Proof Washington Mutual Is Screwed

So, WaMu releases earnings tomorrow and normally companies are loathe to say or do anything prior to these releases for fear of being charged with manipulating the market.

Not WaMu, though. No, they felt it necessary to release the following statement at 4:13 pm EDT.

Press Release Source: Washington Mutual, Inc.


In Response to Industry and Market Activities, Washington Mutual Provided the Following Statement on the Strength of Its Capital and Liquidity Position:
Monday July 14, 4:19 pm ET


SEATTLE--(BUSINESS WIRE)--Washington Mutual, Inc. (NYSE:WM - News) "Washington Mutual recently raised $7.2 billion in capital and its tangible equity to total tangible assets ratio was 7.8% as of June 30. The company significantly exceeds all regulatory “well-capitalized” minimums for depository institutions. In addition, WaMu has current excess liquidity of more than $40 billion and a national franchise with approximately $150 billion in retail deposits. The company will provide a more detailed report on its capital position and liquidity, as well as the steps it is taking to work through the current environment, on its July 22 earnings call."

Now, what possible reason would WaMu have for doing this? Because people are lining up at the bank and demendning their money in hopes of avoiding the fate of those who had their money at IndyMac, and are desperately trying to avoid the same fate.

I can't say for sure but I would be willing to bet that it is happening. In fact, I am going to go by some WaMu branches on my way home and see what it looks like. I will let you know.