The federal government has started cold-calling large banks, seeking to put together a deal for a buyout of Washington Mutual [[WM]].
The main roadblock to finding a suitable buyer has been that no one knows exactly what they’ll get into. The condition of WaMu’s books is a mystery.
The New York Post reported earlier today that banking regulators have been in talks with Wells Fargo [[WFC]], JPMorgan Chase [[JPM]], and HSBC, among others.
Shares of Washington Mutual have crashed in recent weeks as concerns mounted regarding losses in the bank’s lending portfolios. Shares of the Seattle-based thrift have fallen almost 50% over the past month and are off 83% for the entire year.
Over the last quarter, Washington Mutual lost over $3 billion, about $6.50 per share, as it put away more than $8 billion to cover bad loans in its mortgage holdings.