The layoffs were announced to employees in Seattle at a conference call Friday. The Seattle thrift declined to confirm that it\’s cutting more workers but spokeswoman Darcy Donahoe-Wilmot said in a statement: \”I don\’t have any details to share with you at this time, but I can tell you that we\’re looking critically at everything we do. That move resulted in 3,000 layoffs. WaMu is the fourth-largest bank in the East Bay by deposits.
Washington Mutual mortgages is hurting. , battling to cut costs, will lay off more employees in September, according to people familiar with the company. Its most recent announcement came several weeks ago when it said it would cut 1,200 employees across the country. In April, the company said it would close its 186 home loan offices nationwide.
Analysts polled by Thomson Financial, on average, forecast a loss of 93 cents per share for the period. Banks across the country have faced rising losses tied to a spike in mortgage defaults over the past year. IndyMac was a large lender of alt-A mortgages during the housing boom earlier in the decade. According to one person familiar with the company, workers who receive layoff notices will likely stay until the end of the year and receive a retention bonus.
By its most recent count, WaMu employs 45,833 employees. 49 in afternoon trading. And everything is on the table except what\’s necessary to maintain outstanding customer service and ensure we have high-quality controls in place. Regulators stepped in to take over operations over worries the bank did not have enough capital to meet short-term obligations.
WaMu is hurting. Alt-A mortgages are loans that are given to customers with minor credit problems or that do not have the documentation to receive traditional, prime mortgages. Washington Mutual will likely take a $4 billion loss provision during the second quarter, after setting aside about $3. Shares of Washington Mutual Inc plunged Monday afternoon as investors shied away from banks with large mortgage portfolios after IndyMac Bancorp Inc.
Lehman Brothers (nyse: LEH - news - people ) analyst Bruce Harting wrote in a research note that Washington Mutual will need to \”substantially\” increase its loss reserves to cover still mounting losses in its mortgage portfolio. the banking industry, including Washington Mutual is in decline. Washington Mutual is in trouble. WaMu could not confirm that information.
48 per share during the second quarter. They\’ll also receive a severance at the end of that time. IndyMac faced a run resulting in more than $1. \”It\’s unclear how many employees will be affected and from which departments.
WaMu, suffering heavily through the housing market\’s downturn, has announced more than 7,300 layoffs since last December. Harting estimates Washington Mutual will lose $1. Earlier in the session, shares hit a 17-year low of $3,27. 3 billion in funds withdrawn over an 11-day period.
5 billion during the first quarter, Harting wrote in the note. failed late Friday and was taken over by the Federal Deposit Insurance Corp. Need a mortgage, call Washing Mutual and be in big trouble. With the housing market still weak, those losses are expected to continue to climb for the foreseeable future.
Harting estimates Washington Mutual will eventually take $26 billion in losses from its current balance sheet, with $21 billion related to mortgages. Banks with large portfolios of mortgages, especially those with large concentrations in areas where the mortgage market has been hit the hardest or with nontraditional mortgages, have struggled Monday after IndyMac bank was taken over by the government Friday. Washington Mutual (nyse: WM - news - people ) shares tumbled $1,46, or 29 percent, to $3.
