Wamu gets sold, but government involvement, more than brokering a deal, is the question.

We await further clarifications and the WSJ test to determine whether it is a bail, sale, or fail.

WSJ is calling it a brokered sale, saying FDIC didn’t pay out anything in the process.
http://online.wsj.com/article/SB122247247562180981.html

I am going to cash this out as a fail with no bailout on Wednesday at noon for the following reason:

Without seizure by FDIC, Wamu would not have been sold. The failure of WAMU bank was a necessity for its sale.

Common and bond holders were wiped out, which is characteristic of a fail. Merrill Stock holders received some value for their investment.

Per this article: http://www.bloomberg.com/apps/news?pid=20601087&sid=a_WW5ZH_P_A0&refer=home

Wamu, the holding company, is listing $8 billion in debts, and JPMorgan paid $1.8 billion for the deposits of WAMU bank. Thus, they did not buy the majority of the company.

I will entertain contra argument so these points, but at the current moment, I am leaning towards fail than sale. Making Fail with no bailout the winner.

also: http://www.fdic.gov/bank/individual/failed/banklist.html

They ended up on the failed bank list.

and yes, i’m just as pissed that the real world failed to conform to the arbitrary rules set forth in my inkles market.

Various sources would argue that Chase did in fact purchase a majority stake. Here’s a sampling:
http://www.statesman.com/business/content/business/stories/other/09/26/0926wamu.html
http://www.moneymorning.com/2008/09/26/jp-morgan/

a majority of the assets, i.e. deposits.

Given that a stack of liabilities were left behind…

either way, the common and bond holders were still wiped out.