WaMu gets $5 billion injection

Discussion in 'Wall St. News' started by IzzyfoShizzy, Apr 7, 2008.

  1. http://online.wsj.com/article/SB120753199958893909.html?mod=hps_us_whats_news

    "Private-equity firm TPG and other investors are close to a deal to invest $5 billion in Washington Mutual Inc., people familiar with the matter said Sunday.

    The injection of new capital would allow the country's largest savings and loan to ease its pressing capital requirements, the people said, amid punishing losses from the national mortgage crisis. But it would substantially dilute current WaMu shareholders, who have already lost 74% of their investment over the past year. WaMu's market capitalization on Friday was just under $9 billion, after its shares dropped 11% that day.

    The planned investment marks a humbling hand-in-hat moment for the 119-year-old Seattle stalwart. Having parlayed the country's housing boom to a nationwide reputation and immense profits, it is now paying dearly for delving into subprime mortgages."
  2. Fuck WAMU.