24 July 2008

Unsecured Creditors Pulling Funds from Washington Mutual


The commentators on Bloomberg News were citing an analyst report that 'unsecured creditors were pulling funds from the bank.' Washington Mutual did not deny this, but responded that they are not reliant on the short term commercial paper markets as they can draw funds from their banking operations, so there.

Here we go again.

Reuters
WaMu shares fall as credit concerns grow
Thursday July 24, 3:39 pm ET
By Anastasija Johnson and Jonathan Stempel

NEW YORK (Reuters) - Washington Mutual Inc (WM - News) shares fell as much as 23.4 percent and the cost to insure its debt against default rose after an analyst said some creditors reduced their exposure to the largest U.S. savings and loan.

Citing the Seattle-based thrift's financial statements for the period ending June 30, Gimme Credit analyst Kathleen Shanley wrote that "many creditors have quietly been pulling funds" from the company.....