how much a $300 withdraw would really make people feel that much more secure about their accounts. Apparently many of their account holders aren't familiar with the FDIC.

I have an account at WaMu although it isn't one of the three primary banks I use nor is there much money in that account, but for what it's worth I always felt that WaMu was arguably the friendliest large bank with some of the most favorable policies for their customers.

Chase is the underwriter of the mortgage of one home of mine. I didn't find them, they found me. Other than that I haven't had much experience with Chase.

lasvegasteddy

a word of note

one customer here in vegas found out via silverstate banks dismise that accounts are insured to 100k right

but accounts are linked by tax payer id and even though set up as seperate accounts they are all counted as one and only covered for 100k

Coxe

<< <i>I was supposed to pay someone just under 100K this week. He told me to hold on to the money till he finds a new home for his accounts which were at WAMU.

EVERY bank rep I spoke to in the last few weeks had a different story as to what is protected and what is not protected. I was told that there is no FDIC coverage for business accounts. Then I was told that 100K is "protected". Well good golly miss molly, if one has 7 figures in his company checkbook one week, most of it is vulnerable to being ripped off?

Isn't amazing how none of them have been arrested? >>



Business accounts are protected to the $100K limit. See:

http://www.fdic.gov/deposit/deposits/insured/ownership7.html#association


Accounts owned by the same corporation, partnership, or unincorporated association but designated for different purposes are not separately insured. Instead, such accounts are added together and insured up to $100,000. For example, if a corporation has divisions or units that are not separately incorporated, the deposit accounts of those divisions or units would be added to any other deposit accounts of the corporation and the total insured up to $100,000.

Sole proprietorships too, but if you have a personal account at the same bank, the total is insured to $100K.

Accounts in the names of sole proprietorships (for example, "DBA accounts") are not insured in this category. Rather, they are added to the owner's other single accounts, if any, at the same insured bank and the total is insured up to $100,000.

GrumpyEd

You can have more than one account at the same bank and each one is insured for 100K as long as you put different qualified beneficiaries on each account. That can be spouses or kids or parents. To be sure it's covered you can check it with FDIC by entering info (just nicknames) for each account and it tells you what's covered.


FDIC calculator

Elcontador

I have my coins in my safety deposit box @ WAMU. I just got off the phone with them. Basically, it's business as usual, but with a new name on the door. If you've done the under $100K deal as mentioned by posters above, you have nothing to worry about. So if this is the case, your money is safe, and I can visit my coins.

lasvegasteddy

no no no...you want different "tax payer id's" grumpy...as out here a customer had different names and account types but when the bank failed they linked his accounts by tpi

GrumpyEd

Lasvegasteddy,

Thats probably safer, (or just use different banks) that way there can't be a question.

lasvegasteddy

<<<or just use different banks>>>

hopefully that will always be a means

i'd think most with over 100k have already safeguarded to full extant by now

this all reminds me of "it's a wonderful life" and the bank run portrayed in it

TrustNo1

I checked my accounts online...all is well

howards

My deposits are apparently safe, but there goes my WAMU stock. Poof!

So, the big boys get bailed out again and the little shareholders get screwed. I eagerly anticipate lawsuits.

Barberian

Unless they were purchased recently, your WAMU stock went "poof" before this buyout. Sorry.

291fifth

The big get bigger..." too big to fail."

TwoSides2aCoin

Put your money into a safe account.

The People's Republic of PayPow™

RWB

You should have a better appreciation for the Banking Act of 1934. The Roosevelt administration included deposit insurance for commercial banks in that law. Without that, every depositor in WAMU would have been wiped out.

The FDIC insures up to $100,000 per depositor per bank (now extended to money market accounts at non-banks), but as with IndyMac in California, nearly all depositors receive everything back.

Longacre

Longacre's millions are in Bank of America. I would never put my money in a company called "Wamu", which sounds like an extinct animal from the prehistoric ages.

RunnersDad

<< <i>My deposits are apparently safe, but there goes my WAMU stock. Poof!

So, the big boys get bailed out again and the little shareholders get screwed. I eagerly anticipate lawsuits. >>



I think the fact that people are losing millions of dollars when the stocks of these financial institutions collapse is the bigger issue here more so than asking the question "Is my money safe". In the case of a total bank collapse and you have taken the proper steps you are fine. Unfortunately unless you called the downfall of some of these financial institutions before they met their demise, you have certainly lost a boatload in each companies stock(ie; Fannie, Freddie, WAMU, etc...) And there is no safeguard for that!

SoundPoint

<< <i>You should have a better appreciation for the Banking Act of 1934. The Roosevelt administration included deposit insurance for commercial banks in that law. Without that, every depositor in WAMU would have been wiped out.

The FDIC insures up to $100,000 per depositor per bank (now extended to money market accounts at non-banks), but as with IndyMac in California, nearly all depositors receive everything back. >>


============================================

I just read this morning that the FDIC insures the assets held by 8,451 banking institutions totalling $13.4 Trillion Dollars. I sure hope most of these banks are not in trouble! That's a lot of insurance!

SoundPoint

bestday

Well folks this ain't going to end soon.. the market is poised to go to 7500-8500 on the Dow in the next 2 years ..Time to get your finanical house in shape ..even though house prices will continue lower into the end of 2009

Res

<< <i>Longacre's millions are in Bank of America. I would never put my money in a company called "Wamu", which sounds like an extinct animal from the prehistoric ages. >>



Bofa is much better

ebaytrader

The plug was pulled on WaMu because of a run on the bank. They had $16 billion withdrawn is the last 9 days.
Had it not been for that, they prolly coulda made it thru to the bailout, er, economic recovery package passage.

streeter

IMO,

The genius that abbreviated WASHINGTON MUTUAL into WAMOO should be forever banned from all business activity with the exception of being a Barnum & Bailey ring man.

300 BILLION !!!! and you refer to yourself as ...........WAMOO?

TorinoCobra71

<< <i>Since they are my bank, I hope my uncleared checks for Long beach purchases are still good. I would assume so. This is getting a little scary. >>



Wachovia is reportedly in talks with CitiGroup.........

TC71

coinsarefun

<< <i>Wachovia is reportedly in talks with CitiGroup.........

TC71 >>









Maybe that's why (Wachovia) called me last night and asked if I can make an early mortgage payment.
They even said because I was willing, they gave me a slight discount....go figure




Stefanie

tmcsr69

<< <i>IMO,

The genius that abbreviated WASHINGTON MUTUAL into WAMOO should be forever banned from all business activity with the exception of being a Barnum & Bailey ring man.

300 BILLION !!!! and you refer to yourself as ...........WAMOO? >>



I would recommend their ad agency also be banned-worst commercials on TV.