- WAMU was UNFAIRLY seized by its regulator,
- NOT protected from short sellers in July 2008, as hundreds of other banks were;
- raised $10B in new capital in 2008, NOT asked by OTS, its primary regulator to raise more,
- scaled back sub prime originations market share by over two thirds since 2005, from 11% to 4%,
- was EXCLUDED from the hundreds of phone calls and meetings in summer of 2008 between US Treasury and Federal Reserve officials and Wall St banks,
- was seized before:
- a) the FDIC's bank deposit insurance increase to $250k (in the trillions),
- b) TARP funds (hundreds of billions) and
- c) indirect bank capital markets support programs (Trillions) and
- d) the FDIC's TLGP (low cost, FDIC insured bank debt issuance, hundreds of billions) program.
- and that WAMU was well positioned to work its way through the financial crisis
- and that WAMU was not treated the same as other financial institutions
- WAMU "oxygen" of liquidity was choked off
March 2, 2010 NY Times reported the economic downturn was NOT as severe as expected; in fact the bailout has softened the blow in NY - read it here http://www.nytimes.com/2010/03/03/nyregion/03recession.html?scp=1&sq=in%20new%20york,%20bailout%20softens%20blow&st=cse
YES Mr Kaufman -Wall St banks were treated differently (read better) than WAMU - WHY?
CAN YOU SAY - NEW YORK FEDERAL RESERVE DISTRICT MEMBER BANKS - where clearly membership has its privileges.
POSTED APRIL 13, 2010 12:18 PM LOS ANGELES TIME.