Insiders: Probable 1-Year Timeline For Customers In WaMu To Chase Transfer
What will it be like for Washington Mutual customers as they get assimilated into the Chase fold
One of our commenters, mavrick67, who says they have over 20 years banking experience and have witnessed 8 takeovers throughout the years, provided a timeline as to what you can expect.
As a banker with 20 years experience in the industry and veteran of about 8 takeovers throughout the years I can give you the scenario with estimated timeframes.
DAY 1 THROUGH 3 MONTHS
Nothing changes, you keep writing your same checks. You get the same statement in the same format. You log in to the same website address for internet banking. Maybe you see some new faces in your office from the "Takeover" bank (in this case JP Morgan Chase)3-6 MONTHS
Few changes, mostly minor. You order checks and it has the new banks name on it, maybe new procedures for sending wire transfers or making loan payments. Half of the staff at your local branch has quit or been "re-assigned" elsewhere. They start changing the signage outside the office and get new brochures, but your accounts stay the same.6-12 MONTHS>
You get notice that the format of your checks will change in a few months but you still can use your old checks for now and you might get assigned a new account number or given a new format that adds or subtracts digits. Some freebies you used to get with your account have disappeared (ie. you now get charged for a safe deposit box rather than get it for free). They've changed the hours the office is open. The only person you recognize when you go to the office is old Ethel, the head teller who's been there since 1977.1 YEAR ONWARD
You get notice in the mail that your old account type is being discontinued and you now have the some new "special" type of account. You're not supposed to use your old checks anymore, if you make a mistake and write one anyway they'll probably pay it. Ethel retired and you don't know a soul in your old branch and it looks like any other Chase office.
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So, how long before they get rid of those "teller stations" in the middle of the floor, and switch to the old-fashioned teller windows?
Yeah.. .I dont like chase.. they screwed me once and now I'm on the hunt for another bank that liked me as a customer and not for "How much im wanting to invest in Their bank." Wamu was all about making me feel I was investing in my future but not nickle and diming me for not having 4k in my savings account at all times.
Anyone know a good bank that has free checks. No insane ATM junk charges. And free Money Orders and wire transfers.
I saw this coming and already bailed. See ya WAMU.
What major banks are left now? It seems to be just BoA, Chase and Citi.
And, for all intents and purposes, Chase didn't buy anything; WaMu collapsed. The FDIC moved in to divest its assets and ordered Chase to absorb them into their company.
In this day and age, we don't have banks that collapse anymore. But the real question is how much longer can the FDIC afford to do this?
Chase took over Bank One, I guess it's been a couple years now (ugh, time all blurs together anymore). Honestly, it was pretty seamless in my experience and more or less how it was outlined above. Of course, I just have basic checking (didn't change... still free with Direct Deposit) and savings accounts, with no credit cards, mortgage, or other loans through them and do my banking primarily online. I do so little banking in person, I didn't notice anything different at all in that respect.
Best picture in Consumerist history, by the way.
@sinfuly Delicious: Yes, I'd be interested as well. I went with WaMu to get away from banks like Chase.
BTW, excellent picture.
@mariospants: I can see that, although at the same time they might be worried about new customers. That is to say, new people will be less likely to join their bank since it has the name of a company that failed, even if that's not really who has the brand anymore.
@sinfuly Delicious: National City has fee-free Checking accounts, and I believe they come with free checks for life. I just opened an account recently, so I don't really remember what they have (I haven't moved my funds yet).
I first opened my checking account over a decade ago when my bank was Merchant's Bank. Then they got bought by Old Kent. Then Old Kent got bought by Fifth Third. Its been Fifth Third for a while now, but I'm still using the original checks with Merchant's Bank on them. They work fine because the account number and routing numbers never changed.
Good old Ethel. No matter how hard the times get, she just keeps handing out those Tootsie Rolls.
Godspeed.
As an employee of the above mentioned purchasing bank, I still use my old Bank One checks. Plus since we are merging BEars Sterns right now, it wont be till end of 1st quater next year before anything starts.
People still go into their bank branches? I went into a local branch twice last year... but that was because I was getting a mortgage loan (no, not through WaMu).
I would leave the banking system all together and join a local Credit Union. You become a shareholder in the bank, they're not for profit, you decide who runs it, your accounts are insured just like at a bank and interest rates are much lower. Best of all, your banking will now be local as opposed to the local branch of a global conglomerate that doesn't give a shit about you.
How depressing...
I'm not looking forward to changing my account numbers everywhere. *sighs*
thewriteguy,
No worries about the FDIC affording this. It's not costing them a single penny. There's no deposits to repay. That will come from Chase, if people continue to withdraw. And you're forgetting another major bank, which will be listed as one of the 10 safest in the world in DC on October 13th by the IMF. Wells Fargo. BNP Paribas is also on that list, which wholly owns Bank of the West and First Hawaiian. You probably don't know about Bank of the West or First Hawaiian if you're on the east coast.
I want my free checkings and savings... sigh... BoA is my only hope now.
@theutopian: Dang, you beat me to the required "Credit Unions Rule!" post. I will concur that credit unions are invariably more local. Some credit unions have been merged but they never get stupidly big like WaMu.
Any recommendations for a good bank - free checking, no ATM fees, etc - in Southern California? I don't have a National City here, I don't like HSBC or B of A (been with them before), what other alternatives?
@elisa:
First republic bank. Its on the corner of Ventura & Laurel Canyon. They have great online banking.
@thewriteguy: Chase didn't get ordered to do anything. And Wells Fargo remains, depending on how much you like S&M relationships. Wachovia...
@newdeepdan: BofA? Haha! I hope you have plenty of money to keep on deposit with them. They absolutely love to nickel and dime a person who doesn't keep money onboard. As a matter of fact, they've started charging me just to have an account with them. I'm going to go close it down after work.
Alan Fishman who was hired by Wamu less than 3 weeks ago is getting a 20 million dollar payout. YES, he is getting 20 million dollars for less than 3 weeks of work. Wow. Just wow. I am floored.
And that is the PRIME reason no bail out should occur. If the bank had the available capitol and assets to pay these lunkheads this kind of loot then they can deal with this on their own.
Just what did this tool offer that was worth this kind of payoff? Is there a CEO in the ever loving world worth a cool mil?
Let em all burn in a fire.
do you have a source for that? that is disgusting!
did you all read that WaMu failed specifically because 10% of depositers took out their money (totalling over 1 billion) so they no longer had enough assets to conduct business? bank runs!
@vdragonmpc: true, but this wasn't a bailout. the feds seized WaMu because they didn't have enough money to back up their depositors anymore.
@bluedragonfly:
Thats because the retail operation of Bank One was retained. Chase customers saw a bigger change than Bank One.
Everyone loves the freebies (like the free safe deposit boxes) and bemoans the loss when a new company takes over, but no one seems to realize that stuff like this is part of why companies go under.
@GreatCaesarsGhost: I really hate that style. It makes me feel like I'm at a Verizon store, not a bank.
None of these banks or financial organizations should receive a dime. All these CEOs should have to fund their own mistakes from their golden parachutes.
20 million dollars for 3 weeks of work??? I am so furious... and they want tax payers to bail them out??? They should go in and cease the bank accounts of all these executives (in the US and all of their little overseas accounts) until it is decided who committed fraud and who's dishonest little games helped bring this situation upon America. All their little bonuses and parachutes nicely tucked away in off shore accounts sure could be used help undo what they created.
I heard last night that all the bonuses handed on on Wall Street last year totaled MORE than the entire world gave to Africa to combat famine and disease.
Why are there no news crews parked in front of these executives houses haunting them like the paparazzi haunt celebrities trying to make them answer some questions? I'd like to hear some of these tools explain what made them so valuable and deserving of all they have taken.
GREED. Endless GREED.
The banks themselves are making interest off my money in their bank... plus any overages... I hardly use checkes. Still on my first book. But to have a bank like chase charge me 5$ to get a money order from someone I do business with when I can go to HEB and get or for 1.50$?????
@samurailynn: Came in to say this. Don't most Consumerists just use the ATM? I wouldn't know if my local branch had an "Ethel" anyway.
Ok, so in 6 months I get to move to Citibank. Oh well.
Chase's interest rates on savings and cd's are just pathetic. Goodbye Chase!
Love the picture
Ok, awesome picture.
I just checked Chase's savings account rates and it's 0.10%. I'm serious, WTF? Hope they don't change the rate on my 5% WaMu account too quickly... :(
Still feel bad for the tellers, including Ethel.
"...you don't know a soul in your old branch and it looks like any other Chase office."
Given my limited experience with WaMu, I fail to see how this is a bad thing.
So how long before I get stuck with Chase's outlandish fees and policies? For instance, their overdraft fee is higher, they have an extended overdraft fee, they don't have free checks or money orders, and they order overdrafts by amount to purposely rack up higher fees.
@bluedragonfly: I keep seeing "free with direct deposit" how exactly does this work?
I have a job that I have direct deposit set up with, however I do not work here all the time. It could be over a month between paychecks, would it still be free?
@sinfuly Delicious: if you want my professional opinion, you're asking for a lot of free stuff. good luck getting that.
i know in my neck of the woods, there's a local mutual savings bank called liberty bank ([www.liberty-bank.com]) that offers a lot of what you're looking for (they claim no atm fees ever). of course, if you don't live along the i-91 corridor in CT, that's not going to be too convenient for you.
check out the mutual savings bank circuit in your area. i don't know about free money orders & free wire transfers - generally that's not something that you can command without establishing a pretty lucrative relationship with an institution. perhaps if you move a sizable amount of business their way (large deposit accounts AND/OR business accounts AND/OR mortgage...i think you get the idea), they might be able to work something out.
if you click over to liberty bank, check out their history. i love this story:
The Oldest Savings Account in AmericaOne of our favorite customer stories is about Frederick Sheffield, a young merchant from Old Saybrook. In 1844, Sheffield rode his horse to Middletown to deposit $8 in the bank. Six months later, he made an additional deposit of $18. He then moved away from the area, leaving his money on deposit at the bank. In 1994, Sheffield's descendents finally closed his account, which had grown through interest alone to more than $32,000 and was the oldest individually owned savings account in America.
Got a SunTrust acct 2 weeks ago..suck it WaMu!
I know that in this day and age everything is a commodity, but in the old days, your bank was your bank for life and it still is supposed to feel that way (they have your money, after all). What's so difficult for Chase to keep a sub-brand going? They could at least keep it regional.