Two weeks ago, I bought 125 shares of Washington Mutual (WM) at $2.00 apiece. Back then I was hoping that somebody (like JP Morgan Chase) would quickly buy the thrift to avoid a failure. WaMu stock even moved over $4.00 briefly last Friday when the bailout plan was first announced. I didn’t sell my shares when I could have made 100% profit and the largest loans and savings provider eventually failed as customers rushed to withdraw $16.7 billion from the bank since September 15th despite the bank has repeatedly said that it has enough capital. It’s funny that just three days ago, on September 22nd, WaMu announced that it increased the interest rate of its online savings account to 4.00% APY, the highest rate out there, in an apparent desperate move to stop the run on the bank. But their latest attempt also failed miserably.
Well, WaMu has been taken over by the FDIC and its deposit was acquired by Chase as expected. Though depositers are protected, shareholders are left with nothing.
And I lose $250 with my bet on WM
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