Sunday, September 21, 2008

WaMu: Talks Continuing

by Bill McBride on 9/21/2008 11:43:00 PM

From the WSJ: WaMu, Under U.S. Pressure, Scrambles for Deal or Capital

Washington Mutual Inc. pushed Sunday to decide its fate, continuing talks with potential buyers amid mounting pressure from federal regulators.

...some people close to the discussions hope a deal could be struck within days ...

A spokesman from the Office of Thrift Supervision ... said "we are aware of the situation and following closely"
I'm not sure if or how the Paulson plan will impact the negotiations.

A likely scenario is that a deal will be struck between a buyer and the FDIC, and then WaMu will be closed with certain assets going to the buyer, and the FDIC taking the toxic waste.