WaMu Seems Ripe For the Picking

The drumbeat is growing louder for Washington Mutual(WM Quote) to sell itself.

The Seattle-based thrift's depressed fourth-quarter earnings results as a result of the housing downturn and its dismal outlook for 2008 is adding fuel to recent market speculation that it could be ripe for a takeover. Media reports last week said that the bank has held preliminary discussions with JPMorgan Chase(JPM Quote).

"We do believe the company will be sold, whether or not it is to [JPMorgan] I don't know, but I think that deal is still possible," writes Cassandra Toroian, the president and chief investment officer of Bell Rock Capital, in an email. "WaMu is a company of substantial size in the mortgage market that really must survive -- so we operate under the assumption that it too will be sold very soon." ...