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laserjobs: The way things are going the FDIC will probably end up with WaMu. So as long as you are under the FDIC limits you will probably be with the safest bank around soon: WaMu Federal.

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  1. cjones27 says:

    Good, responsible post. This current situation is precisely the reason the FDIC was created, to prevent runs on banks. Might not be a bad idea to have some cash on hand during the transfer, but your money will be safe.

    Coming from a current WaMu customer who has no intention of jumping ship.

  2. zigziggityzoo says:

    It’s not just WaMu federal. Soon we’re going to be USSA. Yeesh. (cue the Beatles – Back in the USSA!)

  3. HRHKingFridayXX says:

    So true. If this supposed run does happen, watch for other banks to get shaky as well. You might as well just stay put and end up with a Fed bank. Does anyone know if the post takeover banks (ie IndyMac) end up with better credit union style rates?

    • panzerschreck1 says:

      @HRHKingFridayXX:

      i dont see how this would lead to parallels with credit union services; credit unions are not-for-profit, and chapter 11 means that the creditors who cant have their debt paid get a major stake in the company after its reorganization. when it comes back from bankruptcy court, its still going to be a for profit, private financial institution — albeit, with a slightly different way of doing things.

      but i dont know anything about bakruptcy law, so a) i could be wrong, and b) i dont have any clue how the business runs while registered as ‘bankrupt’.

    • mac-phisto says:

      @HRHKingFridayXX: i highly doubt it. the fdic’s job is to turn the bank around. examiners use a few different metrics to determine the soundness of a bank, but one of the key ones is ROA (return on assets which equals net income/total assets).

      dividends are a major drain on that figure, so expect rates to fall in line with other institutions.

    • mac-phisto says:

      @HRHKingFridayXX: to give you an idea, here’s indymac federal’s branch cd rates – not too shabby, but nothing to jump up in the air & shout wahoo! over:
      term apr apy
      3 Month 2.62 2.65
      4 Month 2.66 2.70
      5 Month 2.96 3.00
      6 Month 3.54 3.60
      7 Month 3.92 4.00
      9 Month 3.00 3.05
      10 Month 3.00 3.05
      11 Month 3.15 3.20
      1 Year 3.87 3.95
      18 Month 3.10 3.15
      2 Year 3.10 3.15
      3 Year 3.20 3.25
      4 Year 3.44 3.50
      5 Year 3.44 3.50

  4. Gort23 says:

    Yeah, it’ll be really safe. When you withdraw funds, they’ll come straight from the US Mint!

  5. NTC-Brendan says:

    No ship jumping or bank runons here. We took the precaution of pulling our 4-6 month emergency fund out just to have cash on hand in case of a delay in FDIC funding but that is a better safe than sorry measure to protect our family’s interest over the short term, which only represents a percentage of our holdings at Wamu.

    We will get through this. Panic Kills. The SNL crisis in the 80s was much worse than what is happening with Wamu IMO.

  6. Coelacanth says:

    Not intending to switch banks from my WaMu checking account. I just worry about liquidity if it gets taken over. Afterall, bills must be paid.

    At least my emergency fund is somewhere else.

  7. Am I the only one that wants WAMU to die? I call a bank run! GO GO GO!

  8. oneliketadow says:

    Just remember, 4 days to get water to the Superdome. The F in FEMA is the same as the F in FDIC. The way I figure it, the FDIC is probably run by a Bob Jones U graduate who believes in faith-based accounting.

    • silver-bolt says:

      @oneliketadow: Is that where you pray to god that your checkbook balances out at the end of the day?

    • @oneliketadow:

      Wanna bash FEMA, make sure you bash the BITCH that refused federal troops. Yes, I am referring to Blanco, who single handledly screwed over NOLA because she did not want the Federal Troops offered to her by FEMA.

      I am pretty sure the Regiment of the US Army 10th Infanty Division sitting in Ft. Polk Louisiana could have been in NOLA in less than 24 hours had they been given to order, but alas they were not given such orders. Boots on the ground was what was need in NOLA and there were none.

      Don’t worry, we got Blanco out of office because she was too scared to run for re-election. Jindal may not be much better, but he ain’t afraid to ask for some farking help when it is needed and isn’t so stupid to refuse help when it is offered.

  9. lihtox says:

    Is there a class of banks that are “federal banks”? How are they different from normal banks? I haven’t been able to find anything about this.

    • laserjobs says:

      @lihtox: Yeah a consumer level federal bank is one the FDIC can’t offload like IndyMac so they have to continue to run it until they find a buyer.

  10. DerangedRoleModel says:

    Maybe they can move their headquarters from Washington to Washington.

  11. UnStatusTheQuo says:

    I can’t believe the WaMu customers who are putting their faith in the government to manage their money. ARE YOU KIDDING? If things keep going at their current rate, the FDIC may be in trouble: [news.yahoo.com]

    Since the FDIC is NOT a bottomless pit, and so called “printing money” via a U.S. Treasury intervention will only lead to even more inflation, I think we all better hope that WaMu finds a private suitor… if that’s even possible.

    If I was a customer of a bank that was in the news for having substantial subprime/bad loans on the books, and there was even talk about the FDIC getting involved, I would be gone. The only entity I trust less than banks are the Feds, and the marriage of the two is downright scary.

    My advice? Find a LOCAL bank that is mostly DEPOSITORY in nature, or one that has minimal bad assets on the books.

  12. Wormfather is Wormfather says:

    Oh BTW, did anyone hear about the government securities yesterday. Background: These securities are bid on in the open market and these ones had a turn around of 35 days.

    People were bidding ’0.00′, zero percent. They were basicly saying if you can give me back exactly what I give you in a month, we have a deal!

    Capitalism is dying, I dont even think consumerist can fix it at this point. Said it once and I’ll say it again, shit’s really bad when republicans start talking about moving to Canada.