WaMu Gets OK to Raise Capital as It Seeks Sale

Investor OKs share dilution as beleaguered bank looks for suitors
By Kevin Spak,  Newser Staff
Posted Sep 18, 2008 7:00 AM CDT
The clock is ticking for Washington Mutual.   (AP Photo/Ted S. Warren)
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(Newser) – Washington Mutual is attempting to raise capital or sell itself, the Wall Street Journal reports, and it got a big boost in that effort yesterday from TPG. The private equity firm, which sunk $7 billion into WaMu in April, waived a clause that would have effectively prevented the thrift from issuing new stock. WaMu has instructed its adviser, Goldman Sachs, to assess strategic options, including a possible sale.

Wells Fargo and Citigroup have each expressed interest in WaMu, and JPMorgan Chase has tried to buy the bank before. Right now WaMu isn’t in advanced negotiations with any of them, though that could change. Last week WaMu said it could survive on its own, but that was before S&P dropped its credit rating to “junk” amid the larger maelstrom in financials.