Tuesday, July 22, 2008

Cow tipping: WaMu loses $3.3 Billion

Maybe if Bush weren't left in office, we could start to turn our economy around. (Tip: spending $12 BILLION in Iraq isn't helping.)

WaMu reports $3.3 billion second-quarter loss
Thrift increases reserves to cover bad loans to $8 billion

SEATTLE - Washington Mutual says it swung to a loss in the second quarter as it increased to more than $8 billion its reserve to cover sour loans.

For the April-to-June period, the Seattle-based bank says it lost $3.33 billion, or $6.58 per share, which compares with a profit of $830 million, or 92 cents per share in the year-ago period. Results include a previously disclosed, one-time reduction of $3.24 per share related to the company’s capital raising in April.


I bank at WaMu, so I have to remind myself of the advantage of not being wealthy. The government promises to insure up to $100,000 worth of my deposits with Washington Mutual. I'm not going to start worrying until I win $95,000 in the lottery and decide to lend it to WaMu.

I wonder how much you make as a CEO when the business you run loses BILLIONS of dollars? Kerry Killinger gave up his position as the Chairman in June, but he's still the CEO.

*Update: WaMu's CEO, Kerry Killinger got canned today, September 8, 2008. His compensation on 2007 was $14.4 Million. Oh, and his golden parachute turned out to amount to $44 Million.

**UPDATE: WaMu collapses, September 26, 2008. After three weeks of hard work, new CEO, Alan Fishman, gets $18 Million to just go away. He tries laughing all the way to the bank but finds it closed.

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