8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report: July 22, 2008

Washington Mutual, Inc.

(Exact name of registrant as specified in its charter)

Washington	1-14667	91-1653725
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

1301 Second Avenue, Seattle, Washington	98101
(Address of principal executive offices)	(Zip Code)

(206) 461-2000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition

On July 22, 2008, Washington Mutual, Inc. issued a press release and held a conference call regarding its results of operations and financial condition for the quarter ended June 30, 2008. The text of the press release is included as Exhibit 99.1 to this report, the financial supplement to the press release is included as Exhibit 99.2 to this report and the credit risk management slides supplement for the conference call is included as Exhibit 99.3 to this report. The information included in the press release text, financial supplement and credit risk management slides supplement for the conference call is considered to be “furnished” under the Securities Exchange Act of 1934. The Company will include final financial statements and additional analyses for the quarter ended June 30, 2008, as part of its Form 10-Q covering that period.

Item 9.01  Financial Statements and Exhibits

(d) The following exhibits are being furnished herewith:

Exhibit No.	Exhibit Description
99.1	Press release text of Washington Mutual, Inc. dated July 22, 2008.
99.2	Financial supplement of Washington Mutual, Inc.
99.3	Credit risk management slides supplement for Washington Mutual, Inc. conference call held on July 22, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	WASHINGTON MUTUAL, INC.
Dated: July 22, 2008	By:	/s/ Thomas W. Casey
		Thomas W. Casey
		Executive Vice President and Chief Financial Officer
		of Washington Mutual, Inc.

EX-99.1

Exhibit 99.1

Washington Mutual, Inc.

(NYSE: WM)

July 22, 2008

WaMu Reports Significant Build-Up of Reserves

Contributing to Second Quarter Net Loss of $3.3 billion

Company Increases Capital Levels

Company Expects to Reduce Expenses by $1 billion

WaMu today announced a second quarter 2008 net loss of $3.33 billion as it significantly increased its loan loss reserves by $3.74 billion to $8.46 billion. The quarter’s loss compares with the first quarter net loss of $1.14 billion and net income of $830 million during the second quarter of 2007. The quarter’s financial results reflect an elevated level of provisioning due in large part to changes in the company’s provisioning assumptions in response to continued declines in housing prices nationwide. These changes had the effect of accelerating provisions into the quarter. The quarter’s provision was $5.9 billion compared with $2.2 billion of net charge-offs. The company now expects the remaining cumulative losses in its residential mortgage portfolios to be toward the upper end of the range it disclosed in April, and continues to expect 2008 to be the peak year for provisioning.

The company’s tangible equity to total tangible assets capital ratio increased during the second quarter to 7.79 percent from 6.40 percent in the first quarter, resulting in approximately $7 billion of capital in excess of its targeted 5.50 percent level. The increase reflects the effects of the $7.2 billion capital raise, the reduction of the company’s balance sheet by $10 billion and the loss for the quarter. The company also maintained strong levels of liquidity during the quarter, with over $40 billion of readily available liquidity at quarter end.

“In the face of unprecedented housing and mortgage market conditions, we are continuing to execute on a comprehensive plan designed to ensure that we have strong capital and liquidity, an appropriately-sized expense base and a strong, profitable retail franchise,” said WaMu Chief Executive Officer Kerry Killinger. “Our recent $7.2 billion capital raise, combined with the other proactive steps we have taken this quarter to strengthen our banking franchise and further expense reductions, continue to move us toward achieving these goals.”  

Killinger also said that the company now expects to realize annualized cost savings of approximately $1 billion which will contribute to improved pretax, pre-provision earnings. “We remain confident that we have sufficient capital to successfully manage our way through this challenging period,” Killinger added.

The company reported a second quarter diluted loss per share of $6.58, which included a previously disclosed one-time earnings per share reduction in the amount of $3.24 related to the company’s capital issuance in April. Excluding this one-time reduction, the company’s second quarter loss per common share was $3.34. This non-cash reduction in earnings per share, which resulted in a reclassification within stockholders’ equity, had no effect on the company’s capital ratios or the net loss recorded in the second quarter.

SECOND QUARTER FINANCIAL SUMMARY AND HIGHLIGHTS

Selected Financial Summary	Three Months Ended
($ in millions, except per share data)	Jun. 30, 2008			Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007			Jun. 30, 2007
Income Statement
Net interest income	$	2,296		$	2,175		$	2,047		$	2,014		$	2,034
Provision for loan losses		5,913			3,511			1,534			967			372
Noninterest income		561			1,569			1,365			1,379			1,758
Foreclosed asset expense		217			155			133			82			56
Goodwill impairment charge		-			-			1,775			-			-
All other noninterest expense		2,186			1,997			2,258			2,109			2,082
Minority interest expense		75			75			65			53			42
Income (loss) before income taxes		(5,534	)		(1,994	)		(2,353	)		182			1,240
Income taxes		(2,206	)		(856	)		(486	)		(4	)		410
Net income (loss)	$	(3,328	)	$	(1,138	)	$	(1,867	)	$	186		$	830
Diluted earnings per common share	$	(6.58	)	$	(1.40	)	$	(2.19	)	$	0.20		$	0.92
Less : effect of conversion feature		(3.24	)		-			-			-			-
Diluted earnings per common share excluding effect of conversion feature	$	(3.34	)	$	(1.40	)	$	(2.19	)	$	0.20		$	0.92
Balance Sheet
Total assets, end of period	$	309,731		$	319,668		$	327,913		$	330,110		$	312,219
Average total assets		314,882			319,928			325,276			320,475			316,004
Average interest-earning assets		285,503			285,265			287,988			283,263			279,836
Average total deposits		184,610			184,304			185,636			198,649			206,765
Profitability Ratios
Return on average common equity		(69.25	)%		(23.27	)%		(32.64	)%		3.03	%		13.74	%
Net interest margin		3.22			3.05			2.86			2.86			2.91
Efficiency ratio		84.11			57.49			122.13			64.55			56.38
Nonperforming assets/total assets		3.62			2.87			2.17			1.65			1.29
Allowance for loan losses/ nonperforming loans		87.26			60.25			41.99			41.27			47.63
Tangible equity/total tangible assets		7.79			6.40			6.67			5.60			6.07

● Capital ratios improve. The tangible equity to total tangible assets ratio at June 30 was 7.79 percent compared with 6.40 percent as of Mar. 31, reflecting the April capital raise of $7.2 billion and despite significant provisioning to cover credit costs. Also contributing to the improved capital ratios this quarter was a decrease in total assets of approximately $10 billion, which freed up approximately $550 million in capital. Additional asset reductions are expected as the company continues to prudently manage the size of its balance sheet.

●    Net interest margin up 17 basis points to 3.22 percent. The quarter’s increase in net interest income to $2.30 billion was driven by the 17 basis point expansion in the net interest margin. The margin improved as decreases in rates paid on interest bearing liabilities outpaced the decline in asset yields, while generally lower cost retail deposits grew as a percentage of funding. This expansion occurred despite an increase in nonperforming loans from the first quarter.

●    Company builds reserves to $8.46 billion. During the second quarter, the company increased the provision for loan losses to $5.91 billion from $3.51 billion in the first quarter. The company expects remaining cumulative losses in its residential mortgage portfolios to be at the upper end of the range of losses it disclosed at the time of its capital raise in April, and for 2008 to be the peak year for provisioning.

The increase in provision for loan losses reflected the further decline in house prices which increased expected loss severities, increased delinquencies, reduced availability of credit, and the weakening economy. Total net charge-offs in the loan portfolio rose to $2.17 billion from $1.37 billion in the prior quarter. Nonperforming assets grew to 3.62 percent of total assets at June 30 from 2.87 percent at the end of the first quarter. At the same time, early stage delinquencies for the subprime and home equity portfolios showed early signs of stabilization in the quarter.

2

Approximately one third of the second quarter provision for loan losses related to significant changes in key assumptions the company used to estimate incurred losses in its loan portfolio in response to the increasingly adverse credit trends. Specifically, the company shortened the historical time period used to evaluate default frequencies for its prime mortgage portfolio from a three-year period to a one-year period to reflect the evolving risk profile of the loan portfolio and adjusted its severity assumptions for all single family mortgages to reflect the continuing decline in home prices.

Year to date, the company has provided $9.42 billion for loan losses in comparison with net charge-offs of $3.54 billion, increasing the reserve to $8.46 billion at June 30. As a percentage of loans held in portfolio, the reserve stands at 3.53 percent, up from 1.05 percent at the end of 2007. In addition, the company’s coverage ratio of the reserve to nonperforming loans was 87.26 percent, more than double the 41.99 percent at the end of last year.

● Decline in noninterest income reflects further market stress and restructuring of home loans business. Despite the 9 percent quarter over quarter increase in depositor and other retail banking fees, noninterest income of $561 million in the second quarter was down from $1.6 billion in the prior quarter. During the second quarter, the company recognized other than temporary impairment losses of $407 million in the company’s available-for-sale securities portfolio, compared with $67 million in the prior quarter. Net trading losses of $305 million were up from net losses of $216 million in the first quarter primarily due to a reduction in the value of retained interests from credit card securitizations reflecting market conditions.

The decrease in revenue from the sales and servicing of home mortgage loans reflects lower volumes in the mortgage origination pipeline due to the company’s exit from wholesale lending and closing of its home loan centers. Also impacting the quarter was a $171 million provision for repurchase reserves, up from a provision of $56 million in the first quarter. Mortgage servicing revenue was down $247 million primarily due to declines in the value of MSR risk management instruments that more than offset the increase in the MSR fair value.

● Company expands expense initiatives targeting $1 billion in savings. Noninterest expense of $2.40 billion in the quarter included $207 million in restructuring and resizing costs related to Home Loans activities as well as other corporate initiatives and foreclosed asset expense of $217 million, up from $155 million in the first quarter.

During the quarter, the company implemented a series of additional initiatives designed to significantly reduce expense levels going forward. These initiatives included the previously announced wholesale and home loans center closures and other savings across functions that primarily supported home loans activities that have been discontinued. These actions will result in total annualized cost savings of approximately $1 billion, while incurring restructuring and resizing costs of approximately $450 million, of which $207 million were recorded in the second quarter.

● Net loss per share includes one-time adjustment. The company reported a second quarter diluted net loss per share of $6.58, which included a one-time earnings per share non-cash reduction in the amount of $3.24 per common share. The reduction was recorded as a result of the June conversion of the preferred stock issued in connection with the company’s capital transaction in April. This non-cash adjustment, which had no effect on the company’s capital ratios or the net loss recorded in the second quarter, reduced retained earnings by $3.29 billion, with a corresponding increase to capital surplus-common stock. Excluding this one-time reduction, the company’s second quarter diluted net loss per common share was $3.34.

3

SECOND QUARTER SEGMENT RESULTS

Retail Banking Group

Selected Segment Information	Three Months Ended
($ in millions, except accounts and households)	Jun. 30, 2008			Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007		Jun. 30, 2007
Net interest income	$	1,210		$	1,203		$	1,262		$	1,306	$	1,291
Provision for loan losses		3,823			2,300			663			318		91
Noninterest income		842			775			850			833		820
Inter-segment revenue		7			9			5			9		16
Noninterest expense		1,232			1,221			1,212			1,149		1,131
Income (loss) before income taxes		(2,996	)		(1,534	)		242			681		905
Income taxes		(959	)		(491	)		(39	)		225		340
Net income (loss)	$	(2,037	)	$	(1,043	)	$	281		$	456	$	565
Average loans	$	138,671		$	142,720		$	145,486		$	147,357	$	149,716
Average retail deposits		149,509			146,734			142,733			144,921		145,252
Net change in number of retail    checking accounts		254,957			256,069			74,493			310,360		406,243
Net change in retail households		94,000			154,000			37,000			161,000		228,000

● Revenue growth driven by increase in depositor fee income, expenses held steady. Net interest income was up slightly from the first quarter as the drop in the overall cost of deposits outpaced the decline in variable rate loan yields. Noninterest income, comprised primarily of depositor and other retail banking fees, was up 9 percent quarter over quarter. Depositor fees totaled $767 million in the second quarter, up 9 percent from the seasonally slow first quarter. The company continues to have strong checking account growth adding 254,957 net new accounts in the quarter.

● Quarterly results adversely impacted by higher loan loss provisioning. The quarter’s net loss reflected the increase in the provision for loan losses due in large part to changes in the company’s provisioning assumptions in response to continued declines in housing prices nationwide.

● Average retail deposits up 2 percent. Average retail deposits of $149.51 billion were up $2.78 billion during the quarter reflecting the growth in money market accounts. Retail deposit balances at the end of the quarter were down $3.40 billion to $148.25 billion reflecting the reduction in higher cost promotional certificates of deposit during the quarter. The average cost of retail deposits during the quarter was 2.23 percent, down from 2.65 percent in the prior quarter.

Card Services Group (managed basis)

Selected Segment Information	Three Months Ended
($ in millions)	Jun. 30, 2008			Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007			Jun. 30, 2007
Net interest income	$	769		$	765		$	694		$	674		$	649
Provision for loan losses		911			626			591			611			523
Noninterest income		187			418			315			400			393
Inter-segment expense		5			5			-			-			-
Noninterest expense		297			260			338			364			306
Income (loss) before income taxes		(257	)		292			80			99			213
Income taxes		(82	)		93			(12	)		33			80
Net income (loss)	$	(175	)	$	199		$	92		$	66		$	133
Average managed receivables	$	26,314		$	26,889		$	26,665		$	25,718		$	24,234
Period end managed receivables		26,430			26,378			27,239			26,227			24,987
30+ day managed delinquency rate		7.05	%		6.89	%		6.47	%		5.73	%		5.11	%
Managed net credit losses		10.84			9.32			6.90			6.37			6.49

4

● Revenue down primarily due to higher credit costs and valuation adjustments. Net interest income was flat with the prior quarter as lower funding costs were offset by a lower balance of average receivables and declines in interest rates charged on card receivables. Noninterest income was down from the prior quarter reflecting reduced value of retained interests due to market conditions. In addition, noninterest income during the first quarter included an $85 million benefit received from the company’s share of VISA’s IPO.

Noninterest expense was flat with the prior quarter, excluding the $38 million partial recovery of VISA litigation expense recorded in that quarter.

● Provision up but delinquencies stabilizing. The increase in the provision to $911 million from $626 million reflected higher managed net credit losses and an increase in reported receivables as maturing securitizations resulted in on-balance sheet funding of new originations. Managed net credit losses of 10.84 percent reflected the increase in contractual and bankruptcy losses in the face of a weaker economy. Reflecting the previous actions taken to reduce the company’s loss exposure, the 30+ day managed delinquency rate of 7.05 percent was up slightly from the prior quarter.

● Total managed receivables flat with prior quarter. Total managed receivables at quarter end remained level at $26.43 billion. During the quarter, Card Services opened 755,301 new credit card accounts, up from 666,407 in the prior quarter. Approximately 35 percent of the new accounts came through the retail channel as the company continued to leverage its retail network.

Commercial Group

Selected Segment Information	Three Months Ended
($ in millions)	Jun. 30, 2008		Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007			Jun. 30, 2007
Net interest income	$	203	$	196		$	200		$	200		$	208
Provision for loan losses		17		29			19			12			2
Noninterest income		5		(8	)		(10	)		(34	)		63
Noninterest expense		63		68			66			67			74
Income before income taxes		128		91			105			87			195
Income taxes		41		29			11			28			73
Net income	$	87	$	62		$	94		$	59		$	122
Loan volume	$	3,768	$	2,835		$	4,800		$	4,054		$	4,348
Average loans		41,891		40,934			40,129			38,333			38,789

● Net income up $25 million to $87 million. Net interest income of $203 million was up modestly from the prior quarter due to loan growth and improved net interest margin. Noninterest income was up slightly from the first quarter as a result of lower trading asset write-downs and higher gain on sale driven by an increase in volume.

The low level of noninterest expense continued to reflect ongoing expense efficiencies.

● Provision down, strong credit trends continue. The provision for loan losses was down for the quarter with a corresponding decline in net charge-offs. Charge-offs during the quarter remained low at an annualized rate of only 2 basis points reflecting the portfolio’s conservative underwriting, low loan-to-value ratios, and small balance lending.

● Loan volume and balances up. Loan volume of $3.77 billion was up 33 percent from the prior quarter and average loans of $41.89 billion were up 2 percent as the company continued to invest in this business.

5

Home Loans Group

Selected Segment Information	Three Months Ended
($ in millions)	Jun. 30, 2008			Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007			Jun. 30, 2007
Net interest income	$	240		$	250		$	229		$	191		$	211
Provision for loan losses		1,637			907			511			323			101
Noninterest income		(97	)		319			329			183			389
Inter-segment expense		2			4			5			9			16
Noninterest expense*		484			499			2,319			554			547
Income (loss) before income taxes		(1,980	)		(841	)		(2,277	)		(512	)		(64	)
Income taxes		(635	)		(269	)		(312	)		(169	)		(24	)
Net (loss)	$	(1,345	)	$	(572	)	$	(1,965	)	$	(343	)	$	(40	)
Loan volume	$	8,462		$	13,774		$	19,089		$	26,434		$	35,938
Average loans		54,880			55,672			52,278			43,737			43,312
*Includes $1.78 billion goodwill charge in fourth quarter 2007.

● Results reflect reduced mortgage market participation.Net interest income fell slightly from the prior quarter reflecting a higher level of nonaccruals and a decline in loan balances on lower production.

Noninterest income was down from the first quarter due to the decline in gain on sale from lower loan commitment volume and the increase in the provision for repurchase reserves reflecting  an increase in repurchase demands related to prime home mortgage loans. The repurchase reserve totaled $283 million at the end of the quarter, up from $178 million at Mar. 31. The quarterly gain on sale variance was also impacted by $68 million in additional gains in the first quarter from sales of loans locked prior to the adoption of new accounting pronouncements impacting gain on sale recognition.

Noninterest income also reflected mortgage servicing revenue down $247 million, primarily due to declines in the value of MSR risk management instruments that more than offset the increase in MSR fair value.

● Expense declines reflect consolidation of Home Loans business. Despite the increase in foreclosed asset expense to $149 million from $118 million, noninterest expense of $484 million in the second quarter was down 3 percent from the first quarter with the further consolidation of the home loans business. The number of employees was reduced to 7,338 at the end of the second quarter from 9,135 at the end of the first quarter.

● Credit costs remain elevated. The increase in the provision to $1.64 billion from $907 million in the first quarter was driven by an acceleration in delinquencies and charge-offs, while subprime delinquencies showed signs of stabilization during the quarter. Total charge-offs rose to $807 million, up $341 million from the prior quarter.

● Production volume reduced as a result of management’s actions. Home loans segment volume of $8.46 billion was down 39 percent from first quarter levels reflecting the company’s decision to exit wholesale lending and close all remaining home loan centers.

6

COMPANY UPDATES

● On July 22, WaMu announced that the Human Resources Committee of the Board of Directors determined that, in light of the company’s 2008 financial performance to date, including the impact of mortgage-related loan loss provisions and foreclosed asset expense, the company’s Chief Executive Officer, President and Chief Operating Officer and Chief Financial Officer will not receive annual incentive payments under the company's 2008 Leadership Bonus Plan.

● On July 15, WaMu’s Board of Directors declared a cash dividend of $0.01 per share on the company’s common stock. Dividends on the common stock are payable on Aug. 15, 2008 to shareholders of record as of Jul. 31, 2008. In addition to declaring a dividend on the company’s common stock, the company will pay a dividend of $0.2528 per depository share of Series K Preferred Stock to be payable on Sept. 15, 2008 to holders of record on Sept. 1, 2008, a dividend of $19.8056 per share of Series R Preferred Stock to be payable on Sept. 15, 2008 to holders of record on Sept. 1, 2008.

● On Jun. 27, WaMu announced that a search had been initiated to replace James Corcoran, President of the Retail Bank who left WaMu to pursue other career opportunities.

● On Jun. 24, WaMu shareholders approved an amendment to increase the number of authorized common stock from 1,600,000,000 to 3,000,000,000, the conversion of the Series S and Series T Perpetual Contingent Convertible Non-Voting Preferred Stock into common stock and the ability of the warrants to be exercised to purchase common stock. On Jun. 30, the Series S and Series T preferred stock was converted into common stock.

● On Jun. 4, WaMu announced that Michael S. Solender had been named the company’s Executive Vice President and Chief Legal Officer. Solender reports to Kerry Killinger, WaMu’s CEO, and is a member of the company’s Executive Committee.

● On Jun. 2, WaMu announced that effective Jul. 1, independent director Stephen E. Frank would assume the role of independent Board Chair while Kerry Killinger would continue to lead the company as Chief Executive Officer and serve as a director.

● On Jun. 2, WaMu announced that under its new majority voting standard, in uncontested director elections, nominees must receive a majority of votes cast to be re-elected.

● On Apr. 29, WaMu announced that it named John P. McMurray as the company’s Chief Enterprise Risk Officer.

ABOUT WAMU

WaMu, through its subsidiaries, is one of the nation’s leading consumer and small business banks. At Jun. 30, 2008, WaMu and its subsidiaries had assets of $309.73 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate approximately 2,300 consumer and small business banking stores throughout the nation. WaMu’s financial reports and news releases are available at www.wamu.com/ir.

WEBCAST INFORMATION

A conference call to discuss the company’s financial results will be held on Tuesday, Jul. 22, 2008, at 5:00 p.m. ET and will be hosted by Kerry Killinger, Chief Executive Officer, Tom Casey, Executive Vice President and Chief Financial Officer and John McMurray, Executive Vice president and Chief Enterprise Risk Officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-324-6919. Participants calling from outside the United States may dial 312-470-7289. The passcode “WaMu” is required to access the call. Via the Internet, the conference call is available on the Investor Relations portion of the company’s web site at www.wamu.com/ir. A recording of the conference call will be available from approximately 7:00 p.m. ET on Tuesday, Jul. 22, 2008 through 11:59 p.m. on Friday, Aug. 1, 2008. The recorded message will be available at 888-568-0151. Callers from outside the United States may dial 203-369-3462.

7

FORWARD LOOKING STATEMENTS

This presentation contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this document that are not historical facts. When used in this presentation, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or words of similar meaning, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed under the heading “Factors That May Affect Future Results” in Washington Mutual’s 2007 Annual Report on Form 10-K, as amended, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 which include:

● Economic conditions that negatively affect housing prices and the job market that have resulted, and may continue to result, in deterioration in credit quality of the company's loan portfolio.

● Access to market-based liquidity sources that may be negatively impacted if market conditions persist or if further ratings downgrades occur and could lead to increased funding costs and reduced gain on sale.

● The need to raise additional capital due to significant additional losses which could have a dilutive effect on existing shareholders and could affect the ability to pay dividends.

● Changes in interest rates.

● Features of certain of the company’s loan products that may result in increased credit risk.  

● Estimates used by the company to determine the fair value of certain of our assets that may prove to be imprecise and result in significant changes in valuation.

● Risks related to the company’s credit card operations that could adversely affect the credit card portfolio and our ability to continue growing the credit card business.

● Operational risk which may result in incurring financial and reputational losses.

● Failure to comply with laws and regulations.

● Changes in the regulation of financial services companies, housing government-sponsored enterprises, mortgage originators and servicers, and credit card lenders.

● General business, economic and market conditions and continued deterioration in these conditions.

● Damage to the company’s professional reputation and business as a result of allegations and negative public opinion as well as pending and threatened litigation.

● Significant competition from banking and nonbanking companies.

There are other factors not described in our 2007 Form 10-K, as amended, and Form 10-Q for the quarter ended March 31, 2008 which are beyond the company’s ability to anticipate or control that could cause results to differ.

####

Media Contact Derek Aney 206-500-6094(Seattle) 212-326-6075 (New York) derek.aney@wamu.net Investor Relations Contact Alan Magleby 206-500-4148 (Seattle) 212-702-6955 (New York) alan.magleby@wamu.net

8

EX-99.2

Exhibit 99.2

WM - - 1

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions, except per share data)
(unaudited)
	Quarter Ended																	Six Months Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
	2008			2008			2007			2007			2007			2008			2007
PROFITABILITY
Net income (loss)	$	(3,328	)	$	(1,138	)	$	(1,867	)	$	186		$	830		$	(4,466	)	$	1,614
Net interest income		2,296			2,175			2,047			2,014			2,034			4,471			4,115
Noninterest income		561			1,569			1,365			1,379			1,758			2,129			3,299
Noninterest expense		2,403			2,152			4,166			2,191			2,138			4,555			4,244
Diluted earnings per common share:
Diluted earnings per common share	$	(6.58	)	$	(1.40	)	$	(2.19	)	$	0.20		$	0.92		$	(8.43	)	$	1.78
Less: Effect of conversion feature(1)		(3.24	)		-			-			-			-			(3.51	)		-
Diluted earnings per common share excluding
effect of conversion feature		(3.34	)		(1.40	)		(2.19	)		0.20			0.92			(4.92	)		1.78
Diluted weighted average number of common shares outstanding
(in thousands)		1,016,081			856,923			855,532			876,002			893,090			936,502			896,304
Net interest margin on a taxable-equivalent basis(2)		3.22	%		3.05	%		2.86	%		2.86	%		2.91	%		3.14	%		2.85	%
Dividends declared per common share	$	0.01		$	0.15		$	0.56		$	0.56		$	0.55		$	0.16		$	1.09
Book value per common share (period end)(3)		13.35			21.74			24.55			27.18			27.27			13.35			27.27
Tangible common equity per common share (period end)(4)		9.01			13.26			15.89			16.43			16.59			9.01			16.59
Return on average assets		(4.23	) %		(1.42	) %		(2.30	) %		0.23	%		1.05	%		(2.81	) %		1.00	%
Return on average common equity		(69.25	)		(23.27	)		(32.64	)		3.03			13.74			(45.67	)		13.36
Efficiency ratio(5)		84.11			57.49			122.13			64.55			56.38			69.01			57.24
ASSET QUALITY
Nonperforming assets(6) to total assets		3.62	%		2.87	%		2.17	%		1.65	%		1.29	%		3.62	%		1.29	%
Allowance as a percentage of loans held in portfolio		3.53			1.94			1.05			0.80			0.73			3.53			0.73
CREDIT PERFORMANCE
Provision for loan losses	$	5,913		$	3,511		$	1,534		$	967		$	372		$	9,423		$	606
Net charge-offs		2,171			1,368			747			421			271			3,538			454
CAPITAL ADEQUACY
Capital Ratios for WMI:
Tangible equity to total tangible assets(7)		7.79	%		6.40	%		6.67	%		5.60	%		6.07	%		7.79	%		6.07	%
Tier 1 capital to average total assets (leverage)(8)		7.80			6.56			6.84			5.86			6.09			7.80			6.09
Total risk-based capital to total risk-weighted assets(8)		13.98			12.25			12.34			10.67			11.04			13.98			11.04
Capital Ratios for WMB (well-capitalized minimum)(9):
Tier 1 capital to adjusted total assets (leverage) (5.00%)		7.10			6.94			7.05			6.41			7.52			7.10			7.52
Adjusted Tier 1 capital to total risk-weighted assets (6.00%)		8.44			8.13			8.33			7.62			8.77			8.44			8.77
Total risk-based capital to total risk-weighted assets (10.00%)		12.49			12.21			12.22			11.26			12.80			12.49			12.80
SUPPLEMENTAL DATA
Average balance sheet:
Total loans held in portfolio	$	241,737		$	244,186		$	241,690		$	227,348		$	216,004		$	242,961		$	219,292
Total interest-earning assets		285,503			285,265			287,988			283,263			279,836			285,384			287,724
Total assets		314,882			319,928			325,276			320,475			316,004			317,405			323,911
Total deposits		184,610			184,304			185,636			198,649			206,765			184,457			208,753
Total stockholders' equity		27,558			24,066			23,947			23,994			24,436			25,812			24,422
Period-end balance sheet:
Total loans held in portfolio, net		231,171			238,100			241,815			235,243			213,434			231,171			213,434
Total assets		309,731			319,668			327,913			330,110			312,219			309,731			312,219
Total deposits		181,923			188,049			181,926			194,280			201,380			181,923			201,380
Total stockholders' equity		26,086			22,449			24,584			23,941			24,210			26,086			24,210
Common shares outstanding at the end of period (in thousands)(10)		1,705,344			882,610			869,036			868,802			875,722			1,705,344			875,722
Employees at end of period		43,198			45,883			49,403			49,748			49,989			43,198			49,989

_______________________
(1)	This one-time earnings per share reduction represents a beneficial conversion feature that was recorded upon the June 2008 conversion of the preferred shares issued in connection with the April 2008 capital transaction. This non-cash adjustment, which had no effect on the Company's capital ratios or the net loss recorded in the second quarter, was provided to facilitate the comparison of earnings per share to the prior reporting periods presented on this schedule.
(2)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on U.S. states and political subdivisions securities and loans related to the Company's community lending and investment activities.  The federal statutory tax rate was 35% for the periods presented.
(3)	Excludes six million shares held in escrow.
(4)	Excludes goodwill and intangible assets (except MSR).
(5)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(6)	Excludes nonaccrual loans held for sale.
(7)	Excludes unrealized net gain/loss on available-for-sale securities and cash flow hedging instruments, goodwill and intangible assets (except MSR) and the impact from the adoption and application of FASB Statement No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans.  Minority interests of $3.91 billion, $3.91 billion, $3.92 billion, $2.94 billion and $2.94 billion at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007 are included in the numerator.
(8)	The capital ratios are estimated as if Washington Mutual, Inc. were a bank holding company subject to Federal Reserve Board capital requirements.
(9)	Capital ratios for Washington Mutual Bank ("WMB") at June 30, 2008 are preliminary.
(10)	Includes six million shares held in escrow.

WM - - 2

Washington Mutual, Inc.
Consolidated Statements of Income
(dollars in millions, except per share data)
(unaudited)
	Quarter Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
Interest Income
Loans held for sale	$	52		$	87		$	160		$	248		$	421
Loans held in portfolio		3,604			3,954			4,156			3,992			3,786
Available-for-sale securities		335			357			380			392			351
Trading assets		117			116			101			108			108
Other interest and dividend income		94			77			79			116			82
Total interest income		4,202			4,591			4,876			4,856			4,748
Interest Expense
Deposits		1,115			1,329			1,464			1,650			1,723
Borrowings		791			1,087			1,365			1,192			991
Total interest expense		1,906			2,416			2,829			2,842			2,714
Net interest income		2,296			2,175			2,047			2,014			2,034
Provision for loan losses		5,913			3,511			1,534			967			372
Net interest income (expense) after provision for loan losses		(3,617	)		(1,336	)		513			1,047			1,662
Noninterest Income
Revenue (expense) from sales and servicing of home mortgage loans		(109	)		411			358			161			300
Revenue from sales and servicing of consumer loans		159			248			375			418			403
Depositor and other retail banking fees		767			704			769			740			720
Credit card fees		177			181			214			209			183
Securities fees and commissions		64			58			63			67			70
Insurance income		32			30			29			29			29
Loss on trading assets		(305	)		(216	)		(267	)		(153	)		(145	)
Gain (loss) on other available-for-sale securities		(402	)		18			(261	)		(99	)		7
Gain (loss) on extinguishment of borrowings		100			13			-			1			(14	)
Other income		78			122			85			6			205
Total noninterest income		561			1,569			1,365			1,379			1,758
Noninterest Expense
Compensation and benefits		939			914			877			910			977
Occupancy and equipment		460			358			488			371			354
Telecommunications and outsourced information services		123			130			134			135			132
Depositor and other retail banking losses		61			63			72			71			58
Advertising and promotion		103			105			108			125			113
Professional fees		57			39			89			52			55
Foreclosed asset expense		217			155			133			82			56
Goodwill impairment charge		-			-			1,775			-			-
Other expense		443			388			490			445			393
Total noninterest expense		2,403			2,152			4,166			2,191			2,138
Minority interest expense		75			75			65			53			42
Income (loss) before income taxes		(5,534	)		(1,994	)		(2,353	)		182			1,240
Income taxes		(2,206	)		(856	)		(486	)		(4	)		410
Net Income (Loss)	$	(3,328	)	$	(1,138	)	$	(1,867	)	$	186		$	830
Preferred dividends declared		(71	)		(65	)		(8	)		(8	)		(8	)
Beneficial conversion feature		(3,290	)		-			-			-			-
Net Income (Loss) Applicable to Common Stockholders	$	(6,689	)	$	(1,203	)	$	(1,875	)	$	178		$	822
Earnings Per Common Share:
Basic	$	(6.58	)	$	(1.40	)	$	(2.19	)	$	0.21		$	0.95
Diluted		(6.58	)		(1.40	)		(2.19	)		0.20			0.92
Dividends declared per common share		0.01			0.15			0.56			0.56			0.55
Basic weighted average number of common shares outstanding (in thousands)		1,016,081			856,923			855,518			857,005			868,968
Diluted weighted average number of common shares outstanding (in thousands)		1,016,081			856,923			855,532			876,002			893,090

WM - - 3

Washington Mutual, Inc.
Consolidated Statements of Income
(dollars in millions, except per share data)
(unaudited)
	Six Months Ended
	June 30,			June 30,
	2008			2007
Interest Income
Loans held for sale	$	138		$	984
Loans held in portfolio		7,559			7,686
Available-for-sale securities		691			682
Trading assets		233			221
Other interest and dividend income		171			183
Total interest income		8,792			9,756
Interest Expense
Deposits		2,443			3,495
Borrowings		1,878			2,146
Total interest expense		4,321			5,641
Net interest income		4,471			4,115
Provision for loan losses		9,423			606
Net interest income (expense) after provision for loan losses		(4,952	)		3,509
Noninterest Income
Revenue from sales and servicing of home mortgage loans		302			425
Revenue from sales and servicing of consumer loans		407			846
Depositor and other retail banking fees		1,470			1,385
Credit card fees		358			355
Securities fees and commissions		122			131
Insurance income		63			58
Loss on trading assets		(521	)		(253	)
Gain (loss) on other available-for-sale securities		(384	)		41
Gain (loss) on extinguishment of borrowings		113			(7	)
Other income		199			318
Total noninterest income		2,129			3,299
Noninterest Expense
Compensation and benefits		1,853			1,979
Occupancy and equipment		818			731
Telecommunications and outsourced information services		253			261
Depositor and other retail banking losses		124			119
Advertising and promotion		208			211
Professional fees		96			93
Foreclosed asset expense		372			95
Other expense		831			755
Total noninterest expense		4,555			4,244
Minority interest expense		151			85
Income (loss) before income taxes		(7,529	)		2,479
Income taxes		(3,063	)		865
Net Income (Loss)	$	(4,466	)	$	1,614
Preferred dividends declared		(136	)		(15	)
Beneficial conversion feature	.	(3,290	)		-
Net Income (Loss) Applicable to Common Stockholders	$	(7,892	)	$	1,599
Earnings Per Common Share:
Basic	$	(8.43	)	$	1.83
Diluted		(8.43	)		1.78
Dividends declared per common share		0.16			1.09
Basic weighted average number of common shares outstanding (in thousands)		936,502			871,876
Diluted weighted average number of common shares outstanding (in thousands)		936,502			896,304

WM - - 4

Washington Mutual, Inc.

Consolidated Statements of Financial Condition

(dollars in millions)

(unaudited)

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
Assets
Cash and cash equivalents	$	7,235		$	10,089		$	9,560		$	11,370		$	4,167
Federal funds sold and securities purchased under agreements to resell		2,750			2,527			1,877			4,042			3,267
Trading assets		2,308			2,483			2,768			3,797			5,534
Available-for-sale securities, total amortized cost of $25,756, $24,907,
$27,789, $28,725 and $28,934:
Mortgage-backed securities		18,241			18,140			19,249			20,562			20,393
Investment securities		6,134			5,466			8,291			7,844			7,947
Total available-for-sale securities		24,375			23,606			27,540			28,406			28,340
Loans held for sale		1,877			4,941			5,403			7,586			19,327
Loans held in portfolio		239,627			242,814			244,386			237,132			214,994
Allowance for loan losses		(8,456	)		(4,714	)		(2,571	)		(1,889	)		(1,560	)
Loans held in portfolio, net		231,171			238,100			241,815			235,243			213,434
Investment in Federal Home Loan Banks		3,498			3,514			3,351			2,808			1,596
Mortgage servicing rights		6,175			5,726			6,278			6,794			7,231
Goodwill		7,284			7,283			7,287			9,062			9,056
Other assets		23,058			21,399			22,034			21,002			20,267
Total assets	$	309,731		$	319,668		$	327,913		$	330,110		$	312,219
Liabilities
Deposits:
Noninterest-bearing deposits	$	31,112		$	31,911		$	30,389		$	31,341		$	33,557
Interest-bearing deposits		150,811			156,138			151,537			162,939			167,823
Total deposits		181,923			188,049			181,926			194,280			201,380
Federal funds purchased and commercial paper		75			250			2,003			2,482			3,390
Securities sold under agreements to repurchase		214			215			4,148			4,732			9,357
Advances from Federal Home Loan Banks		58,363			64,009			63,852			52,530			21,412
Other borrowings		30,590			32,710			38,958			40,887			40,313
Other liabilities		8,566			8,072			8,523			8,313			9,212
Minority interests		3,914			3,914			3,919			2,945			2,945
Total liabilities		283,645			297,219			303,329			306,169			288,009
Stockholders' Equity
Preferred stock		3,392			3,392			3,392			492			492
Capital surplus - common stock		12,916			2,646			2,630			2,575			2,715
Accumulated other comprehensive loss		(1,079	)		(1,141	)		(359	)		(390	)		(568	)
Retained earnings		10,857			17,552			18,921			21,264			21,571
Total stockholders' equity		26,086			22,449			24,584			23,941			24,210
Total liabilities and stockholders' equity	$	309,731		$	319,668		$	327,913		$	330,110		$	312,219

WM - - 5

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
Stockholders' Equity Rollforward
Balance, beginning of period	$	22,449		$	24,584		$	23,941		$	24,210		$	24,578
Net income (loss)		(3,328	)		(1,138	)		(1,867	)		186			830
Cumulative effect from the adoption of new accounting pronouncements		-			(36	)(1)		-			-			-
Other comprehensive income (loss), net of income taxes		62			(782	)		31			177			(300	)
Cash dividends declared on common stock		(10	)		(130	)		(482	)		(485	)		(484	)
Preferred stock activity:
Preferred share conversion(2)		(3,290	)		-			-			-			-
Cash dividends declared		(71	)		(65	)		(8	)		(8	)		(8	)
Total preferred stock activity		(3,361	)		(65	)		(8	)		(8	)		(8	)
Cash dividends returned(3)		4			-			15			-			-
Common stock activity:
Capital surplus-common stock attributable to preferred share conversion(2)		3,290			-			-			-			-
Common stock issued(4)		6,980			16			54			60			94
Common stock repurchased and retired(5)		-			-			-			(199	)		(500	)
Total common stock activity		10,270			16			54			(139	)		(406	)
Preferred stock issued		-			-			2,900			-			-
Balance, end of period	$	26,086		$	22,449		$	24,584		$	23,941		$	24,210

(1)	As of January 1, 2008, the Company adopted FASB Statement No. 157, Fair Value Measurements ("Statement No. 157"), EITF Issue No. 06-4, Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements ("Issue No. 06-4") and EITF Issue No. 06-10, Accounting for Collateral Assignment Split-Dollar Life Insurance Arrangements ("Issue No. 06-10").  The cumulative effect, net of income taxes, from the adoption of Statement No. 157, Issue No. 06-4 and Issue No. 06-10 was $1 million, $(35) million and $(2) million.
(2)	The preferred share conversion adjustment represents a beneficial conversion feature that was recorded upon the June 2008 conversion of the preferred shares issued in connection with the April 2008 capital transaction. This non-cash conversion adjustment, which did not affect the net loss recorded in the second quarter of 2008, reduced retained earnings and correspondingly increased capital surplus-common stock.
(3)	Represents accumulated dividends on shares returned from escrow.
(4)	Includes 647 million shares of common stock converted on June 30, 2008 at $8.75 per share from 56,570 preferred shares issued in April 2008.
(5)	The Company repurchased zero shares of its common stock during the three months ended June 30, 2008, March 31, 2008 and December 31, 2007, and 7.2 million and 13.5 million shares of its common stock during the three months ended September 30, 2007 and June 30, 2007.  At June 30, 2008, the total remaining common stock repurchase authority was 47.5 million shares.

WM - 6

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended															Six Months Ended
		June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
		2008			2008			2007			2007			2007			2008			2007
RETAIL BANKING GROUP
Condensed income statement:
Net interest income		$	1,210		$	1,203		$	1,262		$	1,306		$	1,291		$	2,413		$	2,575
Provision for loan losses			3,823			2,300			663			318			91			6,122			153
Noninterest income			842			775			850			833			820			1,617			1,571
Inter-segment revenue			7			9			5			9			16			15			34
Noninterest expense			1,232			1,221			1,212			1,149			1,131			2,453			2,201
Income (loss) before income taxes			(2,996	)		(1,534	)		242			681			905			(4,530	)		1,826
Income taxes			(959	)		(491	)		(39	)		225			340			(1,450	)		685
Net income (loss)		$	(2,037	)	$	(1,043	)	$	281		$	456		$	565		$	(3,080	)	$	1,141
Performance and other data:
Efficiency ratio			59.82	%		61.48	%		57.25	%		53.48	%		53.19	%		60.63	%		52.65	%
Average loans		$	138,671		$	142,720		$	145,486		$	147,357		$	149,716		$	140,695		$	152,445
Average assets			145,800			151,609			155,100			157,194			159,515			148,704			162,264
Average deposits:
Checking deposits:
Noninterest bearing			24,753			23,425			22,748			22,860			23,107			24,089			22,722
Interest bearing			22,557			24,306			26,328			28,406			30,282			23,431			31,006
Total checking deposits			47,310			47,731			49,076			51,266			53,389			47,520			53,728
Savings and money market deposits			54,928			47,904			44,623			43,524			43,814			51,417			43,460
Time deposits			47,271			51,099			49,034			50,131			48,049			49,185			47,456
Average deposits			149,509			146,734			142,733			144,921			145,252			148,122			144,644
Loan volume			655			1,238			3,417			5,172			5,760			1,893			10,338
Employees at end of period			27,857			28,736			29,147			28,636			28,523			27,857			28,523
CARD SERVICES GROUP
Managed basis(1)
Condensed income statement:
	Net interest income	$	769		$	765		$	694		$	674		$	649		$	1,534		$	1,290
	Provision for loan losses		911			626			591			611			523			1,537			912
	Noninterest income		187			418			315			400			393			604			867
	Inter-segment expense		5			5			-			-			-			9			-
	Noninterest expense		297			260			338			364			306			557			635
	Income (loss) before income taxes		(257	)		292			80			99			213			35			610
	Income taxes		(82	)		93			(12	)		33			80			11			229
Net income (loss)		$	(175	)	$	199		$	92		$	66		$	133		$	24		$	381
Performance and other data:
	Efficiency ratio		31.25	%		22.04	%		33.51	%		33.91	%		29.33	%		26.16	%		29.42	%
	Average loans	$	26,314		$	26,889		$	26,665		$	25,718		$	24,234		$	26,601		$	23,921
	Average assets		28,844			29,244			28,961			28,206			26,762			29,044			26,403
	Employees at end of period		2,940			2,881			2,860			2,878			2,827			2,940			2,827
Securitization adjustments
Condensed income statement:
	Net interest income	$	(506	)	$	(503	)	$	(454	)	$	(456	)	$	(459	)	$	(1,010	)	$	(874	)
	Provision for loan losses		(530	)		(470	)		(335	)		(288	)		(294	)		(1,000	)		(577	)
	Noninterest income		(24	)		33			119			168			165			10			297
Performance and other data:
	Average loans		(16,872	)		(17,391	)		(16,007	)		(14,488	)		(13,888	)		(17,131	)		(13,201	)
	Average assets		(14,739	)		(15,075	)		(14,180	)		(12,841	)		(12,287	)		(14,907	)		(11,627	)
Adjusted basis
Condensed income statement:
	Net interest income	$	263		$	262		$	240		$	218		$	190		$	524		$	416
	Provision for loan losses		381			156			256			323			229			537			335
	Noninterest income		163			451			434			568			558			614			1,164
	Inter-segment expense		5			5			-			-			-			9			-
	Noninterest expense		297			260			338			364			306			557			635
	Income (loss) before income taxes		(257	)		292			80			99			213			35			610
	Income taxes		(82	)		93			(12	)		33			80			11			229
Net income (loss)		$	(175	)	$	199		$	92		$	66		$	133		$	24		$	381
Performance and other data:
	Average loans	$	9,442		$	9,498		$	10,658		$	11,230		$	10,346		$	9,470		$	10,720
	Average assets		14,105			14,169			14,781			15,365			14,475			14,137			14,776

(This table is continued on "WM-7.")
__________________________
(1)	The managed basis presentation treats securitized and sold credit card receivables as if they were still on the balance sheet. The Company uses this basis in assessing the overall performance of this operating segment. The managed basis presentation of the Card Services Group is derived by adjusting the GAAP financial information to add back securitized loan balances and the related interest, fee income and provision for credit losses. Such adjustments are eliminated as securitization adjustments when reporting GAAP results.

WM - 7

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended															Six Months Ended
(This table is continued from "WM-6.")	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
	2008			2008			2007			2007			2007			2008			2007
COMMERCIAL GROUP
Condensed income statement:
Net interest income	$	203		$	196		$	200		$	200		$	208		$	400		$	420
Provision for loan losses		17			29			19			12			2			47			(7	)
Noninterest income		5			(8	)		(10	)		(34	)		63			(3	)		78
Noninterest expense		63			68			66			67			74			131			148
Income before income taxes		128			91			105			87			195			219			357
Income taxes		41			29			11			28			73			70			134
Net income	$	87		$	62		$	94		$	59		$	122		$	149		$	223
Performance and other data:
Efficiency ratio		30.34	%		36.09	%		34.39	%		40.26	%		27.42	%		33.07	%		29.89	%
Average loans	$	41,891		$	40,934		$	40,129		$	38,333		$	38,789		$	41,413		$	38,715
Average assets		43,875			43,004			42,336			40,663			41,184			43,439			41,094
Average deposits		6,632			7,474			9,762			13,816			15,294			7,053			13,671
Loan volume		3,768			2,835			4,800			4,054			4,348			6,603			8,018
Employees at end of period		1,342			1,358			1,502			1,524			1,508			1,342			1,508
HOME LOANS GROUP
Condensed income statement:
Net interest income	$	240		$	250		$	229		$	191		$	211		$	490		$	455
Provision for loan losses		1,637			907			511			323			101			2,544			150
Noninterest income		(97	)		319			329			183			389			221			550
Inter-segment expense		2			4			5			9			16			6			34
Noninterest expense		484			499			2,319			554			547			983			1,069
Loss before income taxes		(1,980	)		(841	)		(2,277	)		(512	)		(64	)		(2,822	)		(248	)
Income taxes		(635	)		(269	)		(312	)		(169	)		(24	)		(904	)		(93	)
Net loss	$	(1,345	)	$	(572	)	$	(1,965	)	$	(343	)	$	(40	)	$	(1,918	)	$	(155	)
Performance and other data:
Efficiency ratio		344.70	%		88.26	%		419.52	%		151.63	%		93.71	%		139.26	%		110.07	%
Average loans	$	54,880		$	55,672		$	52,278		$	43,737		$	43,312		$	55,275		$	48,255
Average assets		65,074			66,841			66,172			61,106			60,342			65,958			65,831
Average deposits		5,202			5,469			6,714			7,780			8,372			5,335			8,436
Loan volume		8,462			13,774			19,089			26,434			35,938			22,236			69,718
Employees at end of period		7,338			9,135			11,812			12,668			13,150			7,338			13,150
CORPORATE SUPPORT/TREASURY AND OTHER
Condensed income statement:
Net interest income (expense)	$	254		$	132		$	(18	)	$	(39	)	$	(4	)	$	386		$	(26	)
Provision for loan losses		55			119			85			(9	)		(51	)		173			(25	)
Noninterest income		(327	)		86			(201	)		(91	)		60			(241	)		154
Noninterest expense		327			104			231			57			80			431			191
Minority interest expense		75			75			65			53			42			151			85
Loss before income taxes		(530	)		(80	)		(600	)		(231	)		(15	)		(610	)		(123	)
Income taxes		(247	)		(68	)		(157	)		(46	)		(37	)		(316	)		(106	)
Net income (loss)	$	(283	)	$	(12	)	$	(443	)	$	(185	)	$	22		$	(294	)	$	(17	)
Performance and other data:
Average loans	$	1,648		$	1,556		$	1,482		$	1,420		$	1,367		$	1,602		$	1,356
Average assets		47,151			45,525			48,173			47,532			41,789			46,338			41,335
Average deposits		23,267			24,627			26,427			32,132			37,847			23,947			42,002
Loan volume		84			143			171			113			72			226			179
Employees at end of period		3,721			3,773			4,082			4,042			3,981			3,721			3,981

(This table is continued on "WM-8.")

WM - 8

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended															Six Months Ended
(This table is continued from "WM-7.")	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
	2008			2008			2007			2007			2007			2008			2007
RECONCILING ADJUSTMENTS
Condensed income statement:
Net interest income(1)	$	126		$	132		$	134		$	138		$	138		$	258		$	275
Noninterest income (expense)(2)		(25	)		(54	)		(37	)		(80	)		(132	)		(79	)		(218	)
Income before income taxes		101			78			97			58			6			179			57
Income taxes(3)		(324	)		(150	)		23			(75	)		(22	)		(474	)		16
Net income	$	425		$	228		$	74		$	133		$	28		$	653		$	41
Performance and other data:
Average loans(4)	$	(1,123	)	$	(1,220	)	$	(1,286	)	$	(1,385	)	$	(1,301	)	$	(1,171	)	$	(1,389	)
Average assets(4)		(1,123	)		(1,220	)		(1,286	)		(1,385	)		(1,301	)		(1,171	)		(1,389	)
TOTAL CONSOLIDATED
Condensed income statement:
Net interest income	$	2,296		$	2,175		$	2,047		$	2,014		$	2,034		$	4,471		$	4,115
Provision for loan losses		5,913			3,511			1,534			967			372			9,423			606
Noninterest income		561			1,569			1,365			1,379			1,758			2,129			3,299
Noninterest expense		2,403			2,152			4,166			2,191			2,138			4,555			4,244
Minority interest expense		75			75			65			53			42			151			85
Income (loss) before income taxes		(5,534	)		(1,994	)		(2,353	)		182			1,240			(7,529	)		2,479
Income taxes		(2,206	)		(856	)		(486	)		(4	)		410			(3,063	)		865
Net income (loss)	$	(3,328	)	$	(1,138	)	$	(1,867	)	$	186		$	830		$	(4,466	)	$	1,614
Performance and other data:
Efficiency ratio		84.11	%		57.49	%		122.13	%		64.55	%		56.38	%		69.01	%		57.24	%
Average loans	$	245,409		$	249,160		$	248,747		$	240,692		$	242,229		$	247,284		$	250,102
Average assets		314,882			319,928			325,276			320,475			316,004			317,405			323,911
Average deposits		184,610			184,304			185,636			198,649			206,765			184,457			208,753
Loan volume		12,969			17,990			27,477			35,773			46,118			30,958			88,253
Employees at end of period		43,198			45,883			49,403			49,748			49,989			43,198			49,989
__________________________

(1)	Represents the difference between mortgage loan premium amortization recorded by the Retail Banking Group and the amount recognized in the Company's Consolidated Statements of Income.  For management reporting purposes, certain mortgage loans that are held in portfolio by the Retail Banking Group are treated as if they are purchased from the Home Loans Group.  Since the cost basis of these loans includes an assumed profit factor paid to the Home Loans Group, the amortization of loan premiums recorded by the Retail Banking Group reflects this assumed profit factor and must therefore be eliminated as a reconciling adjustment.
(2)	Represents the difference between gain from mortgage loans recorded by the Home Loans Group and gain from mortgage loans recognized in the Company's Consolidated Statements of Income.
(3)	Represents the tax effect of reconciling adjustments.
(4)	Represents the inter-segment offset for inter-segment loan premiums that the Retail Banking Group recognized upon transfer of portfolio loans from the Home Loans Group.

WM - 9

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	June 30, 2008							Mar. 31, 2008							June 30, 2007
						Interest							Interest							Interest
						Income/							Income/							Income/
	Balance		Rate			Expense		Balance		Rate			Expense		Balance		Rate			Expense
Average Balances and Weighted Average Interest Rates
Assets (Taxable-Equivalent Basis(1))
Interest-earning assets(2):
Federal funds sold and securities purchased under
agreements to resell	$	2,161		2.15	%	$	11	$	2,118		3.48	%	$	18	$	3,964		5.39	%	$	53
Trading assets		2,404		19.50			117		2,726		17.10			116		4,995		8.67			108
Available-for-sale securities(3):
Mortgage-backed securities		19,190		5.67			271		18,945		5.80			275		19,177		5.39			259
Investment securities		5,287		5.06			67		6,316		5.39			85		7,382		5.15			95
Loans held for sale		3,672		5.62			52		4,974		6.98			87		26,225		6.43			421
Loans held in portfolio:
Loans secured by real estate:
Home loans(4)(5)		107,299		5.83			1,563		109,773		6.27			1,720		90,818		6.44			1,462
Home equity loans and lines of credit(5)		60,964		5.12			777		61,196		6.28			956		54,431		7.59			1,031
Subprime mortgage channel(6)		16,933		6.05			256		18,106		6.33			287		20,152		6.80			343
Home construction(7)		1,973		7.41			37		2,142		7.65			41		2,043		6.72			34
Multi-family		32,786		6.13			502		31,962		6.35			507		29,419		6.65			488
Other real estate		10,205		6.26			159		9,797		6.49			158		6,843		7.03			120
Total loans secured by real estate		230,160		5.73			3,294		232,976		6.31			3,669		203,706		6.84			3,478
Consumer:
Credit card		9,443		11.56			271		9,024		10.75			241		10,101		10.44			263
Other		180		16.85			8		195		17.47			8		254		12.44			8
Commercial		1,954		6.76			33		1,991		7.36			37		1,943		7.73			38
Total loans held in portfolio		241,737		5.98			3,606		244,186		6.49			3,955		216,004		7.02			3,787
Other		11,052		3.01			83		6,000		3.94			59		2,089		5.47			29
Total interest-earning assets		285,503		5.90			4,207		285,265		6.45			4,595		279,836		6.80			4,752
Noninterest-earning assets:
Mortgage servicing rights		6,115							5,882							6,782
Goodwill		7,283							7,286							9,054
Other assets		15,981							21,495							20,332
Total assets	$	314,882						$	319,928						$	316,004
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	22,619		1.39			78	$	24,384		1.75			107	$	30,373		2.51			190
Savings and money market deposits		62,078		2.17			335		55,951		2.73			379		58,969		3.33			490
Time deposits		69,161		4.08			702		74,225		4.57			843		84,330		4.96			1,043
Total interest-bearing deposits		153,858		2.91			1,115		154,560		3.46			1,329		173,672		3.98			1,723
Federal funds purchased and commercial paper		79		3.05			1		1,009		3.62			9		2,169		5.36			29
Securities sold under agreements to repurchase		406		2.20			2		885		3.78			8		8,416		5.35			112
Advances from Federal Home Loan Banks		60,402		3.36			505		62,799		4.29			670		22,063		5.36			295
Other		30,839		3.69			283		34,048		4.71			400		39,886		5.57			555
Total interest-bearing liabilities		245,584		3.12			1,906		253,301		3.83			2,416		246,206		4.42			2,714
Noninterest-bearing sources:
Noninterest-bearing deposits		30,752							29,744							33,093
Other liabilities		7,075							8,902							9,610
Minority interests		3,913							3,915							2,659
Stockholders' equity		27,558							24,066							24,436
Total liabilities and stockholders' equity	$	314,882						$	319,928						$	316,004
Net interest spread and net interest income on a taxable-equivalent basis				2.78		$	2,301				2.62		$	2,179				2.38		$	2,038
Impact of noninterest-bearing sources				0.44							0.43							0.53
Net interest margin on a taxable-equivalent basis				3.22							3.05							2.91

_______________________________
(1)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on U.S. states and political subdivisions securities and loans related to the Company’s community lending and investment activities.  The federal statutory tax rate was 35% for the periods presented.
(2)	Nonaccrual assets and related income, if any, are included in their respective categories.
(3)	The average balance and yield are based on average amortized cost balances.
(4)	Capitalized interest recognized in earnings that resulted from negative amortization within the Option ARM portfolio totaled $255 million, $336 million and $344 million for the three months ended June 30, 2008, March 31, 2008 and June 30, 2007.
(5)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(6)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.
(7)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

WM - 10

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Six Months Ended
	June 30, 2008							June 30, 2007
						Interest							Interest
						Income/							Income/
	Balance		Rate			Expense		Balance		Rate			Expense
Average Balances and Weighted Average Interest Rates
Assets (Taxable-Equivalent Basis(1))
Interest-earning assets(2):
Federal funds sold and securities purchased under
agreements to resell	$	2,139		2.81	%	$	30	$	3,947		5.39	%	$	105
Trading assets		2,565		18.22			233		5,293		8.37			221
Available-for-sale securities(3):
Mortgage-backed securities		19,068		5.74			546		18,821		5.44			511
Investment securities		5,802		5.24			152		6,785		5.18			176
Loans held for sale		4,323		6.40			138		30,810		6.40			984
Loans held in portfolio:
Loans secured by real estate:
Home loans(4)(5)		108,536		6.05			3,283		94,074		6.45			3,033
Home equity loans and lines of credit(5)		61,080		5.70			1,733		53,726		7.57			2,020
Subprime mortgage channel(6)		17,519		6.19			543		20,381		6.74			686
Home construction(7)		2,058		7.54			78		2,052		6.63			68
Multi-family		32,374		6.23			1,009		29,621		6.61			979
Other real estate		10,001		6.37			317		6,803		7.03			238
Total loans secured by real estate		231,568		6.02			6,963		206,657		6.81			7,024
Consumer:
Credit card		9,233		11.16			513		10,500		11.03			574
Other		188		17.17			16		261		12.70			17
Commercial		1,972		7.06			69		1,874		7.84			73
Total loans held in portfolio		242,961		6.23			7,561		219,292		7.03			7,688
Other		8,526		3.34			141		2,776		5.65			78
Total interest-earning assets		285,384		6.18			8,801		287,724		6.80			9,763
Noninterest-earning assets:
Mortgage servicing rights		5,998							6,545
Goodwill		7,285							9,054
Other assets		18,738							20,588
Total assets	$	317,405						$	323,911
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	23,502		1.58			184	$	31,093		2.57			397
Savings and money market deposits		59,014		2.43			714		56,927		3.31			933
Time deposits		71,693		4.33			1,545		87,960		4.96			2,165
Total interest-bearing deposits		154,209		3.19			2,443		175,980		4.00			3,495
Federal funds purchased and commercial paper		544		3.58			10		3,003		5.44			81
Securities sold under agreements to repurchase		646		3.28			10		10,247		5.43			276
Advances from Federal Home Loan Banks		61,600		3.83			1,175		29,019		5.37			773
Other		32,443		4.23			683		36,366		5.62			1,016
Total interest-bearing liabilities		249,442		3.48			4,321		254,615		4.46			5,641
Noninterest-bearing sources:
Noninterest-bearing deposits		30,248							32,773
Other liabilities		7,989							9,547
Minority interests		3,914							2,554
Stockholders' equity		25,812							24,422
Total liabilities and stockholders' equity	$	317,405						$	323,911
Net interest spread and net interest income on a taxable-equivalent basis				2.70		$	4,480				2.34		$	4,122
Impact of noninterest-bearing sources				0.44							0.51
Net interest margin on a taxable-equivalent basis				3.14							2.85

_______________________________
(1)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on U.S. states and political subdivisions securities and loans related to the Company’s community lending and investment activities.  The federal statutory tax rate was 35% for the periods presented.
(2)	Nonaccrual assets and related income, if any, are included in their respective categories.
(3)	The average balance and yield are based on average amortized cost balances.
(4)	Capitalized interest recognized in earnings that resulted from negative amortization within the Option ARM portfolio totaled $591 million and $706 million for the six months ended June 30, 2008 and June 30, 2007.
(5)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(6)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.
(7)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

WM - 11

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	Mar. 31, 2008			June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
	to June 30, 2008			2008		2008		2007		2007		2007
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing	$	304		$	25,435	$	25,131	$	23,476	$	23,721	$	24,142
Interest bearing		(1,916	)		21,715		23,631		25,713		27,277		29,592
Total checking deposits		(1,612	)		47,150		48,762		49,189		50,998		53,734
Savings and money market deposits		6,699			58,016		51,317		44,987		43,360		43,617
Time deposits(1)		(8,488	)		43,086		51,574		49,410		50,740		48,140
Total retail deposits		(3,401	)		148,252		151,653		143,586		145,098		145,491
Commercial business and other deposits		(1,513	)		8,892		10,405		11,267		16,536		19,186
Brokered deposits:
Consumer		1,509			19,248		17,739		18,089		17,484		17,153
Institutional		(1,611	)		100		1,711		2,515		8,107		11,025
Custodial and escrow deposits(2)		(1,110	)		5,431		6,541		6,469		7,055		8,525
Total deposits	$	(6,126	)	$	181,923	$	188,049	$	181,926	$	194,280	$	201,380

(1)	Weighted average remaining maturity of time deposits was 6 months at June 30, 2008 and March 31, 2008, 7 months at December 31, 2007 and September 30, 2007 and 8 months at June 30, 2007.
(2)	Substantially all custodial and escrow deposits reside in noninterest-bearing checking accounts.

	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
	2008		2008		2007		2007		2007
Retail Deposit Accounts (number of accounts)
Noninterest-bearing checking		11,577,907		11,271,406		10,960,270		10,824,548		10,449,887
Interest-bearing checking		1,167,062		1,218,606		1,273,673		1,334,902		1,399,203
Savings and money market		7,474,547		7,293,256		7,118,349		7,087,311		6,936,870
Total transaction accounts, end of period(1)		20,219,516		19,783,268		19,352,292		19,246,761		18,785,960
Net change in noninterest-bearing checking accounts		306,501		311,136		135,722		374,661		466,574
Net change in checking accounts		254,957		256,069		74,493		310,360		406,243
_______________________________

(1) Transaction accounts include retail checking, small business checking, retail savings and small business savings.

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
Retail Banking Stores
Stores, beginning of period		2,261			2,257			2,212			2,235			2,228
Stores opened during the quarter		14			9			50			10			11
Stores closed during the quarter		(36	)		(5	)		(5	)		(33	)		(4	)
Stores, end of period		2,239			2,261			2,257			2,212			2,235

WM - 12

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
	2008		2008		2007		2007		2007
Loan Volume
Home loans:
Short-term adjustable-rate loans(1):
Option ARMs	$	11	$	231	$	3,945	$	6,174	$	7,888
Other ARMs		14		19		10		111		22
Total short-term adjustable-rate loans		25		250		3,955		6,285		7,910
Medium-term adjustable-rate loans(2)		2,338		3,810		5,972		9,868		14,953
Fixed-rate loans		6,131		9,427		7,382		6,176		8,172
Total home loan volume		8,494		13,487		17,309		22,329		31,035
Home equity loans and lines of credit		541		1,297		4,619		8,544		9,988
Home construction(3)		8		128		378		483		426
Multi-family		2,686		2,250		3,412		2,856		3,067
Other real estate		1,106		728		1,487		1,285		1,246
Total loans secured by real estate		12,835		17,890		27,205		35,497		45,762
Commercial		134		100		272		276		356
Total loan volume	$	12,969	$	17,990	$	27,477	$	35,773	$	46,118
Loan Volume by Channel
Retail	$	9,081	$	10,585	$	17,341	$	21,223	$	24,707
Wholesale		3,732		7,091		9,536		13,387		17,020
Purchased		156		314		600		1,163		4,391
Total loan volume by channel	$	12,969	$	17,990	$	27,477	$	35,773	$	46,118
Refinancing Activity(4)
Home loan refinancing	$	6,665	$	10,779	$	12,297	$	14,722	$	22,637
Home equity loans and lines of credit		8		22		46		143		157
Home construction loans		-		1		30		30		20
Multi-family and other real estate		1,301		1,033		1,436		1,225		1,378
Total refinancing	$	7,974	$	11,835	$	13,809	$	16,120	$	24,192

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	Medium-term adjustable-rate loans reprice after one year.
(3)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(4)	Includes loan refinancing entered into by both new and pre-existing loan customers.

WM - 13

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Six Months Ended
	June 30,		June 30,
	2008		2007
Loan Volume
Home loans:
Short-term adjustable-rate loans(1):
Option ARMs	$	241	$	15,666
Other ARMs		34		58
Total short-term adjustable-rate loans		275		15,724
Medium-term adjustable-rate loans(2)		6,148		28,519
Fixed-rate loans		15,557		16,996
Total home loan volume		21,980		61,239
Home equity loans and lines of credit		1,839		17,590
Home construction(3)		136		724
Multi-family		4,936		5,729
Other real estate		1,833		2,326
Total loans secured by real estate		30,724		87,608
Commercial		234		645
Total loan volume	$	30,958	$	88,253
Loan Volume by Channel
Retail	$	19,665	$	45,878
Wholesale		10,824		31,767
Purchased		469		10,608
Total loan volume by channel	$	30,958	$	88,253
Refinancing Activity(4)
Home loan refinancing	$	17,444	$	45,190
Home equity loans and lines of credit		30		707
Home construction loans		1		31
Multi-family and other real estate		2,334		2,509
Total refinancing	$	19,809	$	48,437

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	Medium-term adjustable-rate loans reprice after one year.
(3)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(4)	Includes loan refinancing entered into by both new and pre-existing loan customers.

WM - 14

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	Mar. 31, 2008			June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	to June 30, 2008			2008			2008			2007			2007			2007
Loans Held in Portfolio
Loans secured by real estate:
Home:
Short-term adjustable-rate loans(1):
Option ARMs(2)	$	(2,960	)	$	52,886		$	55,846		$	58,870		$	58,137		$	53,455
Other ARMs		(404	)		15,128			15,532			16,231			15,478			13,538
Total short-term adjustable-rate loans		(3,364	)		68,014			71,378			75,101			73,615			66,993
Medium-term adjustable-rate loans(3)		(1,014	)		39,203			40,217			39,373			37,717			29,647
Fixed-rate loans		(96	)		11,761			11,857			12,005			11,813			9,505
Total home loans		(4,474	)		118,978			123,452			126,479			123,145			106,145
Home equity loans and lines of credit		(1,059	)		62,487			63,546			63,488			61,831			58,631
Home construction(4)		(186	)		1,902			2,088			2,226			2,110			2,058
Multi-family		616			33,144			32,528			31,754			30,831			29,290
Other real estate		456			10,478			10,022			9,524			8,335			6,879
Total loans secured by real estate(5)		(4,647	)		226,989			231,636			233,471			226,252			203,003
Consumer:
Credit card		1,600			10,589			8,989			8,831			8,791			9,913
Other		(9	)		177			186			205			224			243
Commercial		(131	)		1,872			2,003			1,879			1,865			1,835
Total loans held in portfolio(6)		(3,187	)		239,627			242,814			244,386			237,132			214,994
Less: allowance for loan losses		(3,742	)		(8,456	)		(4,714	)		(2,571	)		(1,889	)		(1,560	)
Total loans held in portfolio, net	$	(6,929	)	$	231,171		$	238,100		$	241,815		$	235,243		$	213,434

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	The total amount by which the unpaid principal balance of Option ARM loans exceeded their original principal amount was $2.05 billion, $1.93 billion, $1.73 billion, $1.50 billion and $1.30 billion at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007.
(3)	Medium-term adjustable-rate loans reprice after one year.
(4)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

(5) Includes subprime mortgage channel loans, comprising mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio as follows:

Subprime Mortgage Channel	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
	2008		2008		2007		2007		2007
Home loans	$	13,951	$	15,032	$	16,092	$	17,285	$	17,602
Home equity loans and lines of credit		2,101		2,312		2,525		2,711		2,855
Total	$	16,052	$	17,344	$	18,617	$	19,996	$	20,457

(6) Includes net unamortized deferred loan costs of $1.31 billion, $1.42 billion, $1.45 billion, $1.44 billion and $1.58 billion at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007.

WM - 15

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

						Weighted					Weighted					Weighted
	Change from					Average					Average					Average
	Mar. 31, 2008			June 30,		Coupon			Mar. 31,		Coupon			June 30,		Coupon
	to June 30, 2008			2008		Rate			2008		Rate			2007		Rate
Selected Loans Secured by Real Estate
Home loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs	$	(2,960	)	$	52,886		6.61	%	$	55,846		7.30	%	$	53,455		7.74	%
Other ARMs		(404	)		15,128		6.70			15,532		6.94			13,538		7.28
Total short-term adjustable-rate loans		(3,364	)		68,014		6.63			71,378		7.22			66,993		7.65
Medium-term adjustable-rate loans(2)		(1,014	)		39,203		6.36			40,217		6.35			29,647		5.99
Fixed-rate loans		(96	)		11,761		6.70			11,857		6.75			9,505		6.71
Total home loans held in portfolio		(4,474	)		118,978		6.55			123,452		6.89			106,145		7.10
Home equity loans and lines of credit:
Adjustable-rate		(410	)		53,440		5.65			53,850		6.02			47,699		8.25
Fixed-rate		(649	)		9,047		7.61			9,696		7.67			10,932		7.70
Total home equity loans and lines of credit		(1,059	)		62,487		5.93			63,546		6.27			58,631		8.15
Multi-family loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs		(634	)		5,524		5.90			6,158		6.70			7,650		7.28
Other ARMs		(353	)		7,116		5.72			7,469		6.03			7,910		6.77
Total short-term adjustable-rate loans		(987	)		12,640		5.79			13,627		6.33			15,560		7.02
Medium-term adjustable-rate loans(2)		1,576			18,393		6.10			16,817		6.12			11,890		5.93
Fixed-rate loans		27			2,111		6.19			2,084		6.22			1,840		6.35
Total multi-family loans held in portfolio		616			33,144		5.99			32,528		6.22			29,290		6.53
Total selected loans held in portfolio secured by real estate(3)		(4,917	)		214,609		6.28			219,526		6.61			194,066		7.33
Loans held for sale(4)		(3,064	)		1,877		5.72			4,941		5.73			18,999		6.39
Total selected loans secured by real estate	$	(7,981	)	$	216,486		6.28		$	224,467		6.59		$	213,065		7.25

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	Medium-term adjustable-rate loans reprice after one year.
(3)	At June 30, 2008, March 31, 2008 and June 30, 2007, adjustable-rate loans with lifetime caps were $180.93 billion, $182.93 billion and $158.24 billion with a lifetime weighted average cap rate of 12.67%, 12.60% and 12.96%.
(4)	Excludes credit card and student loans.

	Mar. 31, 2008			Dec. 31, 2007
	to June 30, 2008			to June 30, 2008
Rollforward of Loans Held for Sale
Balance, beginning of period	$	4,941		$	5,403
Mortgage loans originated, purchased and transferred from held in portfolio		7,339			18,969
Mortgage loans transferred to held in portfolio		(27	)		(373	)
Mortgage loans sold and other(1)		(10,376	)		(21,092	)
Net change in consumer loans held for sale		-			(1,030	)
Balance, end of period	$	1,877		$	1,877
Rollforward of Home Loans Held in Portfolio
Balance, beginning of period	$	123,452		$	126,479
Loans originated, purchased and transferred from held for sale		1,525			3,790
Loan payments, transferred to held for sale and other		(5,999	)		(11,291	)
Balance, end of period	$	118,978		$	118,978

(1) The unpaid principal balance ("UPB") of home loans sold was $9.85 billion and $19.85 billion for the three and six months ended June 30, 2008.

WM - 16

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
Detail of Revenue (Expense) from Sales and Servicing of Home Mortgage Loans	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
Gain (loss) from home mortgage loans and originated mortgage-backed securities,     net of hedging and risk management instruments:
Gain (loss) from home mortgage loans and originated mortgage-backed securities(1)	$	(162	)	$	143		$	7		$	(169	)	$	66
Revaluation gain (loss) from derivatives economically hedging loans held for sale		11			(21	)		(12	)		(53	)		126
Gain (loss) from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments		(151	)		122			(5	)		(222	)		192
Home mortgage loan servicing revenue:
Home mortgage loan servicing revenue(2)		438			470			490			516			526
Change in MSR fair value due to payments on loans and other		(301	)		(230	)		(255	)		(351	)		(401	)
Net home mortgage loan servicing revenue		137			240			235			165			125
Change in MSR fair value due to valuation inputs or assumptions		542			(499	)		(390	)		(201	)		530
Revaluation gain (loss) from derivatives economically hedging MSR		(637	)		548			518			419			(547	)
Home mortgage loan servicing revenue, net of  MSR valuation
changes and derivative risk management instruments		42			289			363			383			108
Total revenue (expense) from sales and servicing of home mortgage loans	$	(109	)	$	411		$	358		$	161		$	300

	Six Months Ended
Detail of Revenue from Sales and Servicing of Home Mortgage Loans	June 30,			June 30,
	2008			2007
Gain (loss) from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments:
Gain (loss) from home mortgage loans and originated mortgage-backed securities(1)	$	(19	)	$	214
Revaluation gain (loss) from derivatives economically hedging loans held for sale		(9	)		72
Gain (loss) from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments		(28	)		286
Home mortgage loan servicing revenue:
Home mortgage loan servicing revenue(2)		908			1,041
Change in MSR fair value due to payments on loans and other		(531	)		(757	)
Net home mortgage loan servicing revenue		377			284
Change in MSR fair value due to valuation inputs or assumptions		42			434
Revaluation loss from derivatives economically hedging MSR		(89	)		(579	)
Home mortgage loan servicing revenue, net of  MSR valuation
changes and derivative risk management instruments		330			139
Total revenue from sales and servicing of home mortgage loans	$	302		$	425

(1)	Originated mortgage-backed securities represent available-for-sale securities retained on the balance sheet subsequent to the securitization of mortgage loans that were originated by the Company.
(2)	Includes contractually specified servicing fees (net of guarantee fees paid to housing government-sponsored enterprises, where applicable), late charges and loan pool expenses (the shortfall of the scheduled interest required to be remitted to investors and that which is collected from borrowers upon payoff).

WM - 17

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
MSR Valuation and Risk Management:
Change in MSR fair value due to valuation inputs or assumptions	$	542		$	(499	)	$	(390	)	$	(201	)	$	530
Gain (loss) on MSR risk management instruments:
Revaluation gain (loss) from derivatives economically hedging MSR		(637	)		548			518			419			(547	)
Revaluation gain (loss) from certain trading securities		(2	)		-			-			4			(4	)
Total gain (loss) on MSR risk management instruments		(639	)		548			518			423			(551	)
Total changes in MSR valuation and risk management	$	(97	)	$	49		$	128		$	222		$	(21	)

	Six Months Ended
	June 30,			June 30,
	2008			2007
MSR Valuation and Risk Management:
Change in MSR fair value due to valuation inputs or assumptions	$	42		$	434
Loss on MSR risk management instruments:
Revaluation loss from derivatives economically hedging MSR		(89	)		(579	)
Revaluation loss from certain trading securities		(2	)		-
Total loss on MSR risk management instruments		(91	)		(579	)
Total changes in MSR valuation and risk management	$	(49	)	$	(145	)

WM - 18

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
Rollforward of Mortgage Servicing Rights(1)
Fair value, beginning of period	$	5,726		$	6,278		$	6,794		$	7,231		$	6,507
Home loans:
Additions		205			181			127			116			592
Change in MSR fair value due to payments on loans and other		(301	)		(230	)		(255	)		(351	)		(401	)
Change in MSR fair value due to valuation inputs or
assumptions		542			(499	)		(390	)		(201	)		530
Sale of MSR		-			(1	)		-			-			-
Net change in commercial real estate MSR		3			(3	)		2			(1	)		3
Fair value, end of period	$	6,175		$	5,726		$	6,278		$	6,794		$	7,231
Rollforward of Mortgage Loans Serviced for Others
Balance, beginning of period	$	449,126		$	456,484		$	463,436		$	474,867		$	467,782
Home loans:
Additions		9,828			9,862			7,814			8,700			29,949
Sale of servicing		-			(109	)		-			-			-
Loan payments and other		(17,534	)		(17,177	)		(15,739	)		(20,716	)		(24,213	)
Net change in commercial real estate loans		181			66			973			585			1,349
Balance, end of period	$	441,601		$	449,126		$	456,484		$	463,436		$	474,867

(1) MSR as a percentage of mortgage loans serviced for others was 1.40%, 1.27%, 1.38%, 1.47% and 1.52% at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007.

	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
	2008		2008		2007		2007		2007
Total Servicing Portfolio
Mortgage loans serviced for others	$	441,601	$	449,126	$	456,484	$	463,436	$	474,867
Consumer loans serviced for others		15,842		17,390		17,379		16,078		14,745
Servicing on retained MBS without MSR		865		904		942		980		1,023
Servicing on owned loans		231,188		236,877		238,344		232,392		218,122
Subservicing portfolio		274		285		399		418		439
Total servicing portfolio	$	689,770	$	704,582	$	713,548	$	713,304	$	709,196

	June 30, 2008
	Unpaid		Weighted
	Principal		Average
	Balance		Servicing Fee
			(in basis points,
Mortgage Loans Serviced for Others by Loan Type			annualized)
Agency	$	252,358		32
Private		162,924		58
Subprime mortgage channel-home		26,319		51
Total mortgage loans serviced for others(1)	$	441,601		42

(1) Weighted average coupon rate was 6.13% at June 30, 2008.

WM - 19

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
Allowance for Loan Losses
Balance, beginning of quarter	$	4,714		$	2,571		$	1,889		$	1,560		$	1,540
Allowance transferred to loans held for sale		-			-			(105	)		(217	)		(81	)
Provision for loan losses		5,913			3,511			1,534			967			372
		10,627			6,082			3,318			2,310			1,831
Loans charged off:
Loans secured by real estate:
Home loans(1)		(687	)		(331	)		(105	)		(52	)		(21	)
Home equity loans and lines of credit(1)		(726	)		(486	)		(249	)		(104	)		(55	)
Subprime mortgage channel(2)		(572	)		(388	)		(277	)		(146	)		(103	)
Home construction(3)		(3	)		(8	)		-			-			(1	)
Multi-family		(3	)		(4	)		(4	)		-			-
Other real estate		(1	)		(2	)		(1	)		(1	)		(1	)
Total loans secured by real estate		(1,992	)		(1,219	)		(636	)		(303	)		(181	)
Consumer:
Credit card		(169	)		(135	)		(126	)		(120	)		(106	)
Other		(2	)		(2	)		(2	)		(2	)		(2	)
Commercial		(51	)		(39	)		(32	)		(20	)		(15	)
Total loans charged off		(2,214	)		(1,395	)		(796	)		(445	)		(304	)
Recoveries of loans previously charged off:
Loans secured by real estate:
Home loans(1)		-			1			4			1			1
Home equity loans and lines of credit(1)		17			9			4			3			3
Subprime mortgage channel(2)		3			1			4			1			11
Home construction(3)		-			-			2			-			-
Other real estate		1			1			2			2			-
Total loans secured by real estate		21			12			16			7			15
Credit card		16			12			31			14			15
Commercial		6			3			2			3			3
Total recoveries of loans previously charged off		43			27			49			24			33
Net charge-offs		(2,171	)		(1,368	)		(747	)		(421	)		(271	)
Balance, end of quarter	$	8,456		$	4,714		$	2,571		$	1,889		$	1,560
Net charge-offs (annualized) as a percentage
of average loans held in portfolio		3.59	%		2.24	%		1.24	%		0.74	%		0.50	%
Allowance as a percentage of loans held in portfolio		3.53			1.94			1.05			0.80			0.73
______________________________

(1)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(2)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.  Charge-offs in the second quarter of 2007 include $26 million of amounts primarily related to uncollected borrower expenses incurred in prior periods by and owed to a third party loan servicer.
(3)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

WM - 20

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
	2008			2008			2007			2007			2007
Nonperforming Assets
Nonaccrual loans(1)(2)(3):
Loans secured by real estate:
Home loans(4)(5)	$	4,757		$	3,504		$	2,302		$	1,452		$	991
Home equity loans and lines of credit(4)		1,521			1,102			835			533			378
Subprime mortgage channel(6)		3,008			2,882			2,721			2,356			1,707
Home construction(7)		79			77			56			44			47
Multi-family		181			142			131			120			69
Other real estate		87			87			53			49			52
Total nonaccrual loans secured by real estate		9,633			7,794			6,098			4,554			3,244
Consumer		1			2			1			1			1
Commercial		57			28			24			22			30
Total nonaccrual loans held in portfolio		9,691			7,824			6,123			4,577			3,275
Foreclosed assets(8)		1,512			1,357			979			874			750
Total nonperforming assets	$	11,203		$	9,181		$	7,102		$	5,451		$	4,025
Total nonperforming assets as a percentage of total assets		3.62	%		2.87	%		2.17	%		1.65	%		1.29	%
______________________________

(1)	Nonaccrual loans held for sale, which are excluded from the nonaccrual balances presented above, were $2 million, zero, $4 million, $7 million and $171 million at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007.  Loans held for sale are accounted for at the lower of cost or fair value, with valuation changes included as adjustments to noninterest income.
(2)	Credit card loans are exempt under regulatory rules from being classified as nonaccrual because they are charged off when they are determined to be uncollectible, or by the end of the month in which the account becomes 180 days past due.
(3)	Includes nonaccrual restructured loans of $1.43 billion, $669 million, $633 million, $512 million and $152 million at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007.  Excludes accruing restructured loans of $465 million, $372 million, $251 million, $269 million and $277 million at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007.
(4)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(5)	Includes nonaccrual Option ARM loans of $3.23 billion, $2.51 billion, $1.63 billion, $1.00 billion and $680 million at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007.
(6)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.
(7)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(8)	Foreclosed real estate securing Government National Mortgage Association (“GNMA”) loans of $21 million, $25 million, $37 million, $46 million and $49 million at June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007 and June 30, 2007 have been excluded.  These assets are fully collectible as the corresponding GNMA loans are insured by the Federal Housing Administration (“FHA”) or guaranteed by the Department of Veterans Affairs (“VA”).

EX-99.3

Exhibit 99.3

Title: Credit Risk SubTitle: Management  Q2 2008  July 22, 2008

Title: Loan Portfolio Mix (Gp:) 22% (Gp:) 22% (Gp:) 25% (Gp:) 14% (Gp:) 7% (Gp:) 4% (Gp:) 5% (Gp:) 1% (Gp:) 24% (Gp:) 21% (Gp:) 25% (Gp:) 13% (Gp:) 8% (Gp:) 3% (Gp:) 5% (Gp:) 1%   Single Family Residential Loans $190.0 down to $181.5  Other Loans $54.4 up to $58.1

Current FICO = 683 Original LTV = 72% Est. Current LTV1 = 70% Est. Current LTV >90% = 14% Est. Current LTV >80% = 38%  $0.01  $0.16  $0.89  $2.05  $66.3  $71.2  $63.6  $52.9  $1.30  $53.5 Title: Option ARM Portfolio  $1.50  $58.1  $1.73  $58.9  1Estimated loan-to-value calculation based on OFHEO March 2008 data (released May 2008).  $1.93  $55.

Title: Option ARM Portfolio Recasts1  Data as of 6/30/08. 1Assumes that all balances recast no earlier than 5 years after origination and no prepayment or refinancing occurs. (Gp:) $2.2 (Gp:) $7.1 (Gp:) $11.8 (Gp:) $11.4 (Gp:) $18.2

1Estimated loan-to-value calculation based on OFHEO March 2008 data (released May 2008).   Current FICO = 720    Original LTV = 69% Est. Current LTV1 = 62%  Est. Current LTV >90% = 4% Est. Current LTV >80% = 19% Title: Other Prime Portfolio

1ST Lien Home Equity Current FICO = 738 Original Combined LTV = 65% Est. Current Combined LTV1 = 56% Est. Current Combined LTV >90% = 8% Est. Current Combined LTV >80% = 20% Title: Home Equity Loan / Home Equity LOC Portfolios   $43.6  $50.8  $52.9  $60.4  $55.8  $59.1  $61.0  1Estimated combined loan-to-value ratio based on OFHEO March 2008 data (released May 2008).  $61.2  2nd Lien Home Equity Current FICO = 720 Original Combined LTV = 76% Est. Current Combined LTV1 = 73% Est. Current Combined LTV >90% = 22% Est. Current Combined LTV >80% = 41%

1The balances shown are for accounts existing in both periods and exclude accounts for which Current Combined LTV estimates were not obtained.  2Current combined loan to value ratios are calculated using estimates of potential total debt that reflect the total line amount (including portions that are currently undrawn) with specific analysis using AVMs, BPOs, appraisals, and other techniques.  Percentage of Unfunded Line Reductions1  Unfunded Loan Commitments  2  Reducing Home Equity Exposure  (in billions)  $41.0  Zero Draw  $58.7  Down 30%  Partial Draw

Home Loans Current FICO = 605 Original LTV = 78% Est. Current LTV1 = 72% Est. Current LTV >90% = 13% Est. Current LTV >80% = 33%  Home Equity Current FICO = 671 Original Combined LTV = 94% Est. Current Combined LTV2 = 95% Est. Current Combined LTV >90% = 71% Est. Current Combined LTV >80% = 89%  $19.2 Title: Subprime Mortgage Channel Portfolio   $21.2  $20.8  $16.1  $20.5  $20.0  $18.6  1Estimated loan-to-value ratio based on OFHEO March 2008 data (released May 2008). 2Estimated combined loan-to-value ratio based on OFHEO March 2008 data (released May 2008).    $17.3

Title: Subprime Mortgage Channel Resets  Data as of 6/30/2008.

$31.2  $32.8  $38.6  $45.5  $38.0 Title: Multi-Family Lending and Other Commercial Portfolios  $41.0  $43.2  1Net charge-offs for Other Commercial in 4Q ’07, 1Q ’08, and 2Q ’08 are almost entirely driven from Retail Small Business.  $44.5  1

1Net charge-off data presented for periods 1Q ’05 to 3Q ’05 is for Providian Financial Corp. Title: Managed Card Services Portfolio   1  $20.0  $25.0  $23.5  $26.2  $26.4  $27.2  $26.4

Title: Allowance for Loan Losses

Title: Nonperforming Assets

1Excludes troubled debt restructuring that are current with their revised loan terms. 2Computed as total delinquencies less nonperforming loans and represents loans roughly 30-89 days past due.  1  Declining Rate of Growth in NPAs and Delinquencies

Title: Early Stage Delinquencies1   1Computed as total delinquencies less nonperforming loans and represents loans roughly 30-89 days past due. 2Card Services is shown on a managed basis and represents 30+ day delinquencies.  2

Title: Transition Roll Rates1  1 PPD to 2+ PPD  Current to 1+ PPD  2 PPD to 3+ PPD  3 PPD to Nonaccrual  1Rates shown are 3 month balance-weighted moving averages.  Estimation techniques have been applied in some instances to account for censored loan states occurring in specific periods.

1LoanPerformance TS Securities through April 2008  WaMu Option ARM Delinquencies vs. Industry OTS 90+ Delinquencies, WaMu vs. Industry1, 2004-2007 Vintages  Increase driven by the transfer of Mortgage Banker Finance loans into the portfolio  Vintage 2006  Vintage 2007  Vintage 2005  Vintage 2004

1LoanPerformance TS Securities through April 2008  WaMu Other Prime Delinquencies vs. Industry OTS 90+ Delinquencies, WaMu vs. Industry1, 2004-2007 Vintages  Vintage 2006  Vintage 2007  Vintage 2004  Vintage 2005  Increase driven by the transfer of Mortgage Banker Finance loans into the portfolio

WaMu Subprime Delinquencies vs. Industry OTS 90+ Delinquencies, WaMu vs. Industry1, 2004-2007 Vintages  Vintage 2004  Vintage 2006  Vintage 2007  Vintage 2005  1LoanPerformance TS Securities through April 2008

1LoanPerformance LPS Home Equity HELOC/Seconds through April 2008  WaMu Home Equity Delinquencies vs. Industry MBA 90+ Delinquencies, WaMu vs. Industry1, 2004-2007 Vintages  Vintage 2006  Vintage 2004  Vintage 2005  Vintage 2007

Title: Option ARMs by Metro Area   Loan-to-Value at Origination   Data as of 6/30/2008.

Title: Option ARM Portfolio Loan-to-Value at Origination   1Excludes accounting adjustments and invalid vintage and OLTV values; negative amortization is included in the loan balances. 2Estimated loan-to-value calculation based on OFHEO March 2008 data (released May 2008). 3Invalid vintage excluded.  4Computed as total delinquencies less nonperforming loans.

Title: Other Prime Portfolio   Loan-to-Value at Origination   1Excludes accounting adjustments and invalid vintage and OLTV values. 2Estimated loan-to-value calculation based on OFHEO March 2008 data (released May 2008). 3Invalid vintage excluded. 4Computed as total delinquencies less nonperforming loans.

Title: Subprime Mortgage Channel Portfolio   Loan-to-Value at Origination   1Excludes accounting adjustments and invalid vintage and CLTV values. 2Origination loan-to-value used for 1st liens and combined loan-to-value used for 2nd Liens. 3Estimated loan-to-value calculation based on OFHEO March 2008 data (released May 2008). 4Invalid vintage excluded. 5Computed as total delinquencies less nonperforming loans.

Title: 1st & 2nd Lien Home Equity Portfolio   Loan-to-Value at Origination   1Excludes accounting adjustments and invalid vintage and CLTV values. 2Estimated loan-to-value calculation based on OFHEO March 2008 data (released May 2008). 3Invalid vintage excluded. 4Computed as total delinquencies less nonperforming loans.

Title: 2nd Lien Home Equity Portfolio   Loan-to-Value a Origination   1Excludes accounting adjustments and invalid vintage and CLTV values. 2Estimated loan-to-value calculation based on OFHEO March 2008 data (released May 2008). 3Invalid vintage excluded. 4Computed as total delinquencies less nonperforming loans.

Body: This presentation contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this document that are not historical facts. When used in this presentation, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or words of similar meaning, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed under the heading “Factors That May Affect Future Results” in Washington Mutual’s 2007 Annual Report on Form 10-K, as amended, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 which include:

 Economic conditions that negatively affect housing prices and the job market that have resulted, and may continue to result, in a deterioration in credit quality of the Company's loan portfolio. Access to market-based liquidity sources that may be negatively impacted if market conditions persist or if further ratings downgrades occur and could lead to increased funding costs and reduced gain on sale. The need to raise additional capital due to significant additional losses which could have a dilutive effect on existing shareholders and could affect the ability to pay dividends. Changes in interest rates. Features of certain of the Company’s loan products that may result in increased credit risk. Estimates used by the Company to determine the fair value of certain of our assets that may prove to be imprecise and result in significant changes in valuation. Risks related to the Company’s credit card operations that could adversely affect the credit card portfolio and our ability to continue growing the credit card business. Operational risk which may result in incurring financial and reputational losses. Failure to comply with laws and regulations. Changes in the regulation of financial services companies, housing government-sponsored enterprises, mortgage originators and servicers, and credit card lenders. General business, economic and market conditions and continued deterioration in these conditions. Damage to the Company’s professional reputation and business as a result of allegations and negative public opinion as well as pending and threatened litigation. Significant competition from banking and nonbanking companies.  There are other factors not described in our 2007 Form 10-K, as amended, and Form 10-Q for the quarter ended March 31, 2008 which are beyond the Company’s ability to anticipate or control that could cause results to differ. Title: Cautionary Statements