Washington Mutual Cut to Junk by S&P

[Helena]

Washington Mutual cut to junk by S&P | Markets | Hot Stocks | Reuters


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[growing_older]

So, is it a screaming buy, or on the way to liquidation? If you have a few dollars for possible speculation, I guess that's why they call it mad money.

If you have deposits in the bank under the FDIC limit, no problem. They had some good CD specials trying to attract new depositors. Maybe they'll run some even better ones now?

[Helena]

"Shares of WaMu dropped 26.7%, or 73 cents, to close at $2.00 on Monday. The thrift has lost more than $30 from its stock price in the last month. The drop came after a sharp spike on Friday when investors looked to JPMorgan Chase to be the savior of the thrift. As of Monday evening though, no suitor has emerged and many investors wondered if talks were even under way.

JPMorgan would be a logical buyer because it expressed interest earlier in the year when it offered to buy Washington Mutual for $8.00 per share. That was a discount to the $8.75 it traded for then, but a handsome premium to the current price. "

http://www.forbes.com/markets/2008/0...markets38.html