NEW YORK (Reuters) - Washington Mutual Inc (WM.N) stock sank as much as 30 percent to its lowest level in 17 years and the perceived risk of its debt soared on concern it won't find a buyer or raise enough capital to combat soaring mortgage losses.
Shares of the largest U.S. savings and loan were down 60 cents, or 18 percent, at $2.70 on Wednesday on the New York Stock Exchange after falling as low as $2.30, the lowest level since January 1991, according to Reuters data.
On Tuesday, Standard & Poor's lowered its outlook to "negative" for its "BBB-minus" credit rating, which is one notch above "junk" status.
Washington Mutual this week announced an agreement with its chief U.S. regulator, the Office of Thrift Supervision, requiring improved risk management and compliance. It said the agreement doesn't require it to raise capital.
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