Mortgage Banking

Making sense of commercial real estate finance.

WaMu in the News

Posted by Jordan Crouch on April 7, 2008

  • A private equity firm is investing a much needed $5 billion into Washington Mutual, the country’s largest savings and loan. This will ease some cash constraints WaMu has been feeling.
  • The WaMu deal isn’t all rosy. 3,000 employees are losing/have lost their jobs as the company sought to cut costs. Also axed recently was the dividend. On top of that, shareholders will have to endure a diluting of their shares as the private equity firm is assuming a significant ownership portion of the company.
  • The market has responded positively this morning to the news; all major market indexes are up. Of course, WaMu stock is up on the news, 30% at the market’s close.
  • For those that don’t know, WaMu also lends on commercial real estate.

Advertisements

3 Responses to “WaMu in the News”

  1. Bob Woods said

    Good morning, Jordan. Marvin Corea recommended I check out your site, and I like it. I’ve been bemoaning the lack of commercial real-estate blogs and related blogs out there; glad to see there’s another one of us out there!

    And about this article, it’s funny how you don’t see the employee firings part topping many of the articles on this out there. A nice summary on the situation.

  2. Bob,
    Thanks for reading. I agree the media hasn’t given much notice to the job cuts. Being in Seattle, I am a little more in tune, I know several of the recently let go WaMu-ians.

  3. WaMu is not a small player in the CMBS market. The company always seems to be in trouble when the CMBS market goes south, yet every time WaMu finds a way to dig itself out!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: