It is not just Bank of America that is reeling from subprime problems, the largest banks in the world have posted $290 billion of credit losses, since the beginning of 2007.

Bank of America Net Drops 77%

NEW YORK, April 15, 2008 (PRIME NEWSWIRE) — Beleaguered investors of Washington Mutual (NYSE:WM) were delivered more bad news by the company in Tuesday’s after-hours earnings announcement. The company reported a first-quarter loss of $1.14 billion and indicated that it expects Writedowns of $12 billion to $19 billion of its $187 billion portfolio of single family residential home loans in 3 to 4 years.

Litigation on behalf of Washington Mutual employees and 401(k) plan participants has commenced against the company for alleged violations of the Employee Retirement Income Security Act (ERISA) in the United States District Court for the Western District of Washington. If you are an employee of Washington Mutual and wish to discuss the investigation or have questions concerning this notice or your rights, please contact Scott+Scott (scot...@scott-scott.com, (800) 404-7770, (860) 537-5537), for more information. There is no cost or fee to you.

Bear Stearns reaped a profit of $115 million or 86¢
a share before the JP Morgan takeover.

The Federal Reserve Was Ready to Make Lending Available to Other Brokers on Same Day They Helped Out Bear Stearns; Borrowers at Discount Window Included Goldman Sachs, Morgan Stanley and Lehman Brothers.

Mortgage lenders are shutting down your home equity lines of credit in order to preserve their interests and combat homeowners from over mortgaging in depreciating markets.

WAMU recently said that they wanted to, “Strengthening the Mortgage Industry” in a press release and now they need their mother’s help to go to the bathroom. So which direction are they these so called leaders really leading?

Washington Mutual began offering this ‘new’ full disclosure program to the mortgage clients delivered through mortgage professionals BUT not to the clients they receive via their retail locations. Why don’t their retail clients deserve this full disclosure?

So the reputation of WAMU appears to be tarnished at best. It has been so bad at WAMU that even powerhouse Credit Suisse Questioned the “credibility” of the Washington Mutual management.

On a very serious note, we feel bad for their stockholders, the hundreds of employees they are letting go and the millions affected by, what the world has come to know as a ‘Lack of Leadership’.

Here is their political spin in an effort to try to look good.

April 7, 2008, WaMu announced significant changes affecting our Home Loans business. As part of this announcement, and consistent with the company’s retail focused strategy, WaMu has made the very difficult decision to exit the Wholesale lending business. In order to have an orderly shut down, we have determined the following critical dates:

April 10, 2008: Last date to submit new applications or locks.

May 31, 2008: All WaMu Wholesale Sales Centers will be closed by this date.

June 13, 2008: Generally, all loans must be closed/funded by this date. We will, however, honor outstanding loan commitments with expiration dates after

June 13, 2008 up until the
expiration dates set forth in those commitments.

June 30, 2008: All WaMu Wholesale loan fulfillment centers (LFCs) [San Diego, CA; Pleasanton, CA; Downers Grove, IL; and Jacksonville, FL] will be closed by this date.

Current Pipeline:
*Locked loans with an expiration date prior to June 13, 2008 may be extended per current policy provided the loan is closed/funded by June 13, 2008.

*Effective April 8, 2008, a condition will be added to each new commitment which will supersede the normal expiration provision.

*Floating loans must generally be locked, closed/funded by June 13, 2008. Again, they may only close and funded after June 13, 2008 if a loan commitment has already been issued and the commitment
expires after June 13, 2008.

*If a loan is locked with an expiration date past June 13, 2008, it will not be honored unless a loan commitment has been issued and the commitment expires after June 13, 2008.

*We are unable to make any exceptions regarding the closed/funded date of June 13, 2008. Again, however, we will honor outstanding commitments with commitment expiration dates beyond
June 13, 2008.

WaMu will continue to originate loans through Consumer Direct and our Retail Lending channel.

Your Account Manager or Sales Manager will be available to support you while we transition out of this business.

This is a very hard day for WaMu and all of Wholesale Lending. We have appreciated your partnership and support over these many years and wish you the best as we move on to new opportunities.

JP Morgan CEO Jamie Dimon is quadrupling the price of Bear Stearns from the price he agreed o pay just nine days ago and yet he is still managing to get kudos for the deal.

I think he made a steal. I think what will happen as five or 10 years and now when we do not remember what the Subprime Mortgage Industry is about, they will spin that off at a very significant profit.

We have seen $90 billion of writedowns to date. Standard and Poor’s is saying that you can super size that order. Writedowns total losses are expected to be $265 billion or more.

So far, Wall Street has been shouldering the brunt of the losses. S&P says the next losses will affect smaller financial institutions including regional banks in the U.S., credit unions, and lenders in Europe and Asia.

Just yesterday, UBS, the biggest Swiss bank, wrote down $14 billion of assets.

Bear Stearns chief executive, James Cayne, stepped down. This has been widely expected. Surprising, though, do you think since he is staying on as chairman, some people were calling for him to be ousted after the problems that they had over the summer. He is being succeeded by Alan Schwartz. Alan is considered collegial, reaching out to various clients, part of what you have to do as chief executive. He has been co-president since 2001 and took over an investment bank.