Filed under: Major movement, Bad news, Management, Rants and raves, Market matters, JPMorgan Chase (JPM), Money and Finance Today, Washington Mutual (WM), Wells Fargo (WFC), Headline news
Washington Mutual . . . ahem . . . WaMu (NYSE: WM) has just let the other shoe drop, or at least shareholders are hoping that is the case. After yesterday’s market close, it announced a $1.6 billion write-down, a reduction in the dividend from 56 cents per share to 15 cents (73%), 2,600 layoffs, downsizing of loan departments, closing of sales offices, closing its broker-dealer business, WaMu Capital Corp., as well as its mortgage banker warehouse lending unit, and more.
It is ironic that Washington Mutual has changed its name to WaMu. Now that it has changed its name, it just needs to leave town as most anyone would do after being disgraced. Seems like in so many respects, that is what it’s doing, slinking away. It may very well slink into the arms of an acquisition by a better-managed company like JPMorgan Chase (NYSE: JPM) or Wells Fargo (NYSE: WFC).
I hope I have not jinxed JPM and WFC with my compliments . . . hmm.
Since I have been a shareholder and major supporter of Washington Mutual for many years and have made one of my biggest blunders touting the bank as an investment opportunity, I have my own shame too…although I refrain from running or hiding. The truth will set you free: I made a big mistake!
Continue reading WaMu’s $1.6 billion write-down: Oh the shame of it all
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