Wa Mu: What's Another $3.3 Billion?

Washington Mutual proved yet again that it could extract more value from its operations by firing everyone except a few beefy guys to shovel deposits into an incinerator.  Can a handful of former bankers work fast enough to incinerate $3.3 billion in a quarter?  It seems unlikely.  However, the bank had no problem burning through another $3.3 billion on its lousy portfolio of assets.  The Seattle thrift reported a net loss of $6.58 a share, which included a charge related to the $7 billion capital raise the company announced in April.  Excluding the charge, WaMu reported a loss of $3.34 a share.  Apparently, analysts, if you still care what they think, were expecting a loss of $1.05 a share on this basis.  Naturally, the stock immediately ripped higher after the earnings report.  Why?  I haven't a clue.  I suppose the same reason that Wachovia rallied nearly 30% after reporting an $8.9 billion loss before the open.  If anyone out there knows the reason, feel free to enlighten the rest of us.  In the meantime, I'll be scratching my chin until I come up with an explanation.