Related: Why, of all banks, did JPMorgan get the prize???
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As part of the most far-reaching and spectacular controlled demolition the world has ever seen, one of the biggest banks in America just collapsed as JPMorgan Chase meticulously picks the meat off its rotting carcass.
As the debate over a $700 billion bank bailout rages on in Washington, one of the nation's largest has collapsed under the weight of its enormous bad bets on the mortgage market.
Federal Deposit Insurance Corp. seized WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase Co. for $1.9 billion.
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JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of WaMu's banks, or any assets or liabilities of the holding company, Washington Mutual Inc. JPMorgan also said it will not take on the lawsuits facing the holding company.
Notice that they say NOTHING about WaMu's senior SECURED debt, which Chase is no doubt devouring whole like the rapacious vultures that they are...
JPMorgan Chase said the acquisition will give it 5,400 branches in 23 states, and that it plans to close less than 10 percent of the two companies' branches.
Let this sink into your brain for a moment.
They're aquiring none of its liabilities and all of its assets for a mere $1.9 billion dollars.
$1,900,000,000 divided by 5400 branches is approximately $351, 851.85.
That's an entire fucking branch of a commercial bank for less than the price of a one family semi-attached home in a middle class neighborhood in NYC! PLUS - they're most definitely getting all their secured assets for pennies on the dollar as a bonus - no doubt worth billions!
But that's not all - they get all of WaMu's deposits!!!
They get EVERYTHING worth anything and to top it off - they're "buying" all this using OPM (other people's money)!
After all, Chase is a BANK too!
Their so-called money is OUR deposits! that they force US to guarantee!!! (see the FDIC!!!)
What does this all mean?
This comes as no surprise to those of us who understand what the game is all about.
If on the other hand, your head is spinning from watching these so-called 'financial giants' drop like flies one after another, the following sentence goes a long way to explain it all...
The seizure by the government means shareholders' equity in WaMu was wiped out. The deal leaves private equity investors including the firm TPG Capital, which gave WaMu a cash infusion totaling $7 billion this spring, on the sidelines empty handed.
The moneylenders have won again.
Anyone and everyone who assumes risk in the market - i.e., the average working Joe - gets wiped out, while moneylenders get their money PLUS interest (ten times over) GUARANTEED.
Herein lies both the problem and its solution.
Nothing will change unless and until Americans and the world learn that the misallocation of risk created by the private creation of fiat dollars and the accompanying extortion of interest on this monopoly money is the root cause of our financial problems.
So J.P. Morgan is allowed to run around buying up other banks for pennies on the dollar and then get bailout money from the govt too? Surely not
I forgot to point out that the bastards get to write off the losses and avoid paying taxes.
In other words, in the coming years the federal budget will be shorted whatever taxes Chase would have ordinarily paid, but for their assumption of that much of WaMu's "bad debt."
That is, after all is said and done, we the people get stuck holding the bag of shit.
And still that's not enough for these bastards!
They plan to fleece the average Joe yet again!
The whole gruesome cycle begins all over again, always with Other People's Money.
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"Money" has no value - people do.
FYI...Guess how much JP Morgan stocks rose after taking over of WU? It jumped from about a dollar to $44. Insane!
Jamie Dimon's grab of Bear Stearns may turn into one of the biggest bargains in recent years.
Banking experts were almost unanimous in their appraisal of the move by JPMorgan Chase & Co, which is run by Dimon, to buy Wall Street rival Bear Stearns Cos Inc.
"It's my opinion that this represents a great bargain for JPMorgan," said Samuel Hayes, emeritus professor of finance at Harvard Business School.
"Bear Stearns was, until this year, one of the smartest and most profitable investment banks in the world," said Hayes. "This could be a real money-spinner for JPMorgan."
JPMorgan agreed on Sunday to buy Bear Stearns, which was slammed by a sudden cash crunch, for about $2 a share -- about 90 percent below its Friday close. The all-stock deal values the company, recently ranked as the No. 5 U.S. investment bank, at about $236 million.
Brad Hintz, an analyst with Sanford Bernstein, estimated that a breakup of Bear Stearns would fetch $7.7 billion. "This is a tremendous bargain for JPMorgan shareholders," he said in a note.
But Dimon has a good track record fixing up major banks. After being ousted from Citibank a decade ago, he became CEO of Bank One in 2000, fixing it up and eventually selling the bank to JPMorgan in 2004.
He has kept JPMorgan, which posted a 6 percent rise in 2007 net profit, largely unscarred by the credit crisis ravaging the financial sector.
JPMorgan, the No. 2 U.S. bank by market value, expects the acquisition, which includes Bear Stearns' profitable clearing and prime brokerage businesses, to add $1 billion to earnings once it is fully integrated
http://www.javno.com/en/economy/clanak.php?id=132780
according to Bloomberg.
minus the $16.7 billion that they were withdrawn in the last couple of weeks before its demise gives JPMorgan control over a little over $170 billion in WaMu's deposits!
Plus all its tangible assets (5400 branches, etc.) and its secured debt, all for a measly $1.9 billion!
The grand scale of theft that these global hucksters are allowed to get away with is absolutely mind boggling!
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"Money" has no value - people do.