Banking News

Busy day today as several banks reported first quarter earnings:

Washington Mutual reported a $1.14 billion first-quarter net loss ($1.40 a share) as the lender suffered from the mortgage meltdown and broader credit crunch. It also said it closed a previously announced deal to raise $7 billion from a group of investors led by private-equity firm Texas Pacific Group. It also reported "steady" results from its retail banking, credit card and commercial businesses.

State Street reported that first-quarter net income rose 69% but the stock lost ground as investors worried over the firm's outlook as well as unrealized losses in its investment portfolio and asset-backed commercial paper program.

Several of the nation's major regional banks saw their shares rally on better-than-expected earnings and for several a boost from selling shares in credit-card company Visa. Shares of Regions Financial (RF), M&T Bancorp (MTB), U.S. Bancorp (USB), Commerce Bancshares (CBSH) and Marshall & Ilsley (MI) were all up. Analysts responded warmly to earnings, saying that despite significant loan-loss reserves still to come, many regional banks did better than expected.