I don’t know how many times I can use the word suitor on this blog but as the rumors swhirl and the Wall Street giants teeter on the brink of extinction suitor is probably the best description of the remaining big depositories who are poking around to see if any potential brides have a limited […]

From Barry at The Big Picture:

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Market Watch is reporting Washington Mutual is for sale via an auction being conducted by Goldman Sachs. The shopping began a few days ago according to sources at Goldman.
This is the only thing they could do, or else they will go bankrupt, leaving the nation’s largest S&L in the hands of the […]

The Fed is looking to avoid the inevitable bankruptcy and receivership of the nation’s largest S&L, Washington Mutual, by playing matchmaker this morning. Now that they’ve gone and loaned AIG $85 billion, the government knows it will be on the hook for a huge chunk of cash when WaMu folds. So, like that […]

In light of the continuing degredation of the US credit market and the recent collapse of Lehman Brothers and AIG (not to mention the Merrill Lynch sale) Morgan Stanley is considering whether it will need to merge with a deposit-taking bank to remain afloat.  Many analysts fear that the AIG government bailout is a sure […]

Breaking (more as it develops):
AIG will turn over control of the company to the US government in exchange for an $85 billion loan to avoid bankruptcy tomorrow.
From Bloomberg:
American International Group Inc., the biggest U.S. insurer by assets, has accepted a deal to turn over control in exchange for an $85 billion loan from […]

Updated: Read these chilling words from Paul Kedrosky’s Infectious Greed to get a sense of the enormity of the AIG problem. You can read the rest of his post here.
Take your second deep breath of the week. We are at a cusp tonight, with a Treasury deal apparently on the table to provide […]

The Federal Reserve held interest rates steady at 2%, rebuffing some talk of another interest rate cut in light of the recent meltdown of Lehman and AIG. This was the first time in a year the vote by the FOMC was unanimous.
Here’s the statement:
The Federal Open Market Committee decided today to keep its target […]

From Debbie:
OK, so I wasn’t expecting a lot of praise with my first post here on Blown Mortgage and I’m fine with that.
Several, if not all, of the comments were far from welcoming. One essentially said that I had no clue about what I was writing, and yet another that I do not understand the […]

AIG continues to get hammered as they face continued credit rating downgrades. The stock is off another 15% today.  The recent downgrades mean that the battered company may need an additional $14.5 billion in collateral to meet its obligations.  Additionally, the $20 billion promised to the company by the NY Deptartment of Insurance won’t be […]