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
WaMu Gets OK to Raise Capital as It Seeks Sale
The clock is ticking for Washington Mutual.   (AP Photo/Ted S. Warren)

(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.

story continues below

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. (Read more Washington Mutual stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.