TPG Eyes a Fixer Upper in Wamu

Originally Published In the News April 7, 2008 3:10 PM

Washington Mutual’s rumored capital injection of $5 billion from TPG is the latest dilutive transaction for the nations large financial institutions, and not likely the last. The Bears are still gnashing their teeth, but we are working through the problems. one wounded company at a time:

“I think the biggest credit problems have started to abate a bit, and these kind of deals are getting done,” said Peter Dunay, chief investment strategy at Meridian Equity Partners in New York. “It shows investors are out there to step in. But what they want in return becomes very large.”

Indeed, the investment would give TPG a mix of common and preferred stock totaling less than 25 percent of WaMu’s outstanding shares, according to a person familiar with the talks, who asked not to be named because the deal has not been announced. TPG, formerly Texas Pacific Group, would also get a seat on WaMu’s board. AP

While we would rather fade the resurgent financial stocks for a trade than buy them here, we are another step closer to putting this episode behind us. Life won’t be the same however, for many feet on the Street.

WaMu Talk Shows Capital Infusion Trend
AP

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