PHILADELPHIA/NEW YORK (Reuters) - Washington Mutual (WM.N), the large U.S. savings and loan beleaguered by mortgage losses, continues to explore all options, such as talking to potential buyers or raising capital, sources familiar with the situation said on Thursday.

Washington Mutual has yet to secure a quick takeover bid, though sources cautioned that it was early in the auction process.

Potential suitors such as JP Morgan (JPM.N) and Wells Fargo (WFC.N) have yet to submit formal offers, though negotiations are continuing with several parties that have expressed interest, sources said.

In addition to JP Morgan and Wells Fargo, the possible suitors include HSBC (HSBA.L) and Citi (C.N), a source familiar with the situation previously told Reuters.

Seattle-based Washington Mutual had hired Goldman Sachs & Co and Morgan Stanley to run an auction. A sale is neither imminent nor guaranteed and the thrift is exploring other options, a source previously told Reuters.

Washington Mutual is just one of several banks to hold merger talks amidst the recent global financial crisis.

On Monday, Bank of America Corp (BAC.N) agreed to pay $50 billion for Merrill Lynch & Co Inc (MER.N), which has lost $19.2 billion in the last four quarters.

Investment bankLehman Brothers Holdings Inc (LEH.N) (LEHMQ.PK) declared bankruptcy earlier this week and sold its main U.S. business to British bank Barclays Plc's (BARC.L).

Meanwhile, Morgan Stanley (MS.N) is in talks to sell a larger equity stake to China Investment Corp, while also holding merger talks with Wachovia Corp (WB.N) and other banks, two people familiar with its plans said on Thursday.

(Reporting by Jessica Hall in Philadelphia and Paritosh Bansal in New York; Editing by Gary Hill)

  Add comment

Name:
E-Mail:
Comment:
Enter code: