Brokerages/Wall Street
WaMu (WM) dropped 3% after CEO Kerry Killinger said at a Lehman Brothers conference in New York that the housing industry is headed for a "near perfect storm."
He said the lender, which has already boosted its provision for loan losses this year, may have to sock away an added $500 million as housing markets continue to weaken. Elsewhere in the mortgage sector Monday, Countrywide (CFC) sank 6% as news from the mortgage industry continues to get uglier. The Calabasas, Calif., lender saw its shares drop $1.13 to $17.07 a day after Countrywide announced plans to cut as many as 12,000 jobs, slashing its workforce by 20%. The move comes just over a month after the company sharply reduced its 2007 profit forecast, citing rising defaults and delinquencies on recent loans. Jumbo lender Thornburg Mortgage (TMA) sank 3% despite a Jefferies & Co. upgrade. WaMu's dour comments sent financial shares modestly lower across the board and offset good news out of Bear Stearns (BSC), where investor Joseph Lewis disclosed he has a 7% stake in the struggling brokerage firm. Bear rose 98 cents to $106.35.>To order reprints of this article, click here: ReprintsTheStreet Premium Services
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
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