Mortgage Crisis Forces Big Cuts At Largest Savings And Loan In US

AP:

Washington Mutual Inc., the nation's largest savings and loan, said Monday problems in the mortgage and credit markets are forcing it to close offices, lay off more than 3,000 workers and set aside up to $1.6 billion for loan losses in its fourth quarter.

Additionally, WaMu slashed its quarterly dividend 73 percent and said it plans a $2.5 billion offering of convertible preferred stock. WaMu has not yet priced the offering, but increasing the total number of company shares will dilute their value for existing stockholders. In after-hours trading, WaMu shares fell $1.73, or nearly 9 percent, to $18.15 following the company's announcement.

Read the whole story: AP

Comments

[ajax2]

I pulled my funds out of WAMU yesterday.

[sparkey]

Think the CEO and other top people will lose any money on this? They probably got a pay raise for firing all those people. I'm getting very tempted to take all my money out of my bank and convert it to euros before dollars are declared worthless. I remember this same thing in Viet-Nam. Script was regulary changed. If you had more than could be changed,you were out of luck. The rest was worthless. I think that's what's going to happen here.

[joja]

The banks & greedy-ass mortgage lenders brought this on themselves.

Tooooo fuckin' bad!!

It's like the saying goes, "A little greed is OK. Too much just causes problems."

[DELICIOUS]

THE GREED OF THE TOP CEO'S AND CFO'S IS WHAT IS SUB-PRIME. ALL THEY COULD SEE WAS $$$$ AND CAMPAIGN CONTRIBUTIONS TO THE GOP AS A WAY OF LIFE. ONCE AGAIN A BU$H IS INVOLVED IN SHAKEY BANK DEALINGS JUST LIKE NEIL AND SILVERADO AND THE AMERICAN TAX PAYER IS EXPECTED TO FOOT THE BILL FOR THESE JUVENILE DELINQUINTS WHO NEVER ARE HELD ACCOUNTABLE FOR THEIR MESSES. GET THE MONEY FROM THOSE WHO MADE IT...MAKE THEM PAY FOR THE MESS THEY HAVE CREATED INCLUDING THE IRAQ WAR WHICH WAS TOTALLY PLANNED AND READY BEFORE THE INAUGERATION WAS OVER IN 2001.

[KOisGod]

I wonder how may of the top execs who so wisely jumped into the sub-prime market several year back will take a pay cut to off set some of these loses.

*CRICKETS*

[drkazmd65]

About a year ago WaMu bought out a credit card that I had held for several years through Providian Bank. I had been darned happy with Providian,... but figured that if WaMu had bought them out - then I would be OK under continued terms of contract.

Thus illustrating the extent to which I am naive.

About September,... hmmm,... I wonder what the reason could be,..... my interest rate jumped more than 8% for no good reason. No delinquencies,... no overdrafts,... no late payments,...

When I called them to enquire about 'why', they were pretty much assholes about it.

THEN,... I heard that they had overextended in the mortgage market.

It all made sense,... and now they are losing my projected business as well as I transfer and payoff that balance.

Putzes,... I hope they go straight down into the toilet.

[LittleGreenGreaseBalls]

Jeeze! I happen to bank at what was formerly called Washington Mutual Bank--now WaMu--what ever the fuck that means. This was a one or two office bank in Seattle 40 years ago, and for some reason they were able to grow and grow and buy and buy. Now the WaMu is huge, but does that mean that if they go tits-up we won't have to pay the FDIC to save their ass--or Bank of America, or Wells Fargo, or........duck and cover.