Archive for September, 2008
Largest U.S. savings bank is broke
It is the biggest bank collapse in U.S. history: Washington Mutual Savings Bank is the credit crisis has been. U.S. authorities closed the bank, JP Morgan Chase to prevent a takeover worse.
The rumors about the problems of the savings bank had been undercurrents days, on Thursday evening (local time) was the then bankrupt certainty: Washington Mutual had to adjust their business. The rival JPMorgan Chase takes 1.9 billion U.S. dollars for large parts of the institute, as the U.S. Deposit Protection Fund (FDIC) announced. The customer will operate on Friday but as usual go on. Like many U.S. banks are Washington Mutual losses from the mortgage business to become fatal.
The Notrettung were that the regulator OTS deposits outflows amounting to 16.7 billion U.S. dollars since 15 Preceded by September. Washington Mutual did not have sufficient liquidity available to meet their obligations, the Savings Bank was thus in an unsafe and unsound condition regarding their business transactions found, said the OTS. The Seattle-based institution has the regulatory authorities, has assets of around 307 billion U.S. dollars and deposits amounting to 188 billion U.S. dollars. FDIC-chief Sheila Bair said the Deposit Protection Fund had a quick buyer for Washington Mutual need to find through media reports to reassure frightened customers.
JPMorgan, the bargain hunters
JPMorgan CEO Jamie Dimon met with the acquisition langgehegte the goal of his bank in the western U.S. to a strong force in the broad retail business to make. Four months ago had already JPMorgan also by the financial crisis brought the case to U.S. investment bank Bear Stearns at a bargain price swallowed.
Washington Mutual, with headquarters in Seattle had started as a simple savings bank, with the real estate boom of recent years but their activities especially in the mortgage market. In the wake of the crisis to bad property loans lost the share of the group since the beginning of the year about 80 percent of their value. The struggling bank had reportedly also in investment funds such as Blackstone and Carlyle because of a possible takeover vorgefühlt.
Mixed reactions on Wall Street
The savings bank in mid-employed more than 43 000 employees in more than 2200 branches spread across 15 U.S. states. Last emphasized WaMu thousands of posts and cut the business of house loans radical. Because of their problems was the savings already under tighter government supervision and had exchanged their bosses. Only last week she presented herself for sale. Several banks waved but reportedly from the media.
Alone since the beginning of last week fell to the credit crisis, a series of big U.S. financial houses for victims. The investment bank Lehman Brothers reported part of insolvency and is crushed. Merrill Lynch rescues competitor in the arms of Bank of America. The insurance giant AIG had from the state by a mega-credit before the preserved and stands before the group continued selling parts. In the current year was in the U.S. before WaMu also already a dozen small and medium-sized banks have collapsed.
The rescue action for WaMu has been on Wall Street in initial reactions even at night as ambivalent. The purchase was a sign of the strength of JP Morgan Chase and hence positive for the financial markets. At the same time show the recent Notübernahme but also that the credit crisis is far from ausgestanden was so expert.
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