Friday, September 26, 2008

More on our first direct blow from the economy's collapse

Apparently the FDIC took over the bank, and literally auctioned it off to the highest bidder. The newspaper this morning has some helpful updates on what our that means to us - regular, everyday depositors, mortgage-holders, and shareholders. I paraphrase...

Depositor: Your new bank is JPMorgan Chase. Your money is safe. Please do not panic.

Borrower: Your new lender is JPMorgan Chase. Please continue to make payments as usual.

Stockholder: JPMorgan Chase bought WaMu from the FDIC, not from its shareholders. You will receive nothing.

So that pretty much sums it up for us.

They also have a few words for the employees:

Employee: Your new employer is JPMorgan Chase, who sent you an email last night asking you to please come to work this morning. Branch employees are probably pretty safe, because there is so little overlap between the banks' branches. Headquarters employees (about 3,500 people) are probably screwed, eventually.

And, a new twist on the real estate slide: WaMu is also downtown Seattle's largest tenant, with about 1.6 million square feet of office space. Fire sale on office space!

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