WaMu Shares Continue Slide

WaMu is holding a special meeting on June 24 in which shareholders will be asked to approve the conversion proposals and approve a proposal to "increase the number of authorized shares of common stock to permit the conversion and exercise of these securities," it said in a May filing with the Securities and Exchange Commission.

Once WaMu gets shareholder approval, the preferred stock will convert into approximately 647 million shares of common stock, while the warrants will become exercisable for approximately 68 million shares, the filing said.

"With the proceeds of this offering, our capital ratios are expected to remain well above our targeted levels during the period of elevated credit costs in our loan portfolios in 2008 and 2009," according to the filing. "At the same time, we believe this strengthened capital base will permit us to continue growing our leading national banking franchise."

The company did not immediately return a request for comment regarding the convertible preferred stock and other things.