Movers: WaMu, Alcoa, AMD, Novellus Systems, Apple
Washington Mutual (WM) gets a $7 billion investment from a group led by private-equity firm TPG Capital in return for stock. The bank said it will lose $1.1 billion during the first quarter and take a provision for loan losses of $3.5 billion. It will cut its quarterly dividend to 1 cent from 15 cents. And it will also no longer purchase mortgages from brokers and close all its freestanding home loan offices. WaMu says it sold about 176 million shares at $8.75 each to an investment vehicle managed by TPG Capital and other investors. WM also issued about 55,000 convertible, perpetual non-cumulative preferred stock at a purchase price and liquidation preference of $100,000 per share.
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