How messed up can it get?

[[AK]Hylander]

No taxpayer dollars are being used to bail out WaMu. That's the point I was making. In fact, JPM is paying the FDIC about $2 billion to shore things up. JPM is also issuing about $10 Billion dollars in new stock to improve it's capital and liquidity position.

Anytime the FDIC seizes operations of any bank or thrift, it's going to have "government intervention" in the sale of the assets. But the taxpayers don't need to be the ones "buying" the assets.

I'm not sure what you are saying about the government regulations already in place... but they clearly don't provide protection when it comes to financial derivatives such as mortgage backed securities.