After research firm Gimme Credit screamed "fire" in Washington Mutual's lobby yesterday, the bank put out statement saying that WaMu "funds all of its business through its banking operations, and does not rely on commercial paper," and, furthermore, has seen "no real disruption in...core liquidity." Everything is a-okay, so please stop publishing reports to the contrary.
But...if you want to talk about problems that in no way can be blamed on WM, how 'bout those bastards at the SEC? According to WaMu, the new short selling provisions, which focus on 17 banks-- WM not included--, are to blame for pressure on its shares. Treasurer Robert Williams told the Post: "[The SEC] limited the universe of options that you could use to hedge your position...[and as a result]...WaMu has seen short selling volumes double and triple."
WaMu Whacked [NYP]
Posted by guest , Jul 25, 2008 12:25PM
With all this talk of mayo, which is better, Kraft or Hellmanns.
Posted by guest , Jul 25, 2008 12:48PM
I'm sure the shorting has nothing to do with shitty asset quality, increased margin pressure, and overall fears of WM's impending bankruptcy... Probably just a lack of options, that's all
Posted by guest , Jul 25, 2008 12:48PM
Get a Craig Claiborne cookbook and make your own. It's far better than any you can buy.
Posted by guest , Jul 25, 2008 1:01PM
WM CDS a few moments ago...
WM trading 17.25 x 18.25 points up front
Maybe CFC at its worse was in this range... but I don't remember a bank trading at these levels before...
Posted by guest , Jul 25, 2008 1:11PM
Part of a bank's risk management protocols should be to determine if anything like this would ever happen to them in the first place and then build financial firewalls in advance of it.
Posted by guest , Jul 25, 2008 1:14PM
all this rumor-mongering hurts my feelings
Posted by guest , Jul 25, 2008 1:23PM
WaMu has to merge with Hooters in order to survive
Posted by guest , Jul 25, 2008 1:36PM
gimme credit is a dopey, fratboy name. it doesn't surprise that they do dopey, fratboy things.
Posted by guest , Jul 25, 2008 1:42PM
Hellmans > Kraft
But neither of them can hold a candle to that Tangy Zip of Miracle Whip.
Posted by guest , Jul 25, 2008 1:44PM
over/under on WaMu failing 10 business days.
Posted by guest , Jul 25, 2008 1:50PM
GimmeCredit, fratboys? I think every single analyst there is a chick
Posted by guest , Jul 25, 2008 1:54PM
#8 like what? Gimme Credit & Egan Jones are more useful than ever considering the ineptitude of the "govt sponsored" credit rating agencies who are paid by the companies they evaluate
Posted by guest , Jul 25, 2008 1:56PM
nice to see someone taking on the real problem, mayo! Great answer # 9
Posted by guest , Jul 25, 2008 1:58PM
WAMU stands for Washington mayonnaise users
Posted by guest , Jul 25, 2008 1:58PM
WAMU stands for Washington mayonnaise users
Posted by guest , Jul 25, 2008 1:59PM
@ #10,
How about over/under its gone by Monday?
The next one swimming around the bowl like a nugget this week is MER... Did someone castrate the Bull?
Its trading like someone has seen the CDO book and laughed... Something smells like Bull Shit...
Posted by guest , Jul 25, 2008 2:06PM
what are wamu associate numbers?
Posted by guest , Jul 25, 2008 2:10PM
@ 16
I agree monday is probably a better bet. But i was trying to give them the 10 day benefit of the doubt.
IndyMac got out of their wholesale mortgage business on a Sunday and was dead by Friday. I suspect that WaMu will play follow the leader in short order.
In other good news the short position in GM is at a 17 year high - "AS GM GOES SO GOES THE NATION".
Posted by guest , Jul 25, 2008 2:13PM
you come up with the number of wamu associates by multiplying the weight of a jar of Hellmanns by the number of wamu branches.
Posted by guest , Jul 25, 2008 2:14PM
I guess it is better to blame the SEC than to blame Dick Bove.
-bp
Posted by guest , Jul 25, 2008 2:19PM
@17 - Wamu associates are getting paid in GM stock that vests after 5 years but also convertible into Leh shares after 3 years. I think HR calls this profit sharing program The Shocker.
Posted by guest , Jul 25, 2008 2:26PM
Hey #18,
Who is the worse with the booked negative am? That shit has to be unbooked at some point. That and booking the bonds @ MTM to gain earnings...
I wonder what kind of (quality) earnings the ex CFO booked over WB... They were still writing negative am as of a few weeks ago.
Oh well, so many banks, so little time or equity to short them all...
About GM, is there equity to short there still? lol
Posted by guest , Jul 25, 2008 2:31PM
@ 21,
Well said... I heard they were going to include naked puts in MER, so the associates had more to worry about then just their jobs...
WaMu was using the cash from the naked puts to fund their payroll...
Posted by guest , Jul 25, 2008 2:40PM
Is it wrong that 21 and 23 made me laugh (maybe not wrong but perhaps merely sad).
Posted by guest , Jul 25, 2008 2:56PM
And because i like to give as well as recieve here is an amusing yet TRUE
example of the irony of the times we live in.
WaMu, refused to honor Indymac cashier's checks. The irony is it makes no sense for customers to pull insured deposits out of Indymac after it went into receivership. The second irony is the last place one would want to put those funds would be Washington Mutual. Eventually Washington Mutual decided it would take those checks but with an 8 week hold. Will Washington Mutual even be around 8 weeks from now?
Posted by guest , Jul 25, 2008 3:03PM
8 weeks... 8 days... 8 hours...
tick tock...
Posted by guest , Jul 25, 2008 4:13PM
Beneath them making laugable decisions they do have a point. The whole decision to slectively quash shorting efforts not only is entirely anti-market but sets a dangerous prescedent.
Imagine restrictions (or very strong suggestions by the govt.) that one should not short Continental, United, NWDelta, but USAir was left of the list.
I think that Wamu has fair grounds for a complaint for what was pretty much an arbitrary pronouncement.
Then again if nothing else who ever said our government or the system was supposed to be fair? A shining beacon of democracy and capitalism.
-C
Posted by diablo , Jul 25, 2008 4:40PM
No nakeds allowed for MER, still went down 5.2% today.
Posted by guest , Jul 25, 2008 5:07PM
CDS (link) quote of WaMu from Mish blog... They have cracked Bears levels...
http://bp2.blogger.com/_nSTO-vZpSgc/SIosrkD8whI/AAAAAAAAC-E/eI2g3BvT2Cg/s1600-h/WaMu-CDS.png
They have cracked Bears levels...