WaMu Post Net Loss, CEO Pleads For 'Faith'

April 16, 2008 2:10 p.m. EST

New York, NY (AHN)- Washington Mutual Inc. reported a $1.14 billion first-quarter net loss due to the mortgage meltdown and broader credit crunch, MarketWatch reported.

CNNMoney.com meanwhile reported that WaMu chairman and CEO Kerry Killinger asked investors during the annual stockholders meeting Tuesday to "have a little faith" in the bank's leadership amid shareholders' concerns about lackadaisical risk-management practices and the lackluster performance of the stock which came to a head last week when WaMu disclosed plans to raise $7 billion by selling a stake to an investment group led by the private-equity firm TPG.

MarketWatch said the Seattle-based reported "steady" results from its retail banking, credit card and commercial businesses.

CNNMoney said Killinger defended the plan to raise capital as a defensive move and a way of positioning the firm to capitalize on future opportunities.

"By issuing $7 billion of additional capital, we have taken decisive actions to withstand this period of unprecedented credit losses, while maintaining strong liquidity," Killinger said in a statement as quoted by MarketWatch.