WaMu, IndyMac Shares Plummet on Mortgage Woes

January 9, 2008 No Comments »

Both Washington Mutual and IndyMac tanked today on renewed mortgage concerns set off by the nation’s top mortgage lender, Countrywide Financial.

After rumors of a Countrywide bankruptcy spooked investors Tuesday, mortgage-related stocks continued to move lower today after the company released its December operational results.

Washington Mutual shares fell to the lowest level since 1995 as the risk of default on its debt surged.

The Seattle-based thrift saw its shares plummet $1.66, or 13.03%, to $11.07 in early afternoon trading, well below its 52-week high of $45.92.

The nation’s top savings and loan now carries a market cap below $10 billion.

Meanwhile, IndyMac Bancorp saw its shares crash 86 cents, or 15.11%, to $4.84, hitting a fresh 52-week low of $4.75 earlier in the session, trading at levels not seen since 1994.

The struggling Pasadena-based lender, which sports a market cap below $400 million, saw its shares peak at $44.05 less than a year ago, before the mortgage crisis was in full swing.

Shares of New Mexico-based jumbo mortgage lender Thornburg slipped 61 cents, or 6.55%, to $8.70, while near-defunct lender NovaStar fell 30 cents, or 9.15%, to $2.98.

Hello mortgage crisis.

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