Originally Posted by PeeWeeC5
I would totally agree with that statement but do you think they are GOING to fail? Also, if they fail what implications do you for see with the rest of the banking industry?
Don't know if they do or not. I did read on Bloomberg this morning whereas they shipped some mortgages to the brother and sister (Fannie and Freddie) and supposedly they are at 50 B in liquidity.
WAMU is an interesting one in that I hope it doesn't fail as it has been my bank for many years. Although I slowly switched many of my accounts around to get under the insured threshold. No reason to take the risk.
I say interesting because at the moment it is below $3 a share and 25% of the shares are short at the moment... like 275 million shares. If WAMU does recover the short covering rally will propel this bad boy to $30 in no time.
But, I also think WAMU is one or two bad rumors away from a run on their bank. If that happens they have no other option than to shutter up.
Being the largest savings and loan outfit I'd say the implications are tremendous in terms of confidence in the banking era.
I hope they don't as it's the best bank I've ever had in terms of customer service and its always a pain the ass to setup new accounts. But at the moment only my checking is there.