Goodbye Wamu! JP Morgan Chase Buys Washington Mutual for Pennies
(post by BT) JP Morgan Chase and Bank of America are reaping the rewards they deserve. The 2 companies who never got into the sub-prime lending and only lent money to A-class customers (with good credit, sufficient income and with reasonable down payment) are reaping the rewards and I mean big time. The market is weak, but while other banks are scrambling, they are shopping! It’s not Black Friday and we are not at Woodbury Commons Premium Outlet stores… nope, it’s just a bank sale of the century!!! They are buying assets for pennies. Talk about opportunity! Man, these companies are making out big time. Sure, some of it is bad debt but what about all the good loans that are out there, with people who actually pay on time, actually have equity in their homes? Yes, Washington Mutual lent out a lot of bad loans but how come no one is saying how much is bad debt and how much is actually good? $307 billion in assets is what Wamu purchased by JP Morgan for only $1.9 billion! Is my math off or is this a sweetheart deal, or what? Don’t tell me $305 billion is all worthless assets. Come on, how come no one is talking about the upside of this deal? Plus, they are going to get a $30 billion write-off for what the new owners claim is going to be bad mortgagees!
Goodbye Wamu! Forever! I guess your short sales weren’t getting approved fast enough.
Man I wish this bank buying wasn’t an office exclusive (Federal Government exclusive sale) because if they something like this up on MLS, I swear I would find a buyer myself and made a nice commission to last me a lifetime!