9:05:11 PM: I’m here, let’s make this thing quick.
9:06: 27 PM: EP has joined me (and is pasting me the log, which you might notice is an hour behind, as she is in Central time).
8:10:16 PM equityprivate: That was the worst hold music ever. As soon as it got good for a second with that little-pseudo techno thing, the nasally operator cut in.
8:11:48 PM ohbabyitsbess: i bet it the wamu people are dj’ing
8:11:59 PM equityprivate: That would make sense.
8:13:06 PM equityprivate: Actually I’m pretty sure I heard this in their ATM vestibule today.
8:16:05 PM equityprivate: They certainly weren’t pouring mortgage fee money into adjusting the volume on this stuff to keep it from clipping.
8:16:33 PM ohbabyitsbess: it’s 9:16
8:16:36 PM ohbabyitsbess: where the fuck are they
8:17:18 PM ohbabyitsbess: also, i got banished to my bedroom to listen to this because apparently some people aren’t don’t want to hear this
8:17:48 PM equityprivate: They get annoyed when you take work home? How do you live?
8:17:51 PM equityprivate: Ok, the operator needs to take a diction course.
It’s been 15 seconds and already it is a train wreck.
8:19:13 PM equityprivate: Jamie! Yay!
8:19:17 PM ohbabyitsbess: i love this man
8:19:24 PM ohbabyitsbess: yeah you should thank us for coming at 9:15, bitch
8:19:31 PM ohbabyitsbess: “if you’re from wash mu”
8:19:32 PM ohbabyitsbess: haha
8:19:47 PM equityprivate: “Some WaMu employees may be listening.”
8:20:07 PM equityprivate: I want a repeat of the JPM/BSC call. “I’m a shareholder and I am NOT voting for this merger!”
8:21:40 PM ohbabyitsbess: is jimmy cayne a shareholder?
8:21:42 PM equityprivate: I like how they announce both that they are spending a bunch of cash and, oh by the way, here comes $8 billion in dilution too.
8:21:47 PM ohbabyitsbess: i’d like to hear him stand up
8:22:37 PM equityprivate: They are leaving behind $20 billion in liabilities. Of course. And they are playing to the FDIC. WaMu must have been literally on the brink.
8:22:42 PM ohbabyitsbess: “we looove the branch banking business”
8:22:53 PM ohbabyitsbess: he’s taking damone’s advice too
8:23:01 PM ohbabyitsbess: wherever you are, act like that’s the place to be
8:23:13 PM ohbabyitsbess: i wonder if he ordered for his date tonight
8:23:20 PM equityprivate: Ah yes! Damone!
8:23:26 PM equityprivate: Always a classy move.
8:24:05 PM equityprivate: Are they leaving behind the hold/ATM vestibule music liabilities?
8:26:33 PM equityprivate: Yummy deposits! Now with 89% less liabilities!
8:27:14 PM ohbabyitsbess: charlie doesn’t sound confident talking about this
8:27:18 PM ohbabyitsbess: or is it me
8:27:37 PM equityprivate: Only closing 10% of the combined branches? I would have expected more rationalization. I guess JPM/Chase really must have been weak in the WaMu states.
8:27:42 PM equityprivate: It’s not you.
8:29:16 PM ohbabyitsbess: they’ve got a terrific little multi-family lending unit
8:29:21 PM ohbabyitsbess: wtf
8:29:29 PM equityprivate: can they Please please please spice this up with an obnoxious few questions. Please?
8:30:00 PM equityprivate: Exit all non-bank branch retail lending. That figures.
8:30:05 PM ohbabyitsbess: I hope The Analysts bring their ass-ripping game…and i hope the adorable woodland creature that is bove didn’t deem this past his bedtime.
8:30:11 PM equityprivate: “originating to our current standards” HAH. Slap.
$1.5 billion in cost savings. Totally offset by their merger costs. Hah!
8:32:02 PM equityprivate: Totally offset by their merger costs. Hah!
8:32:40 PM equityprivate: $176 billion in home loans will be coming in the door.
8:33:06 PM ohbabyitsbess: his voice is cracking
8:33:11 PM ohbabyitsbess: i smell fear
8:33:13 PM equityprivate: Its been a long day.
8:33:30 PM equityprivate: And Jamie is looming over him. Reading over his shoulder like a Persian emperor.
8:33:39 PM ohbabyitsbess: greek god
8:34:11 PM ohbabyitsbess: i would like someone to ask about them throwing a hissy fit over citadel hiring their employees
8:34:14 PM ohbabyitsbess: it’d be out of left field
8:34:21 PM equityprivate: $176 billion – $29 billion in markdowns. Blah blah blah. This deck is really annoying.
8:34:28 PM equityprivate: HAH! Let me see if I can ask that.
8:35:24 PM ohbabyitsbess: “we crunched numbers”
8:35:27 PM ohbabyitsbess: “we looked at data”
8:35:35 PM ohbabyitsbess: “we went through papers”
8:35:47 PM ohbabyitsbess: “how wrong can we be”
8:35:52 PM equityprivate: Well, these estimates on markdowns are the product of a lot of work and not 12-24 hours, wonder how long they have been talking to WaMu, and how fast did the price deteriorate when the FDIC started breathing down WaMu’s neck?
8:35:54 PM ohbabyitsbess: he should not have opened the floor for that
8:35:59 PM ohbabyitsbess: “it could be worse” hah!
8:36:02 PM equityprivate: “It could be worse.” Hah!
8:36:10 PM ohbabyitsbess: jinx
8:36:11 PM ohbabyitsbess: you owe me a coke
8:36:20 PM equityprivate: Deal.
8:37:54 PM equityprivate: He sounds like… I don’t even know how to describe it.
8:38:31 PM equityprivate: A really stoned…
8:39:25 PM equityprivate: …Welcome Back Carter character.
8:39:25 PM ohbabyitsbess: ya
8:39:50 PM equityprivate: Do you think the WaMu people like to hear it called “Wah-Moo” ?
8:40:59 PM ohbabyitsbess: i like that they’re stressing that it’s all to a margin of error
8:41:11 PM ohbabyitsbess: “just so you know”
8:41:16 PM ohbabyitsbess: “this can- and probs will– blow up in our faces”
8:41:22 PM ohbabyitsbess: “just wanted to cover our asses on that one”
8:41:29 PM ohbabyitsbess: “you heard it here first people”
8:41:51 PM equityprivate: I hate to broach the possibility that their worse-case recession case sounds pretty mild to me.
8:42:20 PM ohbabyitsbess: oh, they “expect to make some money”
8:42:21 PM ohbabyitsbess: that’s good
8:42:30 PM equityprivate: Just in investing banking, though.
8:44:30 PM equityprivate: Questions!
8:44:32 PM ohbabyitsbess: oooo questions
8:44:32 PM equityprivate: Hurrah!
8:44:37 PM equityprivate: I’m asking… I’m asking.
8:44:44 PM ohbabyitsbess: me too
8:45:11 PM ohbabyitsbess: who the f is john mac(mc?)donald?
8:45:28 PM equityprivate: I have no idea. He didn’t say where he was from. Maybe a “I’m not voting for this!”
8:45:39 PM ohbabyitsbess: and dimon shoots him down!
8:46:05 PM equityprivate: I love how Dimon uses first names like he knows John. Maybe he does.
8:46:07 PM ohbabyitsbess: dimon’s getting so testy laready
8:46:27 PM equityprivate: Well, he is overdue at the Four Seasons Mr. Huxtable is waiting. Ok, I’m tired of John, and that’s more than one question and one follow-up.
Move along people, move along.
8:47:56 PM equityprivate: My *1 wouldn’t work.
8:48:36 PM equityprivate: The branches are not to chase standard and missing vaults and the like.
8:48:37 PM equityprivate: HAH!
8:48:39 PM equityprivate: I love it.
8:49:11 PM ohbabyitsbess: the demographic fit
8:49:18 PM ohbabyitsbess: is the the pc way of saying it?
8:49:23 PM equityprivate: That’s a delicate way to ask an indelicate question.
8:49:33 PM equityprivate: Wonder what the demographic on the call is.
8:49:44 PM ohbabyitsbess: “the mass banking biz is the mass banking biz”
8:49:52 PM ohbabyitsbess: it’s a cattle call
8:50:12 PM ohbabyitsbess: they dont want to get in the specs
8:50:14 PM ohbabyitsbess: of due diligence
8:50:15 PM equityprivate: “We had a lot of time…” in the datarooms. Wow!
8:50:18 PM ohbabyitsbess: we did it ok?
8:50:20 PM equityprivate: They’ve been at this awhile.
8:50:22 PM ohbabyitsbess: isn’t that enough?
8:50:31 PM ohbabyitsbess: we used our full resources
8:50:32 PM ohbabyitsbess: haha
8:50:36 PM ohbabyitsbess: we put many, many employees on this
8:50:43 PM ohbabyitsbess: “tell me, was it weeks vs. days?”
8:50:46 PM ohbabyitsbess: who is this guy
8:50:51 PM equityprivate: “One of the most thorough things we’ve ever done”
8:50:51 PM ohbabyitsbess: oh god
8:50:53 PM ohbabyitsbess: mike m.
8:50:55 PM ohbabyitsbess: never say that name
8:50:56 PM equityprivate: Mike MAYO? Oh please no.
8:51:14 PM equityprivate: Wow. So they have kept this really secret for quite awhile… and since the FDIC was so involved, and ran the process almost, WaMu was basically failed weeks ago, I’m getting.
8:52:05 PM equityprivate: Wow. So they have kept this really secret for quite awhile… and since the FDIC was so involved, and ran the process almost, WaMu was basically failed weeks ago, I’m getting.
8:53:28 PM equityprivate: “Deposit runoff.” I like that. Not sure I’ve heard that before.
8:54:29 PM ohbabyitsbess: they’re so fucking defensive
8:54:56 PM ohbabyitsbess: wouldnt it be awesome if they backed out of it
8:54:57 PM ohbabyitsbess: on the call
8:54:58 PM equityprivate: Aggressively defensive. But that makes sense. The market has totally tanked in the last few days of their diligence.
8:55:17 PM equityprivate: I bet they almost didn’t want to pull the trigger after the hearings.
8:56:21 PM ohbabyitsbess: who is this woman
8:56:25 PM ohbabyitsbess: “betsy?”
8:56:52 PM ohbabyitsbess: “problem children in our numbers”
8:57:07 PM ohbabyitsbess: “we’ve got some redheaded step children in the mix”
8:57:11 PM equityprivate: That’s me.
8:57:30 PM equityprivate: Just kidding.
8:57:59 PM equityprivate: 28 day receivables on the cards… half they are going to let “run off” – again with the runoff. It’s like a washed out road.
8:58:12 PM equityprivate: Fold it into Chase Card. Yeah, that figures.
8:58:34 PM ohbabyitsbess: nasally-sounding jeff
8:59:26 PM ohbabyitsbess: this is really lame
8:59:30 PM ohbabyitsbess: i want some outrage
8:59:36 PM equityprivate: I think he’s the JPM guy.
8:59:43 PM equityprivate: It’s like a FEMA press conference.
9:00:19 PM equityprivate: “This transaction develops $12 billion in cash over the next three years after tax.”
9:00:37 PM ohbabyitsbess: “potential for downside”
9:00:44 PM ohbabyitsbess: keep driving that point
9:00:48 PM ohbabyitsbess: “we dont know and we dont care”
9:00:50 PM ohbabyitsbess: whoah james
9:00:58 PM ohbabyitsbess: how is this over?
9:01:02 PM ohbabyitsbess: that was it?
9:01:02 PM equityprivate: I love that they both don’t know and don’t care what the other bids were.
9:01:03 PM ohbabyitsbess: fuck this shit
9:01:11 PM equityprivate: That’s why they did it at 9+pm!
9:01:17 PM equityprivate: NIGHT EVERYONE! Bah, that did suck.
9:01:33 PM equityprivate: Like a middle school hockey game. No blood.
9:02:04 PM ohbabyitsbess: and not even dick fuld fist fighting another parent
9:02:07 PM ohbabyitsbess: bs
9:02:37 PM equityprivate: HAhaha
we’ll see who gets left holding the coming option ARM 2009 storm….. bet it’s the govt – no way Dimon would take that shit onto his books
we’ll see who gets left holding the coming option ARM 2009 storm….. bet it’s the govt – no way Dimon would take that shit onto his books
I can’t get in either online or via phone. Is the weblink up anywhere?
Website and phone both toast.
Bess, you’re the best. I can’t handle listening to this call this late.
I didn’t know EP was in Central Time….
“I didn’t know EP was in Central Time….”
I am today.
Another ten million dollar question: will markets say “finally!” and breathe a sigh of relief or will the markets panic?
Website down.
Tomorrow is gonna be fuuuuuuun…
The girl reading this boilerplate gets a C- on presentation.
alot of stut-tttt-tttteringg-gg-gg
IT’S OFFICIAL
http://www.fdic.gov/bank/individual/failed/wamu.html
Seriously, could she stumble through it worse?
what a clusterfuck…. phone line busy… that’s professional… websites all appear down, obviously suffering a DNS attack of some sort…
EP, any details to share yet? I have a JPM death trade on for January… full put ladder… am I eating premium tomorrow? lol
~SEG
not buying holding company = not the toxic waste>? $1.9 billion to FDIC… brilliant~
Direct link to FDIC release
http://www.fdic.gov/news/news/press/2008/pr08085.html
“JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired.”
washington mutual associate numbers?
can’t get the damned deck from the website
Any word on the Credit Card Portfolio, they have some 19billion oustanding
Any word on the Credit Card Portfolio, they have some 19billion oustanding
Isn’t $1.9B too low a price for all branches, operations and $140B+ in deposits when you are not aquiring any toxic assets. I bet all Wamu bbuildings are worth much more than that. And their S&L business is very profitable.
TLTR= too long to read
Wonder how TPG is feeling…..
They are taking all the assets…which includes a bunch of shiiiiit
My question: “Will servicing WaMu’s presense Santa Ana be fun?”
TLTR= too long to read
@21 – uh, you do realize that the $140B in deposits is a liability of Wamu’s, right? That’s, like, the opposite of an asset.
Slide deck: http://investor.shareholder.com/common/download/download.cfm?companyid=ONE&fileid=236634&filekey=b5a3d70a-28ac-4148-8966-71b18408c8c3&filename=JPM_WManalystpresentation.pdf
THANK YOU 27 – Someone actually remembers Tax I/Banking 101. Deposit = liability. Loan = asset.
THANK YOU.
JPM has .pdf up on investor relations. Much better than trying to fight onto the call.
What a bush league presentation. I’d own whoever put it together, my powerpoint skills are unmatched.
-HEDGEmony
Bess and EP, I love you two.
Website is back up, webcast working.
“It could be worse”
That instills confidence in the heart of your investors!
-HEDGEmony
JPM taking $30 billion write down on loans … this is the cost of the transaction.
HOLY Clusterfuck . IS DIMON NUTS ?
Page 5 of the very interesting. There is surprisingly overlap in branch locations (except for that one Wamu branch by St. Marks Place which is like one block from a Chase branch).
There are some interesting gaps in the map. I know that BofA and Wachovia are pretty dominant in the South… but I’m drawing a blank on who would be the major retail bank in the great plains and upper midwest. Any help?
What’s happening to the other debt?
What’s happening to the other debt?
$31 billion in remaining life losses as of 9/30/08.
Jesus. I had talked about the idea of “eat & shit” in terms of an acquisition – put it all on one huge balance sheet that can survive writing it off, and write it off – but I can’t believe someone is actually doing that.
They estimate 5% losses on the part of the RE book that doesn’t include HELOCs, option ARMs or subprime mortgages. This is under Dimon’s “normal” scenario.
How many banks out there have a 500 bp reserve against their prime book?
IS THIS A CDS EVENG FOLKS ?
major retail bank in upper midwest… wells fargo?
From slide 21
“Approximately $2bn addition to allowance for loan losses (conforming accounting COOKED above the line) ”
-HEDGEmony
bess,
is girl jealous of ep?
What’s happening to the other debt?
What’s happening to the other debt?
What’s happening to the other debt?
operator said Guy Mogwawi LOL
“I bet all Wamu bbuildings are worth much more than that.”
The price of the building is pretty much the going rate these days.
@27
I’m confused, I thought cash was an asset with a credit balance.
SPODE
Is this question serious? WaMu branches arent up to chase standard?
WHERE IS THE WRITE DOWN TO ACCOUNT FOR THE COST OF INTERIOR DECORATORS!!!11!!!
-HEDGEmony
“a lot of time and a lot of detail” on diligence….. 75 people on-site…. “not a rushed analysis” but won’t give a timeframe.
MAYO!!!
HAHAHA @ 52
-HEDGEmony
#35
I think it’s just that there aren’t any people in the Great Plains.
LOL @ #23
Too long, didn’t read.
@28, Thank You for the link…
So Jamie is writing down a 30 billion dollar turd so he can enjoy paying less then 2 Big ones for the west coast module for his mega bank.
I wonder how much of that toxic crap he can repackage to the US T once Hammering Hank has a credit line for repackaged turds?
Tomorrow should be an interesting shit show… It appears the Demoncrats are blaming the McCain parachute into the Capital pond for the blown deal and now they can walk away and say it was Repucks who caused it…
It is interesting to watch a lame duck power vacuum in DC develop into a Category 6 hot air Typhoon…
Who would have expected that Wall Street would turn into Wally World…
~SEG
54, actually, they have a pretty well-established barter economy. No need for a bank when your currency can be stored in a silo.
WaMu branches/buildings look like dog shit. Run down 1970s Las Vegas casino look. Avocado green, pee yellow, and orange fuzzy wallpaper. Who the hell still has wallpaper you ask. WaMu thats who.
Bloomberg is playing this on Sirius Sat. radio
@57
“It is interesting to watch a lame duck power vacuum in DC develop into a Category 6 hot air Typhoon… ”
One of the best quotes I’ve read.
Both sides are to blame for this – this clusterfuck didn’t happen in the last 2-weeks. Both sides were asleep at the very expensive wheel of their yacht.
WE DON’T KNOW AND WE DON’T CARE
-HEDGEmony
that’s it?
All anyone ever needed to know about WaMu:
Don’t invest in financial companies who advertise on TV past 11PM EST unless you are watching Bloomberg.
Q: It was a competitive bidding process (whaaa?). How many other bidders were there? A: “We don’t know and we don’t care.”
They got off this call in a HURRY.
@57: Wall Street’s closed. Moose out front shoulda told you.
So i don’t know if you even know the answer to this question, but you said it was a competitive bidding process… how much did the other guys bid?
“I don’t know, and I don’t care”
exactly.
So…if you own shares in WaMu…should you sell?
34: $30 billion write down of assets is factored into the price paid-they are paying $1.5b cash for net assets that are on the books of WM at $31.5b. They get all the assets, assume as liabilities only the deposits and other secured stuff, no unsecured debt or equity gets paid. They are giving the assets a $30b haircut and then come up with the $1.5b net payment.
-IJR
Okay for those of us not econ majors but have (small) accounts at Wamoo (ahem)
Life as usual yes? we’ll get new debit cards and if we still use paper, checks. Credit cards will be re-issued under Chase? Branches will be still be open tomorrow?
Anything else we peons should know?
@65,
Ah Crap, the only moose I saw on vacation was a momma and her VW bug sized child, as she crossed the highway at her pace while I headed back to the airport… We went from 70 to about 7 mph… she never changed her pace…
I should have stayed another week in hindsight…
~SEG
I’m opening up a Chase account TOMORROW!
WORD UP!
For those of you who think the market opens down 400 or whatever, you didn’t see this coming? The market has not priced in a WaMu failure? Where has everyone been the last several months? Market will be down some, of course, because the economy / financial system is screwed, but WaMu is some sort of surprise?
@69 you’re fine.
@67 i hope you’re joking.
69 – Life as usual, bank is open tomorrow.
@ 69 – you are fine. You will soon bank with Chase (new colors in branches, check books and all). Even if Chase didn’t buy them (in theory) you would be fine if you were less than $100K. Let’s be honest, gov’t wouldn’t let the FDIC fund fail.
Thanks all, I appreciate the responses. Don’t have much but I like to know I am able to get my hands on it if I should need it.
“#69″
a) wtf – anderson cooper just associated wamu with wall street. oh, hellz no! I can’t believe he went there.
b) spode – call me back, got on the call late, having issues reading slide 15. if I’m reading this correct, the man of steel down in charchar is going to need to bulk up his loan loss reserve.
c) if you bought wamu shares because they were trading like options (in price at least), you just got yourself a nice short term loss…
New branches, does that mean my new branch is going to have carpet that wasn’t woven in 1970? Even possibly a computer system that allows me to find a REAL LIVE PERSON without throwing my telephone through the wall?
Now, how much of that buyout is going into redecorating?
@78 – at the end of the call, there was mention of “upgrading” some of the branches, I didn’t hear a specific dollar number.
is it me, or did others find it strange that whit-whit wasn’t on the call. is there a wrastlin’ match tonight out on long island? I thought for sure the dollar dominatrix would be good for at least one question (after-all, mayo! was on)
finally – I told you so beyatches! wm is officially a big goose egg. okay, now a momement of silence.
are the account interest rates going to change? or is that impossible to determine at this point?
Dickie Fuld and Kerry Killinger have been assigned greeter jobs at the Home Depot in Sooperdoosh, Utah
Dow futures -145. Nikkei -0.19%. No catastrophe.
@80 – stop. likely part of the “cost savings”, however, jpm isn’t going to come out and say that in this type of setting. for all the talk of “stable funding base”, people fail to realize that banks (like wamu) have to pay up for that “base” when they face unstable footing. so yes, you saving/checking rates are likely to drop in the near term, but your cd’s won’t change until they mature.
john macdonald is the bofa large cap banks analyst.
oh ep, arent you running a distressed fund now? how does this leave to time to post 10x a day on this blog?
Catastrophe will not come tomorrow, it will come Monday if it looks like there will be no deal. Now it just looks like we’re not gonna get a vote tomorrow.
JPMorgan is going to redecorate all the WaMu branches in East Los Angeles. I love it! Oh yeah, that will help. Install vaults?!
@85 – there will be a deal over the weekend, go long for the impending rally monday. stocks will fall tuesday/wednesday after the shorts (what’s left of them) clear out. sell into the bounce. don’t make money – print it!
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I love it!
Just imagine the FDIC guys and the bank examiners punching numbers into their HP12C calculators and say to themselves “We’re fucked! WaMu will break the FDIC!!! Call Hank and Ben”
Fatest M&A deal done in recent memory. All in one afternoon.
Jamie is the King of Wall Street right now. Followed by Lloyd of GS and Josef Ackermann of Deutsche.
72: I think the clusterfuck in DC has a lot more to do with expectations for tomorrow than this. WaMu not landing on the FDIC is good news.
Re the clusterfuck: To me it sounds like the Republicans in the House are trying to lard up the bill with some of their agenda, as the Democrats have already done.
@phobos – forgot to mention, welcome to the “listed” crowd. btw, shouldn’t you be on “the ladders” – $100k jobs for $100k people?
okay folks, nothing to see here, move along. back to your regularly scheduled programing…usc taking a beating and I need to close my tab at the bar.
cluz: what you doin up? I was taken to Swifty’s tonight. What a hoot. Boarding school food and tons of pearls. Great drinks though. GAnalYst
@GAnalYst – what do you mean still up? you know cluzo never sleeps (no comment about referring to myself in the third person)! swifty’s, what’s that all about, never been (and not sure what you mean by “pearls”). was about to head down to my friend’s bar down on baxter, but need to close my tab at the neighborhood spot first (and it’s raining). btw, “hoot”, how old are you?
how market works… i think this explains pretty much why we are in this mess…
http://nakedoption.blogspot.com/2008/09/how-market-works.html
swiftys: lex and 72; full of park ave ladies and gents and their trust fund offspring. Legendary. As you would expect, food is the secondary notion. Like eating at a country club. G
fact sheet for WaMu http://files.ots.treas.gov/73002.pdf
@cluzo
Thanks. Moved back to ‘hometown america’ — God knows what next. Probably Law School.
Ouch…EP’s in central time. That’s a serious blow to your credibility, bud.
35 – BOA is big in parts of the great plains. USBank is also big. You have a bunch of randomly mediocre ones (Pulaski, UMB, etc.)
@99
pulaski? You must be from St. Louis. They have like 3 branches. I have more deposits than they do.
So WaMu just sent me an email talking about their 4% rate on savings accounts. How long before JPM slashes that?
35 Big in midwest and plains is also Wells Fargo, which bought one of the two big banks in Minneapolis – either First Bank System or Norwest. The other was bought by US Bank.
cluz — you bring enough cash to settle that up?? And USC storming back here….
i’m not sure but i believe norwest actually bought wells fargo but kept the wells name and the san fran hq, while usbank bought firstar. both norwest and usbank were/are mpls based.
104 Think yr right there. Was mistaken cause it seems counterintuitive, but Norwest had a really good retail sales culture going that they exported to WF.
John McDonald is legit. He got fired from BAS when they cut everyone. Before that he was at UBS. I don’t remember where he landed, but definitely somewhere (obviously).
What is this about the other bidders? “I don’t know and I don’t care.” Sounds like a Dimon quote. Was Vikram Pandit asking the question?
@107– dimon said, when asked what the other bids were, “we don’t know and we don’t care.”
Now that big bad Carney is gone, can we go back to this:?
http://dealbreaker.com/2007/05/dealbreaker_after_hours_ladies.php
“i dont know and i don’t care”
fucking awesome
“i dont know and i don’t care”
fucking awesome
“i dont know and i don’t care”
fucking awesome
“i dont know and i don’t care”
fucking awesome
“i dont know and i don’t care”
fucking awesome
@fun – credit cards baby…some bars take more than cash. btw, since when does a little rain scare everyone away? a little slow out there for a thursday night (or maybe I wasn’t at the right spot). do you really think the the trojans will pull (it) out, er, off?
now back to video tape! just re-listened to the call. let’s focus on page 15 for a minute. if I followed correctly, they marked down the home equity portfolio down by $29.9 billion (or 17.0% of face), then they are reserving for an additional $30.7 billion (or 17.4%). all told, that’s a whopping 34.4% on just the home loan book.
the sub-prime piece was basically written off (81% mark-down). if you apply that same math to just the $122 billion pick-a-pay portfolio of watchovaya, and you have a hole of $41 billion on the low end to $98 billion at the high end. even if you take half of those numbers (presuming they have already reserved something) – on an equity base of $78 billion (market cap of $29 billion)…well you get the picture, it isn’t pretty. batten down the hatches, charchar, the hurricane is coming to your town.
@cluzo
Wachovia falling isn’t even a guess, it’s just a matter of when and how: MS left them on their asses.
20k retail brokers? Is that right? (I’m not looking it up..) Second largest to ML after the merger with St L’s favorite bastard child A.G. Edwards? Wonder what happens there..
cluz — I vote no on the Trojans. And USC won’t win either. Hoooooo.
And me thinks you were just at the wrong spot.
@fun – first wamu goes down, now usc falls. what’s next? oh yeah, wb! hopefully, it’ll be better tomorrow.
@phobos – I’ve been calling the for the fall of the magic 3 for some time (wm, wb and wfc). however, buffet’s halo seems to be keeping wfc safe. but I’ll take 2 out of 3. and you’re right, ms left them for dead, basically saying that they’d rather take their chances with some foreign cash than take on some bum mortgage ASSets from ca. when investors watch you go into the dr. and come out without a clean bill of health (ie. no deal), well, they assume you’re sick…this could be a repeat of leh.
Wamu fails, Bailout collapses. Prediction = another Friday massacre, but this time NYSE halts all trading. God, this is exciting.
Hank must be asking himself why he took this job and how can get out of it. life can be tough for type-A personalities.
@119,
I hear ya… pass me a beer…
Update to @116:
My predictions to future news headlines:
*Credit Suisse buys Wachovia.
*In a surprise move, Credit Suisse buys Remington Arms.
*20,000 Credit Suisse Retail Brokers attack Deutschebank headquarters in NYC, citing years of repressed hatred for `ze Germans`. Thousands slaughtered. One DB trader recalls: “It was horrific: I’ve never seen carnage to that degree before — except at family reunions.
*Bush declares Switzerland primary component in Axis of Evil, Germany applauds.
*The End*
@122 – you forgot the part where Credit Suisse merges with UBS to form a united Swiss Front in the Great War.
cluz, Phobos — of a surprise bofa spiral when everyone remembers they also bought countrywide. It’s like a doctor telling you the lung transplant you’re going to get has cancer and you think…..ehhhh let’s roll the dice.
If nyse induces a trading halt, we meet for beers and shots. New drinking game, a shot for every Dow stock down more than 10% and 1 second of chugging beer for every s&p 500 down more than 20% at the time of the halt??
@121, Confucius says, “to prevent hangover, stay drunk.” Skip the beer and stick to the hard stuff.
@121, Confucius says, “to prevent hangover, stay drunk.” Skip the beer and stick to the hard stuff.
@fun
Drinking at 11am? I’m good for that.
Wait, has anyone given consideration to CS picking up WB FOR the retail (banking/brokerage) side in the US? 89B is change for those assets, and if the US offers bailout money that could provide an insane incentive..
@fun – not sure I could hold that much liquid down. I’m in for drinks when the circuit breakers close the market (just hope it doesn’t happen before noon)…hope you bought non-perishables, this storm could last a while.
alright folks I’m outta here, and my y2k bunker and tin hat are still all set up so im good. Catch ya in the am.
@125 & 126,
I might have had to much to drink… I can see you twice…
guess I will go with the stay drunk version… I am watching the futures with a bit of interest…
I put on some new long put positions today… while those are still legal. Index and Blue Chip type trades…
Also, those options on the new currency ETFs are kind of fun, you can get a nice slug of leverage with no margin risk…
Tomorrow might be interesting in a couple areas of the old portfolio…
Stay safe out there… Its dangerous for old fucks with grey hairs and a memory or two of past cycles…
There is no play book for where we are now… no one has seen all of the IBs die in a mass margin call before in a single week.
There are so many WTFs happening now that its no long anything but surreal now. All we have to do is focus on not loosing money and staying green for the month and the YTD.
Volatility can be our friend…
~SEG
Who needs another drink…
Anyone want to trade a slug of Citi shares for a bottle or Cabernet?
Anyone want to trade a slug of Citi shares for a bottle of Cabernet?
I have a few hundred extra puts I should have sold a while ago… like oh say a week ago… lol… I had lowered my position down to 500 contracts or so… but still its annoying to watch them melt like they have… I keep saying, no shorts… its the only way…
serious… got puts for wine…
hi everybody
this is all shit, since all including BOA, JP Morgan, CITY groups are all under losses,
they just want to show the world that
they aquired losses just because they aquired these shits
hi everybody
this is all shit, since all including BOA, JP Morgan, CITY groups are all under losses,
they just want to show the world that
they aquired losses just because they aquired these shits. just take out your investments if you havent yet. you can see dow at 9000 levels with in an year.
Id there anyone who can tell me the answer to the following. If there is a liquidity problem then why can’t the Federal Reserve just put more money into the banking system. So long as it doesn’t cause inflation and exceed the GDP then it should solve the problems. This may sound simplistic but they are always printing money so just print a little more.
JP comes to the rescue again.
Next tres sec will be from JP. FACT!
@ 137 Is that you Jamie?
Post the rest of it. The part where Bess and EP cyber.
you girls are hilarious
update on the jpm follow-on offering, looks like they did better than the lloyd/buffet tie-up: $40.50, “only” a 6.8% discount to the previous close (vs. 8%). not horrible in this market.
@35 – Wells Fargo
@102 – Norwest and Wells Fargo merged, as already stated. US band bought First bank System… Wells Fargo purchased First Security Corp.
Сорри за оффтопик, не подскажете, где мона такой же симпатичный шаблон для блога взять?