WaMu Downgraded To Even Junkier Junk, Still Looking For A Life Preserver

The Wall Street Journal is reporting that WaMu is courting several private equity firms about a potential takeover after their debt was downgraded even further into junk status by Standard & Poor’s. Once merely “junk,” WaMu is apparently, “so junky we are not even kidding around about it anymore.”

The New York Times, on the other hand, says that Citigroup, JPMorgan Chase, HSBC, Banco Santander (of Spain), and Wells Fargo are also interested in picking WaMu’s bones clean.

It is generally accepted that the prognosis is not good.

WaMu steps up talks to find savior [CNNMoney] (Photo: James Callan )

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  1. newdeepdan says:

    Great… just when I thought things were going to be okay for my WaMu.

  2. Next up on Martha Stewart Living; how to turn those worthless WaMu debt certificates into cute and decorative holiday fire-starters.

  3. nataku8_e30 says:

    Finally, I won’t have to see any more of those incredibly annoying commercials any more.

    • este says:

      @nataku83:

      I was happy about that when the Enzyte guy went to jail and the company was fined 500 million…. somehow the commercials still kept coming (not sure now, I think they may finally be done)

      I think advertising funds exist in a parallel universe.

  4. MayorBee says:

    I’m gonna call them up and ask if I don’t have to pay off my credit card account now. What’s a measly $3,000 to them now?

  5. Ben Popken says:

    I transferred all my $ and direct deposit to USAA. Even if I’m not worried about losing my money, I don’t feel like supporting sub-prime orgy bastards anymore.

  6. MPHinPgh says:

    I’m glad my mortage is no longer with them…

    Of course, now it’s with Citi, so that may not be all that much better. Citi doesn’t look like it’s going to tank anytime in the immediate future though. I really don’t want to have to go through the potential headaches of a financial-failure-induced transfer of the mortgage.

    • angelman says:

      @MPHinPgh:

      Is it really a big deal having a mortgage with a bank that either goes belly up or gets bought up? Is there more to it than just signing a few papers and changing who I send my cheques too? I assume they can’t change the rate or terms of the mortgage…I have my mortgage with wamu of course and got a very sweet rate indeed

  7. Robobagins says:

    Please let Wells Fargo keep their hands off them. They have the slimiest people ever working their branches.

  8. blackmage439 says:

    WOO-HOO! [We just got a bailout!]

  9. AvisAdmetus says:

    “…their debt was downgraded even further into junk status by Standard & Poor’s”

    Why are we still listening to Standard & Poor’s opinion of financial institutions? It is pretty clear S&P has no idea the actual risk or quality of these things…

  10. Mr. Guy says:

    is what all the WaMu bankers are going to look like in a few days.

  11. Mfalconieri says:

    I knew I never should of used them! I hope I can get my $5 out.

  12. Mr. Guy says:

    hey, where’s my HTML?

    well, for the record, i was referencing this
    [commercial-archive.com]

  13. Marshfield says:

    I know quite a few people in the IT department at WaMu, and I’m sure things are pretty grim over there. Many IT jobs would not survive a takeover.

    • blackmage439 says:

      @Marshfield: My dad works in the Ohare offices of Bank of America (then Lasalle) as a mainframe/database manager. Before the takeover, the geniuses were beginning to move their operations to Brazil. Well, due to the shitty work they performed during their night operations, the work was moved back up north. As far as I know, he’s still employed, but BoA wants to shut that building down eventually. So, we’ll see.

      • Marshfield says:

        @blackmage439: Over the period from 2000 to 2004, WaMu was growing my leaps and bounds with acquisitions, and they were acquiring the IT groups that came with the banks. Some people stayed on, some were let go. So there’s the big UNKNOWN hanging out there…. stressful…. scary….

  14. nybiker says:

    I guess this means we’ll be getting a new john’s name for the theater at Madison Square Garden here in NYC.

  15. pearlie69 says:

    i thought things were looking up…but that was based purely on the interest rate increase to 4.00% on the savings accounts. boo

    • kamel5547 says:

      @pearlie69: Noticed that too, kinda happy about it ,even though that generlaly means theya re more desperate to keep deposits. *shrug* I’ll wait for the FDIC takeover or buyout… not really any better options I want to deal with that are convenient to both work and home.

  16. veronykah says:

    What? They don’t get a piece of the bailout too?

  17. egoldin says:

    Knew I should have sold that stock when I bounced back up to $4.20. Sigh.

    $1.80 it is.

  18. azntg says:

    I was rather surprised that there was silence; a lack of news for Washington Mutual after WEEKS of impending doom stories about it.

    Hopefully, it’ll stay open long enough for a couple of ACH debits to take place. That’ll lower my balance to a rather comfortable amount. If another bank takes it over and continues to honor the same terms, conditions, perks for a long time, then I’ll put on a bigger balance for them. Otherwise, TD Commerce can finally get my coveted #1 spot.

    I’ve learned something from this affair: No News almost always means Bad News. Sad it took me so long to figure that one out.

  19. gzusrox says:

    my mom pulled her 200k out…

  20. s017jrs says:

    ugh. please don’t buy it HSBC.

  21. mppaul2 says:

    what happens to your wamu stock when chase takes over? Just wanyto know what my 4 shares will be worth…

    • CyGuy says:

      @mppaul2: Per the story of JP Morgan’s purchase of “the assets” of WaMu [seattletimes.nwsource.com] , I gotta say it does NOT sound good for shareholders. Usually phrasing like that means the company was liquidated, which would correspond with the statement earlier in that story that says “federal regulators seized the bank”

  22. CyGuy says:

    JP Morgan bought them:
    [seattletimes.nwsource.com]

  23. AlexPDL says:

    UgH! Sp I am back on JP Morgan Chase??!!! Blurg! I try to get out but they keep dragging me in.

  24. AmericaTheBrave says:

    Wamu was just officially seized by the feds.

    [www.nytimes.com]

  25. johnnya2 says:

    So after all is said and done Chase, BOA and Citi will own everything and then if there is another crisis, the government will bail these idiots out and have another economic meltdown. Are they that ignorant to not realize that having these large companies in total control mean they become monopolistic in practice. Cant wait to see what its goingto cost to pull money out of an ATM . Probably 10 per cent fees to withdraw your own money.

    • veronykah says:

      @johnnya2: I think I am just going to use my WaMu now Chase account to deposit money and move it to an ING orange checking. The ATMs are free and I really don’t EVER use an ATM anyway…
      ING isn’t going to collapse anytime are they¿

  26. cnymike says:

    Hmmm, three days ago I applied for and was approved for a WaMu credit card. I got the card only so I could transfer a high balance from another card to the WaMu card and have no interest until January 1, 2010.

    Now that WaMu has gone belly-up, does this mean the credit card will now be provided by Chase bank… and if so, and if I have other credit cards with Chase, will this affect my credit limits on those other Chase cards??? The WaMu card had given me a $30,000 credit limit, the highest of any of my credit cards. So many questions.

  27. ophmarketing says:

    I’m OK with this, if for no other reason than now I won’t have to see those STUPID F*CKING “Whoo hoo” ads anymore.

    And just for the record, it’s WOO hoo, not WHOO hoo. No wonder they crashed and burned.