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Everett, Washington-based Frontier Bank has not expected the U.S. government to obstruct its struggle to survive the financial crisis of 2008. However, regulators would not advance Frontier Bank's application for Troubled Asset Relief Program bailout money and rejected the deal to sell itself for $450 million. Details of Frontier Banks' downfall are also discussed.

It is believed that the U.S. economy is showing signs of emerging from recession three years after the housing crisis struck Washington state. However, the process of getting out of foreclosure is getting harder, trapping both borrowers and lenders. Most loan modifications also fail, leaving banks and borrowers with few options for resolving cases.

The planning that led to the deal in which Washington Mutual (WaMu) was purchased by New York-based J.P. Morgan Chase out of government receivership is discussed. In that deal, J.P. Morgan Chase, led by CEO Jamie Dimon, is said to have obtained more than $100 billion in WaMu assets for 1.5 cents on the dollar. Dimon's role in the purchase is also discussed.

The events leading to the failure of Washington Mutual, the largest in US history, are described. The bank experienced two bank runs in July and September 2009 before being taken over by federal regulators and sold to JPMorgan Chase & Co.

Regulators' closure of the Columbia River Bank has adversely affected the community. Government agents have seized control of the bank. The takeover has rendered the bank's stocks worthless.

Banks in King County, Washington, are suffering from a slowing rate of f oreclosure auctions, with only five out of 172 foreclosed houses sold on 13 March 2009. Seventeen of the houses were taken bank by lenders while the rest were sold ahead of auction or subjected to modified loan terms.

The Federal Home Loan Bank of Seattle said it is experiencing a capital deficiency. The bank has suffered investment losses in mortgage-backed securities. But it said it is not in danger of failure and continues to lend to its member banks.

Real estate agents in Washington will be adversely affected by a new law seeking to protect homeowners from foreclosure scams. Agents are sometimes required to act for both buyer and seller in determining foreclosure dangers. Industry players' reactions to the law are also given.

According to a Wall Street Journal article by Emily Glazer and Kirsten Grind, Elon Musk, the world's richest person, has been known to use recreational drugs such as LSD, cocaine, ecstasy, and psychedelic mushrooms. Witnesses claim that he often uses these drugs at private parties where attendees must sign nondisclosure agreements or surrender their phones. Musk also has a prescription for ketamine. His drug use has had consequences, including a $40 million fine for tweeting about taking Tesla private while allegedly under the influence and getting into trouble with NASA for smoking marijuana on a talk show. Some board members and executives have expressed concerns about his behavior, but it is unclear whether drug use is the cause or if it is the pressure of running multiple companies simultaneously. [Extracted from the article]

The number of short sales in the recovering housing market of Puget Sound, Washington has been rising. Short sales refer to the offering of homes at prices lower than the seller's mortgage. How short sales in Puget Sound have been diminishing home prices are discussed.

The Herald of Everett, Washington has prematurely reported a story on the seizure of Frontier Bank by the Federal Deposit Insurance Corp. However, the public was not supposed to know the transaction since it posed the risk of sparking a run on deposits and scuttle the deal with the acquiring bank. Insights on the handling of media after the incident is also discussed.

Washington Mutual's (WaMu's) internal documents, released as part of the ongoing congressional hearings in Washington D.C., have shown the role of WaMu's federal regulators in policing the bank. Regulators have been criticized for being negligent when WaMu's mortgage fraud problems surfaced and for seizing the bank prematurely. Insights on the hearings are also given.

Washington Mutual's former chief executive Kerry Killinger is set to face a congressional subcommittee to testify that the bank could have survived and regulators have seized it abruptly. Killinger and former bank's president Steve Rotella's testimony will show that the bank was closer to improving its finances during the 2008 financial crisis. Insights on a settlement are also given.

Seattle, Washington real estate developer and founder of Carpet Exchange Michael J. Goldfarb has gone into serious financial trouble but is working to restructure an estimated $45 million in loans with about 12 banks across the Pacific Northwest. The banks were cooperating together to make sure they avoid a complicated debt settlement. Insights on the debt arrangements are also given.

New York-based JP Morgan Chase & Co. has asked former Washington Mutual (WaMu) employees to sell their WaMu shares since it plans to combine the two banks retirement plans. JP Morgan will liquidate the shares of former WaMu employees in their 401 (k) plans and transfer the balance to their new JP Morgan accounts. How the move will affect former WaMu employees is also discussed.

Washington Department of Financial Administration (DFA) was expecting a wave of mergers in 2010 as stronger credit unions gobbled up the weak credit unions. DFA has the power to shutdown credit unions but were unlikely to use this power to credit unions and instead will encourage them to merge ahead of time. Insights on the planned mergers are also given.

Steep discounts that allow buyers to build new houses and still turn a profit has sparked a demand for land among home builders. The trends in the market is that home builders are constructing new homes despite a perceived oversupply and that they are using cash from private investors to fund deals.

Roanoke Financial Group is a Seattle startup that engages in purchasing troubled bank assets. The company plans to gain a share of the $36 billion market for assets that are left behind by bank closures. Roanoke aims at buying loans on developments at a high discount and working to improve their profitability.

The Department of Financial Institutions (DFI) of the state of Washington plans to modify banking and credit union laws in an effort to confirm the extent of its authority in getting involved with troubled banks. The DFI also seeks to clarify when to stop information disclosures that could result in bank runs. Supervision of bank holding companies and credit unions is also sought by the DFI.

The Federal Home Loan Bank of Seattle has accused 11 global financial institutions of making false or misleading statements about the quality of mortgage-backed securities sold by the institutions to the bank for $3.9 billion. A rescinding of transactions with the institutions is being sought by the Home Loan Bank. The Home Loan bank also aims to recoup at least a portion of the purchase price, plus interest.

Washington community banks have seen the departures of a dozen high-level executives and directors within the past three months. The departures of the community banking veterans have created new opportunities for new people to take positions of power but trend also depleted the bank industry of considerable expertise and experience. Insights on those who have left their posts are also given.

The financial crisis in 2008 changed the rankings of Washington's top banks based on deposits. JPMorgan Chase, for example, dropped from second to third place, losing around $2.8 billion in deposits over the previous year. Bank of America, which has $22.9B in deposits, however, remains on top.

Eleven community banks in Washington are projected to fail due to bad commercial real estate loans over the next 12 months starting October 2009, according to research firm Foresight Analytics LLC. As of mid-September 2009, three banks had failed in Washington. Compared to other business sectors, the state's banking industry is far from recovery.

Investors and creditors are lining up to recover investments from bankrupt developer Treleaven. The company has refused to refund investments made over the years. Treleaven's owes around $103 million in unregistered securities.

JP Morgan Chase & Co. has started distributing Washington Mutual Bank's (WaMu) collection of more than 500 pieces of Northwest artworks to different institutions. About 200 art pieces have already been donated to local nonprofit organizations and museums. WaMu has been acquired by JP Morgan last September 2008.

Real estate developer Michael Mastro, Sr. is being investigated by the Washington Department of Financial Institutions (DFI) after the agency received an anonymous complaint in February 2009. Eighty-eight private investors, including some from Seattle's Italian-American community, could lose their money amounting to a collective $103 million if Mastro is forced to file for a Chapter 7 bankruptcy. Details about Mastro's loans to different investors are discussed.

Developer Michael Mastro Sr. is facing lawsuits from banks in relation to the $500 million debt that he and his company, Mastro Properties, owes to banks in Washington and Oregon. Mastro values his assets at over $600 million and he expects to recover but Mastro's broad reach across dozens of financial institutions extend farther than many other developers.

The number of homeowners who may opt for foreclosure or who may file for personal bankruptcy is forecasted to increase as Bank of America carries out its short-sale agreement. The agreement will require mortgaged homeowners to pay the remaining amount their loans.

Sluggish sales of condominiums in Washington are taking a toll in the local housing market. Around 75 percent of units in five major buildings in Seattle and Bellevue are still unoccupied, forcing some developers to find other ways of attracting more buyers. Reasons for the slow pace of sales and other ways developers use to cope with this problem were discussed.

Many construction projects in Seattle, Washington have been stalled due to the recession. The projects range from condominium developments to retail projects. Comments from officials are also presented.

The number of home tenders is increasing in Washington with the increase in foreclosures in the state. Home tenders like Keith Schlemlein are tending to foreclosed properties and protect them against vandals.

JPMorgan Chase is planning to establish a commercial banking decision and target midsized businesses in the Pacific Northwest. The bank will focus first on Seattle by pursuing business clients enjoyed by Bank of America, KeyBank, U.S. Bank, and Wells Fargo. The bank's other plans for business expansion are discussed.

Washington Mutual's (WaMu) board approved a $7.2 billion capital injection led by Texas Pacific Group and turned down two other bids for capital injection in 2008. WaMu also rejected a $8 billion buyout offer from JPMorgan which would have saved WaMu's shareholders, bondholders, and creditors their investments.

BECU had a historic first quarterly loss of $65.7 million for 2009 due to a $56.4 million charge associated with the national credit union system and a $25 million bad loan provisions. State regulators expect many credit unions in Washington to take a big hit on their first quarter results and decreases in their capital levels that are below regulatory 'well-capitalized' threshold.

Investor Steve Wasson and Jeffery Gow have threatened to ask the shareholders of Cowlitz Bancorp to vote out the board if their company, Crescent Capital VI LLC was not given control of the board. Crescent holds 29.45 percent or 1.5 million shares of Cowlitz.

Washington credit unions have seen their bad loans rise 45 percent for the year leading up to March 2009 and 63 percent since 2006. This trend shows that the recession is affecting Washington residents.

The impacts of foreclosures in the Puget Sound region on investments are international in scale as troubled mortgages were pooled with others, becoming securities sold to global investors. Investors are now avoiding the expense and cost of real estate owned by banks. The mortgage crisis is examined further.