Monday, November 12, 2007
e*trade heading to bankruptcy
if you have a savings account at wamu, NOW is the time to go down to the branch and withdraw all your money. the question remains open as to whether countrywide and other such originators will be similarly destroyed, but if it happens to wamu the chances are good.
one should now also include e*trade with wamu and countrywide. if you have assets in a bank account there, do yourself a favor and go close the account today. you're probably insured by the fdic up to $100,000 -- but do you really want to risk government competence on getting your cash out when you need it?
things haven't got this far yet elsewhere, but other public banks to watch include wachovia and (yes) citigroup. it seems unlikely to me that such large institutions would be allowed to fail -- more likely that they would receive direct capital injections from government -- but one can never quite say.