Search Results for: Washington Mutual

Washington Mutual Soars 350% On Bankruptcy Exit Plan

The failure of Washington Mutual Bank on September 28, 2008 was the largest banking failure in U.S. history. After nervous depositors starting withdrawing billions of dollars, regulators feared that a run on the Bank would cause a nationwide panic and decided to close the bank.  The FDIC, acting as receiver, sold Washington Mutual to JP […]

Washington Mutual – Largest Banking Failure In History Turns Out Well For Many But Shareholders Left Fuming

The collapse of Washington Mutual Bank on September 25, 2008 is officially listed as the largest banking failure in history by the FDIC. The collapse of Washington Mutual occurred after nervous depositors withdrew $16.7 billion in the ten days prior to the bank’s collapse.   Fearing a classic run on the bank situation and perhaps a […]

Banks Are A Financial Disaster For Both Shareholders And Depositors

In days gone by, shareholders of large banks viewed their investments as a source of income via dividends and potential capital gains via share appreciation.  In days gone by, depositors viewed banks as the safest place to harbor their hard earned dollars while earning a respectable amount of interest income. That was then, this is […]

Ridiculous Divergence Between Bank CEO Pay And Shareholder Returns

The wide divergence between bank CEO compensation and shareholder returns is an embarrassment to the capitalist notion of linkage between performance and pay. Shareholders of banking stocks have seen the value of their investments pulverized over the past four years as the banking industry struggles to recover from the lending excesses of previous years.  Shareholders […]

Banking Update – Daily Banking News

Welcome to Banking Update, a roundup of articles and news from around the Internet. Let’s go right to the links. The credit ratings of eight major banks were downgraded by Fitch. The eight global trading and universal banks (GTUB) that saw their credit ratings lowered were Bank of America, Morgan Stanley, Goldman Sachs, Barclays, Credit […]

Banking Update – Daily Banking News

Welcome to Banking Update, a roundup of articles and news from around the internet. The FDIC settles a civil lawsuit against Washington Mutual executives for a fraction of the $900 million originally sought.  Virtually none of the settlement money came from the three WAMU executives but rather from insurance policies covering professional misconduct.  The three […]

157 Bank Failures In 2010 Highest Since 1992 – Why Next Year Will Be Worse

December 31, 2010 – Banking failures for 2010 were at the highest level since 1992 as 157 financial institutions collapsed, the victims of collapsing real estate prices, a weak economy and poor lending decisions. The depth and breath of the current banking crisis makes the savings and loan crisis of the late 1980’s and early […]

$2.3 Trillion In Uninsured Bank Deposits Cause For Concern

December 22, 2010 – The latest FDIC Quarterly highlights the ongoing concern about the FDIC’s ability to protect depositors in the event of a large number of banking failures.  Without the explicit backing of the FDIC by the US Treasury, the FDIC lacks the resources to adequately protect the $5.4 trillion in deposits that it […]

FDIC Says Dodd-Frank Act Ends “Too Big To Fail” Era

September 3, 2010 – FDIC Chairman Sheila Bair, in testimony before the Financial Crisis Inquiry Commission discussed how future systemic risks can be better managed and reduced under provisions of the Dodd-Frank Act.  Chairman Bair also said that new liquidation authority under the Act is a fundamental factor that will allow the U.S. to end […]

FDIC Blames Banking Failures On Other Regulators In Bid For Expanded Powers

July 14, 2010 – Banking regulators agreed to give the FDIC expanded authority to conduct examinations of insured depository institutions that the FDIC does not directly supervise, under a new memorandum of understanding (MOU).  The FDIC’s position is that it should have more than “backup authority” and be allowed to take a more active on-site […]