Chronicles Of Depression 2.0: #019

Report: WaMu Close to $5B Infusion

NEW YORK (AP) — Washington Mutual is close to landing a $5 billion cash infusion from private-equity firm TPG and other investors, according to a report Monday in the Wall Street Journal.

The U.S. mortgage crises has sapped the capital requirements of dozens of banks, included that of the nation’s largest savings and loan.

While the deal would deliver much needed capital to Washington Mutual Inc., it would dilute the holdings of current WaMu shareholders.

The rapid deterioration of assets tied to U.S. mortgages has forced some banks to hunt urgently for capital, at the risk of regulatory review.

What happens when the bailout money runs out?

It will!

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