WaMu is at the forefront of takeover rumours

The nation’s biggest saving and loan company Washington Mutual Inc., had another day of speculation after a very unstable week for shares, and WaMu is not in the forefront of takeover rumours.

Long term Chief Executive Kerry Killinger, was fired in Monday by the WaMu’s board, this came after pressure from the regulators. Last year WaMu stock was $45, However, Friday the stock closed at $2.73, which is down a further 36% from the week previous.

Throughout last week, rumours scattered the mortgage industry, one was Citigroup Inc. would step in to buy the thrift; another said Seattle-based WaMu would cease all home lending next week. It was also reported that JP Morgan Chase & Co was in talks to buy WaMu.

Back in early 2007 WaMu was the sixth in line for the Number one spot as subprime lender, fighting for the spot from Countrywide Financial Corp. Now that the Bank of America Corp swallowed up Countrywide, and Uncle Sam runs IndyMac, But Killinger’s is not exactly kicking like it used to but its big thrift is still alive.

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