WaMu May Need to Hit the ATM Again

Washington Mutual(WM Quote) may have no choice but to raise more capital down the line, despite its reassurances to investors that it is adequately capitalized for the foreseeable future in the wake of massive second-quarter losses.

The Seattle thrift's shares rallied almost 10% Wednesday, after it reassured investors that it would not have to raise capital after reporting a loss of $3.3 billion, or $6.58 a share, Tuesday after the bell. The loss was well in excess of analysts' expectations, as the continuing decline in housing prices surprised the company.

It's been almost a year since we asked if Washington Mutual was the next Countrywide, the huge mortgage lender that sold itself to Bank of America(BAC Quote) on July 1. ...