Washington Mutual Inc., the biggest U.S. savings and loan, fell 21 percent in New York trading on concern it won”t be able to find new capital or a buyer to keep the lender in business.
The situation is grim for many banks including the massive giant CitiBank. The biggest problem is coming from Wachovia actually. No one is talking about it but some analysts’ feel it can on the line of collapse.
WaMu dropped 59 cents to $2.14 at 9:35 a.m. as investors gauged whether the Seattle-based company can continue without fresh cash to cushion as much as $19 billion in bad mortgages over the next 2-½ years. Lehman Brothers Holdings Inc., beset by losses tied to home loans, declared bankruptcy earlier today after failing to find new funds or an acquirer.
It is preaty amazing that the banking industry is in such a mess. Just three years ago the financial sector was reporting record profits. Where did all of the money go? What was the Demacratic Congress doing well this mess was playing out? Good Grief….