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WaMu plans another huge write-down

September 12, 2008|From the Associated Press

NEW YORK — Washington Mutual says it will take another multibillion-dollar write-down for bad bets on mortgage securities but insists it has adequate capital to fund its operations amid concern about the thrift's financial stability.

The Seattle-based bank expects its provision for bad loans in the third quarter to be $4.5 billion. Of that amount, $3.4 billion is for residential mortgages. Both totals are down from the second quarter of 2008.

The company, like many other U.S. financial firms, has suffered from investments in risky mortgage securities and other assets. It has seen its stock price drop about 80% this year.

The thrift said it had "sufficient liquidity and capital to support its operations while it returns to profitability." WaMu posted a loss of $3.3 billion in the second quarter.

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