WAMUQ - Washington Mutual

[Will_Penny]

[Hyper]

http://www.signonsandiego.com/news/b...25default.html

this really is a big problem. I think it probably hit the investors more than the regular homeowner though.

[phatey]

I'm wondering if there will be an EOD selloff before earnings?

[Will_Penny]

Seemed like earnings were down but beat estimates anyway.

Washington Mutual 1Q Profit Down 20 Pct.
Tuesday April 17, 9:41 pm ET
By Elizabeth M. Gillespie, AP Business Writer
Washington Mutual 1Q Earnings Fall 20 Percent Amid Housing Slump

SEATTLE (AP) -- Washington Mutual Inc. reported a 20 percent slide in its first-quarter earnings Tuesday, citing a nationwide implosion of the subprime home loan market. Even so, the company beat Wall Street estimates, and its stock rose in after-hours trading.
Kerry Killinger, Washington Mutual's chairman and chief executive, said the company's retail banking, card services and commercial groups fared well, while its home loan business -- particularly the subprime segment for consumers with high-risk credit histories -- has taken a serious hit.

"Clearly the mortgage industry is contracting from the extended period of strong housing sales and rising prices fueled by low market interest rates, massive liquidity and a strong economy," Killinger said. "A correction in housing prices was inevitable and we've been anticipating it for nearly two years now."

The nation's largest savings and loan said its net income was $784 million, or 86 cents a share, for the three months ended March 31, down from $985 million, or 98 cents per share, in the same period a year ago.

Revenue in the January-March period, including net interest income and noninterest income, was $3.62 billion, up from $3.59 billion in the same period last year.

Analysts polled by Thomson Financial were predicting earnings of 83 cents per share on $3.6 billion in revenue.

Shares of Washington Mutual closed down 60 cents, or 1.5 percent, to $40.13, then rose 92 cents to $41.05 in after-hours trading. The company's stock has been trading from $38.73 to $47.01 per share over the past year.

Washington Mutual's home loans group posted a first-quarter loss of $113 million compared with a $52 million profit during the year-ago period. The company suffered a quarterly loss of $164 million on sales of subprime mortgages, which overshadowed improvements in home loans to consumers with better credit.

To limit further damage as the housing slump continues, Washington Mutual said it has scaled back its subprime portfolio and has set aside more money to cover future loan losses: $234 million for the quarter compared with $82 million in first quarter 2006.

Though the company expects to see continued problems with delinquencies and defaults, executives said Washington Mutual will continue offering subprime loans, which make up about 6 percent of its assets.

Killinger said he's seeing signs that the subprime market is improving. "I've seen pricing improving recently. We've also seen credit underwriting improving, and we've seen performance of 2007-originated loans improving over what was done in 2006," Killinger told The Associated Press.

Killinger said he expects the home loan unit to return to profitability later this year, and he sounded upbeat about the company's larger divisions.

Washington Mutual's retail banking group added 328,000 new checking accounts and collected $665 million in depositor and other banking fees, a 15 percent increase over the first quarter of last year. Its card services segment also posted a solid quarter, with 782,000 new accounts opened.

[rossiTK]

[rossiTK]

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IMB IndyMac Bancorp Inc (NYSE)

[Will_Penny]

Under investigation by New York Attorney General. I never took a position in this one. I did buy a little Wells Fargo today on the down turn in all banks. My thesis is what is bad for WM is in time good for Wells Fargo WFC

[Hyper]

Originally Posted by rossiTK

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IMB IndyMac Bancorp Inc (NYSE)

indymac's revenues were based off of Alt-A and subprime (I believe like 70% plus).

[emendblu]

i just bought some wm at $18 even. i am setting my exit at 19.25 with the intent to take back out my inital investment and have 16 free shares to play with. I might lower it if it gets close enough i guess.

[emendblu]

its at 19.75 pre premarket