Monday, April 7, 2008
Washington Mutual, the largest U.S. savings and loan association, is negotiating with U.S. private equity firm TPG and other investors for a $5 billion infusion of capital. Washington Mutual has been hit hard by the mortgage crisis. The deal would be in the form of common and convertible preferred stock, and TPG would become a substantial minority shareholder with one seat on the board. JP Morgan Chase was doing due diligence for a deal, but those discussions broke down last week. NYTimes, Report Says Washington Mutual to Get $5 Billion; WSJ, Washington Mutual to Get $5 Billion.