Washington Mutual: Hey Mister, Can You Spare $7 Billion??
Washington Mutual, the largest U.S. savings and loan, on the verge of insolvency,
after losses ate up capital and erased 74% of its market value, got a $7 billion bailout from a group of investors led by TPG Inc.
Washington Mutual sold 176 million shares at $8.75 a piece, 33% below yesterday's closing price.
The move effectively DOUBLED the number of outstanding shares.
The lender also slashed its dividend from 15 cents to 1 cent; (Nov 07 57 cents) and announced 3,000 job cuts.
WaMu will stop making loans through mortgage brokers and close its home loan offices.
The floundering bank and home lender said it will set aside $3.5 billion because of expected losses on home loans
and expects to charge off $1.4 billion in losses during Q1. WaMu stock fell another 13%.
The Nattering One muses... Recently, the CEO and board voted to protect executives salaries and bonus plan...
and no sovreign funds or middle eastern shieks could be found to bailout this mismanaged loser.
Hopefully the new shares are voting shares and will hold board seats, so TPG can dispose of the wastes of skin currently running the company into the ground.
TPG, led by Bonderman, an ex WaMu exec, may wind up like BofA in the Countrywide deal, in acquiring WaMu's portfolio for pennies on the dollar.
The stock holders have been getting their money out, lets see what the depositors do.
Hattip To Bloomberg.
after losses ate up capital and erased 74% of its market value, got a $7 billion bailout from a group of investors led by TPG Inc.
Washington Mutual sold 176 million shares at $8.75 a piece, 33% below yesterday's closing price.
The move effectively DOUBLED the number of outstanding shares.
The lender also slashed its dividend from 15 cents to 1 cent; (Nov 07 57 cents) and announced 3,000 job cuts.
WaMu will stop making loans through mortgage brokers and close its home loan offices.
The floundering bank and home lender said it will set aside $3.5 billion because of expected losses on home loans
and expects to charge off $1.4 billion in losses during Q1. WaMu stock fell another 13%.
The Nattering One muses... Recently, the CEO and board voted to protect executives salaries and bonus plan...
and no sovreign funds or middle eastern shieks could be found to bailout this mismanaged loser.
Hopefully the new shares are voting shares and will hold board seats, so TPG can dispose of the wastes of skin currently running the company into the ground.
TPG, led by Bonderman, an ex WaMu exec, may wind up like BofA in the Countrywide deal, in acquiring WaMu's portfolio for pennies on the dollar.
The stock holders have been getting their money out, lets see what the depositors do.
Hattip To Bloomberg.
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