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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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
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Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
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McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
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The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18