Posted on April 7th, 2008 in Daily Mortgage/Housing News - The Real Story
This is a pee-hole in a snow-bank compared to their massive exposure of toxic Pay Option ARMs, Subprime and 2nd mortgages. $5 billion may be a couple months worth of losses in the coming months. Funny how these firms think they can call the bottom. I remember Warburg paying $31 per share for MBIA. That was STUPID! Good luck with your WAMU investment. You will need it. – Best, Mr Mortgage
April 7, 2008; Page A1
Private-equity firm TPG and other investors are close to a deal to invest $5 billion in Washington Mutual Inc., people familiar with the matter said Sunday.
The injection of new capital would allow the country’s
largest savings and loan to ease its pressing capital requirements, the
people said, amid punishing losses from the national mortgage crisis.
But it would substantially dilute current WaMu shareholders, who have
already lost 74% of their investment over the past year. WaMu’s market
capitalization on Friday was just under $9 billion, after its shares
dropped 11% that day.