Desperation is in the air at Washington Mutual (WM). That WaMu is offering 5% on CDs should be proof enough. From LastNightInVegas.

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.

Washington Mutual, once one of the largest residential mortgage lenders will stop originating mortgage loans through independent mortgage brokers due to the ongoing mortgage crisis. However, WAMU will still originate mortgage loans through its retail bank branches.

What steps is the 6th largest mortgage lender in America taking to clean up the beaten and battered mortgage industry?