Washington Mutual has problems

Today Bloomberg discussed the estimated losses for Washington Mutual (WaMu) the country’s largest saving and loan. Losses from sub-prime loans “…ate up capital,” and may end up generating $17 to $23 billion in loses.  WaMu sold shares to raise capital  and to “…reassure investors that WaMu has enough capital to continuing to operate.”

Earlier this week I discussed Citigroup, Bank of America and Wells Fargo have the lowest amount of reserves against losses in seven years.   Further,  The Fed is closely following liquidity of US banks in addition to the FDIC.