WaMu to lay off 3,000: Close all remaining standalone home loan cntrs [View All]

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Source: Associated Press

SEATTLE (AP) - Washington Mutual Inc., hit hard by rising delinquencies and defaults on mortgages, said Tuesday it will receive $7 billion in new capital from an investment group led by private equity firm TPG but will post a wider-than-expected loss for the first quarter.

The Seattle-based thrift said it will lose $1.1 billion during the first quarter and take a provision for loan losses of $3.5 billion - $1.5 billion more than previously expected. Wall Street had forecast a loss of $344.3 million, according to Thomson Financial survey of analysts.

Separately, the country's largest savings and loan said it will get out of the wholesale lending business, close all remaining standalone home loan centers and lay off 3,000 workers.

Washington Mutual will sell equity securities to an investment fund managed by TPG Capital and to other investors in order to raise the funds. Washington Mutual did not disclose the names of other investors, though the bank said they include top institutional shareholders

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