Washington Mutual Getting Out Of Mortgage Business

Washington Mutual has lost much of its value due to its bad mortgage lending decisions.

Here’s a report:

Seattle-headquartered Washington Mutual, which recently entered into definitive agreements to raise an aggregate $7 billion through direct sale of equity securities to an investment vehicle managed by TPG Capital, says that its business plans include closing all of its freestanding home loan offices and its wholesale lending channel.

These closures are expected to be completed by the end of the second quarter. The firm also reported a net loss of approximately $1.1 billion, or $1.40 per diluted share, for the first quarter of 2008.

"This substantial new capital – along with the other steps we are announcing today – will position us for a return to profitability as these elevated credit costs subside," states Kerry Killinger, chairman and CEO of WaMu. "With the support of these investors, we have every confidence in our ability to deal with today’s market conditions and restore shareholder value."

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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