Washington Mutual sees 72 percent loss in profit this quarter

Posted Oct 17th 2007 5:14PM by Tobias Buckell
Filed under: Earnings Reports, Washington Mutual (WM), Housing

Washington Mutual, Inc. (NYSE: WM)'s third quarter results saw a 72% loss in profits for the giant financial services company. It's a very startling drop, and the company is taking the loss due to writing off bad home loans. The sub prime lending practices are coming home to roost.

Overdue loans, and the inability to resell loans that don't meet minimum lender requirements led to this situation, and it isn't only WaMu that's feeling the pinch, but many other large banks that jumped into lending money to customers who were of a higher risk than usual.

WaMu's cute commercials about its cutting edge customer practices in giving customers no-fee checking accounts notwithstanding, it looks like the company got a bit too cutting edge with its lending practices, and just had its nose bloodied a bit.

The company's CEO promises to get the company's mortgage unit back on track by the end of the year.

Tags: subprime mortgages, SubprimeMortgages, wamu, wamu lending, wamu mortgages, WamuLending, WamuMortgages

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Reader Comments (Page 1 of 1)

10-18-2007 @ 10:02PM

jay martiniq said...

YOU AIN'T SEEN NOTHING YET BABY! WAIT UNTIL THE SHIT HIT THE FAN....NO FEDS, NO BERNANKE, NO GREENSPAN STUPID SHIT IS GOING TO SAVE YOU....REMEMBER WHEN THEY WERE GIVING THE STUPID SHIT AWAY TO EVERYONE? WHERE WERE THE ANALYST AND THE EXPERTS AND THE HOUSING DEPT. WHERE WERE FANNIE SHIT AND FREDDIE MAC GARBAGE AND THE BIGGEST IDIOTS GENNIE (MAI TAI) SHIT. THEY WERE GETTING THEIR BONUSSES INFLATED......