What is up with Washington Mutual

are we looking at a future failure. Not surprised to see this news on Reuters:

By Jonathan Stempel

NEW YORK (Reuters) - Washington Mutual Inc shares fell on Friday after the largest U.S. savings and loan projected another big write-down for soured loans and was downgraded to "junk" status by a leading credit rating agency.

At least four analysts cut their price targets for the thrift, though Goldman Sachs & Co raised its rating to "neutral" from "sell."

Washington Mutual shares were down 16 cents, or 5.7 percent, to $2.67 in pre-market trading. Through Thursday, the shares had fallen 34 percent this week and 92 percent in the last year.

In an unusual move to quell investor anxiety about its survival prospects, Seattle-based Washington Mutual late Thursday released third-quarter projections six weeks early and said it had ample liquidity. The thrift has said losses from home loans could reach $19 billion through 2011.