New York Times (04/09/08) P. C4
An investment group led by the private equity firm TPG plans to invest $7 billion in new capital in Washington Mutual, which is struggling with an increase in delinquencies and defaults on mortgages. For the first quarter, the Seattle-based savings and loan says it will lose $1.1 billion and take a provision for loan losses of $3.5 billion, which is $1.5 billion more than previously expected. Washington Mutual also plans to eliminate its wholesale lending business, close its remaining stand-alone home loan centers, lay off 3,000 workers, lower its dividend and sell equity securities to an investment fund managed by TPG Capital and to other investors.
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