WaMu gets $7 bln infusion, sees big quarterly loss [Washington Mutual]

Reuters ^ | 08 Apr 2008 | Jonathan Stempel

[BGHater]

Washington Mutual Inc, the largest U.S. savings and loan, on Tuesday said it will receive a $7 billion capital injection from private equity firm TPG Inc and other investors.

The company also said it expects to report a first-quarter loss of $1.1 billion, or $1.40 per share. It expects to set aside $3.5 billion in the quarter for loan losses and said net charge-offs, or loans it doesn't expect to be paid back, will total $1.4 billion.

Separately, the company said it will reduce its quarterly dividend to 1 cent per share from 15 cents per share, saving $490 million of capital.

It also set plans to reduce its mortgage operations. Washington Mutual said it plans to close all its freestanding home loan offices and to stop offering home loans through brokers.

[RockinRight]

Another reason I’m trying to exit the mortgage business.

However, it’s been tough so far. I’ve applied a few places but everyone wants such specific qualifications that the only jobs I’m qualified for, even with a degree, are the exact same thing I already do!

[bert]

Think Raleigh Durham Research Triangle.....

Lots of ex Marylanders there.

[BenLurkin]

Back in the early 80s the banks started “REO” departments to handle a liquidation of excess repossessed collateral.

It was a cut above ordinary loan servicing or collections work and attracted experience credit people.

Something like that is going to happen again I suspect.

[RockinRight]

Um...well we just bought a house...maybe in a few years.

Besides...I have no experience in the fields that I could work in down there.

[RockinRight]

I’ve looked at that, but all of them say “three to five years experience in REO required.”

It’s not good enough to have a degree and 8 years experience in the trenches of residential mortgage lending.

Don’t get me wrong, I DO apply for them...I’ve even applied for a few at HUD but even HUD has very specific requirements. I read the requirements and I nod, nod, nod, then I hit a line where I think “well...considering I don’t even know what that MEANS, I doubt I have the experience they’re looking for!

I exaggerate a bit, I know what it means but it’s way off from what I know!

For example a lot of them want experience in MBS’s (mortgage backed securities.)

I know what MBS’s are and the trouble that we’re in because of the way they were done, but I haven’t worked one day of my life on that end of the business.

[CDHart]

If you're good at selling, you could always try the car business. A good salesman can make an excellent living doing that. Your conscience might not like it much, though.

Carolyn

[RegulatorCountry]

If you're good at selling, you could always try the car business.

Not exactly booming right now, outside of late model, used economy cars.

[scan59]

WAMU is my bank. They recently chopped the interest rate on my savings account without telling me. (Turns out they can do this at any time, without any notification.)

[RockinRight]

I’m sick of selling in general. Tired of the pavement-pounding.

[RegulatorCountry]

Why is it always 3:45 on December 13, 1901 on this thread? Other threads are displaying the correct date and time.

[RockinRight]

It looks right to me.

[rabscuttle385]

WAMU is my bank. They recently chopped the interest rate on my savings account without telling me. (Turns out they can do this at any time, without any notification.)

I bank with Citi. They have also reduced interest rates on deposits. And yes, any financial institution can change its deposit rates for savings and checking accounts without notifying customers.

[CDHart]

You always make more money on used cars, and can sell new at the same time.

Carolyn