Change the name but not policies, WaMu patrons say

If you hadn’t followed the news, you would have had little clue Friday afternoon at downtown Tacoma’s former Washington Mutual bank of the drama that unfolded Thursday night at WaMu.

The WaMu signs still decorated the doors, and that bank’s Whoo-Hoo! advertising slogan was stuck to the sidewalk outside. But inside, customers were handed a brief message from the bank’s new owner, JPMorgan Chase & Co., reassuring them it would be business as usual at the formerly battered bank.

Customers doing their Friday afternoon banking seemed little concerned that federal authorities had seized their bank the night before and sold it quickly to JPMorgan Chase.

Federal regulators say WaMu became unsound after customers withdrew $16.7 billion starting Sept. 16, during a seesaw week that ended with the U.S. government’s proposed $700 billion bailout of financial institutions. WaMu shares plummeted 60 percent this week before the Federal Deposit Insurance Corp. stepped in.

But retail banking customers said they’re more concerned about the potential for customer service changes than they are worried that their deposits might somehow have been in jeopardy. The new owner stressed that deposits were protected both by its own assets and up to $100,000 by the FDIC.

For new JPMorgan Chase customer Brian West, it was the availability of overdraft protection for his account that lured him into the former WaMu to open a checking account Friday.

“It’s the service that matters to me,” he said.

“If their service isn’t what its advertised to be, I’ll go to another bank,” said the Tacoma cook.

Pioneer Technology Corp. scientist Kevin Gallagher said he’d had a WaMu account since he graduated from high school 15 years ago.

“I just have a checking account here,” he said. “I really don’t care what name’s on the door. I just hope they don’t change their policies too much.”

Pharmaceutical company representative Jess Drake said he visited the bank Friday to check on his money.

“They told me my checking, savings and retirement accounts were all OK, so I’m satisfied,” he said.

Another customer who works in the financial industry himself and didn’t want to be identified said he was disappointed to see a local institution such as WaMu founder.

“It’s a sad day when things have come to this,” he said. “I suppose it’s the price you pay when you take risks and expand too fast.”

John Gillie: 253-597-8663

blogs.thenewstribune.com/business

Bloomberg News contributed to this report.