Washington Mutual cuts profit on Amex/Visa pact

NEW YORK (Reuters) - Washington Mutual Inc (WM.N: Quote, Profile, Research, Stock Buzz), the largest U.S. savings and loan, on Friday reduced previously reported third-quarter profit to reflect its share of Visa Inc's $2.1 billion antitrust settlement on November 7 with American Express Co (AXP.N: Quote, Profile, Research, Stock Buzz).

Seattle-based Washington Mutual said it took a charge of $38 million for the settlement. The charge reduced quarterly profit to $186 million, or 20 cents per share, from a previously reported $210 million, or 23 cents.

Profit, as revised, fell 75 percent from $748 million, or 77 cents per share, in the third quarter of 2006.

Washington Mutual has struggled this year with mounting losses related to mortgages. Its shares have fallen 55 percent this year, but closed Friday up $1.12 at $20.51.

(Reporting by Jonathan Stempel; Editing by Carol Bishopric)