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Worried Local WaMu Customers Head To Banks After Takeover

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By KRISTA KLAUS

News Channel 8

Published: September 26, 2008

A steady flow of customers dropped by Washington Mutual's branch at Columbus Avenue and Dale Mabry Highway today, seeking assurances about their deposits after learning one of the nation's largest and oldest banks was being acquired by J.P. Morgan Chase & Co.

"I was just looking to see if my account was in good standing and everything," said Joe Hollub, 22, of Tampa.

Federal regulators seized the nation's largest thrift late Thursday, calling Washington Mutual the nation's biggest bank failure so far. The Seattle-based bank buckled under the weight of billions of dollars in bad subprime mortgages.

The government says the sale of its assets prevents WaMu's collapse from depleting the FDIC's insurance fund.

Customer Michelle McKinney, 30, said she plans to move her deposits to another bank within the next week.

"It's shocking," McKinney said. "It's like, what do you do? Where do you put your money? What bank do you go to because they're all having trouble?"

But other customers said closing accounts will only make a bad situation worse. Jorge Pulido, 33, of Tampa stopped by the bank to withdraw his money and close his accounts, but after talking to a teller he was convinced his money is safe.

"The wrong attitude is to run away," Pulido said. "Just try to have a little faith in the country and just believe things are going to be OK, that's what I have to do."

Customer Maureen Canter agreed. "My husband has his accounts here and said we should take our money out, and I said 'No'. That wouldn't help anything by doing that."

Canter, 28, says she disagrees with taxpayers bailing out Wall Street. On the other hand, she says there's plenty of blame to go around.

"Everyone kind of got greedy buying houses that they couldn't afford and bankers making bets they couldn't insure, so it's just a big mess," she said.

At the end of the second quarter, Washington Mutual had 59 offices in the Tampa Bay area. The company says WaMu signs will stay up for now, but within two years all remnants of Washington Mutual will be gone.

It is still unclear how many local jobs will be lost in the takeover. J.P. Morgan says it will trim 15 percent of combined operating expenses.

WaMu is the country's fourth financial giant to fall in the past two weeks, following American International Group, Lehman Brothers and Merrill Lynch & Co. Inc.

WAMU TAKEOVER

What customers need to know:

*FDIC will continue to insure all deposits up to $100,000.

*All WaMu and Chase deposits are insured separately for another six months

*Customers should continue to bank as usual at their local branches and ATMs

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