WaMu to leave subprime business, cut 3,150 jobs

Washington Mutual plans to withdraw from the subprime-lending business and eliminate 3,150 positions. The company also plans to sell preferred stock and cut its dividend by more than two-thirds. "A substantial infusion of new capital, significant expense reductions, the major change in our home loans business, and our planned dividend reduction all combine to further fortify WaMu's strong capital and liquidity position," WaMu Chairman and CEO Kerry Killinger said.

View Full Article in:

MarketWatch · Wall Street Journal (tiered subscription model), The · Financial Times (free content)

Published in Brief: