The Modern Stock Trader » Banks http://www.modernstocktrader.com Correcting Market Inefficiencies Since 2008. Tue, 20 Oct 2009 00:47:21 +0000 http://wordpress.org/?v=2.8.2 en hourly 1 WaMu (WM): Epic Fail http://www.modernstocktrader.com/wamu-wm-epic-fail/ http://www.modernstocktrader.com/wamu-wm-epic-fail/#comments Mon, 14 Jul 2008 16:23:04 +0000 frominator http://www.modernstocktrader.com/?p=8 The markets have lost almost all confidence in Washington Mutual and their exposure to residential mortgages (nearly $300B worth).

The stock is now trading at $3.6B market cap, or about 16% price-to-book.

WaMu: How Low Can You Go?

Chances are, investors got it right. While the writedowns may be slow to come for WaMu, they will definitely have to mark assets down billions upon billions of dollars as delinquencies and foreclosures mount.

Shareholders were recently diluted when TPG acquired a preferred ownership stake at $8-$9.

Will the Fed, or possibly another bank, step in and take over the ailing firm’s balance sheet?


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