WaMu's Net Income Down A Whopping 72%

The “housing correction” is turning out to be “more dramatic and more rapid” than Kerry Killenger, WaMu’s chairman and chief executive had expected.

From the WSJ:

The biggest hit was felt in WaMu’s home-loans unit, which widened its quarterly loss to $348 million from a loss of $23 million a year ago. As has been the case with other lenders, most of the problems centered on mortgages to borrowers with subprime credit, as well as home-equity loans.

In remarks to analysts, Mr. Killinger said the housing-price correction was more dramatic and rapid than anticipated, and that forecasting what will happen next is difficult because conditions are changing so quickly. Still, he said, “I’m very pleased with how we’ve managed the company through this period of stress.”

WaMu’s third-quarter loan-loss provision, or funds set aside in anticipation of bad loans, was $967 million, compared with $166 million a year ago and $372 million in this year’s second quarter.

Ouch.

WaMu Offers Tough Outlook [WSJ]

Comments

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  1. nickripley says:

    Dials for smiles, my friends.

  2. Crymson_77 says:

    ROFLMAO anybody notice who hasn’t been in the news for this? I have, but I work there and can’t say who. The only news story on the bank I work for was that they were closing that side of the business completely. There have been some complaints about the bank I work at, but overall they are the best in many sections of the financial industry. I am thanking GOD that they also hold my FHA loan as they tend to keep them once they get them. One hint, the name rhymes with Bells Hargo…:-)

  3. Crymson_77 says:

    me post twice so that me first one can be present before the end of time…sheesh…

  4. RandomHookup says:

    Many laid off Wal*Mart employees could end up getting a raise if they go on unemployment.

  5. rmz says:

    But housing always goes up!

  6. Dan25 says:

    @Crymson_77:

    I hear that!

  7. alulim says:

    GOOD NEWS FOR THE CONSUMER.. i had a wamu account for less than a month and i had to contact both the bbb and my ag to remove myself from the “modified terms”.