Comments on: JPMorgan Chase buys troubled Washington Mutual(WaMu)

By: What happens to a company’s stock if they are bought out? | Personal Finance Questions and Answers for Young Professionals

Fri, 03 Oct 2008 13:22:03 +0000

[...] JPMorgan Chase buys troubled Washington Mutual(WaMu) Wells Fargo Trumps Citigroup’s Offer to Buy Wachovia [...]

By: sergik12

sergik12 — Wed, 01 Oct 2008 12:56:28 +0000

Yah this is why.

SAN FRANCISCO (MarketWatch) — Moody’s Investors Service on Tuesday lowered the ratings of Sovereign Bancorp (SOV:Sovereign Bancorp Inc
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Last: 3.95+1.62+69.53%

4:02pm 09/30/2008

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SOV 3.95, +1.62, +69.5%) to Baa2 from Baa1 and its lead thrift Sovereign Bank to Baa1 from A3. All ratings have been placed under review for possible further downgrade. The downgrade was based on the sizable charges that the company will incur from its exposure to Fannie Mae and Freddie Mac preferred stock as well as the loss taken on the sale of its $750 million CDO portfolio. “Additionally, Sovereign remains exposed to a number of problematic asset portfolios that could result in further heightened credit costs. These charges will negatively affect Sovereign’s capital position. Additionally, as a result of these charges, we expect the holding company will downstream capital to the thrift, decreasing parent company liquidity,” Moody’s said.

although they did replace the CEO and that is good news I think the stock is up in premarket

By: pbucelwicz

pbucelwicz — Tue, 30 Sep 2008 20:38:41 +0000

Sov is not looking good…

http://finance.google.com/finance?q=NYSE:SOV

By: pbucelwicz

pbucelwicz — Mon, 29 Sep 2008 19:06:01 +0000

Yep, I could see that coming because Wachovia was in the same boat as wamu.

Look out for Etrade :-/

By: sergik12

sergik12 — Mon, 29 Sep 2008 18:22:18 +0000

Wachovia is next. Now who is next I dunno