All they have to do is fire 1/4 of their VP's who don't do anything.
Maybe they could get rid of the people who helped kill the Monorail - that would save a lot.
This is what happens when you try and play with the big boys, you have to act like them and can no longer pretend to be on the side of goodness and light
glad i still have my tiny socialist credit union
Or their entire mortgage department who just loses money for them.
The 2.5 Billion in convertible shares and the cutting of the dividend are also interesting. It says "We need cash badly"
for those that don't know what convertible shares are, here you go:
Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date.
Also known as "convertible preferred shares".
Most convertible preferred stock is exchanged at the request of the shareholder, but sometimes there is a provision that allows the company (or issuer) to force conversion. The value of convertible common stock is ultimately based on the performance (or lack thereof) of the common stock.
so now one of the pillars of our local economy is slashing jobs...our real estate market is "strong".
wait for it folks, soon complaining about median housing prices and affordability will not be an oft heard complaint. wait for it.
also in teh news; BofA freezes an institutional money market account valued at 12 Billion. No in or out.
It's only the begining...
Maybe the fired employees can feed their families with Wamula.
all of those people were fired because of their race. you just can't see it because capitalism has made you mad.
lmao@ 7 and 8.
I wonder what I can do to really put WaMu over the barrel. perhaps threaten to change banks if they don't offer me a non min 5.05% APY chequing account?
Does this mean the smiley face fireworks will wear a frown next July 4?
Duh. Washington Mutual was one of the largest mortgage lenders in the area. Practically every other large mortgage lender in the country is going though massive layoffs. I'm only surprised it took this long.
Yeah, it would suck to be one of those 3000 people, but this is not news.
Here's how to fix things: draw and quarter the executive who told everybody that subprime "investments" were the Next Big Thing. Seriously. Cut off his hands, pull out his entrails, and fucking burn them.
@4 - actually, I frequently buy convertible bonds, which are basically bonds with a fixed rate of interest, but that convert either on a fixed date or a prior date if exercised by the firm, into shares of the firm.
It's a good instrument to hold when the firm may totally melt down, as bonds are paid off from assets BEFORE stocks (which are paid off Preferred Stock then Stock).
Usually the stockholders get nothing, but bondholders get some money.
SDA, saying that this "isnt news" when
1. There is far worse crap on Slog
2. This is a hometown company
3. When it flies in the face of the "Seattle is Special" mantra
either shows how much you know about the situation, or how much you actually want to know in general.
too bad they arent convertible bonds though...
Surely, my overdraft fees alone must have allowed them to keep a few more employees.
the paper says Real Networks laid off a hundred people today too.
I heard from a friend that Infospace in Bellevue is going to do a big layoff soon too
So, let's see, recent large layoffs are:
Sure hope no non-MSM reporters find out how many senior execs cashed out options at the last two recently and chart it against their usual exercises and sell offs, or look at the total compensation packages in the SEC filings for the top 5 execs at those firms in the recent quarterlies ...
That might be interesting ...
I lost my job at Wamu a year ago when they decided my entire department (the department that sends out letters, bank statements and all other correspondance), with offices in Seattle and in California, could be outsourced. These latest layoffs are part of the bank's blood loss that has been happening for some time. 10 months ago Wamu stock was around $45 a share. Today, around $19.
Is anyone else having flashbacks to 2000?
Sounds like we may be reading stories again about employees finding out they're fired when the company cell phone is shut off or when they return to a locked office. Sad.
it's even lower than that 18.
I agree very much with #1 - or they could fire many of the VPs who DO do something, but all too often make really bad decisions without any thought of the future beyond the next business quarter. For #11, the really big difference between WaMu and other lenders is that they never do anything to the big boys higher up:
(you can only read the first couple paragraphs, but that's all you need to read)
I'd be VERY surprised if they laid off anyone above a certain level - and even then, I'd expect they would only lay off a couple of them, to be sacrificial lambs.
I'm glad I don't own stock in this company.
They could probably save a few bucks by not sending me so much goddamn junk mail.
The cuts: Mostly people who handled the horrid subprime loans campaign. Some accounting personnel, but many of them were being phased out anyway, with many necessary ops getting outsourced. WaMu has a lot of complacent personnel fat to trim, and now's as good a time as any to cut it.
Also, their stock price, at $38.50 a share as of late August, tumbled all the way to $18 before a mild rebound. Even for a bank, that is a HUGE drop, as the other banks only saw a $5-6 drop. Clearly, working with that appraisal firm that inflated appraisals, and trying to make bank on subprimes were just bad, bad ideas that have now come back to bite them.
For #11, the really big difference between WaMu and other lenders is that they never do anything to the big boys higher up:
Uh... every big corporation does that. They cut from the bottom and keep everyone at the top. They would rather slice 100 jobs and put 100 drones on the street than slice an executive's salary. Corporate American is hardly a welfare situation.
Also, this is why I'm a temp. Put my entire professional fate in the hands of a giant corporation? Yeah, right.
At least when I'm dropped on the street as a temp, that's part of the plan, and I just get back up and go work somewhere else.
A few months ago, I got fed up with all the credit card applications I was receiving (1-2 per week). So, finally, I tore up an application, stuck it in the return envelope, and sent it back to the credit card company. I swear to god, I haven't received a credit card application since. I highly recommend it.
Hey Stranger--Why don't you do a story about Safeco. 3150--pfffff. You've been missing a huge story for the past seven years.
I'm one of yesterdays victims. It sucks.
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