Washington mutual crisis?

Question

Is there a current crisis with this bank? what does this mean for me? And what should I do???

Answer 1

you shouldn't worry to much, the FDIC guarantees your deposits up to $100,000.  If you have more than 100,000 with one bank you should spread it out to other banks. you are insured 100,000 per bank.  I personally dont keep much in banks i have a few in investments and i keep some cash available.  

I worked at a bank and i know that banks have limits on how much money they can keep in a branch at any one time, and typically its not as much as you would think.  So if you where to withdraw a large quantity at one time, odds are the bank would not have it available for you at that moment and would ask you to wait a few days while they order the cash. by large amounts it can vary by bank. ive been in situation where we couldnt cash out for items as low as $1000.!  but thats on occasion, lets say it was a payday and they didnt order enough cash.

so just remember if you want to withdraw quantaties of lets say $4,000 or more the bank MIGHT not have it. thats why the saying, dont keep all your eggs in one basket.

Answer 2

I would disagree that they are as solvent as any other bank.  Their "capital ratio" is worse than many other banks due to the amount of losses that they have taken on their mortgage portfolio.  This has been reflected in their stock price which has dropped into the single digits.  Time will tell if they are able to weather the storm of the bad lending decisions that they made.  if you have less than $100,000 in this bank, don't worry.  If you have more and you are the only account holder, move the excess immediately to another FDIC insured bank.  if you are a stockholder, it is probably too late to sell the stock.  It may rebound slightly, but it will take a long time to recover to where it was, if at all.

Answer 3

~~Their stock is low due to the mortgage crisis but their banking side has shown a profit. I think they are as solvent as any other bank right now. If you want assurance your money is safe, just never keep more than $100,000.00 in any one company. I would feel perfectly safe with my money being in Washington Mutual.