Yes WaMU are history.....FDIC staff will be at the Banks doors first thing tomorrow.....that is if Paulson doesn't beat them tonight and arrange a "two for the price of one deal LEH & WM" http://www.reuters.com/article/ousiv/idUSN1031492220080912 WaMu cut to "junk," sees $4.5 billion loss reserve NEW YORK (Reuters) - Washington Mutual Inc (WM.N: Quote, Profile, Research, Stock Buzz) was downgraded to below investment-grade status by Moody's Investors Service, after the largest U.S. savings and loan projected a $4.5 billion third-quarter increase in reserves for bad loans but said it has more than enough capital. Moody's cut the Seattle-based thrift's senior unsecured debt rating two notches to "Ba2," its second-highest "junk" grade, from "Baa3," with a "negative" outlook. It also lowered its rating for the banking unit to "Baa3" from "Baa2." "Washington Mutual's access to the debt and equity markets remains severely constrained," Craig Emrick, a Moody's senior credit officer, said in an interview. He added, though, that "there are no significant ratings triggers from a downgrade like this, because Washington Mutual is not reliant on wholesale short-term funding." Shares of the thrift rose 20 cents to $3.03 after-hours but gave back some gains following Moody's downgrade. The shares rose 51 cents, or 22 percent, in regular trading on the New York Stock Exchange, after touching an 18-year low of $1.75. Investors are worried that Chief Executive Alan Fishman, who replaced the ousted Kerry Killinger this week, might fail to raise sufficient capital to cover mortgage losses that the thrift has said could reach $19 billion through 2011. Washington Mutual said it expected the third-quarter increase in loss reserves to decline from $5.9 billion in the second quarter, when its overall net loss was $3.33 billion. It also said it expects net charge-offs, or loans it does not expect to be paid back, to be roughly $2.7 billion in the third quarter, up from the second quarter's $2.17 billion.
shot up big afterhours. I bought leaps this morning on it and so far its up 170%.. figured risk to reward favoured upside this morning. I see wamu being purchased by a major bank/investment bank due to the fact that they are a retail bank .... I don't think they'll go belly up!