There is so much greed seen over prudence, it’s hard to know when it’s going to end! The Fed keeps spending so much money on these bailouts, when will it stop? And how many more times is the Bank of America going to be able to come to the rescue? Take a look at the recent situation with WaMu as a case study for these growing financial problems.
The seizure of WaMu – wamucards to JP Morgan is a massive historic step in the attempt of the Feds to help get the financial industry back on track, full of mortgage debts and the like. There was also a $700 billion bailout of the financial system which has been thrown into down. The CME Globex futures still continued to go down.
Customers of wamucards withdrew around $16.7 billion from their accounts within a very short space of time. This is what left the bank so ‘unsound’ as described by the FDIC and the Office of Thrift Supervision. Before this time, the WaMu had been the second-biggest provider, after Wachovia Corp, of option ARMs. Wamucards was also the 11th biggest subprime mortgage lender in 2006.
