WaMu debt downgraded to “junk,” projects $4.5 billion loss reserve

September 11, 2008 by · Leave a Comment
Filed under: Industry News 

Good to hear they have long term funding in place so this hopefully won’t affect them too much.  They did re-affirm their commitment to maintaining there preferred dividend in this volatile market.  Their stock is down to 1990 levels which is not a good sign.

They are still the largest deposit bank in the U.S., it would be ashame to see them lose their independence because of the aggressive lending practices.  With their deposit base they will retain value in any acquisition.

Release:

In a statement, the thrift called the Moody’s downgrade “inconsistent” with its finances, but said it does not expect a “material” impact on borrowings, collateral or margin requirements, or to suspend dividends on its preferred stock.

It also said it has $50 billion of liquidity from “reliable funding sources,” and expects capital to remain “significantly above” regulatory minimums for “well-capitalized” lenders.

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