Washington Mutual: as share prices fall can they survive? on 100 Mortgages

Washington Mutual’s badly timed venture into the subprime has left the bank in a seriously bad way, with shares prices falling, not surprising when we see that Washington Mutual (WaMu) had $3.33 billion loss and a supernova of loan loss provisions to nearly $6 billion, net charge-offs came in at more than 3.5 percent, these figures added to the percentage of non-performing loans making up 3.62 percent of total assets, it’s very clear that WaMu are walking a thin dangerous line.

Wa Mu held more than $60 billion in home equity loans and lines of credit in the last quarter, these stand behind secured mortgages that are not looking to good either.

You have to feel for Alan Fishman he had only been in his new position as the CEO of WaMu for three days when the shares tanked 60 percent. So what are the options for WaMu and how can Fishman aid the troubled bank, it doesn’t mean its all over for them, look at Freddie Mac and Fannie Mae, they have managed to keep going even if at the expense of the share holders.

Find out what the guys over at Motley Fool have to say and read the full article.

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1 Comment
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What happens to my WA Mutual home mortgage
loan if they file for bankruptcy?

Comment by Helen King — September 17, 2008 @ 10:14 pm