Fitch cuts WaMu (Washington Mutual) long-term issuer default rating to junk

[Pale Blue Dot]

Source: Marketwatch

SAN FRANCISCO (MarketWatch) -- Fitch Ratings downgraded Washington Mutual Inc.'s long-term issuer default rating to B- from BBB- because of the increased possibility of a partial sale of the bank. Fitch ratings below BBB are considered "junk" grade. Fitch placed the ratings on an "evolving" review. "The multiple notch downgrades reflect the heightened uncertainty associated with WaMu's debt obligations in light of the difficult market conditions and increasingly limited options to bolster capital," Fitch said in a statement.

Read more: http://www.marketwatch.com/News/Story/Story.aspx?guid={32F6F3DA-45B6-4103-AE5F-2ED583AFFDE8}

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As I posted in the McCain debate thread, I think that it's very possible that Washington Mutual will fail on Friday. If it does, the news will hit right before the debates are set to begin. This would put McCain in a TERRIBLE position. He wants the bailout by Friday, I think, in order to save WaMu.

[msongs]

1. a self-fulfilling prophecy AND deliberate attempt to make a situation worse. wonder how much $$

people at this fitch place (and their friends) stand to make from this rating change?

Msongs
www.msongs.com/political-shirts.htm

[Mojorabbit]

2. This is not unexpected

and I believe it is the reason they wanted the bailout this week. This will cause a panic in the markets.

[SahaleArm]

8. WaMu is junk

Any bank offering 5% CD's is severely under capitalized and should be seized immediately before any more depositors get snookered.

[halobeam]

3. I KNOW preznit was in NYC today.... saw blocks after blocks shut down..etc... BUT

Washington Mutual wasn't near it, and I saw from one corner of the block to the other, parked police cars in front of it. It struck me, like... why are they here, it's not part of the UN blocked streets...???

This was at 3:30 this afternoon. Things that make you go hmmmm.

[moonlady0623]

4. What does this mean to the little people

like me who have $2000 in savings and $1000 in checking at WaMu? Do I leave it there or make haste to get it out?

[cabluedem]

5. I'd find a new bank...fast. nt

[John Q. Citizen]

6. It won't effect you at all. Your deposits are federally insured.

[Citizen Kang]

7. you are insured by the FDIC

your money is insured, but you might have trouble accessing it for awhile. I would find a new bank tomorrow. You can even start a new account with a "safer" bank like B of A or Chase online right now.

[Spouting Horn]

9. Who knows how much

longer Bank of A is going to be around.

One can only take on so many losers and keep afloat.

[Doctor Cynic]

11. Then Bank of China buys them.

[Hissyspit]

10. What about if you have a credit card with them?

I have two lines of credit with them, but the balances are at zero.