WaMu Failure Could Trigger Extension of Deposit Guarantees
by Tom on September 15, 2008
in Market Musings, banks
Washington Mutual had $143bn in insured deposits on June 30 – about three times the size of the deposit insurance fund, but less than half of its $307bn assets
naked capitalism: WaMu Failure Could Trigger Extension of Deposit Guarantees.
Okay, that’s a scary number. Let me spell it out more clearly:
If WaMu goes under and the FDIC has to pay up for 50% of their insured deposits, that would wipe out the entire balance that the FDIC has right now.
As of June 30, WaMu has over $150 billion in uninsured deposits. That’s a huge loss for their customers if they don’t make it.
The other risk in this is if the problems at Washington Mutual spark a run on Washington Mutual and also on other banks which could add problems for others.
Hang on to your hats…..
