WaMu’s High Price for Survival

Washington Mutual is the latest beneficiary of a “not quite dead yet” rally, as shares are up 23% on reports that the company will receive a $5 billion infusion of capital from a group of private-equity investors in exchange for stock. A stock chart like this would seem to indicate issues. As usual with capital raises of this kind, investors have to worry about share dilution. But the jump in the stock today suggests stockholders have been feeling insecure about the company’s financial p