Wall Street Journal (09/22/08) P. C1; Fitzpatrick, Dan; Sidel, Robin; Enrich, David
Washington Mutual Inc.--which is considering a sale to Citigroup Inc., J.P. Morgan Chase & Co., Wells Fargo & Co. or Spain's Banco Santander SA--projected mortgage losses of $19 billion over the next couple of years. The estimate has the prospective buyers backing a government-assisted takeover. This could involve a seizure of the Seattle-based thrift's assets by the Federal Deposit Insurance Corp., which would allow buyers to choose which branches and assets to buy and leave the government holding the higher-risk assets. However, experts point out that WaMu likely will have problems raising capital, as outside investors are concerned about the worsening credit crisis and home-price declines.
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