> The OTS seized the bank and placed it into receivership with the FDIC.
> Howeveer, I think the OTS was under immense pressure from Paulson and
> Bair to seize WaMu. They never gave any written notice to WaMu that
> they needed to increase liquidity. The fact that the FDIC/OTS violated
> their very own rule on this issue is just one of the glaring problems
> with the seizure.

> On Jul 3, 5:53 pm, PP Y <papaya2...@gmail.com> wrote:

> > Why is FDIC not being held accountable for its failure in supervision
> > but praised for its efficiency in shutting down banks? Why is FDIC
> > practically using our tax money to share losses and wiping out
> > shareholders because it failed its job to supervise properly?

> > "Regulators shut down the John Warner Bank of Clinton, Ill.; the First
> > State Bank of Winchester in Winchester, Ill.; the Rock River Bank of
> > Oregon, Ill.; the Elizabeth State Bank of Elizabeth, Ill.; the First
> > National Bank of Danville in Danville, Ill.; the Founders Bank of
> > Worth, Ill.; and Millennium State Bank of Texas, based in Dallas."http://www.nytimes.com/2009/07/03/business/03banks.html?ref=business

> > "The FDIC and The First National Bank of Beardstown entered into a
> > loss-share transaction on approximately $20 million of The First State
> > Bank of Winchester's assets."http://www.istockanalyst.com/article/viewiStockNews/articleid/3330752

> > All these banks except for First National Bank fell under FDIC
> > supervision (Class NM)
> > *NM = commercial bank, state charter and Fed nonmember, supervised by
> > the FDIC*http://www2.fdic.gov/idasp/main.asp

> > This is the first page of the latest failed bank list on the FDIC
> > website; 11 out of 20 were under its supervision.http://www.fdic.gov/bank/individual/failed/banklist.html

> > Mirae Bank (NM) June 26, 2009
> > MetroPacific Bank (NM)
> > Horizon Bank (NM)
> > Neighborhood Community Bank
> > Community Bank of West Georgia
> > First National Bank of Anthony
> > Cooperative Bank (NM)
> > Southern Community Bank (NM)
> > Bank of Lincolnwood (NM)
> > Citizens National Bank
> > Strategic Capital Bank (NM)
> > BankUnited, FSB
> > Westsound Bank (NM)
> > America West Bank (NM)
> > Citizens Community Bank (NM)
> > Silverton Bank, NA
> > First Bank of Idaho
> > First Bank of Beverly Hills (NM)
> > Michigan Heritage Bank
> > American Southern Bank (NM) April 24, 2009

> > Why would anyone want to buy any bank? As long as our regulators don't
> > follow rules nobody would want to deal with the government. Sheila
> > Bair now says these private investors must maintain a tier I capital
> > ratio of at least 15% but back when Wamu had a tier I capital ratio of
> > 8.4% (yes not as high as 15% but a pretty good number at that time)
> > she still seized it.

> > "The FDIC today released a memorandum designed to provide guidlines to
> > private equity firms looking to own banks.  A summary is (emphasis
> > mine):

> > Pursuant to the proposed policy statement, the Investors’ holding
> > company will be expected to provide for the capital support of the
> > acquired or de novo depository institution through a strong initial
> > capital contribution – maintaining a minimum 15 percent Tier 1
> > leverage ratio for a period of at least 3 years. Staff believes that
> > up-front capital protection for the depository institution would
> > provide an effective cushion that could have a lasting impact...

> > Now, some might recall that banks were judged on their Tier 1 ratio
> > once upon a time.  Regulators then swung to tangible common equity and
> > settled into tangible capital.  But now that the danger has passed and
> > all is better (right?), the FDIC swings back to tier 1 and well
> > capitalized (recall that WaMu and WB were "well capitalized when they
> > were defacto siezed)."http://seekingalpha.com/instablog/153397-boneyard/11078-fdic-shepardi...

> > FDIC now has the power to borrow up to $500 billion, and is that not
> > tax money? Bair's original proposal was to collect only $27 billion
> > from special assessment fees this year so how long do you think it
> > will take FDIC to pay back whatever it borrows? Its DIF ratio
> > continues to plummet; as of last quarter, it was at 0.27%. That means
> > for every $100 you deposit you can really only get $0.27 back.

> > Wait, did I forget to mention FDIC is also backing over $300 billion
> > of bank bonds for Goldman Sachs etc? Its great GS is paying back TARP
> > but why should it give out record bonus this year when the US
> > government is still backing its bonds?

> > *imho*