Is Washington Mutual Next?

Three of the biggest lenders in the subprime marketplace were Countrywide, Indymac and Washington Mutual.  In a post written 11 months ago, we reported that all three institutions had cut back dramatically on these types of loans as well as on 2nd mortgages and other more risky loans. 

Within the last 2 weeks, 2 of these institutions are no longer around as stand alone companies.  Countrywide was spared the disgrace of going under by being acquired by Bank of America in a deal that was completed on July 1st.  Bank of America immediately transfered the assets to its parent company and moved the debt to a subsidiary, leaving open the possibility it will not back any of the former Countrywide debt obligations.

On Friday, Indymac became illiquid and was taken over by the government.  A run on the banks deposits made the company unable to meet financial obligations.

And in an article written by Jane Wells at CNBC, she points to several banks that are set to fail.  And not surprisingly Washington Mutual is the biggest name in the bunch.