WaMu failed

The largest banking failure in US history happened a few hours ago when the Office of Thift Supervision took control of the Bank.  J.P. Morgan Chase purchased the banking assets for $1.9 billion dollars.  To quote the AP: “One positive is that the sale of WaMu’s assets to JPMorgan Chase prevents the thrift’s collapse from depleting the FDIC’sinsurance fund.” (source).  The new JPMorgan Chase is now the 2nd largest bank in the United States.

As a customer of WaMu (or rather, I guess, former customer), WaMu customer support has gotten horrible over the last several months and I think they would have failed at some point because of it.

I believe that this whole mess has been the end game that has been going on behind the scenes for many years…

Update: 11:05 pm – I believe that this bank failure was due to the “bailout” falling apart tonight.  The powers that be decided that the Senators needed some “motivation” to get something passed.  What a better way to do that than to have the largest bank failure in US history happen the day before the deadline that Secretary Paulson said this bailout had to be passed by or else the entire economy would collapse…  Mark my words, this “bailout” will pass at least one chamber tomorrow, if not both, in time for John McCain to triumphantly arrive at the debate at the University of Alabama…

WaMu Online Savings Account

I’ve always believed that it is important to have money easily accessible for a rainy day, great investment opportunity, or some other need. However, savings accounts, which have an average interest rate of about .5% – 1% APY, makes it hard to want to save money. When one factors in that inflation is about 2% a year, at the end of the year, you have less buying power than you did at the begining of the year. As a result, I have never been very good at putting money in a savings account, even though I believe that it is important.

My beautiful sweetheart, on the other hand, is really good at trying to keep money in our savings account, of which I am very grateful. A few months ago, we found that Citibank offers a 4.75% APY savings account if you open online. We then found that Washington Mutual offers a 5% APY savings account if you open it and a “WaMu Free Checking” account online. Earlier this month, we opened them up at WaMu. Since our business checking accounts are with Washington Mutual and with such a great savings account rate, it made it easy to want to use them. And also, since I own a few dollars of stock in them, hopefully they can loan out this money and make a lot of money (but not from me) and then I can get a nice dividend.

WaMu Online Savings Account

I’ve always believed that it is important to have money easily accessible for a rainy day, great investment opportunity, or some other need. However, savings accounts, which have an average interest rate of about .5% – 1% APY, makes it hard to want to save money. When one factors in that inflation is about 2% a year, at the end of the year, you have less buying power than you did at the begining of the year. As a result, I have never been very good at putting money in a savings account, even though I believe that it is important.

My beautiful sweetheart, on the other hand, is really good at trying to keep money in our savings account, of which I am very grateful. A few months ago, we found that Citibank offers a 4.75% APY savings account if you open online. We then found that Washington Mutual offers a 5% APY savings account if you open it and a “WaMu Free Checking” account online. Earlier this month, we opened them up at WaMu. Since our business checking accounts are with Washington Mutual and with such a great savings account rate, it made it easy to want to use them. And also, since I own a few dollars of stock in them, hopefully they can loan out this money and make a lot of money (but not from me) and then I can get a nice dividend.