Pain continues to spread to UBS, WaMu and Bank of America

UBS, Washington Mutual and Bank of America make clear that the credit induced pain is still spreading. WaMu has announced it will get out of the subprime business, axe 3,150 jobs and slash its dividend. It will also shutter nearly 200 of 336 home loan centers. Most importantly, it plans to raise $2.5 billion via convertibles. Meanwhile, Bank of America will shut down an enhanced-cash fund, available only to accredited investors, and halting redemptions. The money-market like fund had apparently invested in SIVs. This is merely the latest such fund to hit a rocky crag. So we're not seeing the bottom just yet. Expect more announcements soon. The hits just keep on coming.  

For more:
- here's a New York Times article on WaMu
- here's a MarketWatch article on Bank of America

Related articles:
- WaMu's plan to hold line on subprime defaults
- The future of small- and mid-size banks
- Whither Bank of America investment banking?
- Latest crunch victim: Bank of America