Reply #13: Washington Mutual shares slide as firm slashes 3,150 jobs

[DemReadingDU]

12/11/07

Shares of Washington Mutual, the nation's largest thrift, fell in preopen trading Tuesday, a day after it said it's slashing 3,150 jobs and cutting its dividend.

The firm also said it is selling preferred stock to raise capital.

Shares of WaMu fell 7% to $18.49 in pre-open trade.

"We believe the fundamental news at WaMu is significantly worse than the company and we had previously expected," Bear Stearns analysts said on Monday evening.

The moves by one of the nation's biggest mortgage lenders indicate that shockwaves triggered by the subprime mortgage crisis have yet to subside, despite recent government efforts to ease the burden on the most-stretched homeowners.

"Washington Mutual (now) recognizes reality and is taking steps to shrink the company. It will be some time before investors make money in this stock although a takeover is possible," Punk Ziegel analyst Dick Bove said Tuesday.

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http://www.marketwatch.com/news/story/wamu-shares-slide-firm-slashes/story.aspx?guid=%7B28C28A91%2DF2F1%2D45B8%2D8CF7%2D81D6DD27E0E0%7D