Jen
KurJen - Kurgan Mod
Glad I bank at Bank of America. I originally banked with SeaFirst that was later bought out by BoA. That transition was smooth and painless....hopefully all the others will be the same.
Biggest Bank Failure in American History!
- Thread starter lcummins
- Start date
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I'm with Wachovia, but I'm not going to panic yet. Hopefully they'll just sell out and nothing will change but the name on the account.
Joyrock001
Freaked Out
Haha wow, I used to work for wamu. I still get updates within the company in my email. There are a lot of tricky rules when it comes to FI and accounts for people. Always have 2-3 banks with accounts, there are very many reasons why. If you have a wamu account right now and are seriously worried. Just open another account, be ready. I knew over 30 of the people laid off in the home loans, some were 13 year long employees.
devilof76
Super Freak
That was excellent.
I'm not a supporter of either candidate, and in a way it's unfortunate that it was an endorsement for McCain because the truth in the video is going to be written off as biased. But, this is exactly what everyone is taking great pains to not say. I'd be much more willing to support McCain if he would be a lot more aggressive about it. He could start by calling for the heads of Fannie Mae and Freddie Mac the way Enron's heads were being called for 7 years ago. Enron's transgressions look puny by comparison.
Affordable housing? At whose expense??? Well who's taking the lionshare of the blame? And who's shouldering the ultimate costs? Everyone but the legislators and lobbyists who demanded that banks be forced to offer high-risk loans.
Here's a deeper explanation which amounts to the same:
https://johnrlott.tripod.com/Liebowitz_Housing.pdf
Mesa
Super Freak
No one that needs to be convinced will look at that link, and if they do, like you said it will immediately be determined to be biased towards McCain.
I don't know how facts can be biased.
I just logged onto my WAMU account; and thank goodness everything is still intact. I did see an introduction of "Welcome to Chase JPMorgan" though.
Cash is still KING these days. If you're living check by check, then you might want to be wise and smart by cutting down your spending because it's going to get worse ahead of us... They're going to try to make everything all pretty on the outside before the election, but internally, it's ugly.
Cash is still KING these days. If you're living check by check, then you might want to be wise and smart by cutting down your spending because it's going to get worse ahead of us... They're going to try to make everything all pretty on the outside before the election, but internally, it's ugly.
Darklord Dave
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Those "facts" are spun one way, just as the article I posted spun the "facts" another way. People will believe what they are predisposed to believe.
Fannie and Freddie were certainly a major contributor to the subprime mortgage problem, just as Reaganomics was.
devilof76
Super Freak
It wasn't so much Fannie and Freddie. It was the fact that underwriting standards were radically lowered to accomodate the Community Reinvestment Act. Fannie and Freddie (and anyone else offering the easy mortgages) were simply the frontline beneficiaries. Mortagages were given to people who couldn't afford them. The mortgages were defaulted on, so the securities backed by the mortgages became worthless.
Last I knew, most finance houses like to make money. They generally tend to not be able to do that by throwing money away. Initially, they were demonized for being too strict in their lending policies. Then they capitulated to that pressure, motivated by what appeared for all intents and purposes to be a sound method of offering high-risk mortgages (i.e., sub-prime lending). Then it blows up in their faces after the true nature of the methods is hidden from them by the mortgage companies (Fannie and Freddie, cooking books) at the heart of it all.
So who's the real villain? Wall St., of course. They were trying to make money. Everyone else was altruistically trying to get people into homes using Wall St. as leverage. Wall St. pays for it, as usual. Wall St. takes the fall. As usual. Everyone else is a victim. Or a hero, riding in on their trusty white government bailout steeds.
Last I knew, most finance houses like to make money. They generally tend to not be able to do that by throwing money away. Initially, they were demonized for being too strict in their lending policies. Then they capitulated to that pressure, motivated by what appeared for all intents and purposes to be a sound method of offering high-risk mortgages (i.e., sub-prime lending). Then it blows up in their faces after the true nature of the methods is hidden from them by the mortgage companies (Fannie and Freddie, cooking books) at the heart of it all.
So who's the real villain? Wall St., of course. They were trying to make money. Everyone else was altruistically trying to get people into homes using Wall St. as leverage. Wall St. pays for it, as usual. Wall St. takes the fall. As usual. Everyone else is a victim. Or a hero, riding in on their trusty white government bailout steeds.
...which was passed in 1977.
Blaming the CRA is partisan canard. We're not looking at a politically created problem. The CRA had nothing to do with the housing bubble. Banks didn't start aggressively pushing ARMs until they realized they could sell the mortgages on to foreign banks and play pyramid scheme shell games - hence the preponderance of HELOCs and junk mortgages by the middle and upper classes. Everyone played this game.
Actually we're paying for it, as usual. Isn't that the conservative way? Privatize the profits and socialize the losses...
lcummins
Universal MODster
This was a thread about a bank failure... it wasn't supposed to be political and it was other members who turned it into that...
Looks like Citigroup is taking over Wachovia's banking operations...
https://www.foxbusiness.com/story/markets/industries/finance/citigroup-acquires-wachovia-help-fdic/
https://www.foxbusiness.com/story/markets/industries/finance/citigroup-acquires-wachovia-help-fdic/
The Mike
In the Pixels
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One of my best friends works for Wachovia and she said that when WaMu announced their problems the people fleeing them went to her branch with large sum deposits etc. Should be interesting to see if the same happens here since the tagline they are supposed to repeat is "Its definitely not as bad as WaMu's situation" to their customers.
Chimera 1
Super Freak
At this point every bank is screwed. No ones money is covered by the FDIC anymore until this crisis is over. Any bank can go under tomorrow taking your money with it...maybe not forever but until they get enough in the reserve to give it back to you. I am in no way a bank expert but that is what I get out of all this. LOL soon we will be a nation of bad credit scores. I would be interested to see the bankruptcy courts in a few months if this isn't resolved.
The entire banking system isn't just going to fail overnight and if anyone is trying to convince you of that they clearly don't know what they're talking about. At this point an FDIC insured bank is a helluva lot more safe than having your money in the stock market, mutual funds, real estate, etc.
Bannister
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devilof76
Super Freak
CRA had no teeth until Clinton showed up for work. No one could have played the game if the underwriting standards had been left alone.
barbelith said:
Yeah, that explains any and all liberals voting for the bailout.
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Mesa
Super Freak
nevermind...
Chimera 1
Super Freak
Not the entire system but individual banks can go under at any time. They are trying to raise the FDIC to 250,000 when it was 100,000. But I agree with you the entire system will not fail overnight. The only scary thing is that allot of foreign banks are also trying to secure american banks. I wouldhate for america to eventually be bought out from under us meaning.... a country wants to go to war with another country and since they are backing us financially we have no choice but to go along with it even though it may destroy ties with our allies. This is only my opinion and specualtion.
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