The loss of Washington Mutual is a very big, very bad deal for the Seattle region. Its scope is just beginning to sink in. Large, locally run public companies are a major civic asset, as they attract talent, develop leaders by testing them on local charitable boards, and have a real stake in the broader prosperity of a region that is their home.
Consider another point. If another bank had bought WaMu in an orderly way, rather than the sudden swoop of FDIC and the shotgun marriage to JPMorgan Chase, the acquirer would have negotiated with WaMu's board and made promises about reaching out to the community and made pledges of support to such causes as ArtsFund and United Way. There would be more reason to be humane in the elimination of jobs. There would be an effort to buy local love, spreading contributions around.
Today's New York Times column by conservative David Brooks is a must read. And no. It's not, as many on the right would have you believe about anything you read in N-Y-T, a Republican-bashing pinko-commie rant. It's not.
With the financial bailout package still undefined and House Republicans, in particular, opposed to the present draft, financial markets almost certainly will fall during the day. How far they fall, and for how long, will depend on White House-congressional progress toward a package which can pass and President Bush can sign.
WaMu's failure Thursday was no surprise. Many, including myself, had predicted it for weeks. But few in Seattle were prepared for the reality of it when it came. Other weak institutions could follow.
Things to watch:
Twitter
Facebook
RSS Feeds