Monday, September 15, 2008

Already battered, Washington Mutual shares fall as potential rescuers’ attention is diverted.

Is anyone left to save WaMu?

After this weekend's turmoil, however, WaMu has fewer places to turn if it needs another injection of capital beyond the $7 billion it raised in April. No one stepped in to save Lehman and Bank of America will now be busy digest Merrill.

Posted by mark @ 03:32 PM (485 views)
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2 thoughts on “Already battered, Washington Mutual shares fall as potential rescuers’ attention is diverted.

  • My guess is the Feds will have to save this one in some shape or form, as unlike Lehman Bros, it has lots of retail depositors. It’s market position is similar to Nationwide here, or the Halifax division of HBOS.

    It is possible that the Feds didn’t bail out Lehman because they know or suspect that Washington Mutual is coming up, and don’t have sufficient funds for both.

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  • Whostolemyendoment says:

    Good summation mr j.

    You are right – they are saving their powder for more politically sensitive ‘victims’. As the man in the street and the media have a poor view of fat cat city types – and initially will get much pleasure out of them getting their comeupance…

    There must be several vulnerable UK investment banks, and it would be unlikely that the UK government and BoE would be obliged to bail them out – and would take the risk that the situation will blow over without hitting joe public directly. Of course the indirect fall out – well that’s market forces – right?

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