Moody's downgrades Washington Mutual (WM) to "junk" status after it says it expects a Q3...

|By:, SA News Editor

Moody's downgrades Washington Mutual (WM) to "junk" status after it says it expects a Q3 increase of $4.5B in reserves for bad loans. WaMu insists it is well-capitalized, but may be forced to sell parts of its 2,300-branch national network.