WaMu Puts Self on Block
- Sep 17, 2008
According to a story broken by the New York Times, Savings & Loan bank Washington Mutual is looking for a buyer. The paper noted that Goldman Sachs has been tapped to spearhead the process. A number of suitors were mentioned in the report. These include Wells Fargo, JPMorgan Chase and HSBC. Should no one step up this could be another falling shoe that the Federal government may wind up picking up. The bank’s shares have fallen 94 percent in the last year. Its debt is now rated as junk. TPG Capital, which propped up WaMu with $2 billion of a $7 billion infusion of cash the bank received in April, said in a statement today, “It became clear that it would be in the best interests of Washington Mutual and our investors to waive the price reset payment provisions that were agreed to with the bank at the time of our original investment in April 2008. Our goal is to maximize the bank’s flexibility in this difficult market environment.” TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992 with more than $55 billion of assets under management.