LARGEST BANK COLLAPSE In HISTORY

Discount Window Borrowing Jumps to $262 Billion full story

"During another turbulent week on Wall Street, lending through the Federal Reserve Board's discount window skyrocketed to $262.3 billion on Wednesday, thanks to new lending programs unveiled during the week.
It was the second record in as many weeks and more than double from the previous high water mark.
The heaviest lending was centered on the primary dealer credit facility, which was established in March to give investment banks access to the discount window. The Fed eased terms on the facility on Sunday when it approved requests from Goldman Sachs and Morgan Stanley to convert to bank holding companies.
The Fed said Goldman and Morgan, the last of the major investment banks, could borrow on the same terms as commercial banks and with the same collateral. In response, lending through the PDCF totalled $105.662 billion on Wednesday, from $59.8 billion a week earlier."


Federal regulators shut down $307 billion-asset Washington Mutual Bank,
the largest failure in American history, late Thursday, selling its assets and deposits to JPMorgan Chase & Co.
While dramatic, the collapse had a unique twist. All uninsured deposits were covered, likely stemming depositor panic as a result of the closure, and the failure is not estimated to cost the Deposit Insurance Fund any money.
JPMorgan paid a $1.9 billion premium and took all of Wamu's deposits, assets and qualified financial contracts. Shareholders, subordinated and senior debt holder claims were wiped out!

By John Parry and Jamie McGeeever, Reuters
NEW YORK/LONDON — Banks and money managers borrowed a record amount from the Federal Reserve in the latest week, nearly $188 billion a day on average, showing the central bank went to extremes to keep the banking system afloat amid the biggest financial crisis since the Great Depression.

Letting the banks FAIL and assets bought out where stakeholders get WIPED OUT is better than a bailout..PAINFUL..but better IMHO

I am again looking for 1st extreme move.....be careful out there and good luck.

Duratek