WaMu will it avoid bankruptcy?

Washington Mutual (WaMu) managed on Tuesday to calm investors on a day which has been chaotic in the financial markets, WaMu’s tattered share price was given a lift, and the share price jumped 18.0 percent or 36 cents to $2.36 in the morning trading on Tuesday.

This came after WaMu announced that the reason Standard & Poors downgraded WaMu’s credit rating to junk territory on Monday; the rating service cited the thrift’s exposure to the mortgage securities market, downgrading it to BB-minus from BBB-minus. Yet, the Standard & Poors did say the thrift has enough cash to get through 2010. S&P’s change in rating shadowed that of fellow rating service Moody’s who rated WaMu last week.

It’s been hinted that JPMorgan could still be interested in the stock spiking. The last few days have been erratic for Washington Mutual losing half of its value in the last week, and with Wall Street collapses around it WaMu is having it’s biggest challenge yet.

Read the full article in forbes