http://biz.yahoo.com/ap/080408/washington_mutual.htmlWashington Mutual has become the latest focus of market watchers as it threatens to go the Bear Stearns route to oblivion. According to the story:
Washington Mutual Inc. secured $7 billion in new capital Tuesday, an injection that is aimed at reviving the company despite ballooning loan losses but which may also push it to rethink its strategy, slim down and revamp the management.
The article goes on to say that the bank is getting out of the wholesale lending business and laying off 3,000 workers.
So let me get this straight, the proper course of action when dealing with an institution that has blown billions of dollars is to lend it billions of more dollars.
Remember when conservatives used to stand for personal responsibility?
2 comments:
What if the intent was to hasten the overall demise?
How about looking at it from a strategic management viewpoint. What if the infusion of capital will allow the company to REORGANIZE it's investment strategy, temporarily cushion it's redline losses in buying time for market conditions to stabilize. In addition, as the market changes, the company will also adapt to new policies/regulations/fees for customers, etc. etc.
Be real, simplistic viewpoints have no merit. Maybe some guys at WaMu did mess up, but that shouldn't stop others in management from restructing and learning their lessons. That's what business is all about.......
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