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Dec 10, 2007

WaMu exits subprime business and lays off workers

SEATTLE — Washington Mutual (WM), the nation's largest savings and loan, is closing offices and laying off workers in response to problems in the mortgage and credit markets.
The Seattle company says it's closing 190 of 336 home loan centers and sales offices. It's closing WaMu Capital, its broker dealer business.
It's cutting 2,600 home loan positions — about 22% of those workers — plus 550 corporate and other support positions.
WaMu is discontinuing all subprime mortgages.
The company says it expects to take a fourth quarter after-tax charge of $1.6 billion, resulting in a net loss for the quarter.