Thursday, September 11, 2008

WaMu Fesses Up & Cut to "Junk"

Washington Mutual has provided a press release on its expectations for its third quarter performance to allay investors' fears...not likely to work.

Tanking, and tanking hard.

From Reuters: "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.

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.

"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.


Be sure to visit the gurus for info on this, and don't forget to trawl through the comments, which are always enlightening and entertaining.

1 comment:

Anonymous said...

too many free and easy loans out there on the west coast.

isn't this going to cause a bank run?