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,
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.
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
, where investor Joseph Lewis disclosed he has a 7% stake in the struggling brokerage firm.
Bear rose 98 cents to $106.35.