WaMu no longer in need of capital?

August 7, 2008 | By Jim Kim

Thanks to Merrill Lynch's John Thain (fairly or not), people tend to be skeptical when they hear from CEOs that their bank's capital ratios look good. So what should one think of rumor-battered Washington Mutual CEO Kerry Killinger's statement to a Fox-Pitt Kelton analyst that thrift's liquidity position is strong? As MarketWatch notes, WaMu has raised cash in several steps in recent months, from the $7 billion raised from Texas Pacific Group and others to the $10 billion raised from tapping the Fed's discount window, the Federal Home Loan Banking system and open market operations. It has accounted for 65 percent of expected losses via set asides and charge offs. So while the losses will keep coming, it may be that its balance sheet is well positioned.

For more:
- here's the article from MarketWatch