JPMorgan Buys Failed WaMu Assets for $1.9 Billion

Morgan is an elitist and the next big thing will be a bank "holiday" and when they reopen you own pennies on the dollar. A banker on Noory last night claimed that JPMChase holds $90 Trillion in bad derivitives with only $100 B in assets, so do the math.

We are so freaking doomed(mogumbo).

reply to post by seabisquit


Well whoever that person was needs to be fired from whatever bank he is at, immediately. 90 trillion? Even if that was a typo, and you meant 9 trillion, that is still ridiculous. JPmorgan has like 1.7 trillion in total assets if I remember correct.

Those numbers were pulled out of thin air, and where ever you heard that from, you should probably start taking whatever comes from that source with a grain of salt.

reply to post by Osama Bin Laden at Area 5


NO they are not going to close they will be open friday morning. the only effect anyone that has a checking or saving account there will see is a name change to Chase.

reply to post by grimreaper797


And i'm sorry that you can't see the big picture and grasp that they will have to sell them one way or the other. they can't leave illiquid assets sitting on their books. Its really not that complicated. whats the point of having an asset that is not going to make you a profit now when your going to need capitol?

You keep looking at the long term and if they can weather the storm. BUt you need to be looking at the short to mid term. what is JPMorgan going to when they buy up all these Illiguid assets and then there is a run on them. like WAMU had. JPMorgan is tieing up their capitol on assets that will not benefit them in the short to mid term when they are going to need the capital they just spent.

You also assume all the assets they just took on are good assets. and will continue to be good assets. but what happens when the mortgages they just bought that were good turn bad because people can afford them?

You also assume that there is going to be a large bailout of the banks. i'm sure their will be a bailout But JPMorgan will have to bid the treasury to buy their bad assets and JpMOrgan probably won't get the asking price that they'll ask for and have to take a hit on that.

reply to post by Mercenary2007


Please go back and read my posts. Try to understand how a "bad" asset from WaMu gets turned into a profitable asset for JPmorgan SO THEY DON'T HAVE TO SELL IT TO ANYONE ELSE.

This is a pretty ridiculous argument, looking from my end. It's simple. Consolidate the banks, less people own more of our debt.... less people own more people. People, not debt, is what they are buying and selling. How many people are going to power their tyranny tomorrow?... and there may be an even more frightening group behind the super-elite, but I can't point a finger just yet.
The idea is too frightening.

O.k., if I am reading the news articles correctly, JPmorgan just made out like a thief in the night. They just purchased 337 billion dollars worth of assets at 1.9 billion or for ruffly .5 cents on the dollar. Therefore, no matter what JPmorgan does with these assets, they are going to make money.

If you have someone with a 250,000 mortgage, that mortgage is now worth $1,409 to the jpmorgan. If they renegociated the loan to say, 120,000 @ 6% interest for 30 yrs, that total loan value is 240,000 over the 30 years. again they only paid $1410 for it. This translates to a massive, MASSIVE profit on just this one loan, of ruffly 8500%.

Bad mortgages only make up 2% of the total mortgages outstanding in the u.s. therefore, theoretically, they only have to do these renegociations to those bad debts. Even at a 10% margin, that would be 33.7 billion that they have to negociate on, that means, there 1.9 billion, just made them 300 billion ruffly, before they do any renegociations.

This deal stinks to high hell in my opinion. Instead of the Fed gettings these assets, and then waiting for the bail-out, they turned them directly over to another bank. Instead of the TAX PAYERS getting this profit, they turned it over to a BANK!. there is something seriously wrong with this deal.

Camain

My large concern is whether or not Federal Credit Unions will play into this.

Do those of us who bank with a CU need to be worried as well?

reply to post by mybigunit


And yet, probably more importantly, the monopolization of this industry continues as these banks and such get sucked up into only a few mega institutions. But it is in the best interest of the people of the U.S. and the world right?

What a joke. Yeah, they pushed this up a bit as I was expecting this to come out next week. Told my wife last week to watch for it because they will want to time it just right. Well, maybe the delay of the bail out package forced them to move early. What a joke. Now it will cause even more panic in congress and I'm sure the bill that no one wants will be pushed through.

reply to post by grimreaper797


Grim, please don't make JPMorgan seem like a hero or some great company. They bought 300 billion in assets for 1.9 billion. Would you give me all your money for .05 on the dollar and think that was a good deal? They are absolutely laying the pipe to everyone of us and we think they care. I hate JPMorgan and will not have an account there no matter how big they are, I'd rather buy money orders at 7-11 than bank at Chase or Bank of America.

My gut feeling is that if they pass the 700B plan JPMorgan will then sell all of the questionable loans to the GOV and pocket 200B from us sheeple. Thats just a guess and since I understand how corrupt these people are and how little they care for us consumers as people any chance they get to take my milk money they will. But hey its just business.

Wow you guys are completely clueless. No one even mentioned the Rockefeller family. Youre busy having a urinating contest.

This was engineered, and they got exactly what they wanted. This was called atleast a decade ago.

1.9 billion? ROFL. And the majority of humans have no idea what just happend. Welcome to 1929 folks.

the market is going to go down the tubes no matter what happens... it is all a government cover up to create the amero, as in canada the u.s. and mexico to join together like the e.u. and the euro. the bail out wont work and this is just another step in that direction. all the "bail out" will do is pro long the inevitable to when the government wants the market to go under.

reply to post by mybigunit
No it does not! The FDIC still has deposits up to $100,000 secured, AND as part of the buyout deal JP Morgan has guaranteed any deposits over that amount.

Do your homework. Don't spread fear to cause panic! The terms of the deal are mentioned in just about every news article covering the story.

Customers of WaMu, based in Seattle, are unlikely to be affected, although shareholders and some bondholders will be wiped out. WaMu account holders are guaranteed by the Federal Deposit Insurance Corporation up to $100,000, and additional deposits will be backed by JPMorgan Chase.

www.nytimes.com...

I don't want to say "I told you so", but...

www.abovetopsecret.com...'

www.abovetopsecret.com...

Conspiracy confirmed.

Originally posted by Areal51
reply to post by mybigunit

 

No it does not! The FDIC still has deposits up to $100,000 secured, AND as part of the buyout deal JP Morgan has guaranteed any deposits over that amount.

Do your homework. Don't spread fear to cause panic! The terms of the deal are mentioned in just about every news article covering the story.

Customers of WaMu, based in Seattle, are unlikely to be affected, although shareholders and some bondholders will be wiped out. WaMu account holders are guaranteed by the Federal Deposit Insurance Corporation up to $100,000, and additional deposits will be backed by JPMorgan Chase.

www.nytimes.com...

Do my homework? Quit spreading fear? Its obvious you havent read all the posts. When I made my early posts there was not much news on the matter. As time when more and more details came out in which I clarified in other posts. I put this on literally 5 min after it broke and the details were sketchy at best.......

reply to post by mybigunit


Even though you didn't read the NYT article, your guess was presented as if it were a fact. The CNBC article in the OP doesn't mention anything about filing a claim with the FDIC or loosing any money that is not insured with the FDIC.

[edit on 26-9-2008 by Areal51]

reply to post by mybigunit

Is it just me or does this whole thing just STINK...who owns the FED? JP Morgan..and whole host of these other names in the news..so they buy themselves and we PAY for it...Its like the worlds biggest PONZI scheme and we are the ones left holding an empty bag.

Originally posted by Areal51
reply to post by mybigunit

 

Like the CNBC article, the New York Times article was published early evening yesterday. But even though you didn't read the NYT article, your guess was presented as if it were a fact. The CNBC article in the OP doesn't mention anything about filing a claim with the FDIC or loosing any money that is not insured with the FDIC.

Guy listen to me. When the news broke it broke as FDIC seizes WAMU and JP Morgan bought "some" of their assets. Ok I was watching CNBC as it broke which is how I knew to post it. Right after it broke I put on the article which at the time had one small paragraph saying that they had been seized. Listening to the guys on TV all 3 said that it does not look like WAMU will be open tomorrow. So thats when I said they will not be open tomorrow and you will have to file a claim with the FDIC anything above 100k you will lose.

Now as the thread progressed and more info came out you will see me ask someone hey is WAMU going to be open tomorrow because it still wasnt clear. When it became clear we posted it on this thread please read.

The fact is if WAMU WAS closed then what I say about the FDIC is 100 % true. The only thing that wasnt fact was whether or not it would be open which at the time was not known. Once again please read.

reply to post by mybigunit

I read what you wrote. And I read every post following that. But if you can, and if you feel moved, please explain why you would say that folks would lose deposits when nothing as such had been reported. You didn't credit your observations to the opinion of newscasters. I understand that it's breaking news, so should you.

reply to post by camain


Same thing was going to happen when WaMu went over within the week. Their stocks were plummeting and their status was downgraded from junk bond to an even LOWER junk bond status. They were ready to fail. When they did, JPmorgan would have bought it for an equal or even lesser price.

Also, they didn't completely buy WaMu, just a significant piece. They picked up the banking sector of WaMu and left the FDIC to deal with the lending sector.

www.save-a-patriot.org...

I see that JP Morgan is listed as one of the owners of the FEDERAL RESERVE BANK..so lets see How does this work..they lend themselves the money and we get to pay for it...MADNESS

[edit on 26-9-2008 by SUNRAY06]