Anthony M. Freed1

Was WaMu Worth It?

You are right - I was not clear. Don't worry, my wife gave me crap for it. Anyway, i had already submitted it without the option to edit - as I did in the post on my site - so here it is:

"The rapidly evaporating market value of WaMu's assets left over after JP Morgans cherry-picking is indicative of the biggest problem the nation faces in deciding how best to deal with the mortgage backed securities (MBS) and other toxic instruments that are pulling world markets into recession: How much is this stuff worth?"

First of all, WaMu's assets could be worth less than originally disclosed based on the lack of quality displayed by the assets held in bankruptcy. In the terms of the deal with JPMorgan, as "negotiated" by the FDIC in what has been purported to be an illegal action by the government in favor of JP Morgan, the same set of assumptions were applied to all of the assets when determining their value."

"That means JP Morgan, who already anticipates the writedown of tens of billions from WaMu alone, can safely expect WaMu will provide them with tens of billions more as we enter this new age of "preemptive" bank failures."

Hope that clarifies it for you. Thanks...