Read a Pacific Northwest, liberal perspective on world, national, and local politics. From majestic Redmond, Washington - the Northwest Progressive Institute Advocate.

Wednesday, September 17, 2008

Seattle based WaMu puts itself up for sale, local customers flee to credit unions

Seattle based Washington Mutual, the largest savings and loan association in the United States, today disclosed that it is putting itself up for sale, becoming the latest victim of the catastrophic subprime mortgage crisis.

In sacrificing its independence, WaMu joins a stunning list of financial giants claimed by the crisis. They include: Bear Stearns (sold to J.P. Morgan Chase), Lehman Brothers (filing for bankruptcy), Merrill Lynch (sold to Bank of America), Freddie Mac/Fannie Mae (placed into a conservatorship by the United States government) and AIG (which the Bush administration effectively agreed to nationalize yesterday).

The fact that Washington Mutual is insured by the Federal Deposit Insurance Corporation (FDIC) hasn't calmed customers' anxiety:
Scott Newton, another WaMu customer, also held the deposit insurance in little regard.

"It makes me very, very nervous," said Newton, a WaMu customer of 10 years. "It scares you at night."

A line crewman for King County, Newton had stopped at the branch for some cash Wednesday, but planned soon to close his five accounts, cash out his two CDs, and take his money to a credit union.

"I feel let down by WaMu," he said. The bank had helped him buy two homes and a car, and he had been angry to learn about its financial woes through a co-worker, and not the bank itself.
Early this year, before the markets really started tanking, we made the decision to close the Northwest Progressive Institute's bank account (it was not at WaMu) and do our business with a credit union instead.

We have never for a second regretted that decision.

We congratulate WaMu customers like Scott Newton for making the wise choice to join a credit union. The great thing about credit unions is that they are owned by their members. Since every customer is a shareholder, credit unions can focus on providing superior service to Main Street - and not have to worry about Wall Street.

A number of terrific credit unions have a strong presence in the Pacific Northwest. For those looking to move their money out of WaMu and into a friendly nonprofit financial cooperative, here are a few choices:
  • BECU (Boeing Employees Credit Union): The nation's fourth largest credit union, known for its innovation and willingness to help striking union members. Membership is open to all Washingtonians. Almost all of its branches are located in Puget Sound.
  • Watermark Credit Union (formerly Seattle Telco): Another well established local credit union centered in the Seattle area with a great reputation. Membership is open to all Washingtonians.
  • First Tech Credit Union: Originally founded by employees of Tektronix. Membership is open to residents of Lane County, Oregon, people who work for the State of Oregon, or Washingtonians and Oregonians working in the high tech sector for companies like Microsoft.
  • Global Credit Union (originally Fairchild Federal): Founded in the 1950s, Global is an excellent choice for residents in the Spokane area or the Tri-Cities.
  • School Employees Credit Union of Washington: Open to Washington teachers, education support professionals, university faculty, librarians, and their family members. An outstanding option for those who are eligible.
  • QualStar Credit Union (formerly Safeway Seattle Employees’ Federal): Another good choice for residents of the Seattle metro area. Membership is open to all Washingtonians.
This is a very short list. You can easily find a comprehensive list of credit unions that you are eligible to join at FindACreditUnion.com (requires Adobe Flash player).

The problem, of course, with leaving WaMu behind is that it doesn't help the bank or any of the other customers there. The more people who leave, the weaker Washington Mutual becomes. It's understandable that loyal customers may feel guilty about leaving. We urge every WaMu customer contemplating such a decision to carefully and calmly think over their options.

We suspect more customers will consider cutting ties if WaMu ceases to be a independent, Seattle-based financial institution. Banks rumored to be interested in WaMu include J.P. Morgan Chase, Wells Fargo, HSBC, and Citigroup.

A WaMu combination with any of those would be a major merger.

If you bank with WaMu and you do decide to leave, we again strongly urge you to take your money to a credit union. You'll be glad you did.

Comments:

Blogger marcusq86 said...

How has WaMu let this customer down? As of 09/18/08 the bank is still independently owned and operates the same way. Has the customer lost his loans? Has the customer lost his money? If the answer is no then what is causing this customer to be let down? Is it the customer's pride or the customer ignorance with how a bank works? I don't know why I am even reading this. I honestly feel sorrow for people who believe everything they read on these sites. By all means I do not work for WaMu but I have been a customer for years. I have loans, credit cards, saving, checking and CD's. They have never done anything to let me down, because I still have my money and I am smart enough to understand the market as a whole. So to all of you who read this please note that I do not see a citation that indicates WaMu is on the market, as far as I can tell it is just rumors. I truly believe

September 18, 2008 5:28 PM  
Blogger marcusq86 said...

How has WaMu let this customer down? As of 09/18/08 the bank is still independently owned and operates the same way. Has the customer lost his loans? Has the customer lost his money? If the answer is no then what is causing this customer to be let down? Is it the customer's pride or the customer ignorance with how a bank works? I don't know why I am even reading this. I honestly feel sorrow for people who believe everything they read on these sites. By all means I do not work for WaMu but I have been a customer for years. I have loans, credit cards, saving, checking and CD's. They have never done anything to let me down, because I still have my money and I am smart enough to understand the market as a whole. So to all of you who read this please note that I do not see a citation that indicates WaMu is on the market, as far as I can tell it is just rumors. I truly believe

September 18, 2008 5:29 PM  
Blogger PDX PR Chick said...

Hi there - I just wanted to clarify the membership eligibility requirements for First Tech Credit Union.

To join First Tech Credit Union, one must:
·Work for a high tech or telecom Sponsor Company, for the state of Oregon, in Lane County, Oregon
·Live in Lane County, Oregon or in any school district in Washington
·Be a current student, former student, official or employee of a post-secondary public or private educational institution located within 25 miles of a First Tech branch
·Be an Oregon federal, local, school or special district employee and live or work within 25 miles of a First Tech branch
·Be a vendor, volunteer or contractor for an eligible group or First Tech sponsor company
·Be an immediate family member of someone who is eligible for membership, regardless of where you live

First Tech publishes a list of sponsor companies and governmental agencies on its Web site (www.firsttechcu.com), along with additional information on how one can become a member.

September 24, 2008 5:04 PM  

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