87.4 F
San Fernando
Saturday, Sep 23, 2023

Washington Mutual Gains on Speculation of TPG Support

Washington Mutual Inc., the largest U.S. savings and loan, rallied as much as 18% in New York trading as a group led by private-equity firm TPG Inc. considers a $5 billion investment in the Seattle-based company. Negotiations with the TPG group are at an advanced stage and an agreement could be announced within days, said a person familiar with the discussions, who declined to be identified. Washington Mutual needs the funds after reporting more than $3 billion of home-mortgage writedowns and loan losses. At least 14 banks and securities firms have sought cash from outside investors in the past year after more than $230 billion of global markdowns and losses caused by the collapse of the U.S. subprime mortgage market, data compiled by Bloomberg show. Washington Mutual Chief Executive Kerry Killinger told investors in January he expected a “dramatic” increase in loans that need to be modified to avert defaults. For the full story visit http://www.latimes.com/business/la-fi-wamu8apr08,1,4930128.story

Featured Articles

Related Articles