CITI bailout make WAMU seem so wrong

citi.gif How this came to be, I have no clue, but it seems that another bank has been bailed out. Citibank [C] has been given the green light to have the U.S. taxpayers take on the burden of their misgivings. And as a shareholder of Washington Mutual [WAMU], I have to say that it’s pretty plain to me that there is something seriously wrong with this picture.
Here’s the thing. So far, JPMorgan [JPM] has been able to capitalize on two different things. Bear Stearns was one of them, and Washington Mutual as the other. Yet, of all the largest banks, Washington Mutual is the only one that was taken out as fast as possible before the bailout vote. Why? That makes absolutely no sense and sounds a lot like some sort of corruption if you ask me.
The more companies are getting bailed out, the more it seems wrong that the bank with the largest deposits holdings had its entire assets liquidated and seized and auctioned off by some trigger-happy regulator. I’d be curious if that regulator is connected to JPM at all, but that’s a whole other story in itself.
If there is any failure of government, I would imagine there be two here within the bailout plan. First is bailing out companies that fail. If they’re so bad, then let it go. The second is that after bailing out all of these failed businesses, they actually still took out WAMU. After AIG’s huge sales party and asking for a second “bailout” after the party took to news. And it was granted?
Smells awfully suspicious if you ask me. The fact that these every other large financial entity surrounding the toxic loans have since been pushed through mergers or bailed out. Don’t get me wrong, I was and still am a shareholder of Washington Mutual. I do hope that the employees whom have lost their 401ks and shareholders do file a suit. I may be biased, but there is no reasoning why the Fed can pick and choose at will whom to save and whom not to at their whim. In my mind, it’s an all or nothing package since the American taxpayer is in the end, fronting this enormous bill regardless of whether or not we would want it.