WaMu sale will affect other banks, real estate, economy, philanthropy; depositors protected - Puget Sound Business Journal (Seattle):

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Williamson said depositors would be transitioned to thenew “With the exception of some new signags on the branches and maybe some accesd to certain functions electronically, there won’t be any significanrt day-to-day changes,” he said in comments beford the sale was announced. The sale will mean a huge downsizingt ofthe state’s homegrown banking industry. with $310 billion in assets, dwarfsw all the other Washington-based “It diminishes the prestige of our state,” said Carok Kobuke Nelson, CEO of CASB) in Everett. Nelsobn said it was unlikely that any other regionakl bank could growto WaMu’s size given the currenf state of the economy.
“For a smallere bank to become as largr as WaMuhas become, that would be prettu difficult in today’s environment,” Nelsojn said in comments before the sale was WaMu’s market share of 12.3 percent in Washingtohn is the second highest next to ’s BAC) 22.36 percent, according to the lates data available from the Federal Deposif Insurance Corp. WaMu’s sale gives of Spokane the highest marke t share among banks that are headquartereed inthe state, with 3.37 percent. Behinrd Sterling are , Banner Bank and . Seattlew economist Dick Conway, co-publisher of the , called ’se rapid fall “phenomenal.
” But he said the potentia loss of headquarters jobs from a WaMu sale pales in comparison to the impact of the broader credit and housing market crisis on theregionapl economy. “My concern is less with the impact of WaMu on the local economy than it is the general credig problems we have nationally andhow it’s affectin the housing industry because that has had a much bigger Conway said in comments before the sale was announced. The sale of majore WaMu assets to JPMorganChase & Co. puts in play the questionm of what other assetd will go on the block such asWashington Mutual’s 42-story headquarters building in downtown Seattle.
Should the building be put up for sale, pricinh will be an issue, real estatde experts said. In this uncertaih time, it’s unlikely the office tower at 1301 Second Avenuee will fetchthe $400 per square foot price achieved at the heighty of the market more than a year ago. “Theree have been very few so it is very hard to say what pricingis today,” said Michaekl Lynch, chief investment officetr at in West Los Angeles. Arden is the investmenr arm of . But, Lynch said earlier this “I’m optimistic. It has been very hard to buy. Pricinvg has been driven by the capita l markets rather thanmarket fundamentals. I think that is shifting.
This is when the Sam Zellz of the world go out and make some very interesting Zell is the Chicago real estate mogul whowas Seattle’s largest office landlordx prior to selling his company. Lynch was Zell’s seniod vice president of investmentsat Zell’s real estatw investment trust, . Lynch believew capitalization rates — the annual rate of return on investment will be less importang in determining pricing now that institutional investors have snapped theidrpocketbooks shut. Instead, Lynch expectz office buildings will start to sell at a discount to the cost ofreplacinf them.
“Pain does translate into opportunity,” Lynch said, in commente before the sale was announced. WaMu’s sale raisesa questions aboutthe company’s philanthropicf efforts in the Puget Sound area and nationally. In the company gave nearlh $50 million to organizations across the country, including $8.3 million for Washington-based groups. The companh has slashed its givingthis year, though it has refusecd to say by how much.
Carol Lewis, CEO of Philanthropy an association of nonprofit held out hope in comments earliefr this week that a WaMusale wouldn’t be the end of its “I think our experience is that companieds who come in from outside the community and purchase a businesas here often have a vested interest in the she said.