WaMu Repeats It Has Enough Capital To Operate

SEATTLE — A spokesperson for Washington Mutual says the company is standing by last week’s statement that it has enough capital to operate while it returns to profitability.

Spokesperson Olivia Riley says the company has been pretty transparent. Washington Mutual said it expects provisions for bad loans in the third quarter to be $4.5 billion. It lost $3 billion in the second quarter and set aside $8 billion for bad loans.

This annoucement follows a New York Times report published Wednesday in which it claims the bank hired Goldman Sachs to begin the auction process.The New York Times, citing unidentified people familiar with the matter, said an auction of the bank was already under way, and The Wall Street Journal reported Wells Fargo & Co. and Citigroup Inc. expressed interest in a takeover.WaMu, Wells Fargo and Citigroup all declined to comment.

Federal regulators have been reaching out to large banks in an effort to organize a buyout of the Seattle-based savings and loan bank.

WaMu is one of the banks hardest hit by the slumping housing market and mortgage defaults.