Wednesday, November 07, 2007

WaMu: Expected "Soft Landing" becomes "Severe Downturn"

by Bill McBride on 11/07/2007 11:30:00 AM

From Reuters: Washington Mutual sees loan losses; shares tumble (hat tip barely)

Washington Mutual Inc ... said on Wednesday the U.S. housing slump will persist through 2008, causing loan losses to mount and mortgage lending to fall to an eight-year low.
It expects credit losses to remain "elevated" through 2008. ...

"The soft landing we were anticipating quickly transitioned to a severe downturn," Chief Executive Kerry Killinger said in a presentation to investors in New York. "This process is painful."
What expected soft landing? And further in the article:
[The CEO says] WaMu has "contained" its own lending risks.
Ahhh, more containment!