Tuesday, September 09, 2008

Que es mas macho?

Washington Mutual, or Lehman Brothers?

Lehman Brothers:
Investors' confidence in Lehman collapsed after talks fell through with the Korean Development Bank about a takeover or a capital injection into the struggling Wall Street brokerage.The group is desperate for cash after announcing $8.2 billion of writedowns on mortgage-related investments in the past year. It might disclose a further $5 billion hit with the release of its third-quarter results next Thursday.

Shares closed down 44% at $7.90 - close to it's 52-week low.

It affirmed the 'BBB-' long-term and 'A-3' short-term counterparty credit ratings on WaMu and the 'BBB' long-term and 'A-2' short-term counterparty credit ratings on Washington Mutual Bank.

A "BBB" rating is the second-lowest investment grade rating and a "BBB-" rating is one notch below that, the lowest rating before "junk bond" status.


The lowered outlook also comes a day after WaMu said it entered into a memorandum of understanding with the Office of Thrift Supervision, its primary regulator. The Seattle bank committed to provide the OTS with an updated, multiyear business plan and forecast for its earnings, asset quality, capital and business segment performance.

They've recently fired their CEO.

Shares closed down 15% to 3.30 - within a quarter of it's 52-week low.

Que es mas macho? WaMu. They have free checks for life.

Oh, and we now have a corporate juicer.

Perhaps we'll be able to squeeze the last few dollars from the husks of these financial institutions once they've been abandoned by Wall Street.


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