The Seattle-based thrift on Tuesday announced plans to close its 186 stand-alone home loan centers and stop making mortgage loans through brokers, resulting in a loss of 3,000 jobs. It also announced a $7 billion infusion from a group of investors to bolster capital.
NEW YORK (Reuters) - Washington Mutual Inc <WM.N>, the largest U.S. savings and loan, on Friday said it expects to take a $140 million to $180 million pre-tax charge to scale back its mortgage lending operations.
The Seattle-based thrift on Tuesday announced plans to close its 186 stand-alone home loan centers and stop making mortgage loans through brokers, resulting in a loss of 3,000 jobs. It also announced a $7 billion infusion from a group of investors to bolster capital.
In a filing with the U.S. Securities and Exchange Commission, Washington Mutual estimated the total number of job cuts will be about 2,600 to 3,000. It said the charge includes $40 million of termination benefits, $80 million to $110 million of lease termination and related costs, and $20 million to $30 million of other write-downs.
Washington Mutual said it expects $120 million to $150 million of the charge to result in future cash outlays. It expects to substantially complete the restructuring by September 30.
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