Same Story At WaMu

July 22, 2008 at 2:16 pm  ·  Category: Macro Economics, Market Commentary, Real Estate, Stocks

Today after the close Washington Mutual (WM) announced a $3.3 billion 2nd quarter loss driven by a $6 billion provision for loan losses (WM Earnings Release).

WaMu has a quarter trillion dollar ($250 billion) loan portfolio, almost entirely in real estate.  $11.2 billion of that portfolio is non-performing (about 4.6%) – up from $4 billion a year ago.  So you can see that WaMu is in worse shape than Wachovia where only 2.44% of the portfolio is non-performing.

It’s hard to know what the endgame here is but one thing that is clear is that credit quality at all of these major banks continues to deteriorate.

Disclosure: Top Gun has no position in Washington Mutual (WM) shares.

Posted by Greg Feirman  ·  Trackback URL  ·  Link