Swimming with the Razorfishes

Sunday, September 28, 2008

WaMu

I've been reading quite a bit tonight, hoping to get more detail on the quite-possibly unprecedented seizure and turnaround sale of Washington Mutual assets to JPMorgan Chase.

I expected to read some clearer statements regarding why the FDIC chose to execute this transaction on Thursday, rather than on a Friday evening. Why the CEO was (apparently) in mid-air, flying back to the headquarters. Why the FDIC chose to seize the bank when it was not (by any measure I've seen) insolvent, just illiquid.

I don't think there was any kind of conspiracy here, but without clear indication why stock and bondholders were wiped out there will be lawsuits for years and the FDIC will look out of control.

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