Or they believed WaMu had the ability to work itself out of its problems.
Similarly, with WaMu, Buckingham notes the 4% dividend yield and price to earnings ratio of 9.3.
Shares of WaMu have tumbled 70% in the last year and were down another 9% on Tuesday.
Trouble at the Seattle-based savings and loan commonly known as WaMu has been brewing for some time.
David Bonderman, founder of Texas Pacific Group, will rejoin the board of WaMu, where he was a director until 2002.
Indeed, as WaMu retrenches, its two main competitors, Countrywide and Wells Fargo, are looking to expand aggressively.
Last week's fire sale of Wamu likely put additional pressure on the company to find a merger partner.
After riding high on UBS' news Monday, the major banks and brokers were sinking on WaMu's move Tuesday.
David Hendler, an analyst at CreditSights, says the investment will at least forestall a ratings agency downgrade of WaMu.
Some of the areas targeted by WaMu, such as Chicago, are fiercely competitive.
WaMu was not invited on calls between Wall Street and policymakers in the summer of 2008 as the crisis intensified.
WaMu is far from alone in its penchant for bank branches and far from the first to spot their potential.
More than a tad of irony in this story about old WaMu being victimized by this gang of straw men.
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That allows Wamu to concentrate its efforts on building its consumer banking operations, including the opening of branches in new markets.
WaMu has scrambled in the last few years to reduce its exposure to the mortgage market, and to subprime mortgages more specifically.
WaMu is priced at a discount to its competitors, trading at 10.8 times 2003 earnings, with a price-to-earnings growth ratio of 0.86.
Pay attention Bank of America, Citigroup, Lehman, Bear Stearns, Wamu, Fannie Mae, Freddie Mac, AIG directors.
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Its mortgage unit Golden West Financial, acquired at the height of the housing bubble, holds similar mortgage securities as the failed WaMu.
JPMorgan Chase had been viewed as a possible buyer, but it is currently absorbing Bear Stearns , putting a deal for WaMu off for the moment.
Pierce added that if JPMorgan doesn't jump to WaMu's rescue, then he expects the thrift will go the way of Lehman Brothers Holdings.
The FDIC's insurance fund will not take any loss from the seizure of Wamu, but JPMorgan won't be taking on the holding company's debt.
Like many American lenders exposed to the U.S. mortgage market, WaMu was hurting for cash as a result of the subprime loan crisis.
Worse, says Kenneth Posner, an analyst at Morgan Stanley, it is unclear that big is necessarily better, even if WaMu had squeezed out efficiencies.
Simeone hosts NPR's nationally syndicated "World of Opera" program and "SoundPrint, " a program that airs on NPR's WAMU affiliate at American University in Washington, D.
In contrast, says Gordon, WaMu has a retail network of more than 2, 000 branches, which generates billions in profits and has a loyal customer base.
WaMu had a dramatic drop Monday after a sharp spike on Friday when investors looked to JPMorgan Chase to be the savior of the thrift.
CreditSights' Hendler envisions a sale of WaMu as the most likely outcome for the private equity investors, who will inevitably want to cash out their investment.
"With insufficient liquidity to meet its obligations, WaMu was in an unsafe and unsound condition to transact business, " the Office of Thrift Supervision said Thursday night.
WaMu is short for Washington Mutual, the bank that collapsed into the arms of JPMorgan Chase in September, and to which Feltus' CMO has no exposure.
At WaMu, the chairman of that committee is Mary Pugh, a Seattle-area investment manager whose company once did business with WaMu and who has been a director since 1999.
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