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Washington Mutual - All CategoriesSearch2008-01-14 stories: thestreet.com, cnn.com, cnbc.com, reuters.com Update - 2008-03-07: In an article entitled "Washington Mutual melting down" CnnMoney.com is reporting: "Washington Mutual (WM) hit a 12-year low Friday as the meltdown of the mortgage sector accelerates. Shares in the Seattle-based lender plunged 15% to $10 apiece after The Wall Street Journal reported that WaMu, under pressure from regulators, has approached private equity and sovereign wealth investors for possible capital infusions." Update - 2008-01-18:
Those are the opening words in an article by CNNmoney published today. Perhaps they read the opening line of our original Ailing/Watch List post. In another quote from the same article:
The above is a valuable piece of reading... we have suggested for months a Chase buyout and it's gaining consensus, but there's still New York State Attorney General Andrew Cuomo in the way. Original Post - 2008-01-14: Are we going to see yet another fire sale buyout in the near future? On the heels of news confirming the Countrywide buyout, CNBC and reuters announced that J.P. Morgan Chase and WAMU "have held preliminary talks" of a merger. With their stock trading now near its 52-week low, this does indeed look like a possibility. In an SEC 8-K filing on 1/07/08, WAMU changed its compensatory agreements with certain top executives with specific regard to "change-in-control" agreements, stipulating their pay if they were to leave or if the bank were to be sold. WAMU has had its fair share of troubles of late. While citing full cooperation with the ongoing SEC investigation into the handling and reporting of mortgages "that may have been based on inflated home appraisals," the bank continues to see large writedowns and is struggling to attract additional capital. On 12/11/07, the company announced a $90 million restructuring charge, and anticipated the changes would be completed by March 31st of 2008.
The SEC investigation is an extension of lawsuits filed by both NY's AG and a law firm representing shareholders filed back in November 2007. WAMU shares took a huge hit after they reported larger than forecast losses for the 3rd Quarter of 2007. Nerves are so tight that even your Escrow company has to be on their 'Approved' list.
Important: This company is on our list of lending operations that are apparently ailing or which we think are worth watching for any other reason. We make no representation or claim that any company on this list will or will not continue as a going concern, or change in any other way, adverse or beneficial. If you have concerns about this company, we suggest contacting them directly and/or checking with other reliable sources. |