With stock sinking, WaMu appears headed for sale

[tom-knox]

In the UK your guaranteed for £35000 in the event of a bank closing.

Plus Bradford & Bingley in the UK are said to be in turmoil, their going to be either sold to a financial consortium or nationalised, we find out on Monday.

 

[muz]

yer this stuff is getting pretty bad , you have to be either a doctor a lawyer or aan accountant to get a morgage these days ,i think one think that has already be learned about this is dont just freely give morgages out to people who cant afford them
Also i think when people hear a bank is going under they all rush to that bank to withdraw their money and that certainly dosent help the banks in question

 

[Zer0Cool]

WaMu is now JPMorgan Chase. So thats that.

 

[tom-knox]

Also i think when people hear a bank is going under they all rush to that bank to withdraw their money and that certainly dosent help the banks in question

That's true, an awkward amount of this "Recession" is caused by panicked shareholders and account holders.

 

[muz]

That's true, an awkward amount of this "Recession" is caused by panicked shareholders and account holders.

cant blame peope to be fair though if they know they could risk loosing a lot of money , i mean if i had more than 35k in a bank account right now and i heard the banks shares where getting lower and lower i would be part of the people getting their money out , i know it dosent help but if i thought i was going to loose my life savings i really wouldnt give a damm , i mean these banks shareholders and ceo's dont give a damm about our money

 

[Rubber314Chicken]

The shit hits the fan...

http://www.youtube.com/watch?v=B0aW8IXdAjA

 

[tom-knox]

cant blame peope to be fair though if they know they could risk loosing a lot of money , i mean if i had more than 35k in a bank account right now and i heard the banks shares where getting lower and lower i would be part of the people getting their money out , i know it dosent help but if i thought i was going to loose my life savings i really wouldnt give a damm , i mean these banks shareholders and ceo's dont give a damm about our money

True, but the point I'm making is how many people actually have more than 35000 sitting in a bank? When you see these news reports of people pulling all their funds, their just Joe public, they might only have a couple grand max in an account but they pull it anyway. The problem is that people have lost trust in the financial system, and people forget the last decade of financial gain. The financial sector always follows the same system of boom and bust, it normally gets shaky every 20-30 years. My parents lost a house in the 80's for much the same reasons as people are now.

Also investors and hedge fund managers have been making a lot of high risk ventures in the financial sector recently and it can't last for ever. The economy has slowed down and it's now suffering, but if the money is injected properly, and people start to have a bit more trust in the system, things will pick up.

 

[alvino]

Thank goodness we have the FDIC or my savings would be all gone.

 

[muz]

True, but the point I'm making is how many people actually have more than 35000 sitting in a bank? When you see these news reports of people pulling all their funds, their just Joe public, they might only have a couple grand max in an account but they pull it anyway. The problem is that people have lost trust in the financial system, and people forget the last decade of financial gain. The financial sector always follows the same system of boom and bust, it normally gets shaky every 20-30 years. My parents lost a house in the 80's for much the same reasons as people are now.

Also investors and hedge fund managers have been making a lot of high risk ventures in the financial sector recently and it can't last for ever. The economy has slowed down and it's now suffering, but if the money is injected properly, and people start to have a bit more trust in the system, things will pick up.

i know people dont usually have a lot in their accounts but a lot of people have got their life savings or money for when they retire in banks and if they hear that bank is in financial difficulty they go and pull it all out , thats fine if one person does that but if all the banks customers do that then there is a problem as the bank wont always have the funds for that .
Its not just lack of trust in the insititutions at hand its also partly lack of trust in the government gurantees whereby people believe the government will somehow find a loophole out of giving them their money , and i dont blame people for being panicky about their money to i know if i had my money in any of the big banks and i heard they where in financial trouble i would be pulling my money out as well even if the government can gurantee your money how long is it going to take them to give you that money back because if a big bank went down there would be a lot of claims to handle and it could take a while for you to get your money back .

Either way at the moment i dont think the government will let a bank go under it will either arrange a deal for a private sector company to take it over as was the case with HBOS or in the case of northern rock and now bradford and bingley it will nationalise the bank and so i dont think people have anything to panick about but they still do

 

[01001010]

pulling my money out as well even if the government can gurantee your money how long is it going to take them to give you that money back because if a big bank went down there would be a lot of claims to handle and it could take a while for you to get your money back .

muz, you need to understand that this plan was set up so there's no inconvenience to the customer should your bank fail. If your account is insured, you shouldn't run out and withdraw it unless it's absolutely necessary.

If you do, you're only adding fuel to the flames. That's partly why Washington Mutual failed. People withdrew when they heard WaMu was under troubled waters. This causes a bank run. Something the FDIC is trying to prevent.