Rob’s Blog

As a major symptom of a weak economy, Washington Mutual bank makes history as the largest bank failure in history. It’s said that one of the final fatal blows to the bank was over 18 billion dollars in withdrawals the day before as people pulled their money out in a panic. As a last minute save, JPMorgan came in and snatched up WaMu for a bargain at $1.8 billion.

 As a result, my bank is now JP Morgan Chase. Here’s the message I received when I first logged in today:

 WaMu Customers, welcome to JPMorgan Chase!

We’re proud to welcome you to one of the nation’s largest banks.
As of September 25, 2008, all WaMu customer deposits are now deposits of JPMorgan Chase, one of the strongest financial institutions in the world.

WaMu customer deposits — including checking accounts, savings accounts and certificates of deposit — remain insured by the FDIC and are now also backed by the strength and security of JPMorgan Chase. JPMorgan Chase has more than $2 trillion in assets and is America’s #1 bank in deposits.

Our combined company will offer superior banking convenience — over 5,400 branches and 14,000 ATMs in 23 states.

As you an imagine, this is a great opportunity for highly liquid banks to aquire struggling banks at a fraction of their market price. And that is exactly what’s happening. We’ve got CitiCorp and Wells Fargo fighting for the carcass of Wachovia while Mitsubishi bank, the world’s largest bank, purchasing a 20% share of JPMorgan Chase.

Yesterday I had a very adrenaline-pumped afternoon as my street came within inches of flames from the silverado canyon fire. All morning and afternoon we were in what seemed like war zone as “thumpers” flew overhead dumping water on the fire and firetrucks from all over orange county came to assist against the blaze that threatened several hundred homes in the middle of Foothill Ranch, CA. For a good few hours Esternay Dr was the front line defense against it with 10-15 firetrucks and dozens of firefighters running up and down the street. The afternoon reached a climactic moment as my neighbor’s backyard caught fire and flames reached over the top of his home. While we were convinced his home was done for, the fire crew (along with my dad) moved in quickly to save the home and guide the fire back down the small valley it traveled through. Check out the following video clip my friend Chris McDonald took from my driveway!

I was extremely impressed by the firefighters’ speed in dealing with the fire. The neighborhood is very thankful and minutes after the save, children were giving the firefighters cold water and snack bars for their journey as they continue to battle the blaze today.