WaMu may have to sell deposits
Washington Mutual (WaMU), facing up to $19 bn in bad home loans and slammed by a 34% drop in its stock this week, may sell parts of a nationwide 2,300-branch network to raise capital.
By Agencies |
WASHINGTON: Washington Mutual (WaMU), facing up to $19 bn in bad home loans and slammed by a 34% drop in its stock this week, may sell parts of a nationwide 2,300-branch network to raise capital.
���The only real asset they have that���s worth anything to other banks is the deposit base, because of their branches,��� said L William Seidman, chairman of the Federal Deposit Insurance from 1985 to 1991. WaMu can probably sell branches in New York and Chicago, said Bert Ely, president of Ely, a bank consulting firm based in Virginia.
Alan Fishman, WaMu���s new chief executive officer, may have to shed branches that hold $143 bn in deposits. Suitors have walked away because of potential damage to their earnings and WaMu���s chief regulator has told it to boost risk management and compliance.
WaMu lured Fishman, 62, with a $7.5 mn cash bonus and $1 mn salary after his ousted predecessor, Kerry Killinger, failed to halt losses on home loans that already total $6.3 bn.
���The only real asset they have that���s worth anything to other banks is the deposit base, because of their branches,��� said L William Seidman, chairman of the Federal Deposit Insurance from 1985 to 1991. WaMu can probably sell branches in New York and Chicago, said Bert Ely, president of Ely, a bank consulting firm based in Virginia.
Alan Fishman, WaMu���s new chief executive officer, may have to shed branches that hold $143 bn in deposits. Suitors have walked away because of potential damage to their earnings and WaMu���s chief regulator has told it to boost risk management and compliance.
WaMu lured Fishman, 62, with a $7.5 mn cash bonus and $1 mn salary after his ousted predecessor, Kerry Killinger, failed to halt losses on home loans that already total $6.3 bn.
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