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WaMu Sees $90 Million Restructuring Charge

PHILADELPHIA
Tue Dec 11, 2007 3:02am EST

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PHILADELPHIA (Reuters) - U.S. savings and loan Washington Mutual Inc (WM.N) said on Monday it expected to take a $90 million pre-tax charge as it restructures, cuts more than 3,000 jobs and writes down the value of certain home-loan assets.

WaMu, which also said it would slash its dividend and receive a $2.5 billion capital infusion, expects the restructuring to be completed by March 31.

The company said that due to "a fundamental shift in the home mortgage market due to credit dislocation and a prolonged period of reduced capital markets liquidity," it would discontinue lending through its subprime mortgage business. It also said it would close its home loan centers, WaMu Capital Corp, its institutional broker-dealer business, as well as its mortgage broker finance warehouse lending operation.

(Reporting by Jessica Hall; Editing by Andre Grenon)


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