In a new research report, Credit Suisse calls into question the "credibility" of Washington Mutual's management, citing what it calls "numerous upward revisions" to the thrift's credit expectations on future writedowns."We are concerned by the deterioration of WaMu's credit metrics and we do not believe WaMu is out of the woods," writes analyst Moshe Orenbuch. (The nation's largest thrift recently raised $3 billion in convertible preferred stock, offering a coupon of 7.75% on the notes.) Credit Suisse predicts that WaMu faces credit losses of nearly $5 billion in 2008, with an additional $3.55 billion of reserve additions. "We believe that [nonperforming assets] should increase to roughly $10 billion or 3% of total assets," Mr. Orenbuch says. Credit Suisse has a "neutral" rating on the stock. In trading Tuesday, WaMu's share price fell to a new 52-week low of $14.11. Its high is $46.

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