{"id":4675,"date":"2008-09-26T11:15:27","date_gmt":"2008-09-26T18:15:27","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4675"},"modified":"2008-09-26T11:05:39","modified_gmt":"2008-09-26T18:05:39","slug":"some-details-on-the-wamu-buyout","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4675\/some-details-on-the-wamu-buyout\/","title":{"rendered":"Some Details on the WaMu Buyout"},"content":{"rendered":"<p>In a comment to an earlier post I was sent the link to JP Morgan Chase&#8217;s Investor Presentation regarding their purchase of WaMu.\u00a0 This was courtesy of <a title=\"Bob Wilson\" href=\"http:\/\/www.homesalessandiego.com\/\" target=\"_blank\">Bob Wilson<\/a>, whom readers may know for his many thoughtful comments here on BHB.\u00a0 I highly recommend reading it by clicking <a title=\"JP Morgan WaMu analyst presentation\" href=\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2008\/09\/jpm-wm-analyst-presentation.pdf\" target=\"_blank\">here<\/a>, but in the mean time &#8211; some of the highlights:<\/p>\n<ul>\n<li>They are taking over the deposits and leaving the liabilities.\u00a0 This helps the FDIC out tremendously but I can&#8217;t help thinking of the great line from <a title=\"The Godfather\" href=\"http:\/\/www.imdb.com\/title\/tt0068646\/\" target=\"_blank\">The Godfather<\/a>: &#8220;Leave the gun, take the cannoli.&#8221;<\/li>\n<li>They plan to exit all non-bank originated retail lending.\u00a0 Say good-bye to most of WaMu&#8217;s products.<\/li>\n<li>They are most excited by WaMu&#8217;s large presence in California.\u00a0 According to their projections CA sees the most population growth, followed by Texas and then Florida.\u00a0 This is great news for these hard-hit areas.\u00a0 Arizona sees about half the growth rate and the northeast and rust belt continue their problems with fundamentals.\u00a0 (I believe we are looking at a very stratified housing market for some time to come.\u00a0 There has never been a <em>national<\/em> housing market and such a concept is becoming harder to even <em>say<\/em> with a straight face.)<\/li>\n<li>JP Morgan Chase paints a pretty rosy picture of potential earnings.\u00a0 They look at their credit card and investment sales in-branch and overlay that onto all the WaMu branches.\u00a0 But I don&#8217;t see the same types of customers at WaMu as I do at Chase and I have a hard time believing Chase will get the same level of commercial banking profits from them.<\/li>\n<li>Expected cost of this acquisition is $1.5 billion now and another $.5 billion over the next couple of years.<\/li>\n<li>They will keep WaMu&#8217;s low risk, profitable lending programs in the multi-family niche which should be welcomed by investors who are currently getting shut out of the market by underwriting constrictions.<\/li>\n<li>Finally, they project current-pricing-to-trough depreciations for CA, FL and the US as a whole.\u00a0 The numbers are interesting, but what&#8217;s more interesting are the headings.\u00a0 They project losses based on three scenarios: <strong>Current Estimates<\/strong>, <strong><em>Deeper<\/em> Recession<\/strong> and <strong>Severe Recession<\/strong>.\u00a0 Apparently the analysts feel we are <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4675\/some-details-on-the-wamu-buyout\/#more-4675\" class=\"more-link\">Read more<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In a comment to an earlier post I was sent the link to JP Morgan Chase&#8217;s Investor Presentation regarding their purchase of WaMu.\u00a0 This was courtesy of Bob Wilson, whom readers may know for his many thoughtful comments here on BHB.\u00a0 I highly recommend reading it by clicking here, but in the mean time &#8211; [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-4675","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4362,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4362\/washington-mutual-the-spiral-of-death\/","url_meta":{"origin":4675,"position":0},"title":"Washington Mutual: The Spiral of Death","author":"Cooksquared","date":"September 12, 2008","format":false,"excerpt":"Many people will be surprised to know that \"The Spiral of Death or Death Spiral\" is actually a financial term and not just reserved for the latest sci-fi film.\u00a0 Ok, maybe its not approved by FASB, but most people in the industry have heard the term once or twice.\u00a0 For\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4669,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4669\/the-mortgage-dance-continues\/","url_meta":{"origin":4675,"position":1},"title":"The Mortgage Dance Continues","author":"Sean Purcell","date":"September 26, 2008","format":false,"excerpt":"I posted the following back in July and with WaMu going down it seems like a good time to bring it back to the top.\u00a0 If there is any confusion as to who is going down and why, make a point of clicking the link on the \"accounting debacle\".\u00a0 It\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4667,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4667\/keep-your-hands-feet-inside-while-the-ride-is-in-motion\/","url_meta":{"origin":4675,"position":2},"title":"Keep Your Hands &amp; Feet Inside While the Ride is in Motion","author":"Sean Purcell","date":"September 25, 2008","format":false,"excerpt":"The bailout fails AND WAMU finally gives up the ghost.\u00a0 It is going to be an interesting Friday!","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3201,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3201\/and-wachovia-completes-the-gang-of-three\/","url_meta":{"origin":4675,"position":3},"title":"And Wachovia Completes the Gang of Three","author":"Sean Purcell","date":"June 3, 2008","format":false,"excerpt":"Wachovia board members have forced CEO Ken Thompson to retire\u00a0\u00a0and\u00a0Realtors should be popping champagne corks all over the nation.\u00a0\u00a0Why?\u00a0\u00a0Because Wachovia is the final reckoning of the Gang of Three\u00a0and this may very well signal the bottom of the market.\u00a0 Disclaimer #1: I usually write posts and comments backed by statistics.\u00a0\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3355,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3355\/the-mortgage-dance-ez-just-follow-the-bouncing-ball\/","url_meta":{"origin":4675,"position":4},"title":"The Mortgage Dance? EZ: Just Follow The Bouncing Ball.","author":"Sean Purcell","date":"July 14, 2008","format":false,"excerpt":"And the beat goes on...\u00a0 but sometimes it helps\u00a0to have that little bouncing ball show us\u00a0exactly what lyric we are singing this week.\u00a0 All together now: Today the Fed suprised no one by\u00a0opening the discount window to ailing siblings: Fannie Mae and Freddie Mac.\u00a0 Together they\u00a0hold more\u00a0than half of all\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2550,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2550\/helocs-frozen-preserving-american-homeownership\/","url_meta":{"origin":4675,"position":5},"title":"HELOCs Frozen:  Preserving American Homeownership","author":"Brian Brady","date":"January 29, 2008","format":false,"excerpt":"Preserving the American Dream is a position paper authored by John Dugan, Comptroller of the Currency. \"Preserving American Home Ownership\" is the \"initiative\" rumored to be pondered by Countrywide Home Loans, IndyMac Bank, and Washington Mutual. N.B.: The following is rumor; something that was \"heard on the street\". Jeffrey Smith\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4675"}],"version-history":[{"count":11,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4675\/revisions"}],"predecessor-version":[{"id":4690,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4675\/revisions\/4690"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}