by Calculated Risk on 4/08/2008 09:58:00 AM

From the WSJ: WaMu to Get $7 Billion Infusion; Bank Slashes Dividend, Posts Loss

Washington Mutual Inc. entered into an agreement to sell $7 billion in equity securities to TPG Capital and other investors as part of a plan to strengthen its capital position.

Under the deal, the bank is selling 176 million shares of its common stock at a purchase price of $8.75 a share.
...
The company said it would also cut its quarterly dividend to one cent from 15 cents. Washington Mutual said the dividend cut will save the company $490 million a year.

In addition, the Seattle company expects a first-quarter loss of $1.1 billion, or $1.40 a share. ... It also said it had a provision for loan losses for the quarter of approximately $3.5 billion and expected first quarter net charge-offs of approximately $1.4 billion.