Home > Blogs > Terry Miller > Terry's Blog

Are we paying attention?

By Terry Miller

Real Estate Broker/Owner with Miller Homes Group

August 15, 2009 05:45 AM

The largest U.S. bank failure ever came last year: Seattle-based thrift Washington Mutual Inc. fell in September, with about $307 billion in assets. It was acquired by JPMorgan Chase & Co. for $1.9 billion in a deal brokered by the FDIC.

If they were true assets then why did the FDIC sell them for less than 3/4 of 1% of the actual value. Is this a good use of our tax dollars?

I wonder if we offered less than 1% of the value for an FHA foreclosure if FHA would take it?

Lets say for example the home has a value of $200,000 and we offer $1800.00 for it, by the standard set by the FDIC, they should take it, right?

Yes, I know it's sounds stupid, but why is it good for the big guys and not for the citizenry?

http://agentrecruit.com

http://kwtyler.com

Comments(5)

Comment

Show All Comments

Sort:

Kate Kate

San Diego, CA

Terry, I tried to answer your question but I think by you asking, you've already made the point.

Thanks for a Saturday thought provoker, as always. :) Kate

Aug 15, 2009 06:30 AM

Paul S. Henderson, REALTOR®, CRS

Fathom Realty Washington LLC - Tacoma, WA

South Puget Sound Washington Agent/Broker!

People who worked at WAMU were caught of guard also. It was a deal done behind closed doors as is much, in today's political climate!

Aug 15, 2009 08:39 AM

Kent Anderson

Coldwell Banker Resort Realty, Sandpoint, Idaho - Sandpoint, ID

from Schweitzer to the Lake

Terry - As you know, we have entered the "New World" where nothing makes sense and we can't believe ANYTHING we read. Orwell had this "wired" in the 60's. Now we're in the middle of it.

Aug 15, 2009 05:17 PM

Mark MacKenzie

Phoenix, AZ

There is a double standard here, but it goes deeper. When the government relaxed mark to market accounting rules a couple of months ago it allowed banks to have stronger balance sheets and less of a need for capital reserves. But at the same time, as you point out, this acquisition shows the real value of these assets.

Aug 16, 2009 03:31 AM

Kim Curran

RE/MAX Unlimited of Northern Virginia - Bristow, VA

I like your plan to pay 1%. Can I do it with my mortgage too?

Aug 16, 2009 08:24 AM

Are we paying attention?

Comments(5)

Terry Miller

Service Areas

Real Estate Resources

Recent Posts

Additional Information