SEATTLE -- Washington Mutual says it will receive $7 billion in new capital from an investment group led by private equity firm TPG.
The new investment will boost the Seattle-based bank's capital at a time when it has been hit hard by rising delinquencies and defaults among mortgages. The bank said it will lose $1.1 billion during the first quarter and take a provision for loan losses of $3.5 billion.
In an effort to further shore up its capital position, Washington Mutual will cut its quarterly dividend to 1 cent from 15 cents. It will also no longer purchase mortgages from brokers and close all its freestanding home loan offices.
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