Anybody want a bank? After Moody's Investors Service
further cut Washington Mutual Inc.'s credit rating, executives at the Seattle-based thrift continue to weigh all the options, from a straightforward sale to raising new capital to a government-assisted takeover. All the news surrounding the bank has investors talking.
Here are the latest rumors and reports.
Continue reading below
Monday, WaMu's stock dropped on speculation that the bank may not attract a buyer -- not at least until it can dump part of its $309 billion portfolio of loans and mortgages onto the shoulders of the U.S. government.
Meanwhile Moody's cut the bank's ratings to E, its lowest rating, saying the thrift's capital is insufficient to absorb its mortgage losses.
There are also reports Tuesday that the Office of Thrift Supervision is pushing WaMu to find a buyer and is considering brokering a deal to break it up between several banks if no outright buyer emerges in the next few days.
Several banks are said to be bargain hunting, and
Canada's Toronto-Dominion Bank, which operates in the U.S. as TD Banknorth and Commerce Bancorp, is now said to be among the firms weighing a bid for WaMu, according to The Wall Street Journal. TD would be the second foreign bidder reportedly interested as Spain's Banco Santander SA is rumored to also be considering a bid. Domestic bidders reportedly checking out
WaMu's books include J.P. Morgan Chase & Co., Citigroup Inc., and Wells
Fargo & Co. Citigroup Inc.
reportedly backed out of bidding for the bank.
All of the speculation has prompted chats on the Yahoo! and Google discussion boards. Here is the latest Rabble Babble:
Do you have an opinion concerning the latest WaMu rumors? Join in the conversation by leaving a comment below. -
Maria Woehr
Comments
Anyone who hasn't withdrawn all their funds from wamu by now, desrves to wait ninety or more days for their insured accounts.