Washington Mutual Inc. (WM) Announces Big Cuts to Fight Off Mortgage Crisis
Washington Mutual Inc., the nation's largest savings and loan, said Monday problems in the mortgage and credit markets are forcing it to close offices, slash over 3,100 jobs, and set aside far more than expected for loan losses in its fourth quarter.
The company also said it was slashing its dividend 73 percent.
Additionally, WaMu announced a $2.5 billion offering of convertible preferred stock.
The company said it now expects to set aside between $1.5 billion and $1.6 billion for loan losses in its fourth quarter. That estimate is about twice the level of expected fourth quarter net charge-offs, WaMu added.
The company also said it was slashing its dividend 73 percent.
Additionally, WaMu announced a $2.5 billion offering of convertible preferred stock.
The company said it now expects to set aside between $1.5 billion and $1.6 billion for loan losses in its fourth quarter. That estimate is about twice the level of expected fourth quarter net charge-offs, WaMu added.
Labels: Washington Mutual Inc., WM
posted by Stock Administrator @ 5:34 PM
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