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There are rumors that WAMU is being purchased, and not by an American Bank. BNP Paribas is an interested suitor and an announcement may be made next week.
Chase covets their western network but with Wamu's terrible mortgage book, Chase would suffer a write-down that would probably negate the purchase. I don't see Chase buying it.
BNP may be willing to pay up to get in the US market even with potential write downs.
NEW YORK (Reuters) - U.S. regulators are trying to quickly broker a deal for Washington Mutual Inc (WM.N: Quote, Profile, Research, Stock Buzz), a large U.S. savings and loan crippled by mortgage losses, the New York Times reported on Thursday.
Separately, the Wall Street Journal reported that Washington Mutual had approached private equity firms about a takeover.
Carlyle Group CYL.UL and Blackstone Group LP (BX.N: Quote, Profile, Research, Stock Buzz) are among firms that are considering a deal, the Journal said, citing unnamed sources. It reported that these firms would team up with Texas billionaire and bank investor Gerald J. Ford for a possible transaction.
Both newspapers said federal regulators were actively involved in deciding the fate of the thrift, including soliciting interest in a potential government-assisted transaction.
Sources previously told Reuters that regulators are eager for the company to forge a deal, but no deadline or requirement has been placed on the bank to accept a takeover offer or split itself among several suitors.
The Journal said it was not clear if discussions with private equity firms would result in a deal, and WaMu is moving ahead with other efforts that include a sale to another financial institution.
WaMu came under further pressure on Wednesday when Standard & Poor's slashed its credit rating deep into "junk" territory.
The thrift replaced its chief executive this month after suffering losses totaling $6.3 billion over the previous three quarters. It has projected $19 billion in mortgage-related losses through 2011.
Washington Mutual ended August with $143 billion in retail deposits, roughly triple the size of the entire Federal Deposit Insurance Corp fund that backs customer deposits.
WaMu declined to comment on Journal report, the newspaper said.
Spokespeople for Banco Santander and Citigroup declined to comment when contacted by Reuters.
WaMu, Carlyle Group, Blackstone Group, Toronto-Dominion Bank, J.P. Morgan, Wells Fargo and Gerald Ford could not immediately be reached for comment.
As of right now they can't find a buyer yet. Down 25% today. Lost all of its short covering gains from a few days ago. Low-priced stocks always look attractive to novices, but they are low because people are dumping them. Now where is that I-can-make-money-from-GM genius?
I just read little more into this a few minutes ago. Now I think the current price is low enough to be attractive to potential buyers and the bailout won't hurt this company, if not help them. So they should be able find a buyer and when they do the price should move up.
Wamu to be purchased by JPMorgan Chase. People, your money is safe, as it has been, don't panic. JPMorgan Chase is one of the few giants that have survived this past week. A personal note, I have a 401k with JP and am still doing well
Keep in mind though, talks of this merger stem all the way back from January
They should just close it down. This is the problem. Chase will acquire it and then they will be on the brink of collapse when the Alt-A crisis hits and then we will have yet another bailout for Chase!
They should just close it down. This is the problem. Chase will acquire it and then they will be on the brink of collapse when the Alt-A crisis hits and then we will have yet another bailout for Chase!
The article states this was brokered through federal regulators, so I doubt it. Plus JP moved into commercial banking as well this past week.
I don't know if you're being facetious, but I would think that JPMorgan did some analysis of this problem before acquiring WAMU.
Quote:
Originally Posted by k374
They should just close it down. This is the problem. Chase will acquire it and then they will be on the brink of collapse when the Alt-A crisis hits and then we will have yet another bailout for Chase!
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. JPMorgan Chase is one of the few giants that have survived this past week. A personal note, I have a 401k with JP and am still doing well
