WaMu: Could merge with Morgan Stanley or Goldman Sachs

We have no hard evidence that Washington Mutual (WaMu) is about to file for bankruptcy or fail, but what is as crystal clear is that when the markets are in such disorder every bank has its moment in the spotlight, and as WaMu as one of the only Wall Street banks left standing alone it is one of the top attractions.

With WaMu the problem lies with its share price, with the ever decreasing real estate prices WaMu need to raise more and more capital, so with a stock price that keeps decreasing the chances that the bank will find itself in trouble will go up.

It appears now that the government is now looking for a buyer for the bank, and WaMu seems to be obliging. In a recent report a Merrill Lynch analyst says WaMu are open to a merger with another bank, Morgan Stanley have been mentioned in several reports but nothing has been confirmed, the only other independent bank left standing would be Goldman Sachs so I don’t think they will be ruled out for a WaMu merger.

Read the full article in fool.com