Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

WaMu Looks to Private Equity as Bank Teeters

Blackstone, Carlyle in talks after overtures to other banks flop

By Jason Farago,  Newser Staff

Posted Sep 25, 2008 8:52 AM CDT
Email

(Newser) – Washington Mutual is hoping private equity will save the bank after its efforts to broker a sale to another financial institution came to nothing. Both the Carlyle Group and Blackstone are considering a takeover of WaMu, insiders tell the Wall Street Journal, although a deal is not yet assured. Many banks, from Santander in Spain to JPMorgan Chase and Citibank, have been reluctant to take on WaMu's troubled loans.

Federal regulators are pushing hard for a sale, which might receive government assistance. But laws limit the ownership of banks by non-bank entities such as private equity firms, and it remains unclear how a WaMu takeover would be structured. Yesterday Standard and Poor's cut its ratings on WaMu's debt into junk territory, as fears grew that any sale might not involve the whole company.

Washington Mutual is in talks with several private equity firms about a takeover. The troubled bank has failed to find a buyer among its competitors.
Washington Mutual is in talks with several private equity firms about a takeover. The troubled bank has failed to find a buyer among its competitors.   (AP Photo/Nick Ut)
Washington Mutual is in talks with several private equity firms about a takeover. The troubled bank has failed to find a buyer among its competitors.
Washington Mutual is in talks with several private equity firms about a takeover. The troubled bank has failed to find a buyer among its competitors.   (AP Photo/Paul Sakuma, file)
Washington Mutual is in talks with several private equity firms about a takeover. The troubled bank has failed to find a buyer among its competitors.
Washington Mutual is in talks with several private equity firms about a takeover. The troubled bank has failed to find a buyer among its competitors.   (AP Photo/Elaine Thompson)
Washington Mutual is in talks with several private equity firms about a takeover. The troubled bank has failed to find a buyer among its competitors.
Washington Mutual is in talks with several private equity firms about a takeover. The troubled bank has failed to find a buyer among its competitors.   (AP Photo/Mark Lennihan)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

WaMu's rating downgraded to 'CCC'
MarketWatch

Analysts predict losses of $30 billion or more
New York Times

 
private equity • Carlyle Group • takeover • Washington Mutual • Blackstone • WaMu

More Newser Stories

Carlyle Group Files for IPO

Hedges, Private Equity Funds to Invest in Bailout

Private Equity Giants See Big Payday—If They Don't Go Bust

JPMorgan Plans Relief for $110B in Mortgages

Stocks Climb Nearly 200 Points
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne