Atlanta Real Estate | Atlanta Housing News for Real Estate

Jim - I just saw the news, the question is; when will it stop? or who is next?

Jim, It's not so breaking, Mike Mueller beat you to it.  :( 

kk

Jennifer Fivelsdal, Rhinebeck NY (Keller Williams Realty)  Well they took large risk on sub-prime loans, and the wrong product pulled them down.

Kristal Kraft ~ Denver Real Estate (The Berkshire Group Realtors)  LOL!  Kristal, I was too busy reading the breaking stories to see if I was winning a blogging race.  :)

Unreal.  That's just downright scary.

So - what about people's money?

when will it stop?  I am thinking flipping burgers at mackie doos has a good future - but they can't get a loan for deep fryers -

Can I get my $100 out? LOL. Actually it's not funny, it's pretty sad...that they're in trouble....and that I only have 100 bucks in the bank!

Long Island Real Estate Market (Long Island Real Estate Market: Coldwell Banker Matherson)  I do not know at this point. It apears that J.P. Morgan Chase may haver purchased them  a for litterally nothing.  One of the last articles I read said - the purchase option allowed the FDIC to avoid depleting FDIC funds.  Hopefully depositors will lose nothing.  I closed my business accounts there last month.  I am surprised that it lasted this long.

Central Oregon Real Estate | Thesa Chambers, Broker (RE/MAX Sunset Realty La Pine)  It is really very sobering.

Jim Albano (Prudential Damiano Realty)  I feel for anyone with money in these banks.  In the 1980's we lived in Maryland and the FSLIC failed.  State Savings and Loans Failed, and when I went to the bank to get a check to pay the mortgage, it was closed.  There was a limit on how much money I could withdraw per month.  It was painful not to be able to access your money, but at least I could access a little at a time.

Jim,

It's pretty much a breaking story whoever blogged first on AR. Here is one of the biggies on the FDIC watch list, brought about by a deposit run.

WaMu was a big player in the subprime market, though not a subprime lender that my company used much. I remember right before the end of the subprime era they made a very big push to capture even larger market share.

The S&L was 119 years old, founded on the principal "to offer its stockholders a safe and profitable vehicle for investing and lending."

Thanks for the update, although it was apparently just a matter of time. And this time on a Thursday, just to break up the routine.

Richard

Richard Smith Mortgages Home Loans FHA TN GA AL (American Acceptance Mortgage, Inc)   They were my business bank for years in Atlanta.  Last year they unexpectedly closed many of their locations wihtout any warning.  I waited until last month to pull my business accounts out.  It is sad, scary and again...sobering to see this happen.

Jim,

When is this mayhem going to end? Every week we have one of these flagship banks bite the dust. Fortunately Morgan Chase bought their assets so the damage should be limited.

Another dead beat bank down, more to go.

This deal supposedly saves the FDIC from paying out funds. Hopefully that is true.  Although paying only $1.9billion and getting to write down $31billion in bad is probably a huge tax benefit for JP Morgan Chase. Time will tell...

Esko Kiuru - Las Vegas NV Mortgage Consultant (Sinifox Financial)  The scary thing is that this is the nations largest bank!

New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor (RE/MAX Properties Unlimited, Real Estate)   In the past few years we received several calls from would be home sellers that had taken advantage of Washington Mutual's no questions asked business loans.  If I can remember it rigth - they could borrow up to 60K to start up a business, and had no major strings attached.  Not very smart if you ask me.  However many of these persons opened small businesses and failed.  The loan I am sure was signed for personally and tied to the borrowers assets (homes).

Todd Bookspan, MBA Certified Mortgage Planner (Optus Group at AMA, Inc.)  An interesting question arises from more recently breaking news stories.  JP Morgan won WAMU on a bid process.  The 1.9 billion dollar bid - may mean the other bidders do not have major assets to out bid this.  When you realize the amount that JP Morgan paid and for what they received it was someplace in the neighborhood of pennies on the dollar. WAMU had 3,100 branches in over 17 states.

Who's next. Scary isn't it.

Terri Kincaid (ERA Brokers Consolidated  It is very scary.

And they didn't wait until the weekend to do this takeover!

You can almost look at the banking sector stocks stock charts and just extrapolate their share prices downward trend ahead a couple months and project when the stock goes to $0.00 or inother words when they are going to be  taken over by the governement.

BTW- FDIC "reserve" monies were all used by the government and thus when they draw on their "reserves" to pay for bailouts, the governement has to borrow the money and then supply it to FDIC! Just ad this to the national deficit.

Wow, I didn't think it was all WAMU banks.  Hmm...I wonder what will happen with all the short sales.

This has gotten VERY scary and who knows how it will turn out.  I guess we'll hear the whole story in the a.m.--wonder who'll follow WAMU?

Phil  There was a story last week on how predictable that the FDIC was only shuttering banks on the weekends.  I guess they had to switch up to confuse the public!    Senator Schumer should have been censured for his initial comments that started he entire bank run scenario with IndyMac.  His comments caused an immediate run on the bank, and erased 15% of the FDIC bank failures funds in one day.

Brian Brumpton, Boise Idaho Real Estate Professional. (Keller Williams Realty of Boise) I don't know.  New management tomorrow.  Stay tuned!

Debe Maxwell (Helen Adams Realty)  I don't know.  There is alot of information in the news tonight.  I would hate to wake up to the headlines tomorrow morning and read the headlines.  This is historic news, and an epic event all in one week.

One more down -- maybe new ownership will be more conservative with the resources they are responsible for

And the beat goes on.

WAMU tired to sell itself last week and no one wanted to buy.  Looks like Chase is in a race with BofA for who can buy more of these "assets".

Sometimes I think this is better to let the market work out these issues vs the govt using 700billion of taxpayers dollars...

Your friend in Charlottesville!

Jim: I think this is good news. If Wa. Mu. had failed without a takeover that would have been worse. All this bailout stuff is helping to relieve my anxiety (and should everyone else's) a bit. If we have a run on banks and panic in the streets this would be bad. So far the powers that be have recognized how dire the situation is and attempted to head this off. Time will tell if the measures are effective. In the mean time, we all have work to do! Have a great day.

Paul

Scott Hoen, ePro, MBA (eMarketing Services)  Lets hope so. 

Lenn Harley, Homefinders.com, MD & VA Real Estate  It gets scary when this happens.  The writing was on the walls.  I closed our account there a little over a month ago.

Charles McDonald / Your Trusted Broker for Charlottesville Real Estate (RE/MAX Assured Properties) I agree, there was some government involvement in the sale even though it does not appear in the press.  I agree with you, this was the better way.

Paul McFadden (Exact Financial Group)  I agree.  This was the best possible scenario for WAMU.

Another one bites the dust.

Which big bank will fall next? Should start a poll.

 And yes, more big ones will fail. It's inevitable.

Well our record stood for some time as the biggest bank failure for First Republic Bank. Indy and WaMu are now historical statistics. Sad...........

Rick Fitzgerald -The Multi Family Expert (AAM Capital) What is scary is the size of the banks.

Jim,

Our experience dealing with WaMu as we worked to coordinate transactions (Contract-to-Close services) was that they were very, very difficult to work with, had unusual but rigid processes that just caused more work for everyone (including them) and were indifferent to the problems they caused.

These are the types of businesses that do not deserve to survive.  The unfortunate part is the timing and how that impacts all of us and the market perception.

But... purging of the weak is a normal part of the economic cycle and upon recover, we will all be glad that many bad and difficult companies are not part of our daily business lives.

G

Glenn Phillips (Management, Coach, Speaker) (RealSource) I totally agreed.  The prespective on this failure of the largest bank in America would have been different if they enforeced FDIC rules.  The reason they didn't is that the FDIC has limited funds, and there are many other banks to think of.  The Government could not let WAMU fail and insure the accounts.  It could not be done.  That is the scarier portion of the story.

WaMu, as others, overvalued properties just to write loans such as Home Equity Lines of Credit.  Now these homeowners who were told their property was worth x dollars are troubled with properties they cannot sell due to this overvaluing.  What happens to these people and their loans?

There is no doubt banks were greedy and wrote loans.

There are honest people out there who can pay their loans back, but who were duped into a false value of their property.  Now - they are screwed!

Jennifer It is extremely sad.  When I was growing up credit was not a good thing.  Cash is what people used, and they were conservative, frugal, and saved.  They purchased what they could afford.  When they purchased something it was after a long deliberation. Purchases were never impulsive.  Persons would not think of going out and buying a BMW, take a cruise, of buy a home they could not afford to repay.  They also factored in income.  How would a sickness, or a layoff come into play with repaying the debt?  Times are different today, and many that did not treat credit as if it was cash.  They will pay a massive price for that mistake.

Credit represents cash... your cash and mine.  If we treat them both the same - things will be OK.

I WILL DELETE POSTS THAT NAME BANKS THEY THINK WILL FAIL!

I will not start a run on any bank.  I've just deleted 2 replies here. Persons must think before posting, you could be also be sued for liable, and in many states to do so about banks is against the law.

"I WILL DELETE POSTS THAT NAME BANKS THEY THINK WILL FAIL!

I will not start a run on any bank.  I've just deleted 2 replies here. Persons must think before posting, you could be also be sued for liable, and in many states to do so about banks is against the law."

Get real!

Jim's right in being sensitive to naming banks.  Although these banks are named by a number of "wanna be the first" writers, it's no fun being a part of one failing.  Whether you work there or bank there, a bank in your community failing is a huge community disaster. Been there and done that. Amazing how little it takes to start a rumor. And Jim's blog can be picked up easily on the internet.

Rick Fitzgerald -The Multi Family Expert (AAM Capital) Thanks Rick.  Most persons to not know it but it is also illegal in many states to name a bank that may fail. We live in very trying times.  So many persons I know have been calling, and they are all very afraid. May God protect all and give us comfort.

Jim,

It is not illegal to name a bank that may fail. There is an entire watch list of banks that may fail. And it is not rumor when these banks show toxic debt on their balance sheets. It is all public information.