WaBoo. Largest U.S. Bank Goes Under
If you haven't heard yet, Washington Mutual is the latest on the list of failed U.S. financial institutions. The FDIC snatched up the bank's $1.9B in assets and pawned them off to JP Morgan & Chase in a move that has left shareholders holding the bag and customers scared Sh!%less, despite being promised of a seamless transaction by tomorrow morning.
This makes Chase the 2nd biggest U.S. bank next to BofA now and likely has ex-Wamu execs kicking themselves for boasting such a robust sub-prime mortgage loaning biz in the past. This marks yet another bailout by the government in what's shaping up to be a gruesome September for the U.S. economy. Given the market's volatile behavior in recent sessions, I'll be anxious to see how things open Friday morning. I'm guessing sentiment can't be too high.
While the big boys flounder, check out small banks, more conservatively quarterbacked like Meridian Interstate Bancorp (EBSB). This one may not prosper greatly over the short-term thanks to the the likely oncoming bank stock scare sell off, but over time, it's one to watch in my book. 
This makes Chase the 2nd biggest U.S. bank next to BofA now and likely has ex-Wamu execs kicking themselves for boasting such a robust sub-prime mortgage loaning biz in the past. This marks yet another bailout by the government in what's shaping up to be a gruesome September for the U.S. economy. Given the market's volatile behavior in recent sessions, I'll be anxious to see how things open Friday morning. I'm guessing sentiment can't be too high.
While the big boys flounder, check out small banks, more conservatively quarterbacked like Meridian Interstate Bancorp (EBSB). This one may not prosper greatly over the short-term thanks to the the likely oncoming bank stock scare sell off, but over time, it's one to watch in my book.
Labels: JP Morgan Chase, Wamu, Washington Mutual
posted by "Staff" at
10:29 PM
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