EXHIBIT 99.2

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Slide 1

Lehman Brothers

Financial Services Conference

Kerry Killinger

Chairman and Chief Executive Officer

September 10, 2007

Slide 2

 Key Messaging

•   WaMu is a leading consumer and small business bank

•   Key strategic actions have diversified the business, reduced market risk and lowered expenses

•   Top-tier Retail Bank and Card Services businesses deliver the bulk of earnings

•   Proactive steps were taken to mitigate an anticipated decline in housing prices; however, current conditions are worsening and will increase near term credit costs

•   We are well positioned with strong liquidity and capital to support long-term growth

Slide 3   Vision

To be the national leader in consumer and small business banking

Slide 4

 Strategic Actions since end of 2005

•      Diversified the business through Providian and CCBI acquisitions

•      Opportunistically reduced our balance sheet by $31 billion through the end of Q2 ’07 and repurchased 142 million shares or 14 percent of shares outstanding as of 12/31/05

•      Reduced FHLB advances by $47 billion, or approximately    70 percent, through Q2 ‘07

•      Sold $2.5 billion of mortgage servicing rights

•      Sold our retail mutual fund group, WM Advisors

•      Implemented productivity initiatives

-  Reduced employee count by over 10,000

-  Reduced annualized expense run rate by approximately $560 million                 (Q4 ’05 vs. Q2 ’07)

 

Slide 5 Leading Player in All Business Lines

National Rankings                                                                Q2 2006           Q2 2007
Retail Banking
Total deposits and retail banking stores                           6th                    6th
Debit cards outstanding                                                       3rd                    4th
Bank credit card issuer1                                                    6th                     6th

Commercial Group
Multi-family portfolio holdings                                          1st                     1st


Home Loans
Home lending originations2                                               3rd                    6th
Home lending servicing2                                                    3rd                    5th
Home equity loans                                                                5th                    4th

1 Nilson Report, 1/07, 2006 ranking
2 Inside Mortgage Finance

Slide 6 Diversified Business Model

Retail Banking
Card Services
Commercial Group
Home Loans

Slide 7

Diversification of Revenue

 2005

Home Loans Commercial Group Card Services Retail Banking Portfolio Management Retail Banking Noninterest Income Retail Banking net interest income without portfolio management
$4,411 $926 $997 $1,033 $2,539 $3,898
 

YTD 6/30/07

Home Loans Commercial Group Card Services Retail Banking Portfolio Management Retail Banking noninterest income Retail Banking net interest income without portfolio management
$1,013 $471 $2,181 $374 $1,567 $2,188
 

Slide 8 Strong and Diversified Funding Sources

$316.3 billion as of 12/31/05

Retail Deposits 44% Retail Broker Deposits 2% Institutional Brokered Deposits 7% Commercial & Escrow Deposits 7% FHLB Advances 22% Liquidity Funds 7% Other Borrowings 8% Other Liabilities 3%
 

$288.0 billion as of 6/30/07

Retail Deposits 51% Retail Broker Deposits 6% Institutional Brokered Deposits 4% Commercial & Escrow Deposits 10% FHLB Advances 7% Liquid Funds(1)  4%Covered Bonds 3%Other Borrowings 11% Other Liabilities 4%
 

(1) Includes Federal Funds purchased, commercial paper and securities sold under agreements to repurchase

Slide 9

 GDP and Housing Price Indices¹

                                    GDP % change Case-Shiller Index        OFHEO Index

1987q1	87Q1	1987	2.63%		8.39%
1987q2	87Q2		4.40%		8.05%
1987q3	87Q3		3.63%		7.75%
1987q4	87Q4		6.99%		6.78%
1988q1	88Q1	1988	1.96%	11.71%	6.34%
1988q2	88Q2		5.09%	10.70%	6.58%
1988q3	88Q3		2.14%	10.87%	6.06%
1988q4	88Q4		5.28%	10.68%	6.18%
1989q1	89Q1	1989	4.06%	10.89%	5.70%
1989q2	89Q2		2.62%	10.94%	4.89%
1989q3	89Q3		2.85%	8.41%	6.15%
1989q4	89Q4		1.02%	6.67%	6.03%
1990q1	90Q1	1990	4.62%	4.67%	5.05%
1990q2	90Q2		1.02%	1.93%	3.63%
1990q3	90Q3		0.03%	-0.26%	1.65%
1990q4	90Q4		-3.02%	-2.80%	0.24%
1991q1	91Q1	1991	-2.04%	-5.34%	0.62%
1991q2	91Q2		2.60%	-5.71%	1.10%
1991q3	91Q3		1.93%	-3.64%	0.73%
1991q4	91Q4		1.88%	-2.22%	2.59%
1992q1	92Q1	1992	4.14%	-0.32%	2.48%
1992q2	92Q2		3.86%	0.31%	1.81%
1992q3	92Q3		3.92%	-1.15%	2.86%
1992q4	92Q4		4.41%	-1.60%	1.89%
1993q1	93Q1	1993	0.48%	-1.64%	1.06%
1993q2	93Q2		2.03%	-1.95%	2.13%
1993q3	93Q3		2.05%	-1.72%	1.71%
1993q4	93Q4		5.38%	-1.41%	2.08%
1994q1	94Q1	1994	4.07%	-0.73%	2.71%
1994q2	94Q2		5.22%	0.52%	2.20%
1994q3	94Q3		2.24%	1.28%	1.86%
1994q4	94Q4		4.69%	1.65%	0.84%
1995q1	95Q1	1995	1.11%	1.22%	0.74%
1995q2	95Q2		0.72%	0.15%	2.16%
1995q3	95Q3		3.26%	-0.19%	3.48%
1995q4	95Q4		2.93%	-0.36%	4.52%
1996q1	96Q1	1996	2.82%	-0.15%	5.42%
1996q2	96Q2		6.56%	0.89%	3.72%
1996q3	96Q3		3.35%	1.15%	2.52%
1996q4	96Q4		4.68%	1.65%	2.61%
1997q1	97Q1	1997	3.09%	2.12%	2.29%
1997q2	97Q2		6.08%	2.79%	3.00%
1997q3	97Q3		4.98%	3.84%	4.12%
1997q4	97Q4		2.95%	4.86%	4.59%
1998q1	98Q1	1998	4.43%	6.55%	5.22%
1998q2	98Q2		2.65%	7.99%	5.20%
1998q3	98Q3		4.61%	9.39%	5.09%
1998q4	98Q4		6.08%	9.45%	4.98%
1999q1	99Q1	1999	3.40%	8.87%	4.44%
1999q2	99Q2		3.31%	9.26%	5.02%
1999q3	99Q3		4.67%	9.32%	5.18%
1999q4	99Q4		7.11%	10.23%	5.10%
2000q1	00Q1	2000	1.01%	11.48%	6.20%
2000q2	00Q2		6.28%	12.97%	6.57%
2000q3	00Q3		-0.46%	13.17%	7.00%
2000q4	00Q4		2.08%	13.80%	7.54%
2001q1	01Q1	2001	-0.49%	14.41%	8.09%
2001q2	01Q2		1.23%	12.30%	8.18%
2001q3	01Q3		-1.41%	10.88%	7.88%
2001q4	01Q4		1.58%	9.76%	7.53%
2002q1	02Q1	2002	2.72%	7.95%	6.51%
2002q2	02Q2		2.18%	9.56%	6.59%
2002q3	02Q3		2.36%	12.25%	7.13%
2002q4	02Q4		0.20%	14.20%	7.40%
2003q1	03Q1	2003	1.20%	15.23%	7.10%
2003q2	03Q2		3.42%	13.63%	6.47%
2003q3	03Q3		7.29%	12.25%	5.99%
2003q4	03Q4		2.63%	12.98%	7.77%
2004q1	04Q1	2004	2.93%	14.92%	8.22%
2004q2	04Q2		3.44%	18.49%	9.79%
2004q3	04Q3		3.55%	20.29%	12.63%
2004q4	04Q4		2.52%	19.15%	11.76%
		2005

Case Shiller (10 metro composite) Quarterly(Seasonally adjusted annual rates)

GDP in billions of chained 2000 dollars

Jan-87	62.82
Jan-87	62.82				Quarterly GDP in billions	(Seasonally adjusted annual rates) of chained  2000 dollars
Feb-87	63.39				1987q1	6365
Mar-87	63.87	63.4	63.36		1987q2	6435
Apr-87	64.57		65.57		1987q3	6493.4
May-87	65.56		68.22		1987q4	6606.8
Jun-87	66.59	65.6	69.80		1988q1	6639.1
Jul-87	67.54		70.78	11.71%	1988q2	6723.5
Aug-87	68.25		72.59	10.70%	1988q3	6759.4
Sep-87	68.87	68.2	75.64	10.87%	1988q4	6848.6
Oct-87	69.42		77.25	10.68%	1989q1	6918.1
Nov-87	69.76		78.49	10.89%	1989q2	6963.5
Dec-87	70.22	69.8	80.53	10.94%	1989q3	7013.1
Jan-88	70.45		82.00	8.41%	1989q4	7030.9
Feb-88	70.77		82.41	6.67%	1990q1	7112.1
Mar-88	71.12	70.8	82.15	4.67%	1990q2	7130.3
Apr-88	71.65		82.08	1.93%	1990q3	7130.8
May-88	72.48		81.78	-0.26%	1990q4	7076.9
Jun-88	73.63	72.6	80.10	-2.80%	1991q1	7040.8
Jul-88	74.81		77.77	-5.34%	1991q2	7086.5
Aug-88	75.70		77.40	-5.71%	1991q3	7120.7
Sep-88	76.40	75.6	78.81	-3.64%	1991q4	7154.1
Oct-88	76.90		78.33	-2.22%	1992q1	7228.2
Nov-88	77.28		77.52	-0.32%	1992q2	7297.9
Dec-88	77.58	77.3	77.64	0.31%	1992q3	7369.5
Jan-89	77.99		77.90	-1.15%	1992q4	7450.7
Feb-89	78.36		77.07	-1.60%	1993q1	7459.7
Mar-89	79.12	78.5	76.25	-1.64%	1993q2	7497.5
Apr-89	79.83		76.13	-1.95%	1993q3	7536
May-89	80.52		76.56	-1.72%	1993q4	7637.4
Jun-89	81.24	80.5	75.98	-1.41%	1994q1	7715.1
Jul-89	81.66		75.69	-0.73%	1994q2	7815.7
Aug-89	82.08		76.52	0.52%	1994q3	7859.5
Sep-89	82.25	82.0	77.54	1.28%	1994q4	7951.6
Oct-89	82.44		77.24	1.65%	1995q1	7973.7
Nov-89	82.43		76.61	1.22%	1995q2	7988
Dec-89	82.35	82.4	76.63	0.15%	1995q3	8053.1
Jan-90	82.29		77.39	-0.19%	1995q4	8112
Feb-90	82.15		76.96	-0.36%	1996q1	8169.2
Mar-90	82.02	82.2	76.50	-0.15%	1996q2	8303.1
Apr-90	82.05		77.32	0.89%	1996q3	8372.7
May-90	82.01		78.28	1.15%	1996q4	8470.6
Jun-90	82.19	82.1	78.24	1.65%	1997q1	8536.1
Jul-90	82.10		78.12	2.12%	1997q2	8665.8
Aug-90	81.86		79.48	2.79%	1997q3	8773.7
Sep-90	81.39	81.8	81.28	3.84%	1997q4	8838.4
Oct-90	80.84		82.04	4.86%	1998q1	8936.2
Nov-90	80.09		83.23	6.55%	1998q2	8995.3
Dec-90	79.38	80.1	85.83	7.99%	1998q3	9098.9
Jan-91	78.53		88.91	9.39%	1998q4	9237.1
Feb-91	77.77		89.79	9.45%	1999q1	9315.5
Mar-91	77.00	77.8	90.62	8.87%	1999q2	9392.6
Apr-91	76.86		93.78	9.26%	1999q3	9502.2
May-91	77.31		97.19	9.32%	1999q4	9671.1
Jun-91	78.02	77.4	98.98	10.23%	2000q1	9695.6
Jul-91	78.61		101.02	11.48%	2000q2	9847.9
Aug-91	78.93		105.94	12.97%	2000q3	9836.6
Sep-91	78.88	78.8	110.00	13.17%	2000q4	9887.7
Oct-91	78.68		112.64	13.80%	2001q1	9875.6
Nov-91	78.31		115.57	14.41%	2001q2	9905.9
Dec-91	77.99	78.3	118.97	12.30%	2001q3	9871.1
Jan-92	77.74		121.96	10.88%	2001q4	9910
Feb-92	77.51		123.63	9.76%	2002q1	9977.3
Mar-92	77.31	77.5	124.77	7.95%	2002q2	10031.6
Apr-92	77.36		130.35	9.56%	2002q3	10090.7
May-92	77.62		136.90	12.25%	2002q4	10095.8
Jun-92	77.94	77.6	141.19	14.20%	2003q1	10126
Jul-92	77.95		143.76	15.23%	2003q2	10212.7
Aug-92	77.99		148.11	13.63%	2003q3	10398.7
Sep-92	77.76	77.9	153.68	12.25%	2003q4	10467
Oct-92	77.45		159.51	12.98%	2004q1	10543.6
Nov-92	77.09		165.21	14.92%	2004q2	10634.2
Dec-92	76.68	77.1	175.49	18.49%	2004q3	10728.7
Jan-93	76.56		184.85	20.29%	2004q4	10796.4
Feb-93	76.28		190.05	19.15%	2005q1	10878.4
Mar-93	75.91	76.3	196.14	18.72%	2005q2	10954.1
Apr-93	75.83		205.71	17.22%	2005q3	11074.3
May-93	76.04		214.18	15.87%	2005q4	11107.2
Jun-93	76.51	76.1	220.60	16.07%	2006q1	11238.7
Jul-93	76.61		223.20	13.79%	2006q2	11306.7
Aug-93	76.59		225.76	9.75%	2006q3	11336.7
Sep-93	76.47	76.6	225.60	5.33%	2006q4	11395.5
Oct-93	76.22		223.69	1.40%	2007q1	11412.6
Nov-93	76.02		220.48	-1.22%	2007q2	11523.8
Dec-93	75.71	76.0	218.10	-3.39%	1967q3	3491.8
Jan-94	75.71				1967q4	3518.2
Feb-94	75.63				1968q1	3590.7
Mar-94	75.73	75.7			1968q2	3651.6
Apr-94	76.03				1968q3	3676.5
May-94	76.49				1968q4	3692
Jun-94	77.04	76.5			1969q1	3750.2
Jul-94	77.40				1969q2	3760.9
Aug-94	77.64				1969q3	3784.2
Sep-94	77.57	77.5			1969q4	3766.3
Oct-94	77.50				1970q1	3760
Nov-94	77.23				1970q2	3767.1
Dec-94	76.99	77.2			1970q3	3800.5
Jan-95	76.82				1970q4	3759.8
Feb-95	76.64				1971q1	3864.1
Mar-95	76.38	76.6			1971q2	3885.9
Apr-95	76.36				1971q3	3916.7
May-95	76.60				1971q4	3927.9
Jun-95	76.94	76.6			1972q1	3997.7
Jul-95	77.26				1972q2	4092.1
Aug-95	77.47				1972q3	4131.1
Sep-95	77.43	77.4			1972q4	4198.7
Oct-95	77.26				1973q1	4305.3
Nov-95	76.95				1973q2	4355.1
Dec-95	76.68	77.0			1973q3	4331.9
Jan-96	76.56				1973q4	4373.3
Feb-96	76.44				1974q1	4335.4
Mar-96	76.49	76.5			1974q2	4347.9
Apr-96	76.84				1974q3	4305.8
May-96	77.33				1974q4	4288.9
Jun-96	77.78	77.3			1975q1	4237.6
Jul-96	78.10				1975q2	4268.6
Aug-96	78.36				1975q3	4340.9
Sep-96	78.37	78.3			1975q4	4397.8
Oct-96	78.36				1976q1	4496.8
Nov-96	78.23				1976q2	4530.3
Dec-96	78.12	78.2			1976q3	4552
Jan-97	78.08				1976q4	4584.6
Feb-97	77.98				1977q1	4640
Mar-97	78.29	78.1			1977q2	4731.1
Apr-97	78.76				1977q3	4815.8
May-97	79.42				1977q4	4815.3
Jun-97	80.25	79.5			1978q1	4830.8
Jul-97	80.86				1978q2	5021.2
Aug-97	81.41				1978q3	5070.7
Sep-97	81.57	81.3			1978q4	5137.4
Oct-97	81.83				1979q1	5147.4
Nov-97	81.98				1979q2	5152.3
Dec-97	82.31	82.0			1979q3	5189.4
Jan-98	82.70				1979q4	5204.7
Feb-98	83.13				1980q1	5221.3
Mar-98	83.87	83.2			1980q2	5115.9
Apr-98	84.69				1980q3	5107.4
May-98	85.77				1980q4	5202.1
Jun-98	87.03	85.8			1981q1	5307.5
Jul-98	88.14				1981q2	5266.1
Aug-98	89.01				1981q3	5329.8
Sep-98	89.58	88.9			1981q4	5263.4
Oct-98	89.80				1982q1	5177.1
Nov-98	89.76				1982q2	5204.9
Dec-98	89.82	89.8			1982q3	5185.2
Jan-99	90.06				1982q4	5189.8
Feb-99	90.48				1983q1	5253.8
Mar-99	91.31	90.6			1983q2	5372.3
Apr-99	92.55				1983q3	5478.4
May-99	93.69				1983q4	5590.5
Jun-99	95.10	93.8			1984q1	5699.8
Jul-99	96.28				1984q2	5797.9
Aug-99	97.31				1984q3	5854.3
Sep-99	97.99	97.2			1984q4	5902.4
Oct-99	98.48				1985q1	5956.9
Nov-99	98.94				1985q2	6007.8
Dec-99	99.51	99.0			1985q3	6101.7
Jan-00	100.00				1985q4	6148.6
Feb-00	100.81				1986q1	6207.4
Mar-00	102.24	101.0			1986q2	6232
Apr-00	104.01				1986q3	6291.7
May-00	105.98				1986q4	6323.4
Jun-00	107.83	105.9
Jul-00	109.02
Aug-00	110.07
Sep-00	110.90	110.0
Oct-00	111.75
Nov-00	112.60
Dec-00	113.56	112.6
Jan-01	114.58
Feb-01	115.45
Mar-01	116.69	115.6
Apr-01	117.94
May-01	118.94
Jun-01	120.03	119.0
Jul-01	121.01
Aug-01	121.99
Sep-01	122.89	122.0
Oct-01	123.46
Nov-01	123.78
Dec-01	123.64	123.6
Jan-02	123.93
Feb-02	124.45
Mar-02	125.92	124.8
Apr-02	127.95
May-02	130.33
Jun-02	132.76	130.3
Jul-02	135.04
Aug-02	137.04
Sep-02	138.62	136.9
Oct-02	140.12
Nov-02	141.26
Dec-02	142.18	141.2
Jan-03	142.86
Feb-03	143.59
Mar-03	144.84	143.8
Apr-03	146.45
May-03	148.17
Jun-03	149.70	148.1
Jul-03	151.65
Aug-03	153.61
Sep-03	155.77	153.7
Oct-03	157.71
Nov-03	159.55
Dec-03	161.27	159.5
Jan-04	162.90
Feb-04	164.82
Mar-04	167.91	165.2
Apr-04	171.58
May-04	175.43
Jun-04	179.45	175.5
Jul-04	182.69
Aug-04	184.95
Sep-04	186.91	184.9
Oct-04	188.65
Nov-04	190.08
Dec-04	191.42	190.1
Jan-05	193.35
Feb-05	195.87
Mar-05	199.21	196.1
Apr-05	202.51
May-05	205.76
Jun-05	208.86	205.7
Jul-05	211.65
Aug-05	214.13
Sep-05	216.77	214.2
Oct-05	219.07
Nov-05	220.81
Dec-05	221.91	220.6
Jan-06	222.46
Feb-06	223.38
Mar-06	223.75	223.2
Apr-06	224.99
May-06	226.00
Jun-06	226.29	225.8
Jul-06	226.17
Aug-06	225.54
Sep-06	225.09	225.6
Oct-06	224.74
Nov-06	223.94
Dec-06	222.39	223.7
Jan-07	221.32
Feb-07	220.46
Mar-07	219.66	220.5
Apr-07	219.00
May-07	218.23
Jun-07	217.07	218.1

1 Housing price indices represent year-over-year percentage changes
2 GDP % has been annualized
3 S&P/Case-Shiller® Home Price Indices are based on index values
4 OFHEO House Price Index is based on repeat sales index

Slide 10

 We Have Been Preparing for a Housing Downturn

•      Right-sized home loans business

-   Reduced staffing by 28% from Q4 ’05 to Q2 ‘07

-   Exited low margin correspondent channel

•      Sold virtually all 2004 and 2005 subprime residuals

•      Tightened underwriting guidelines across all products

•      Limited asset growth due to below target risk adjusted returns

-   Reduced loan volume through tighter subprime underwriting guidelines and increased pricing

-   Sold majority of Option ARM originations in 2005, 2006 and 2007

-   Total assets of $312 billion at 6/30/07 down from $351 billion at 6/30/06

Slide 11

WaMu Exposure to Markets

•      No leveraged buyout obligations

•      No liquidity extended to third party asset backed commercial paper conduits

•      No investment in asset backed commercial paper, structured investment vehicles (SIVs), or similar arbitrage vehicles

•      No ABS collateralized debt obligations (CDOs)

•      Minimal exposure to subprime mortgage, home equity and Alt-A residuals

•      Minimal exposure to warehouse mortgage lending

Slide 12

 Credit Quality: Estimated Loan-to-Value

 

TOTAL PORTFOLIO
	June 30, 2007	Current FICO
		>=660	620-659	580-619	<580	Total
	Home Loans
	<=80%	66%	10%	6%	10%	92%
	>80-90%	4%	1%	1%	1%	7%
	>90%	1%	0%	0%	0%	1%
	Total	71%	11%	7%	11%	100%
	Home Equity Loans
	<=80%	65%	5%	2%	2%	74%
	>80-90%	14%	3%	1%	1%	19%
	>90%	4%	1%	1%	1%	7%
	Total	83%	9%	4%	4%	100%

NONACCRUAL LOANS
			Current FICO
			>=660	620-659	580-619	<580	Total
	Estimated Current          Loan-to-Value	Home Loans
		<=80%	4%	4%	9%	68%	85%
		>80-90%	0%	0%	1%	11%	12%
		>90%	0%	0%	1%	2%	3%
		Total	4%	4%	11%	81%	100%
	Estimated Current Combined         Loan-to-Value
		Home Equity Loans
		<=80%	2%	3%	6%	46%	57%
		>80-90%	0%	1%	2%	21%	24%
		>90%	1%	0%	2%	16%	19%
		Total	3%	4%	10%	83%	100%

1 Includes home loans in the subprime mortgage channel
2 Estimated loan-to-value calculations based on OFHEO March 2007 data
3 Includes the HELOC and HEL portfolios and home equity loans in the subprime mortgage channel
4 Estimated combined loan-to-value calculations based on OFHEO March 2007 data
 

Slide 13

 GDP and Housing Price Indices¹

			GDP % change	Case-Shiller Index	OFHEO Index
1987q1	87Q1	1987	2.63%		8.39%
1987q2	87Q2		4.40%		8.05%
1987q3	87Q3		3.63%		7.75%
1987q4	87Q4		6.99%		6.78%
1988q1	88Q1	1988	1.96%	11.71%	6.34%
1988q2	88Q2		5.09%	10.70%	6.58%
1988q3	88Q3		2.14%	10.87%	6.06%
1988q4	88Q4		5.28%	10.68%	6.18%
1989q1	89Q1	1989	4.06%	10.89%	5.70%
1989q2	89Q2		2.62%	10.94%	4.89%
1989q3	89Q3		2.85%	8.41%	6.15%
1989q4	89Q4		1.02%	6.67%	6.03%
1990q1	90Q1	1990	4.62%	4.67%	5.05%
1990q2	90Q2		1.02%	1.93%	3.63%
1990q3	90Q3		0.03%	-0.26%	1.65%
1990q4	90Q4		-3.02%	-2.80%	0.24%
1991q1	91Q1	1991	-2.04%	-5.34%	0.62%
1991q2	91Q2		2.60%	-5.71%	1.10%
1991q3	91Q3		1.93%	-3.64%	0.73%
1991q4	91Q4		1.88%	-2.22%	2.59%
1992q1	92Q1	1992	4.14%	-0.32%	2.48%
1992q2	92Q2		3.86%	0.31%	1.81%
1992q3	92Q3		3.92%	-1.15%	2.86%
1992q4	92Q4		4.41%	-1.60%	1.89%
1993q1	93Q1	1993	0.48%	-1.64%	1.06%
1993q2	93Q2		2.03%	-1.95%	2.13%
1993q3	93Q3		2.05%	-1.72%	1.71%
1993q4	93Q4		5.38%	-1.41%	2.08%
1994q1	94Q1	1994	4.07%	-0.73%	2.71%
1994q2	94Q2		5.22%	0.52%	2.20%
1994q3	94Q3		2.24%	1.28%	1.86%
1994q4	94Q4		4.69%	1.65%	0.84%
1995q1	95Q1	1995	1.11%	1.22%	0.74%
1995q2	95Q2		0.72%	0.15%	2.16%
1995q3	95Q3		3.26%	-0.19%	3.48%
1995q4	95Q4		2.93%	-0.36%	4.52%
1996q1	96Q1	1996	2.82%	-0.15%	5.42%
1996q2	96Q2		6.56%	0.89%	3.72%
1996q3	96Q3		3.35%	1.15%	2.52%
1996q4	96Q4		4.68%	1.65%	2.61%
1997q1	97Q1	1997	3.09%	2.12%	2.29%
1997q2	97Q2		6.08%	2.79%	3.00%
1997q3	97Q3		4.98%	3.84%	4.12%
1997q4	97Q4		2.95%	4.86%	4.59%
1998q1	98Q1	1998	4.43%	6.55%	5.22%
1998q2	98Q2		2.65%	7.99%	5.20%
1998q3	98Q3		4.61%	9.39%	5.09%
1998q4	98Q4		6.08%	9.45%	4.98%
1999q1	99Q1	1999	3.40%	8.87%	4.44%
1999q2	99Q2		3.31%	9.26%	5.02%
1999q3	99Q3		4.67%	9.32%	5.18%
1999q4	99Q4		7.11%	10.23%	5.10%
2000q1	00Q1	2000	1.01%	11.48%	6.20%
2000q2	00Q2		6.28%	12.97%	6.57%
2000q3	00Q3		-0.46%	13.17%	7.00%
2000q4	00Q4		2.08%	13.80%	7.54%
2001q1	01Q1	2001	-0.49%	14.41%	8.09%
2001q2	01Q2		1.23%	12.30%	8.18%
2001q3	01Q3		-1.41%	10.88%	7.88%
2001q4	01Q4		1.58%	9.76%	7.53%
2002q1	02Q1	2002	2.72%	7.95%	6.51%
2002q2	02Q2		2.18%	9.56%	6.59%
2002q3	02Q3		2.36%	12.25%	7.13%
2002q4	02Q4		0.20%	14.20%	7.40%
2003q1	03Q1	2003	1.20%	15.23%	7.10%
2003q2	03Q2		3.42%	13.63%	6.47%
2003q3	03Q3		7.29%	12.25%	5.99%
2003q4	03Q4		2.63%	12.98%	7.77%
2004q1	04Q1	2004	2.93%	14.92%	8.22%
2004q2	04Q2		3.44%	18.49%	9.79%
2004q3	04Q3		3.55%	20.29%	12.63%
2004q4	04Q4		2.52%	19.15%	11.76%
2005q1	05Q1	2005	3.04%	18.72%	12.78%
2005q2	05Q2		2.78%	17.22%	13.64%
2005q3	05Q3		4.39%	15.87%	12.51%
2005q4	05Q4		1.19%	16.07%	12.96%
2006q1	06Q1	2006	4.74%	13.79%	12.38%
2006q2	06Q2		2.42%	9.75%	9.98%
2006q3	06Q3		1.06%	5.33%	7.70%
2006q4	06Q4		2.07%	1.40%	6.10%
2007q1	07Q1	2007	0.60%	-1.22%	4.45%
2007q2	07Q2		3.90%	-3.39%	3.19%

Case Shiller (10 metro composite)					Quarterly	(Seasonally adjusted annual rates)	OFHEO - National
Jan-87	62.82				GDP in billions of chained 2000 dollars		USA	1975	1	61.63
Feb-87	63.39				1987q1	6365	USA	1975	2	62.69
Mar-87	63.87	63.4	63.36		1987q2	6435	USA	1975	3	62.26
Apr-87	64.57		65.57		1987q3	6493.4	USA	1975	4	63.26
May-87	65.56		68.22		1987q4	6606.8	USA	1976	1	64.3
Jun-87	66.59	65.6	69.80		1988q1	6639.1	USA	1976	2	66.17
Jul-87	67.54		70.78	11.71%	1988q2	6723.5	USA	1976	3	66.91
Aug-87	68.25		72.59	10.70%	1988q3	6759.4	USA	1976	4	68
Sep-87	68.87	68.2	75.64	10.87%	1988q4	6848.6	USA	1977	1	70.13
Oct-87	69.42		77.25	10.68%	1989q1	6918.1	USA	1977	2	72.69
Nov-87	69.76		78.49	10.89%	1989q2	6963.5	USA	1977	3	74.65
Dec-87	70.22	69.8	80.53	10.94%	1989q3	7013.1	USA	1977	4	76.92
Jan-88	70.45		82.00	8.41%	1989q4	7030.9	USA	1978	1	79.45
Feb-88	70.77		82.41	6.67%	1990q1	7112.1	USA	1978	2	82.34
Mar-88	71.12	70.8	82.15	4.67%	1990q2	7130.3	USA	1978	3	84.8
Apr-88	71.65		82.08	1.93%	1990q3	7130.8	USA	1978	4	87.37
May-88	72.48		81.78	-0.26%	1990q4	7076.9	USA	1979	1	91.43
Jun-88	73.63	72.6	80.10	-2.80%	1991q1	7040.8	USA	1979	2	94.04
Jul-88	74.81		77.77	-5.34%	1991q2	7086.5	USA	1979	3	96.09
Aug-88	75.70		77.40	-5.71%	1991q3	7120.7	USA	1979	4	98.01
Sep-88	76.40	75.6	78.81	-3.64%	1991q4	7154.1	USA	1980	1	100
Oct-88	76.90		78.33	-2.22%	1992q1	7228.2	USA	1980	2	100.93
Nov-88	77.28		77.52	-0.32%	1992q2	7297.9	USA	1980	3	104.33
Dec-88	77.58	77.3	77.64	0.31%	1992q3	7369.5	USA	1980	4	104.69
Jan-89	77.99		77.90	-1.15%	1992q4	7450.7	USA	1981	1	105.8
Feb-89	78.36		77.07	-1.60%	1993q1	7459.7	USA	1981	2	107.93
Mar-89	79.12	78.5	76.25	-1.64%	1993q2	7497.5	USA	1981	3	109.25
Apr-89	79.83		76.13	-1.95%	1993q3	7536	USA	1981	4	109.67
May-89	80.52		76.56	-1.72%	1993q4	7637.4	USA	1982	1	111.12
Jun-89	81.24	80.5	75.98	-1.41%	1994q1	7715.1	USA	1982	2	111.67
Jul-89	81.66		75.69	-0.73%	1994q2	7815.7	USA	1982	3	111.18
Aug-89	82.08		76.52	0.52%	1994q3	7859.5	USA	1982	4	112.12
Sep-89	82.25	82.0	77.54	1.28%	1994q4	7951.6	USA	1983	1	114.04
Oct-89	82.44		77.24	1.65%	1995q1	7973.7	USA	1983	2	115.31
Nov-89	82.43		76.61	1.22%	1995q2	7988	USA	1983	3	116.08
Dec-89	82.35	82.4	76.63	0.15%	1995q3	8053.1	USA	1983	4	116.49
Jan-90	82.29		77.39	-0.19%	1995q4	8112	USA	1984	1	118.22
Feb-90	82.15		76.96	-0.36%	1996q1	8169.2	USA	1984	2	120.3
Mar-90	82.02	82.2	76.50	-0.15%	1996q2	8303.1	USA	1984	3	121.47
Apr-90	82.05		77.32	0.89%	1996q3	8372.7	USA	1984	4	122.75
May-90	82.01		78.28	1.15%	1996q4	8470.6	USA	1985	1	124.56
Jun-90	82.19	82.1	78.24	1.65%	1997q1	8536.1	USA	1985	2	126.65
Jul-90	82.10		78.12	2.12%	1997q2	8665.8	USA	1985	3	128.98
Aug-90	81.86		79.48	2.79%	1997q3	8773.7	USA	1985	4	130.75
Sep-90	81.39	81.8	81.28	3.84%	1997q4	8838.4	USA	1986	1	133.34
Oct-90	80.84		82.04	4.86%	1998q1	8936.2	USA	1986	2	136.3
Nov-90	80.09		83.23	6.55%	1998q2	8995.3	USA	1986	3	138.85
Dec-90	79.38	80.1	85.83	7.99%	1998q3	9098.9	USA	1986	4	141.41
Jan-91	78.53		88.91	9.39%	1998q4	9237.1	USA	1987	1	144.53	8.39%
Feb-91	77.77		89.79	9.45%	1999q1	9315.5	USA	1987	2	147.27	8.05%
Mar-91	77.00	77.8	90.62	8.87%	1999q2	9392.6	USA	1987	3	149.61	7.75%
Apr-91	76.86		93.78	9.26%	1999q3	9502.2	USA	1987	4	151	6.78%
May-91	77.31		97.19	9.32%	1999q4	9671.1	USA	1988	1	153.7	6.34%
Jun-91	78.02	77.4	98.98	10.23%	2000q1	9695.6	USA	1988	2	156.96	6.58%
Jul-91	78.61		101.02	11.48%	2000q2	9847.9	USA	1988	3	158.67	6.06%
Aug-91	78.93		105.94	12.97%	2000q3	9836.6	USA	1988	4	160.33	6.18%
Sep-91	78.88	78.8	110.00	13.17%	2000q4	9887.7	USA	1989	1	162.46	5.70%
Oct-91	78.68		112.64	13.80%	2001q1	9875.6	USA	1989	2	164.63	4.89%
Nov-91	78.31		115.57	14.41%	2001q2	9905.9	USA	1989	3	168.43	6.15%
Dec-91	77.99	78.3	118.97	12.30%	2001q3	9871.1	USA	1989	4	170	6.03%
Jan-92	77.74		121.96	10.88%	2001q4	9910	USA	1990	1	170.66	5.05%
Feb-92	77.51		123.63	9.76%	2002q1	9977.3	USA	1990	2	170.61	3.63%
Mar-92	77.31	77.5	124.77	7.95%	2002q2	10031.6	USA	1990	3	171.21	1.65%
Apr-92	77.36		130.35	9.56%	2002q3	10090.7	USA	1990	4	170.41	0.24%
May-92	77.62		136.90	12.25%	2002q4	10095.8	USA	1991	1	171.72	0.62%
Jun-92	77.94	77.6	141.19	14.20%	2003q1	10126	USA	1991	2	172.48	1.10%
Jul-92	77.95		143.76	15.23%	2003q2	10212.7	USA	1991	3	172.46	0.73%
Aug-92	77.99		148.11	13.63%	2003q3	10398.7	USA	1991	4	174.82	2.59%
Sep-92	77.76	77.9	153.68	12.25%	2003q4	10467	USA	1992	1	175.98	2.48%
Oct-92	77.45		159.51	12.98%	2004q1	10543.6	USA	1992	2	175.6	1.81%
Nov-92	77.09		165.21	14.92%	2004q2	10634.2	USA	1992	3	177.39	2.86%
Dec-92	76.68	77.1	175.49	18.49%	2004q3	10728.7	USA	1992	4	178.13	1.89%
Jan-93	76.56		184.85	20.29%	2004q4	10796.4	USA	1993	1	177.85	1.06%
Feb-93	76.28		190.05	19.15%	2005q1	10878.4	USA	1993	2	179.34	2.13%
Mar-93	75.91	76.3	196.14	18.72%	2005q2	10954.1	USA	1993	3	180.42	1.71%
Apr-93	75.83		205.71	17.22%	2005q3	11074.3	USA	1993	4	181.83	2.08%
May-93	76.04		214.18	15.87%	2005q4	11107.2	USA	1994	1	182.67	2.71%
Jun-93	76.51	76.1	220.60	16.07%	2006q1	11238.7	USA	1994	2	183.28	2.20%
Jul-93	76.61		223.20	13.79%	2006q2	11306.7	USA	1994	3	183.77	1.86%
Aug-93	76.59		225.76	9.75%	2006q3	11336.7	USA	1994	4	183.35	0.84%
Sep-93	76.47	76.6	225.60	5.33%	2006q4	11395.5	USA	1995	1	184.02	0.74%
Oct-93	76.22		223.69	1.40%	2007q1	11412.6	USA	1995	2	187.24	2.16%
Nov-93	76.02		220.48	-1.22%	2007q2	11523.8	USA	1995	3	190.16	3.48%
Dec-93	75.71	76.0	218.10	-3.39%	1967q3	3491.8	USA	1995	4	191.63	4.52%
Jan-94	75.71				1967q4	3518.2	USA	1996	1	193.99	5.42%
Feb-94	75.63				1968q1	3590.7	USA	1996	2	194.2	3.72%
Mar-94	75.73	75.7			1968q2	3651.6	USA	1996	3	194.96	2.52%
Apr-94	76.03				1968q3	3676.5	USA	1996	4	196.63	2.61%
May-94	76.49				1968q4	3692	USA	1997	1	198.43	2.29%
Jun-94	77.04	76.5			1969q1	3750.2	USA	1997	2	200.03	3.00%
Jul-94	77.40				1969q2	3760.9	USA	1997	3	203	4.12%
Aug-94	77.64				1969q3	3784.2	USA	1997	4	205.65	4.59%
Sep-94	77.57	77.5			1969q4	3766.3	USA	1998	1	208.79	5.22%
Oct-94	77.50				1970q1	3760	USA	1998	2	210.43	5.20%
Nov-94	77.23				1970q2	3767.1	USA	1998	3	213.33	5.09%
Dec-94	76.99	77.2			1970q3	3800.5	USA	1998	4	215.89	4.98%
Jan-95	76.82				1970q4	3759.8	USA	1999	1	218.06	4.44%
Feb-95	76.64				1971q1	3864.1	USA	1999	2	220.99	5.02%
Mar-95	76.38	76.6			1971q2	3885.9	USA	1999	3	224.38	5.18%
Apr-95	76.36				1971q3	3916.7	USA	1999	4	226.9	5.10%
May-95	76.60				1971q4	3927.9	USA	2000	1	231.59	6.20%
Jun-95	76.94	76.6			1972q1	3997.7	USA	2000	2	235.51	6.57%
Jul-95	77.26				1972q2	4092.1	USA	2000	3	240.08	7.00%
Aug-95	77.47				1972q3	4131.1	USA	2000	4	244.01	7.54%
Sep-95	77.43	77.4			1972q4	4198.7	USA	2001	1	250.33	8.09%
Oct-95	77.26				1973q1	4305.3	USA	2001	2	254.77	8.18%
Nov-95	76.95				1973q2	4355.1	USA	2001	3	258.99	7.88%
Dec-95	76.68	77.0			1973q3	4331.9	USA	2001	4	262.39	7.53%
Jan-96	76.56				1973q4	4373.3	USA	2002	1	266.62	6.51%
Feb-96	76.44				1974q1	4335.4	USA	2002	2	271.57	6.59%
Mar-96	76.49	76.5			1974q2	4347.9	USA	2002	3	277.46	7.13%
Apr-96	76.84				1974q3	4305.8	USA	2002	4	281.81	7.40%
May-96	77.33				1974q4	4288.9	USA	2003	1	285.55	7.10%
Jun-96	77.78	77.3			1975q1	4237.6	USA	2003	2	289.14	6.47%
Jul-96	78.10				1975q2	4268.6	USA	2003	3	294.08	5.99%
Aug-96	78.36				1975q3	4340.9	USA	2003	4	303.7	7.77%
Sep-96	78.37	78.3			1975q4	4397.8	USA	2004	1	309.03	8.22%
Oct-96	78.36				1976q1	4496.8	USA	2004	2	317.46	9.79%
Nov-96	78.23				1976q2	4530.3	USA	2004	3	331.22	12.63%
Dec-96	78.12	78.2			1976q3	4552	USA	2004	4	339.43	11.76%
Jan-97	78.08				1976q4	4584.6	USA	2005	1	348.52	12.78%
Feb-97	77.98				1977q1	4640	USA	2005	2	360.76	13.64%
Mar-97	78.29	78.1			1977q2	4731.1	USA	2005	3	372.65	12.51%
Apr-97	78.76				1977q3	4815.8	USA	2005	4	383.41	12.96%
May-97	79.42				1977q4	4815.3	USA	2006	1	391.65	12.38%
Jun-97	80.25	79.5			1978q1	4830.8	USA	2006	2	396.75	9.98%
Jul-97	80.86				1978q2	5021.2	USA	2006	3	401.36	7.70%
Aug-97	81.41				1978q3	5070.7	USA	2006	4	406.81	6.10%
Sep-97	81.57	81.3			1978q4	5137.4	USA	2007	1	409.07	4.45%
Oct-97	81.83				1979q1	5147.4	USA	2007	2	409.4	3.19%
Nov-97	81.98				1979q2	5152.3
Dec-97	82.31	82.0			1979q3	5189.4
Jan-98	82.70				1979q4	5204.7
Feb-98	83.13				1980q1	5221.3
Mar-98	83.87	83.2			1980q2	5115.9
Apr-98	84.69				1980q3	5107.4
May-98	85.77				1980q4	5202.1
Jun-98	87.03	85.8			1981q1	5307.5
Jul-98	88.14				1981q2	5266.1
Aug-98	89.01				1981q3	5329.8
Sep-98	89.58	88.9			1981q4	5263.4
Oct-98	89.80				1982q1	5177.1
Nov-98	89.76				1982q2	5204.9
Dec-98	89.82	89.8			1982q3	5185.2
Jan-99	90.06				1982q4	5189.8
Feb-99	90.48				1983q1	5253.8
Mar-99	91.31	90.6			1983q2	5372.3
Apr-99	92.55				1983q3	5478.4
May-99	93.69				1983q4	5590.5
Jun-99	95.10	93.8			1984q1	5699.8
Jul-99	96.28				1984q2	5797.9
Aug-99	97.31				1984q3	5854.3
Sep-99	97.99	97.2			1984q4	5902.4
Oct-99	98.48				1985q1	5956.9
Nov-99	98.94				1985q2	6007.8
Dec-99	99.51	99.0			1985q3	6101.7
Jan-00	100.00				1985q4	6148.6
Feb-00	100.81				1986q1	6207.4
Mar-00	102.24	101.0			1986q2	6232
Apr-00	104.01				1986q3	6291.7
May-00	105.98				1986q4	6323.4
Jun-00	107.83	105.9
Jul-00	109.02
Aug-00	110.07

1 Housing price indices represent year-over-year percentage changes
2 GDP % has been annualized
3 S&P/Case-Shiller® Home Price Indices are based on index values
4 OFHEO House Price Index is based on repeat sales index
 

Slide 14

  Rising LIBOR and Nonconforming Loan Rates

08/31/2006 09/30/2006 10/31/06 11/30/06 12/31/06 01/31/2007 02/28/2007 03/31/2007 04/30/2007 05/31/2007 06/30/2007 07/31/2007 08/31/2007
5/1 Hybrid Jumbo 6.52% 6.46% 6.57% 6.48% 6.39% 6.55% 6.53% 6.41% 6.57% 0.0671 0.07101 0.07095 0.07483
5/1 Hybrid Conforming 6.50% 6.40% 6.46% 6.29% 6.26% 6.44% 6.28% 6.17% 6.30% 0.06426 0.06714 0.06595 0.0675
3M LIBOR 5.40% 5.37% 5.37% 5.37% 5.36% 5.36% 5.35% 5.35% 5.36% 0.0536 0.0536 0.05359 0.05621
Fed Funds 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525
 

Slide 15

Strong Liquidity Position Enables
Balance Sheet Growth in Q3 ’07

•    Conforming loans generally designated as held for sale

•    Nonconforming loans now designated as held for investment

•    New originations are high quality at attractive yields

-   Option ARMs

-   Hybrids

-   Home Equity

•    Subprime mortgage portfolio flat, originations down

•    Cash and cash equivalents up 

Slide 16

 High Quality Loans at Higher Returns¹

^{Jumbo Option ARMs}

^{'07/06/07 Aug 31 '07
8.00% 8.60%}
 

^{5/1 Jumbo Hybrids}

^{07/06/2007 Aug 31 '07
   6.50%      7.40%}
 

^{Increase of 0.90%}

^{1 Weighted average coupon, ROA and ROE based on current loss estimates
2 Based on loan rate locks during 8/29-31/07}

 

^{Slide 17}

 Implications of the Current Environment

What’s Changed
Housing prices flat or declining in most markets
Lack of secondary market liquidity for nonconforming loans

Interest rates and spreads

Impact
Higher nonperforming loans
Higher level of charge-offs
Increased provision
Nonconforming loans moved from held for sale to held for investment
Opportunistic portfolio growth leading to increased provision
Higher interest rates leading to much slower loan prepayments and higher MSR valuation
Higher cost of funds will negatively impact net interest margin
Reduction in Fed Funds rate would be favorable, but LIBOR must fall also

Slide 18

 Key Takeaways

•   WaMu is a leading consumer and small business bank

•   Key strategic actions have diversified the business, reduced market risk and lowered expenses

•   Top-tier Retail Bank and Card Services deliver the bulk of earnings

•   Proactive steps were taken to mitigate an anticipated decline in housing prices; however, current conditions are worsening and will increase near term credit costs

•   We are well positioned with strong liquidity and capital to support long-term growth

Slide 19

 Cautionary 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 2006 Annual Report on Form 10-K and “Cautionary Statements” in our Forms 10-Q for the quarters ended March 31, 2007 and June 30, 2007 which include:

 -   Volatile interest rates and their impact on the mortgage banking business;

-   Credit risk;

-   Operational risk;

-   Risks related to credit card operations;

-   Changes in the regulation of financial services companies, housing government-sponsored enterprises and credit card lenders;

-   Competition from banking and nonbanking companies;

-    General business, economic and market conditions;

-   Reputational risk; and

-     Liquidity risk.

There are other factors not described in our 2006 Form 10-K and Forms 10-Q for the quarters ended March 31, 2007 and June 30, 2007 which are beyond the Company’s ability to anticipate or control that could cause results to differ.

Slide 20 Questions?