Valley Reaction to WaMu Collapse

September 26, 2008 6:46:02 PM PDT
Washington Mutual Customer Victor Padua said: "Because I don't think it's going to get better. I think it's going to get worse." Armed with his check book, longtime Washington Mutual customer Padua came here to withdrawl all of his money from the bank. Padua said: "It's more secure at home. One day you come here and they tell you, your money is not there no more." 24 hours ago, Washington Mutual was the country's largest savings bank. Once it collapsed, Federal Regulators seized control of its 300-billion in assets and sold them to JP Morgan Chase. The price tag, nearly 2 billion dollars. Washington Mutual has nearly two dozen branches around the valley with thousands of customers.

One local financial advisor says nearly all of those customers have nothing to fear. Financial Advisor Sandy Brown said: "All of those assets, checking accounts, banking accounts, CD's, those were purchased by JP Morgan. They're in a much better situation than they were yesterday. So, it's really a sigh of relief."

Customers like Jesse Rojas, though, say once he pays off his mortgage, he's done with Washington Mutual. He calls the crisis on Wall Street and Main Street...scary.

Washington Mutual Customer Jesse Rojas said: "It really is, because if the biggest banking institutions in this country are having problems. How much security can you really feel that you have in terms of your own banking accounts."

As lawmakers on Capitol Hill try to avoid another major bank collapse, financial advisor Sandy Brown says whether its banking or playing the stock market, a bailout plan can't come soon enough. Sandy Brown said:"I hope it's going to give more faith in financial system. I'm not a big fan of spending tax dollars, but I think it will help the overall United States people, that's a good thing."

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