Saturday, September 27, 2008

Saturday Stuff

WaMu Files for Bankruptcy Following FDIC Seizure (Update2)Bloomberg - 7 hours ago

"The failure of WaMu will have a ``significant'' effect on collateralized debt obligations that made bets on the lender's creditworthiness, Standard & Poor's said yesterday.
Pieces of 1,526 synthetic CDOs worldwide sold default protection on Seattle-based WaMu, S&P said in a statement."

"WaMu was the second-biggest provider of payment-option adjustable-rate mortgages, behind Wachovia Corp., with $54 billion held in its portfolio in the first quarter, according to Inside Mortgage Finance."

First off, DAMN, I knew I shouldn't have gone all in on Wachovia yesterday, hahahahahaha!! Woooooo Weeeeeee, no wonder they lost 27% yesterday, actually, they lost a lot more than that, as they had the late rally on "hopes" (there's that word again) of a Citigroup rescue became known.
Anyway, my question is, dosn't WaMu have to disclose all their "stuff" in the BK filing, IE, like who is holding the CDO's??? For that matter, I suppose Lehman had to disclose the same thing, and I haven't heard anything about who was holding their toxic waste. The only reason I bring it up, is because it would be nice to start getting an idea of who the big holder's of this stuff are. I still think that JPM is one of, if not the biggest, holder's of this crap, and the bail out is mostly aimed at them, but, we shall see. I heard last year that JPM had about 1 trillion bucks of the stuff, which fits nicely with the $700 billion in the bailout, they can probably absorb the other 300 billion, hahahahaha!
On a side note, being a West Coaster, WaMu has always been part of the communities for 119 years, it's just amazing how a successful franchise like that can just throw 119 years of business plan's out the window, and the whole corporation get the stuid flu all at once. I would blame easy Al and the administration, but that's stupid, nobody put a gun to their head and told them to take these crap loans, eeeeerrrrrr, actually, when I think about it, some one must have blown their fricking brain's out a few years ago, humpt, sad stuff.

This guy pretty much hits the nail on the head, as to "whom" this bailout is aimed at:
"Paulson Plan Aimed at Helping `Poorly Run' Banks, BB&T Chief Allison Says U.S. Treasury Secretary Henry Paulson's proposed $700 billion bank rescue aims to help ``poorly run'' companies and the primary beneficiaries would be Goldman Sachs Group Inc. and Morgan Stanley, said BB&T Corp. Chief Executive Officer John Allison in a critique of the plan."

And stuff like this, just confirms it:
Paulson Taps Former Goldman Sachs Colleague Forst as Rescue Plan Adviser Treasury Secretary Henry Paulson hired former Goldman Sachs Group Inc. colleague Edward C. Forst to advise him on the government's $700 billion rescue plan, a Treasury spokeswoman said.

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