After watching its shares reach a 16-year low Wednesday, Washington Mutual issued a statement denouncing speculation that it is the subject...
SEATTLE — After watching its shares reach a 16-year low Wednesday, Washington Mutual issued a statement denouncing speculation that it is the subject of any regulatory enforcement actions.
“Neither our primary federal regulator, the OTS (Office of Thrift Supervision), nor any other bank regulatory agency has taken any enforcement action against WaMu that we have not previously disclosed,” Washington Mutual said. “Further, the company is not currently in such discussions with any regulatory agency.”
Washington Mutual shares closed down 62 cents, or 9.3 percent, at $6.06 Wednesday. Earlier in the session, shares reached $5.75, their lowest point since 1992. The plunge followed a 17 percent decline on Monday and a 7 percent rebound on Tuesday.
Investors had several excuses to sell in the last week. An analyst said WaMu may have to set aside billions of dollars more than expected to make up for bad mortgages. And Cleveland-based National City Corp., hit hard by the mortgage market disaster, disclosed that it has entered into agreements with banking regulators to help manage its own financial crisis.
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WaMu, the country’s largest savings and loan, has been badly hurt by the cost of rising mortgage delinquencies and defaults and by the sinking value of its mortgage portfolio. The thrift hoped to allay concerns about its capital cushion with a $7 billion cash infusion led by private equity group TPG, announced in early April, but Wall Street continued to batter the stock.