Out of the Gate: WaMu falls after job cuts Friday June 20, 10:35 am ET WaMu shares slip at market open after bank announces 1,200 layoffs, or 2.6 pct of work force NEW YORK (AP) -- Shares of Washington Mutual Inc. declined at market open Friday after the nation's No. 1 savings and loan said it cut about 1,200 jobs, or roughly 2.6 percent of its work force. The stock lost 20 cents, or 3.2 percent, to $6.15 in morning trading. The beleaguered Seattle-based bank announced the cuts late Thursday as part of a plan to become profitable again. It said they were made in three areas: home loans, jobs not tied to "mission-critical activities," and positions lost as the company centralizes support functions. The layoffs follow an earlier, more severe round of cuts. In December, the bank let go of 3,100 employees and closed down its subprime mortgage business and closed home loan centers. Shares of WaMu have eroded at a rapid rate since the subprime mortgage crisis began unfolding. The stock has lost more than 85 percent of its value from a 52-week high of $44.04 set a year ago. Before Thursday's cuts, WaMu had 45,883 employees.
08:48 WM Washington Mutual tgt cut to $5.50 at Ladenburg Thalmann (5.80 ) Ladneburg Thalmann cuts their tgt on WM to $5.50 from $10. Firm notes the earnings estimates for Washington Mutual have been revised as follows: a) the 2008 estimate has been adjusted to a loss of $3.03 per share compared to an earlier estimate of a loss of $3.61 per share; b) the 2009 estimate is now a loss of $0.35 per share compared to a profit of $0.02 per share; and c) the 2010 estimate is a profit of $0.20 per share down from a profit of $1.06 per share
That's Bove. Why he went to Lad I'll never know. That place has a history as bad as Ashley Dupree. At least Ashley provided a service.
WOOOOOSHHHH I certainly hope anybody with more than 100k withdraws their money now, otherwise they will deserve to lose it..
Lehman came out and said today that WM has potential to write-off another $25-26 Billion. Dick Bove at Ladenburg, Thalman also mentioned that their non-performing assets ratio to reserves and common equity is 40.6% Above 40% is a danger zone, says Bove.